The mobile market in Serbia was shaped by the strong demand for unlimited voice and SMS tariffs with flat data allowances, while the popularity of mobile Wi-Fi routers remained strong throughout the year. Total revenues increased by 9.7 %, attributable to higher mobile service revenues as a result of the growing contract subscriber base, which led to increased monthly fees, as well as to higher equipment revenues due to higher quantities sold. Interconnection revenues increased as a result of unlimited voice tariffs introduced by competitors and consequently higher traffic. Workforce costs grew due to the higher number of FTEs and higher bonuses. Altogether, EBITDA grew by 18.8 % while almost unchanged depreciation and amortization expenses compared to the previous year led to 86.0 % higher operating income.
With the introduction of a regional retail roaming agreement for the Western Balkan countries, roaming rates have been cut as of July 1, 2019, which negatively impacted revenues in Serbia and North Macedonia to a limited extent. Roaming rates are expected to be abolished entirely by July 1, 2021.