- Revenues increased by 19.5% to EUR 145.1 million
- EBITDA increased by 15.2% to EUR 55.4 million
- Average subscriber revenue (ARPU) increased by 9.8% to EUR 6.4 and average fixed line revenue (ARPL) by 8.0% to EUR 14.5
A1 continues to grow in its financial indicators in the second quarter of 2021. Revenues from mobile and fixed services increased by 9.1% to EUR 108.0 million compared to the same period in 2020, and total revenues increased by 19.5% to EUR 145.1 million. Profit before taxes, fees, interest and depreciation (EBITDA) amounted to EUR 55.4 million, registering an increase of 15.2% on an annual basis. The increase in revenues from services is due to the continuing positive trend in the mobile and fixed segment and in sales of devices.
In the second quarter of the year, A1 won the tender for the 3,600 MHz band and continued to invest in a European supplier’s 5G equipment to build a true 5G gigabit network in over 75 cities and resorts in the country. Telecom has also launched fully consumer-oriented mobile plans that allow customers to choose which digital services to use.
This contributed to the good results in the mobile segment of the company, where there is a higher demand for premium mobile plans and digital services. As a result, revenue from mobile services increased by 8.2% in the second quarter to EUR 71.9 million, while average subscriber revenue (ARPU) increased by 9.8% to EUR 6.4.
The fixed services segment, which also includes the company’s digital ICT and IoT solutions, registered revenue growth of 10.9%, reaching 36.1 million euros for the quarter compared to the same period in 2020. The main reasons for this are the high-speed internet services and the exclusive sports content of the MAX Sport channels. As a result, the average revenue from the fixed line (ARPL) continues to grow on an annual basis – 8.0% to 14.5 euros, and the number of fixed services increased by 2.3% to 1,099.7 million.
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The company continues its development in the market of ICT business services, where there is an increase in the number of customers and a growing demand for cybersecurity solutions, ERP systems and other digital solutions.
|
(in EUR million) |
Q2 2021 |
Q2 2020 |
Q2 +/- % |
H1 2021 |
H1 2020 |
H1 +/-% |
|
Income |
145.1 |
121.5 |
19.5% |
277.3 |
249.0 |
11.3% |
|
Revenues from services |
108.0 |
99.0 |
9.1% |
213.9 |
197.7 |
8.2% |
|
Revenues from mobile services |
71.9 |
66.5 |
8.2% |
142.7 |
133.1 |
7.2% |
|
Revenues from fixed services |
36.1 |
32.6 |
10.9% |
71.2 |
64.7 |
10.1% |
|
Revenue from equipment |
36.0 |
21.0 |
71.7% |
61.1 |
49.0 |
24.6% |
|
Other incomes |
1.1 |
1.4 |
-26.6% |
2.3 |
2.2 |
0.9% |
|
Profit (EBITDA) |
55.4 |
48.1 |
15.2% |
111.0 |
94.0 |
18.1% |
|
Average Subscriber Revenue (ARPU) |
6.4 |
5.9 |
9.8% |
6.4 |
5.8 |
9.2% |
|
Average Fixed Line Revenue (ARPL) |
14.5 |
13.4 |
8.0% |
14.4 |
13.4 |
7.3% |
|
Mobile customers (thousands) |
3,737.1 |
3,758.5 |
-0.6% |
3,737.1 |
3,758.5 |
-0.6% |
|
Number of fixed services (in thousands) |
1,099.7 |
1,074.9 |
2.3% |
1,099.7 |
1,074.9 |
2.3% |
First half of 2021
In the first half of 2021, total revenues increased by 11.3% and reached 277.3 million euros, and revenues from services increased by 8.2% to 213.9 million euros due to the growth of fixed and mobile services as well as good device sales. The good results that the fixed services have been reporting since the beginning of the year are a result of the ICT solutions for the corporate segment, the strong demand for high-speed internet and the additional exclusive sports content that A1 offers. For the same period, the company’s mobile services reported good results in both segments – corporate and private customers – following a positive trend in average subscriber revenue, due to high demand for home Internet on a mobile network, premium mobile plans and the launch of 5G technology. .
The company’s expenses in the first half of 2021 increased due to an increase in the cost of sales of goods and equipment. All other costs are relatively stable with minimal growth compared to last year, mainly due to the development of ICT services and increased investment in employees. As a result of these factors, A1 recorded a solid growth in profit before taxes, fees, interest and depreciation (EBITDA) of 18.1% to EUR 111.0 million for the first six months of the year.
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The material is provided by A1 Bulgaria.
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