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Republic of Serbia
Vip mobile Republic of Serbia
In the segment Republic of Serbia, vip mobile faces a highly competitive mobile market. The
company successfully introduced flat tariffs in 2017, and the resulting increase in postpaid subscribers continued in the year under review. Trends were also supported by the high demand for mobile WiFi routers. Since the first half of the year, the competition has also launched flat tariffs, and one competitor introduced a premium price-plan with an unlimited data proposition. Another factor on the competitive landscape is the shift toward more attractive devices with higher subsidies. Termination rates were cut in January 2018.
Total revenue growth in the Serbia segment was attributable to the higher mobile service revenues resulting from the increasing proportion of mobile subscribers in the new tariff portfolio and growth in mobile WiFi routers. In addition, other operating income included a positive one-off effect of EUR 3.8 mn in 2017.
Total costs and expenses rose, driven mainly by higher costs for equipment and higher salesforce costs. The increase in costs for equipment was due to higher quantities as a result of intensive advertising campaigns.
Excluding one-off effects, EBITDA rose by 24.1 % year-on-year (reported: +22.5 %), as the rise in mobile service revenues more than compensated for the lower equipment margins and the higher salesforce costs. Together with somewhat lower depreciation and amortization than in the previous year, this resulted in positive operating
income of EUR 4.1 mn (2017: EUR –6.8 mn) in the year under review.
As there have been no M&A transactions in the Republic of Serbia between the beginning of the comparison period and the end of the period under review, the previous analysis is based on reported figures.
