Subscriber base in the Republic of Serbia grows by 42.2% and market share hits 11.5%
Vip mobile, the third largest mobile operator in the Republic of Serbia, grew its subscriber base by 42.2% to 1.1 million customers at the end of September 2009 from 0.8 million customers at the end of September 2008 and had a market share of 11.5% at the end of 3Q 09 compared to 7.9% at the end of 3Q 08.
The penetration rate in the Republic of Serbia stood at 124.6% at the end of 3Q 09 compared to 127.3% at the end of 3Q 08, reflecting the cancellation of inactive customers from the incumbent’s subscriber base.
10% tax on mobile revenues introduced
Since June 2009 mobile operators in the Republic of Serbia have to collect an additional 10% tax on mobile revenues making mobile communication services more expensive, posing a considerable hurdle for the growth of the market.
Revenue growth of 43.7% despite weaker FX
During 3Q 09 Vip mobile increased its revenues by 43.7% to EUR 22.7 million compared to EUR 15. 8 million in 3Q 08, as a result of higher subscription and traffic revenues driven by a larger subscriber base as well as higher usage. Organic growth, excluding the negative impact from weaker foreign currency translation in the amount of EUR 4.6 million, was 73.1%.
Further improvement of EBITDA loss in Republic of Serbia by 57.1%
The negative EBITDA improved by 57.1% to EUR 3.9 million compared to EUR 9.1 million in 3Q 08. The operating loss was EUR 80.6 million in 3Q 09 compared to a loss of EUR 23. 5 million in 3Q 08. The increase in operating loss was the result of the impairment for the license in the amount of EUR 62.0 million. Excluding the impairment, the operating loss improved to EUR 18.6 million in 3Q 09.