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Revenues of Georgian Silknet mobile operator down

ICT Materials 15 April 2021 13:46 (UTC +04:00)
Revenues of Georgian Silknet mobile operator down

BAKU, Azerbaijan, April 15

Tamilla Mammadova – Trend:

Overall revenue of Georgian mobile operator Silknet was down 1.3 percent year-on-year to 382.2 million lari ($111.9 million) in 2020, while commercial revenue (91 percent of total) posted a marginal 0.4 percent year-on-year growth to 347.6 million lari or $111.8 million, Trend reports via the investment company Galt & Taggart.

As reported, notably strong performance in 1Q2020 (+8.2 percent year-on-year) compensated for the declines in the following quarters. Revenue from carrier services (34.6 million lari/($10.1 million)) dropped further, by 15.6 percent year-on-year in 2020, mostly due to lower roaming revenues and lower income from interconnection service.

Although, compared to other sectors, telecom industry showed resilience during COVID-19, Silknet’s major business segments came under pressure in 2020.

Overall, revenue from mobile segment was up 0.3 percent year-on-year to 183.4 million lari ($53.7 million) in 2020. Revenue from fixed services posted a marginal 0.5 percent year-on-year growth to 164.2 million lari ($48.1 million), while carrier service revenues continued decline in 2020, down 15.6 percent year-on-year to 34.6 million lari ($10.1 million).

"Notably, due to accumulation of net loss in 2020, the company’s equity turned negative in 2020, standing at -59.3 million lari ($17.3 million). As the company incurred 46.1 million lari ($13.5 million) net loss in 2019 and 87.2 million lari ($25.5 million) net loss in 2020, the company will not be able to distribute dividends in the medium term," the report said.

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