Pursuant to the provisions of the Rules of the Ljubljana Stock Exchange and the applicable legislation, Telekom Slovenije, d.d. herewith publishes the following notification:


At its 45th regular meeting, held on Wednesday, 27th July 2016, the Supervisory Board of Telekom Slovenije, d.d. discussed the business report of the Telekom Slovenije Group and Telekom Slovenije, d.d., for the period January to June 2016.

In the first six months of this year, Telekom Slovenije, d.d. generated the operating revenues of EUR 320.9 million, which is up 2%, and the EBITDA of EUR 91.1 million, up 1%, compared to the first half of last year. The Telekom Slovenije, d.d.'s revenue growth was due to higher revenues from the IT services, as well as broadband and wholesale services.

The Telekom Slovenije Group generated a net sales revenue of EUR 347.8 million, which is down 5% on the same period in 2015. However, the Macedonian One was included in the consolidated half-year results in 2015, therefore the achieved results are not directly comparable. When comparing the net sales revenues, excluding One, the Telekom Slovenije Group made a EUR 10.4 million net revenues, a 3% increase on last year. Also up is the adjusted EBITDA, which, upon the exclusion of One and taking into account the creation of impairments of receivables for T-2 in bankruptcy, amounted to EUR 108.0 million, which is 5% increase on the adjusted EBITDA recorded in the first half of 2015. Without the adjustments the Group's EBITDA reached EUR 105.2 million. Compared to the same period last year the Telekom Slovenije Group’s EBITDA margin at half year was 30.3%, having increased by 3%. The Group's net profit in the first six months amounted to EUR 17.3 million.

In the first half of this year Telekom Slovenije, d.d., issued 5-year bonds in the nominal amount of EUR 100 million, by which the company completed its planned borrowing for 2016, which significantly improved the structure of sources of financing and thus reduced the associated risks considerably.

The announcement will also be available at the company’s website (www.telekom.si) for a period of at least 10 years.