Telekom Slovenije dd : The Telekom Slovenije Group Results in the First Quarter of 2017

Pursuant to the first paragraph of Article 17 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC, Article 136 of the Financial Instruments Market Act (ZTFI), the Ljubljana Stock Exchange Rules and valid legislation, Telekom Slovenije, d.d., Cigaletova 15, Ljubljana, hereby publishes the following message:

At its 1st meeting held on Wednesday, 10 May 2017, 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 March 2017.

In the first three months the Telekom Slovenije Group generated € 179.9 million net sales revenue, which is a 2% or € 4.3 million increase relative to the same period las year. The net sales revenue of the Telekom Slovenije, d.d. company was also up 2% to stand at EUR 164.1 thousand. Net sales revenue was higher primarily due to higher revenues on the wholesale market, and higher revenues from broadband and IT services. The Telekom Slovenije Group's operating revenues totalled EUR 181.3 million, an increase of 2% on the first quarter 2016. The Telekom Slovenije Group is thus successfully implementing its adopted Strategic Business Plan in the 2017. According to the plan, the majority of investments are being earmarked for the modernisation and development of broadband fibre optic networks and fourth-generation mobile networks, through which the company is creating a platform to attract new subscribers and secure new revenue sources. In the first quarter the Telekom Slovenije Group earmarked EUR 36.2 million for investments.

The Telekom Slovenije Group generated a net profit of EUR 9.7 million during of 2017, an increase of EUR 1 million or 12% on the same period last year. The EBITDA amounted to EUR 50.8 million, a decrease of 3% relative to the same period last year.

Through investment in the network expansion and upgrade the Telekom Slovenije Group increased the number of broadband and IPTV connections, which is one of its key strategic policies. Telekom Slovenije thus achieved a 5% annual increase in the number of broadband connections. In the Southeast Europe markets the number of mobile connections was up 7%.

The publication will be also available at the website of Telekom Slovenije, d.d. (www.telekom.si), for at least 10 years following this publication.

Management Board of Telekom Slovenije, d.d.