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K-Telecom and ArmenTel are the most efficient players on Armenia's
telecom market
by Rating Service of ArmInfo
ARMINFO
Sunday, October 13, 00:49
In 2012 the largest players of Armenia's telecom sector registered a
net profit of 15.1 billion AMD, which is less than half of the
previous year's index.
According to the Ranking of the Largest Retailer and Service Companies
of Armenia prepared by the Agency of Rating Marketing Information
(ArmInfo), K-Telecom (VivaCell-MTS brand) and ArmenTel (BeeLine brand)
were the most efficient players on the market.
K-Telecom recorded the highest ROI (return on interest) - 17.36% -
just as it did in the last four years. In EBITA (earnings before
interest tax and amortization) the company has been in the lead for
three years already. In operating margin it is also the best. Just a
4bln AMD gap between EBITA and EBIT (earnings before interest and tax)
is an indicator of low non-manufacturing costs and consequently high
managerial efficiency. In 2012 the company's operating profit was 22.1
billion AMD or 54.7 million USD. The net profit was 18.2 billion AMD
or 45 million USD, the income 83.1 billion AMD.
ArmenTel was also highly efficient. In 2011 its ROI was 4.53% - just
0.38% less than in 2011 due to 1% drop in undistributed profits amid
7% growth in assets. EBITA grew by 0.83% to 8.99%, operating profit by
0.18% to 12.13% (the level of the last three years). Low
non-manufacturing costs are one more proof of the company's high
efficiency. In 2012 ArmenTel's net operating expenses totaled 14
billion AMD, wherein 40.7% were administrative costs and 34.9% sales
costs. As a result, the net operating profit made up 5.8 billion AMD
or 14.4 million USD. Due to high non-operating revenues, the company
registered a net profit of 5.7 billion AMD or 14.1 million USD, with
the income totaling 63.3 billion AMD.
During the same period Orange-Armenia (Orange brand) and Ucom (Ucom
brand) registered negative ROIs (-17.6% and -1.17%, respectively).
In Orange-Armenia's case, it was due to high 22.8 billion AMD
operating expenses (including 8.8 billion AMD administrative costs)
and consequent 8.6 billion AMD or 21.3 million USD loss. This resulted
in -42.51% EBITA despite substantial 16.8 billion AMD total profit
(5.2 times as much as in 2011) and high 83.14% EBIT. The big gap
between the two indicators is due not so much to prevalence of income
over net cost as to very high operating expenses (this
including sales, administrative and other costs). Still in 2012
Orange-Armenia managed to reduce its 62.3 billion loss by revaluating
43.2 billion AMD's worth of fixed assets. The company's income during
the period was 20.2 billion AMD.
One more big player on the market, Ucom, also reduced its loss in 2012
- by 67.9% to 178 million AMD or 441,000 USD - by increasing its
income by 2.4 times and cutting its sales costs by 34.6%. As a result,
the company registered a net profit of 5.1 billion AMD and an EBIT of
98.54% (3.87% more than in 2011). Despite high 4.2 billion AMD
operating expenses, the company might have finished the year at
profit, were it not for a growth in its financial outlays to some
956.4 million AMD. This resulted in -1.71% operating margin and -3.47%
EBITA (with a 25.35% growth in the latter index). The income of
Orange-Armenia during the period totaled 5.1 billion AMD.
According to ArmInfo's analyst, despite the loss-making activities of
the companies that entered Armenia's telecom market not so long ago,
as a whole, this sector is more efficient than the other sectors of
the Armenian economy due to high prevalence of income over sales
costs: the aggregate income of the four major players of the market
(with the newcomer Rostelecom exclusive) is 171.7 billion AMD, while
their sales costs are just 107.9bln AMD.
From: A. Papazian
telecom market
by Rating Service of ArmInfo
ARMINFO
Sunday, October 13, 00:49
In 2012 the largest players of Armenia's telecom sector registered a
net profit of 15.1 billion AMD, which is less than half of the
previous year's index.
According to the Ranking of the Largest Retailer and Service Companies
of Armenia prepared by the Agency of Rating Marketing Information
(ArmInfo), K-Telecom (VivaCell-MTS brand) and ArmenTel (BeeLine brand)
were the most efficient players on the market.
K-Telecom recorded the highest ROI (return on interest) - 17.36% -
just as it did in the last four years. In EBITA (earnings before
interest tax and amortization) the company has been in the lead for
three years already. In operating margin it is also the best. Just a
4bln AMD gap between EBITA and EBIT (earnings before interest and tax)
is an indicator of low non-manufacturing costs and consequently high
managerial efficiency. In 2012 the company's operating profit was 22.1
billion AMD or 54.7 million USD. The net profit was 18.2 billion AMD
or 45 million USD, the income 83.1 billion AMD.
ArmenTel was also highly efficient. In 2011 its ROI was 4.53% - just
0.38% less than in 2011 due to 1% drop in undistributed profits amid
7% growth in assets. EBITA grew by 0.83% to 8.99%, operating profit by
0.18% to 12.13% (the level of the last three years). Low
non-manufacturing costs are one more proof of the company's high
efficiency. In 2012 ArmenTel's net operating expenses totaled 14
billion AMD, wherein 40.7% were administrative costs and 34.9% sales
costs. As a result, the net operating profit made up 5.8 billion AMD
or 14.4 million USD. Due to high non-operating revenues, the company
registered a net profit of 5.7 billion AMD or 14.1 million USD, with
the income totaling 63.3 billion AMD.
During the same period Orange-Armenia (Orange brand) and Ucom (Ucom
brand) registered negative ROIs (-17.6% and -1.17%, respectively).
In Orange-Armenia's case, it was due to high 22.8 billion AMD
operating expenses (including 8.8 billion AMD administrative costs)
and consequent 8.6 billion AMD or 21.3 million USD loss. This resulted
in -42.51% EBITA despite substantial 16.8 billion AMD total profit
(5.2 times as much as in 2011) and high 83.14% EBIT. The big gap
between the two indicators is due not so much to prevalence of income
over net cost as to very high operating expenses (this
including sales, administrative and other costs). Still in 2012
Orange-Armenia managed to reduce its 62.3 billion loss by revaluating
43.2 billion AMD's worth of fixed assets. The company's income during
the period was 20.2 billion AMD.
One more big player on the market, Ucom, also reduced its loss in 2012
- by 67.9% to 178 million AMD or 441,000 USD - by increasing its
income by 2.4 times and cutting its sales costs by 34.6%. As a result,
the company registered a net profit of 5.1 billion AMD and an EBIT of
98.54% (3.87% more than in 2011). Despite high 4.2 billion AMD
operating expenses, the company might have finished the year at
profit, were it not for a growth in its financial outlays to some
956.4 million AMD. This resulted in -1.71% operating margin and -3.47%
EBITA (with a 25.35% growth in the latter index). The income of
Orange-Armenia during the period totaled 5.1 billion AMD.
According to ArmInfo's analyst, despite the loss-making activities of
the companies that entered Armenia's telecom market not so long ago,
as a whole, this sector is more efficient than the other sectors of
the Armenian economy due to high prevalence of income over sales
costs: the aggregate income of the four major players of the market
(with the newcomer Rostelecom exclusive) is 171.7 billion AMD, while
their sales costs are just 107.9bln AMD.
From: A. Papazian