In Slovenia, the competitive environment remained intense in 2020, despite some stabilization signs present at the beginning of the year. The market became calmer following the immediate COVID-19 outbreak, but the promotional activity soon returned to its pre-COVID levels around mid-of the year. A1 Slovenije introduced its new Xplore TV plat-form, together with new propositions in the fixed-line business such as higher speeds, satisfaction guarantee as well as a more-for-more plan. COVID-19 lockdown measures were effective in the country during March and April. Following a rising number of new infections, a country-wide lockdown was enacted again in mid-October 2020 and a pandemic state of emergency was declared.
Later, on January 17, 2021, the government decided to extend the lockdown and the pandemic state of emergency was prolonged for another 60 days. Total revenues declined by 2.1 %, as the solid growth of fixed-line service revenues due to the increased subscriber base and strong demand for cloud solutions only partially mitigated roaming losses and lower equipment revenues. Costs and expenses decreased, due to lower equipment costs, but also due to lower roaming, workforce and advertising expenses. Additionally, cost and expenses were negatively affected by one-off effect of EUR 2.5 mn due to pending proceeding of the national regulation authority. As cost savings were not able to fully offset a decline in total revenues, EBITDA decreased slightly by 0.6 % year-on-year. Depreciation and amortization remained stable and as a result operating profit declined by 1.7 % year-on-year. Excluding the above mentioned one-off effect, EBITDA increased by 1.5 %.
For further information, see Combined Annual Report 2020.