Makedonski Telekom Skopje : Operational results of Makedonski Telekom for the first six months of 2017

• Leading position on the fixed voice services market with a 59.1% market share
• Net profit increase of 136% and amounted to MKD 611 million
• 6.6% growth in the IPTV segment and 112 thousand customers

Makedonski Telekom AD - Skopje maintained the leading position on the fixed voice services market in the first six months of 2017, show the unaudited financial statements as per the International Financial Reporting Standards (IFRS).

The sales revenues in the first six months of 2017 amounted to MKD 4.967 million, which is a decrease of 2.4% compared to the same period of the previous year.

The net profit for the first six months of 2017 increased by 136% compared to the same period of the previous year, which resulted in net profit of MKD 611 million.

At the end of the first six months Makedonski Telekom had a market share of 59.1% in the fixed line segment and a market share of 46.5% in the broadband internet segment (internal estimate). Despite the fixed voice revenue drop of 11.8% compared to the same period of 2016, with 212 thousand customers Makedonski Telekom maintained the leading position on the fixed voice services market.

The revenues from retail internet and digital television via Internet protocol ('IPTV') at the end of the first six months of 2017 increased by 1.9% compared to the same period of the previous year. The DSL customer base recorded a slight increase of 0.5% compared to the same period of the previous year and amounted to 189.6 thousand customers of broadband internet.

In the first six months of 2017 Makedonski Telekom had good results in the digital television, i.e. the IPTV service. The number of customers is constantly increasing which resulted in an IPTV customer base of 112.4 thousand at the end of the first six months, which is 6.6% increase compared to the same period of 2016, and as a result Makedonski Telekom has a share of 26.9% of the total TV market (internal estimate).

The company has a share of 48.6% on the mobile telephony market (internal estimate). The mobile voice service revenues at the end of the first six months of 2017 decreased by 3.5% compared to the same period of the previous year, mainly as a result of the decreased prices of the national incoming mobile termination traffic, combined with the increased traffic volume, as well as the lower volume of international incoming termination traffic, which is compensated with the increase of the post-paid revenues. The revenues from non-voice services increased by 27.2% compared to the same period of the previous year, as a result of the increased mobile internet revenues, the increased data traffic and the increased use of data tariff models.