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4. PERFORMANCE
4.1. Effective
Fixed voice
We are the incumbent fixed voice operator in Bulgaria
with a leading market share of 82% by revenue as at
December 31, 2018.
Our total fixed voice subscribers decreased by 14.5%
to 689 thousand as at December 31, 2018, from 806
thousand as at December 31, 2017. The decrease in
fixed voice subscribers was primarily due to the strong
price competition surrounding fixed voice services,
where such services are being offered as a low price
addition to our competitors’ mobile, fixed broadband
and pay-TV services, as well as the ongoing fixed-to-
mobile substitution.
As at December 31, 2018 VIVACOM is the largest fixed
broadbandoperatorwith27%subscribermarket share . Our
total fixed broadband subscribers increased by 2.8% to 444
thousand as at December 31, 2018, from 432 thousand as
at December 31, 2017. The growthwas mainly due to higher
fiber-optic connections driven by the growing demand for
high speed bandwidth capacity and reliable high-speed
broadband service.
Our ongoing fiber-optic network build-out enables us
to benefit from the well-established trend of shifting to
high-speed broadband technologies. In 2018, we achieved
significant progress in the fibre-optic network expansion,
with 1 182 thousand homes covered nationwide as at
December 31, 2018.
Pay-TV
Our pay-TV subscribers increased by 4.8% to 468 thousand
as at December 31, 2018, from 447 thousand as at Decem-
ber 31, 2017. This was mainly due to the increased demand
for high quality interactive services with a high level of cus-
tomer service and rich content to meet customer prefer-
ences. As at December 31, 2018 VIVACOM is positioned as
the leading IPTV operator with 50% market share
3
.
Fixed broadband
4.1.1.
Financial Results
36%
38%
Financial performance indicators
Non-financial performance indicators
Mobile
We are currently the third largest mobile operator in Bul-
garia, based on number of subscribers, with 3,071 million
subscribers as at December 31, 2018, a decrease of 2.0%
from3.133million subscribers as at December 31, 2017. Our
revenue market share on the mobile services market has
reached 30% for the year ended December 31, 2018 .
We attribute the decline inmobile customer base to the ef-
fect of mandatory registration and subsequent clearance
of the pre-paid base. As a result, 89% of our customer base
consists of post-paid subscribers as at December 31, 2018.
Total revenue (BGN m)
Adj. EBITBA (BGN m), % margin
Fixed voice subscribers ('000s)
Fixed broadband subscribers ('000s)
FTTx households passed ('000s)
Pay-TV subscribers ('000s)
Mobile subscribers ('000s)
_______
1
Source: Company data, Telekom Austria reports, Telenor reports
2
Source: Analysys Mason’s Telecoms Market Matrix and European Core Forecasts
3
Source: Analysys Mason’s Telecoms Market Matrix and European Core Forecasts
We are the leading telecommunications operator in
Bulgaria, based on total revenue for a sixth consecutive
year. We are a fully integrated operator that provides
mobile and fixed telephony, fixed broadband and pay-
TV services nationwide to both residential and business
customers. For the year ended December 31, 2018, we
generated total consolidated revenue of BGN 948.0
million and had consolidated Adjusted EBITDA of BGN
359.8 million.
In 2018, total revenue of the group grew by 6.6% year-
on-year driven by consistent increase in mobile, pay-TV
services and fixed broadband services.
Despite the highly competitive environment in the telecom
market, VIVACOM keeps its leading position thanks to the
strength of our customer value proposition, our strong
brand and the breadth of our product and service offerings
which caters to a broad set of customer preferences and
usage profiles.
2018
2018
2018
2018
2018
2018
2018
2017
890
2018
948
319
2017
360
18
806
2017
689
2018
432
2017
444
2018
1 128
2017
1 182
2018
447
2017
468
2018
3 133
2017
3 071
18
ANNUALREPORT
2018
INTEGRATED
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