In the year under review, the Slovenian telecommunications market was still characterized by fierce competition in the mobile market, with a focus on convergent tariffs with high discounts and competitive mobile tariffs including high data allowances. In order to meet these challenges, A1 Slovenia introduced simplified price plans in the mobile segment and included the use of certain services such as music and chat apps, which can be used without consuming data.
However, price increases were also implemented in the mobile and fixed-line business, some of which also applied to existing customers. The price increases were partly due to the higher content costs.
In the Slovenia segment, total revenues fell as a result of lower mobile service revenues, while equipment revenues increased. The latter were attributable to more expensive devices and higher quantities. Total costs and expenses increased slightly, driven by higher equipment and interconnection costs while advertising costs and roaming costs decreased. The lower mobile service revenues and higher costs and expenses resulted in an overall decline in EBITDA of 6.1 %. Despite the lower depreciation and amortization, operating income declined by 15.2 % year-on-year.
As there have been no M&A transactions in Slovenia between the beginning of the comparison period and the end of the period under review, the previous analysis is based on reported figures.