Slovenia's Telekom H1 net profit down by 2 pct (updated)

Telekom Slovenije, D.d

21/08/2014 09:19

* Sales down by 3 pct 
    * Full-year profit seen at 63 mln euros 
 
 (Adds details, quote, background) 
    LJUBLJANA, Aug 21 (Reuters) - Slovenia's largest telecoms 
operator, Telekom Slovenia  TLSG.LJ , posted a group net profit 
of 31 million euros for  the first half of 2014, down 2 percent 
from a year earlier amid tougher competition. 
    The state-owned company, which is set for privatisation, 
said sales fell 3 percent to 384.9 million euros. 
    Telekom also said it expected net profit of 63 million euros 
in the whole of 2014, up from 52.3 million euros in 2013. It 
said profit should rise on account of optimisation of the sales 
network and development of new products. 
    "Conditions in the area of regulation on the markets of 
fixed and mobile telecommunications remain uncertain... Among 
market risks and risks linked to the competition, the risk of 
the migration of business and residential users to the networks 
of competitors remains elevated," Telekom said in a statement. 
    "Competition-market risks are managed by adapting the range 
of products and services, and by carrying out activities to 
promote sales and maintain existing subscribers. A great deal of 
attention is given to improving user support processes," it 
added. 
    Slovenia expects binding bids for Telekom in October. 
Sources close to the deal told Reuters in July telecom firms 
Deutsche Telekom  DTEGn.DE  and Turkcell  TCELL.IS  and 
investment companies CVC  CVC.UL , Cinven  CINV.UL , Providence 
and Apax could be interested in purchasing Telekom which has 
market capitalisation of some 866 million euros. 
 
 (Reporting by Marja Novak; Editing by Michael Urquhart) 
 ((Marja.Novak@thomsonreuters.com; +386-205-6369; Reuters 
Messaging: marja.novak.thomsonreuters.com@reuters.net)) 
 
Keywords: SLOVENIA TELEKOM/