BTC REPORTS DECLINE IN PROFITS AND REVENUES

The Bulgarian Telecommunications Company (BTC), which does business under the Vivacom brand, has recorded a more than threefold decline in profits and a 30 per cent drop in revenues for the first nine months of 2011 compared to the same period in 2010, the company's consolidated report shows.

At the end of September, BTC registered profits of 24.6 million leva against 106.7 million leva a year ago. Operating revenue for the January-September period under report was almost 30 per cent lower at 667 million leva. The company attributed the decline mostly to "decreased revenues from fixed services, reduced retail prices and discontinued operations."

According to the financial report, the steep drop in profit resulted from a slower rate of cost reductions relative to the pace of revenue decline. BTC's costs to March fell by 14 per cent but revenues did so at a faster rate.

When the company published its results, it announced that third-quarter revenue from mobile services had climbed six per cent on the year. Revenue attributable to subscription fees, which account for most of the group total, slipped 1.5 per cent to 83.55 million leva.  

The consolidated and the quarterly reports show that BTC had long-term bank debts of 782 million leva as of September 30 2011.

The company also registered a drop in revenues from outgoing traffic, leased lines and data transmission although it made more money from the business dealing with interconnection lines. According to BTC's management, revenues from fixed telephony services are sliding but this is partially compensated by mobile, radio and television broadcasting services.