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CORRECTION: Telekom Slovenije Q1 net profit up 48% to EUR 12.1m

Please note that shareholders will not be deciding on a proposal for EUR 40.3 million to be paid on in dividends but on a proposal for the remaining EUR 26.2 million in distributable profit to be allocated to other reserves or carried forward to future years.Ljubljana, 14 May (STA) - The Telekom Slovenije group generated EUR 169.1 million in sales revenue in the first quarter, up 4% compared to the same period last year. The higher revenue was primarily due to the growth in the number of users and increased sales of IT goods and services. The group's net profit was EUR 12.1 million, up 48%, show results released on Tuesday.

The national telco said that operating profit at the beginning of the year had increased by 31% to EUR 18.3 million, and earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 10% to EUR 59.7 million. The EBITDA margin at the group level represents 35.3% of sales revenue.

At the end of March, the group had 5% or 83,991 more mobile retail users compared to the same period last year, and 2% more fixed retail broadband connections.

Revenue was also higher due to strong sales of IT goods and services, and there was an increase in revenue from financial services, eHealth, insurance, and the wholesale market.

The core company generated EUR 148.2 million in operating revenue in the first quarter, a 3% increase year-on-year, while the group's operating revenue exceeded EUR 170 million. The parent company's operating profit increased by 27%, EBITDA by 8%, and net profit by 54% to EUR 7.9 million.

The Kosovo subsidiary Ipko also improved its results at the beginning of the year. Operating revenue increased by 11%, EBITDA by 15%, operating profit by 35%, and net profit by 64% to EUR 5.6 million.

At the end of March, the Telekom Slovenije group employed 3,269 people, with 2,065 employed by the parent company, led by Boštjan Košak.

Along with announcing its business results, Telekom Slovenije called a general meeting for 17 June. The agenda includes a decision on the use of the remained of last year's distributable profit, which reached EUR 66.5 million.

While shareholders had already decided in February to earmark EUR 40.3 million for dividend payments, with the first tranche paid on 22 March and the second tranche on 23 August, management now proposes not to distribute the remaining EUR 26.2 million and to allocate it to other reserves or carry it forward to future years.

Shareholders, including the state, which directly owns a 62.54% stake, will also appoint a new supervisory board member or confirm the proposal to reappoint Aleksander Igličar for another term.

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