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Total revenues of Georgian largest telecom operator Silknet grow

Finance Materials 6 July 2020 14:58 (UTC +04:00)
Total revenues of Georgian largest telecom operator Silknet grow

BAKU, Azerbaijan, July 6

By Tamilla Mammadova – Trend:

Total revenue of Silknet, one of the largest telecom operators in Georgia, amounted to 387.2 million lari ($127.5 million) in 2019, which is 12.44 percent more than in 2018, Trend reports referring to Silknet.

This growth is mainly attributed to the fact that Silknet acquired Geocell in the first quarter of 2018, the company said.

In addition, the growth is also associated with an increase in revenues from fixed Internet, pay television and mobile Internet.

In certain areas, the total income of the company is distributed as follows:

Type of services

Amount

Change year-on-year

Outgoing calls

105.83 million lari ($34.8 million)

increase of 26.50 percent

Fixed Internet

94.32 million lari ($31.06 million)

increase of 13.32 percent

Mobile Internet

57.91 million lari ($19.07 million)

increase of 42.70 percent

Pay TV

43.01 million lari ($14.16 million)

increase of 19.40 percent

Fixed telephone

19.55 million lari ($66.4 million)

decrease of 12.61 percent

Income from SMS

12.69 million lari ($4.1 million)

increase of 33.56 percent

Income from other services

7.36 million lari ($2.4 million)

increase of 2.55 percent

Income from the sale of telephones and telephone accessories

2.28 million lari ($750,918)

decrease of 12 percent

Wireless telephone service

1.09 million lari ($358,991)

decrease of 57.01 percent

Infrastructure rental services

2.06 million lari ($678,461)

increase of 16.58 percent

Income from roaming

6.78 million lari ($2.2 million)

increase of 6.48 percent

Wholesale Internet

2.06 million lari ($678,461)

increase of 11.71 percent

In terms of costs, Silknet's main operating expenses were depreciation and amortization, which amounted to 111 million lari ($36.5 million) in 2019. The financial costs of the company amounted to 104 million lari ($34.2 million), and due to the difference in the exchange rate, the company suffered losses in the amount of 34 million lari ($11.1 million).

Silknet's total loss last year was 46 million lari ($15.1 million).

The largest investment in Silknet over the past two years has been the acquisition of Geocell. The deal amounted to $151 million.

“Despite the high competition in the telecommunications market, the group’s commercial revenue increased by 20 percent compared to the previous year,” the report said.

On April 2, 2019, the company successfully completed the issue of unsecured bonds in the amount of $200 million on the Euronext Dublin Exchange. The maturity date of Eurobonds is 5 years.

As of December 31, 2019, the group’s mobile network had 1,734 million subscribers and occupied 35 percent of the market. Revenues from mobile services amounted to 42 percent of the group’s total revenue.

In the reporting period, Silknet had 288,000 fixed Internet subscribers, which amounted to 31 percent of the total market. The share of fixed Internet in the total revenue of the group in 2019 was 24 percent.

As of December 31, 2019, Silknet had 222,000 pay-TV subscribers, which amounted to 33 percent of the market. Revenues from this service amounted to 11 percent of the group’s total income.

By the end of 2019, Silknet had 264,000 fixed-line telephony subscribers, accounting for 53 percent of the market share. The share of revenues from fixed telephony services in the group’s total revenue was 5 percent.

The total assets of the company at the end of 2019 amounted to 837.38 million lari ($275.7 million).

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