Embrace Life. Vipnet

CroatiaIn 2015, considerable regulatory pressure in the form of reduced mobile termination rates as well as the threefold increase in frequency usage fees in June 2014 had an effect on the operating development in Croatia. In contrast, the economic environment and the competitive situation showed initial signs of easing. Mobile tariffs introduced at the end of March 2015, focusing on LTE and data monetisation, had a noticeably positive effect on revenues in the year under review. Trends in the fixed-line business remained encouraging on the back of the sales focus on broadband and TV services. The fixed-line business was further strengthened thanks to the acquisition of Amis Croatia, which has been consolidated since 1 September 2015.

The total number of mobile communications customers remained mostly stable at around 1.7 million in the year under review. The proportion of contract customers increased to 48.2% over the course of the year (2014: 46.8%). In 2015, the market share remained unchanged at 36.0%. In the fixed-line business, there was a rise in fixed access lines by 28.9% to 283,400, resulting from both organic growth and the purchase of Amis Croatia. Broadband lines even soared by 47.2% to around 200,200 in the year under review, while the number of TV customers rose by 12.5% to around 188,700. With Amis Croatia, 24,300 fixed lines, the majority of them broadband lines, as well as 9,100 TV customers were added.

In the year under review, Vipnet reported a decline in revenues of 1.8% to EUR 371.3 mn that was nearly exclusively attributable to lower revenues from the sale of handsets and lower interconnection revenues. While the former was driven by lower handset subsidies, the latter was caused by mobile termination rate cuts in January 2015. Most notably, there was a rise in revenues from monthly fee and traffic revenues that was predominantly based on higher fixed-line services and partially mitigated the declines described above.

Average monthly revenue per mobile user (ARPU) rose from EUR 11.1 to EUR 11.3, whereas particularly prepaid ARPU went up. Average monthly revenue per fixed-line (ARPL) increased to EUR 22.0 (2014: EUR 21.4) due to the upselling of fixed-line customers. In total, revenues from ARPU relevant revenues declined by 1.5%; ARPL relevant revenues climbed by 21.9%.