At its 26th regular meeting, which took place on Wednesday, 25 February 2015, the Telekom Slovenije Supervisory Board reviewed Unaudited Business Report of the Telekom Slovenije Group and Telekom Slovenije, d.d., for 2014.

In 2014 Telekom Slovenije Group faced harsher macroeconomic conditions in the markets where it operates, and lower revenue from mobile voice services because of switching to new mobile plans, which bring more benefits to the users, however still managed to generate a total of EUR 756.5 million in net revenue, which is three percent lower than in 2013. EBITDA reached EUR 170 million, which means an EBITDA margin of 22.5%, and because of one-off events which had an impact on Telekom Slovenije Group’s financial results, while representing a solid foundation for its future operations, Telekom Slovenije Group generated a net profit of EUR 1.6 million.

One-off events that affected Telekom Slovenije Group’s results in 2014 were:

• A total of EUR 43.6 million in additional provisions was set aside;
• In the scope of consolidation of operations in the Macedonian market Telekom Slovenije reached an agreement with Telekom Austria Group on the merger of their operators in this market, however the completion of all related activities, which was planned for 2014, was moved to 2015, because of the demanding procedures, and the time required for obtaining the approval of the Macedonian market regulating authority;
• Telekom Slovenije and Si.mobil have signed an Agreement on Settling Mutual Relations with which they settled all the open issues between the companies, and defined the conditions for their future business collaboration. This Agreement is a significant step towards lowering the risk from claims, which additionally increases the value of the company for its owners;
• Telekom Slovenije sold its 50% share in Gibtelecom. The company has assessed that the financial investment in Gibtelecom was sold off at its peak value, as future changes to regulation at the European Union level, and the required constant investments in telecommunication infrastructure will have an impact on Gibtelecom’s future operations;
• Consolidation activities in the market of Bosnia and Herzegovina were not completed in 2014.

For 2015 Telekom Slovenije Group is planning a net operating profit of EUR 66 million, with EBITDA of EUR 198 million, and up to EUR 107 million in investments.

The announcement will also be available on the company’s website (www.telekom.si) for a period of at least 5 years.