In North Macedonia, all market participants focused on customer retention and upselling in 2020. Promotional activities focused on online sales channels following publicly restricted working hours amidst the COVID-19 outbreak, addressing mainly prepaid customers as well as the business segment. The latter was addressed with attractive data packages, office products and higher subsidies.
A1 used the opportunity to launch its digital products like A1 live shop and SMS bill. Since December 18, new lockdown measures have been in effect in the country. The government banned all public gatherings and celebrations, ordered restricted working hours for bars and restaurants and announced nationwide state of emergency until June 2021. Total revenues declined by 0.7 % in the reporting period, driven by lower fixed-line service revenues and lower other operating income. Mobile service revenues remained stable (+0.1 %) as roaming losses were compensated by solid sales of mobile WiFi routers, which were formerly reported as fixed-line RGUs until Q1 2019 before a new product logic was implemented. Costs and expenses decreased slightly, driven by lower advertising and lower commission expenses, which could not compensate for the lower revenues and led to 1.6 % lower EBITDA. As depreciation and amortization expenses decreased, operating profit grew by 11.5 % in the year under review.
For further information, see Combined Annual Report 2020.