"Telekom Srbije" expects profit in amount of 21.4 billion RSD

"Telekom Srbije" has announced that it plans to increase gross profit in 2008 by 42%, that is, to increase profit to 21.4 billion RSD. According to the budget of the company for year 2008, the expected income amounts to 87.5 billion RSD, which is 11% more than in 2007.

The projected operative income amounts to 84.9 billion RSD on the basis of 3 million landline telephony subscribers and 5.85m mobile telephony subscribers. The plan is that 58% of incomes come from the landline telephony.

Total expenses of "Telekom Srbije" for year 2008, on the basis of the budget adopted by the Administrative Board, will amount to 66.1 billion RSD, which is 3% more than in 2007. The expenses of landline telephony will be 19% larger, while the mobile telephony will cut expenses by 26%.

"Telekom Svet", the company’s newspaper, announces that the expenses of interconnection with mobile operators Telenor and Vip grew the most, and that the most significant reduction of expenses will take place in the sale of mobile telephones and in marketing sector. The budget anticipates total investments in amount of 25.44 billion RSD, which is 6% less than in 2007.

Of that amount, 17.3 billion RSD are set aside for the landline telephony and installation of 194,378 digital lines, whereas the investments in development of Internet network will reach amount of 1.3 billion RSD, which is 30% more than in 2007.