Republic of North Macedonia

one.Vip Republic of North Macedonia

Vip operator

In the 2018 financial year, market players in the Macedonia segment focused mainly on customer retention and upselling existing customers. In the mobile as well as the fixed-line markets, customers are still leaning toward multiple-play offers rather than maintaining multiple single-play subscriptions. The number of revenue generating units (RGU) showed a strong increase. In the mobile business, the shift from prepaid to postpaid subscribers continued. As of the end of March
2018, one.Vip increased the data volume in its mobile tariffs to meet customer demands.

Total revenue growth in the Macedonia segment was driven mainly by higher mobile service revenues, which continued to be supported by upselling measures to higher tariffs. Although the synergy effects from the merger into one.Vip are diminishing, the costs and expenses fell slightly year-on-year. This was due mainly to lower bad
debts. Altogether, this led to EBITDA growth of 14.1 % (excluding minor one-off effects). Depreciation and amortization declined year-on-year due to the end of amortization of licenses in 2017 de-spite brand value amortization in the amount of EUR 2.9 mn (2017: EUR 1.7 mn). Overall, operating income improved from negative EUR 6.0 mn in 2017 to positive EUR 9.3 mn in 2018.

As there have been no M&A transactions in the Republic of Macedonia between the beginning of the compari­son period and the end of the period under review, the previous analysis is based on reported figures.