Silknet continued a strong performance in 1H23. Revenue was up 16.8% y/y to GEL 256.3mn in 1H23, primarily fueled by mobile data usage growth and tariff adjustments in 2022. Operating expenses were slightly up 1.9% y/y to GEL 156.7mn, the appreciation of GEL contributed to curbing this growth, given that c. 23% of these expenses are in FX. As a result, company’s adjusted EBITDA was up 26.2% y/y to GEL 164.1mn. Consequently, Silknet reached highest-ever adjusted EBITDA margin of 64.0% in 1H23 and company’s net debt to adjusted EBITDA ratio reduced to 1.3x in 1H23 vs. 2.3x in 1H22.
Silknet maintained strong presence across all key segments – mobile, fixed broadband and pay-TV – in terms of subscribers and revenue in 1H23. In telecom sector revenue, Silknet’s share stood at 34.7% of mobile segment, at 33.7% of fixed broadband and at 37.5% of pay-TV revenues.
Silknet and Magticom did not participate in the auction that took place in Aug-23 for the implementation of 5G technology, as announced by GNCC. This decision was made due to strict obligations for MVNO accessibility, 5G coverage, and speed. Cellfie was the sole participant in the auction for 5G implementation, however Silknet anticipates that GNCC will find a way to collaborate with other operators, on more agreeable terms.
