Romtelecom posted revenues of EUR71 million in 2010 from internet services, up 5% on the preceding year, while its client base rose by 23%, to one million users. The company managed to boost its revenues from TV services by 18%, to EUR62 million, even higher than the increase in client numbers, of 15.7% to just over one million subscribers.
Cumulated, television, internet and data services generated EUR194 million, a lot lower than telephony revenues of EUR358.5 million. Romtelecom’s voice services revenues last year fell faster (by 16%) than the decline in the number of voice clients, which was down 6%.
The auditor’s report also provides previously unreleased information on the acquisitions made on the telecom market by the cable operator controlled by Romtelecom, NextGen. According to data in the report, Romtelecom bought in two transactions several cable companies of New Com Telecomunicatii, with the overall sum amounting to nearly EUR15 million, in line with market estimates at the time.
New Com had been created through the acquisition and integration of over 50 telecom companies and had reached 130,000 clients, but amid difficult access to funding, the company sold its entire client base to RCS&RDS and Romtelecom.
According to the auditor’s report, Romtelecom also made other acquisitions in 2010, amounting to RON35 million (EUR8.2 million).
Acquisitions contributed RON17 million (EUR3.9 million) to the revenues and RON7 million (EUR1.6 million) to the company’s pretax profit.
Last year, Romtelecom saw its IT&C services revenues skyrocket, reaching close to EUR6 million, which compares with less than EUR200,000 a year before.
Data from the E&Y report show Romtelecom cut advertising spending by 17% in 2010, to EUR16.4 million. (EUR1=4.2609)
(English version by Daniela Stoican; Editing by Radu Bostan)