Moldova’s telecom services market up 3.8% y/y to €317mn in 2017

Moldova’s telecom services market up 3.8% y/y to €317mn in 2017
Moldovan telecom companies' revenues (MDL mn)
By bne IntelliNews May 23, 2018

Moldova’s telecom services market contracted by 1.6% y/y in current prices (to MDL6.62bn), but it expanded by 3.8% in euros to €317mn, according to bne IntelliNews calculations based on the market regulator’s report. Orange Moldova was the largest player with MDL2.34bn in revenues, followed by Moldtelecom and Moldcell.

The largest segment by far is the mobile voice segment: 50.4% of the total (MDL3.34bn) and it contracted by 3.3% y/y in local currency, yet maintaining a modest 0.5% y/y advance in euros. Notably, the number of active users decreased by 3.3% y/y to 3.66mn. However, the voice service penetration rate increased at high level of 125.6%, some 0.9pp up y/y. The number of mobile voice contracts registered by individuals decreased by 4.0% y/y to 3.39mn while the number of contracts registered by companies increased by 6.5% y/y to 269,270. The average revenue per user, for mobile voice services, decreased in the local currency by 5.9% y/y to MDL62.3 (around €3) which is a negative performance even when expressed in euros.

The mobile data segment was the most dynamic, posing a 28.3% y/y increase in terms of the number of users. The revenues increased at a slower rate, though still impressive at 13.9% y/y in local currency, or above 15% y/y in euros. However, the revenues generated by the segment were only MDL9.9mn or 4.4% of the total.

The second largest segment remains that of fixed line data (18.4% of the total), and it expanded by 9.4% y/y in revenue terms (local currency) driven by the 4.8% y/y increase in the number of users to 584,330 and 4.4% higher y/y revenues per user (local currency).

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