In April 2017, Si.mobil was successfully rebranded to A1 Slovenija. The rebranding affects the entire brand presence in Slovenia and strengthens the positioning in the market as a convergent brand. In 2017, the Slovenian telecommunications market was still characterised by the fierce competition in the mobile market with a focus on convergent tariffs with high discounts and tariffs with high data allowances. In order to follow market demand, A1 Slovenija also increased the data volumes included in its packages in September 2017.
In the 2017 financial year, the number of mobile subscribers declined by 1.5 %, as losses in the prepaid segment were only partially offset by an increase in post-paid customers. Total fixed-line revenue-generating units (RGUs) increased by 6.4 % year-on-year, mainly driven by higher demand for IPTV and voice telephony.
Total revenues in Slovenia increased by 0.9% year-on-year, as lower revenues from mobile services were more than offset by increasing equipment revenues and increasing revenues from fixed-line services. Mobile service revenues declined as a result of negative roaming impacts and lower monthly fees due to the enduring highly competitive environment. Equipment revenues rose on the back of higher sales prices due to higher-value handsets. Fixed-line service revenues increased due to price adjustments for TV products as of 1 March 2017 and RGU growth.
Costs and expenses increased by 8.8 % and were primarily driven by higher equipment costs following the shift to highervalue handsets and rising roaming costs. Content costs increased as a result of more TV RGUs and price increases for TV rights, while advertising costs also increased due to the above-mentioned rebranding.
Higher revenues were more than offset by higher costs and expenses in the year under review and resulted in a significant decrease in the EBITDA of 23.2 % year-on-year. Despite the lower depreciation and amortisation, the operating income declined by 47.8% year-on-year.