Posted: 1 month ago

Silknet's Revenue Increased by ₾31 Million Last Year

In 2021, Silknet's revenue increased by ₾31 million, an increase of + 8.2% year on year.

EBITDA increased by 7.6%, while the margin remained largely unchanged.

According to a report by TBC Capital, the increase was mainly driven by a 6.4% annual increase in commercial revenue.

The increased revenue in 2021 was primarily due to improved mobile internet revenue. At the same time, the easing of pandemic-related restrictions and the partial recovery of tourism have had a positive impact on the use of mobile services. The number of mobile service subscribers increased by 3.75% at the end of the same year.

The segmentation of Silknet's commercial revenue shows that mobile remains the largest part of the company's business, accounting for 54.2% of total commercial revenue.

There was also a positive change in the category of fixed internet and pay-TV. The negative trend continues in Silknet fixed telephony revenues with a 13.8% decline in 2021. The gradual decline in revenue in this category of services is a result of the increased penetration of mobile phones.

It is noteworthy that a slight decrease in market share was observed in mobile and fixed internet, while the market share of the category of pay TVs in 2021 experienced a slight increase.

As TBC Capital notes in its study, Eurobonds remain high-yielding. Both the refinanced and the new Silknet Eurobond are quite high-yielding, which makes it an attractive investment.