Mobile Communications
The mobile communications segment comprises all activities in the mobile communications field.
The Telekom Austria Group provides switched voice telephony in the mobile communications segment as well as VAS such as voicemail, information- and entertainment services on the mobile portal Vodafone live!, m-commerce, mobile Internet access, mobile office solutions, telematics (a combination of location-based services, global-positioning system (GPS) localization and remote control), and the use of up to three mobile phones under the same number, SMS and multimedia messaging services (MMS and video telephony) for private and business customers.
The mobile communication segment is represented by A1 Telekom Austria in Austria, Mobiltel in Bulgaria, Vipnet in Croatia, Si.mobil in Slovenia, mobilkom liechtenstein, Velcom in Belarus, Vip mobile in Serbia and Vip operator in Macedonia.
Developments 2009
- Customer growth of 1.1 million to 18.9 million subscribers
- Data products revenues rose from 25.8% to 28.9%
- Operating costs were reduced by 4.9%
In 2009, the Mobile Communication segment succeeded in increasing or stabilizing its subscriber base in all markets, reporting total growth of 6.4% or 1.1 million to approximately 18.9 million customers.
Business development in 2009 was influenced by continuing intense competition in all markets, the negative effects of the economic recession and currency translation in Belarus and the
Republic of Serbia. The reduction of termination and roaming charges decreed by the regulators also had a negative impact. Despite the operating success made possible by the introduction of innovative products and applications, total revenues declined by 5.5% to EUR 3,205.5 million. On a local currency basis revenues decreased by 2.8%.
The EBITDA of the Mobile Communication segment decreased by 6.0% to EUR 1,246.3 million. Currency translation effects in the amount of EUR 34.8 million also had a negative impact on EBITDA. On a local currency basis, EBITDA declined by 3.3%.
In the 2009 financial year, operating income in the Mobile Communication segment totaled EUR 255.1 million, 62.2% less than in the previous year. However, excluding the impairment charges and on a local currency basis this decline would diminish to 8.8%.