Telekom turned RSD 15.8 billion profit in 2010

Telekom Srbija Director General Branko Radujko stated that Telekom was the most successful Serbian company and that the revenue from the company's profit to the country's budget in the previous three years amounted to about EUR 130 million.

- We turned record profits in two consecutive years. Last year our profit reached the amount of RSD 15.8 billion. We have less employees, we paid EUR 160 million worth of dividends to shareholders and kept the market share at the same level as before the crisis - Mr. Radujko pointed out in an interview for the weekly magazine NIN. He stressed that the company's revenues had grown by 20% and the operational profit by 40% over the previous three years and that over EUR 530 million had been invested in the infrastructure and equipment in Serbia in that period. Mr. Radujko specified that the share of landline telephony in Telekom's revenue structure amounted to 50%, the share of mobile telephony was between 42 and 43%, while the rest belonged to the Internet and multimedia.

The Telekom Director General said that the sale of that company was uncertain because the process was complicated and it did not depend only on the company's good results. Potential buyers are also analyzing exchange rate, consumer power and situation in the financial market.

- It is hard to estimate the outcome of the process - Radujko said for NIN and added that the sale was accompanied by numerous difficulties.

Mr. Radujko also stated that, in spite of dramatic exchange rate differences, drop in consumer power and loss of the market share in Kosovo and Metohia, the company's debt had almost be cut in half. - From a company with huge debts, we have become a company with relatively small debts. When I assumed this position, the company was to repay EUR 700 million loan for the acquisition of Telekom Srpska. Now that debt amounts to only about EUR 260 million and we are going to completely repay it by the end of 2012 - he specified

- We have recapitalized M:tel, which ended a year with a positive result for the first time since it was founded. Telekom Srpska achieves excellent business results, which is an example of good privatization and a proof of how important the company's listing on the stock exchange is. Our shareholders are very satisfied - he said.

Telekom currently has 9,468 employees and the number of workers, which used to amount to nearly 14,000, has been cut in natural way - through separation of non-core activities and by means of stimulus programmes.

Telekom Srbija a.d. Beograd

M:tel d.o.o. Podgorica

Mtel a.d. Banja Luka

Branko Radujko

M tel

Mtel