VIVACOM reports a more than 17% increase in revenues from mobile services to BGN 327.2 million and an 8% decline in fixed business revenues to BGN 517.6 million in 2011 compared to 2010. This is indicated by the telecom’s financial results for the previous year, posted today.
The steady growth in revenues from mobile services has allowed the operator to reduce the cost of the services provided and to apply lower prices to end customers. This approach resulted in a serious increase of VIVACOM’s customer base for the year by 28%, which offset a significant fall in fixed telephony revenues, and reduced its total revenue for 2011 by only 1.2% to BGN 885.9 million. 4 million customers using its services and continues to be ranked second in the country in total revenue and customers.
VIVACOM’s strongest boom is in the use of mobile data traffic, which has increased more than 10 times in one year, with more than 200% growth in the number of users of data services. The TV subscribers of the company, which for one year managed to position itself as the second largest satellite TV provider in the country, increased by more than 280%.
The net profit for 2011 decreased compared to the previous year and amounted to BGN 8.4 million. The difference is mainly due to discontinued operations, decreased revenues from fixed services and reduced retail prices.
In 2011, VIVACOM finalized the deal with Bluesat Partners Ltd. for the sale of its 50% investment in NURTS Bulgaria AD for BGN 58.7 million. With this transaction, VIVACOM finally transferred the development of the digital infrastructure radio and television network into the hands of NURTS Bulgaria AD, a joint venture between Mancelord Limited, the company , which since August 2010 owns the remaining 50% of the company, and the new investor.
The financial position of the company remains stable with cash in bank accounts and short-term bank deposits in the amount of BGN 142.1 million at the end of the year and dividends paid in the amount of BGN 160.3 million. VIVACOM implements an investment program of BGN 600 million allocated over the next three years for the development of services and expansion of the telecom infrastructure.