Telekom Srpske
Encyclopedia
Telekom Srpske is a telecommunication
s company based in Banja Luka
, Bosnia and Herzegovina
. The company is owned by Telekom Srbija
, and is the second largest telecommunications company in Bosnia and Herzegovina
and the biggest one listed on the Banja Luka Stock Exchange
, with the market capitalisation of about €540m.
The company's main business are fixed and mobile telecommunications in domestic and international traffic. Other businesses include:
The company also owns the founding status shares in three companies, with a 100% ownership of the company "Telekard telefonske usluge", d.o.o. Banja Luka and TT "Inženjering" d.o.o. Banja Luka, and 20% of share in the Institute for International Law and International Cooperation, d.o.o Banja Luka.
According the Telekom Srpske website: "The mission of Telekom Srpske can be briefly defined as: Provision of high quality telecommunication services for the purposes of satisfying the clients’ demands and facilitating easier integration of economy and individuals into the informatics community, with due respect for interests of share holders and employees.
It currently has 35% market share
in both the fixed and mobile telephony market in Bosnia and Herzegovina.
The company's share price on BLSE has been doing very well and, since the establishment of the main market index, BIRS
, it has significantly overperformed the index.
Telekom Srpske was been privatized in 2006, through a public tender. Telekom Srbija
, made the highest bid with 646 million euros for a 65% majority stake, while the second highest bidder was Telekom Austria
with an offer of 467 million euros.
The Government of RS
declared Telekom Srpske a company of strategic importance and, therefore, the state capital has been privatised according to the special privatisation program enacted by the Government. Raiffeisen Investment was appointed as the financial advisor to the government. The criteria that potential bidders had to fulfil, included a current minimum of 800,000 fixed-line and 1.5m mobile users, suggesting that the RS Government is hoping for an outside operator who is capable of investing in Telekom Srpske's infrastructure.
Telecommunication
Telecommunication is the transmission of information over significant distances to communicate. In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded...
s company based in Banja Luka
Banja Luka
-History:The name "Banja Luka" was first mentioned in a document dated February 6, 1494, but Banja Luka's history dates back to ancient times. There is a substantial evidence of the Roman presence in the region during the first few centuries A.D., including an old fort "Kastel" in the centre of...
, Bosnia and Herzegovina
Bosnia and Herzegovina
Bosnia and Herzegovina , sometimes called Bosnia-Herzegovina or simply Bosnia, is a country in Southern Europe, on the Balkan Peninsula. Bordered by Croatia to the north, west and south, Serbia to the east, and Montenegro to the southeast, Bosnia and Herzegovina is almost landlocked, except for the...
. The company is owned by Telekom Srbija
Telekom Srbija
Telekom Srbija is a telecommunications company based in Serbia, with its headquarters in Belgrade...
, and is the second largest telecommunications company in Bosnia and Herzegovina
Bosnia and Herzegovina
Bosnia and Herzegovina , sometimes called Bosnia-Herzegovina or simply Bosnia, is a country in Southern Europe, on the Balkan Peninsula. Bordered by Croatia to the north, west and south, Serbia to the east, and Montenegro to the southeast, Bosnia and Herzegovina is almost landlocked, except for the...
and the biggest one listed on the Banja Luka Stock Exchange
Banja Luka Stock Exchange
The Banja Luka Stock Exchange or BLSE is a stock exchange which operates in the city of Banja Luka in the Republika Srpska, Bosnia and Herzegovina.-History:...
, with the market capitalisation of about €540m.
The company's main business are fixed and mobile telecommunications in domestic and international traffic. Other businesses include:
- directory inquires
- internet services provider
- design, construction, reconstruction and installation of TC devices, etc.
The company also owns the founding status shares in three companies, with a 100% ownership of the company "Telekard telefonske usluge", d.o.o. Banja Luka and TT "Inženjering" d.o.o. Banja Luka, and 20% of share in the Institute for International Law and International Cooperation, d.o.o Banja Luka.
According the Telekom Srpske website: "The mission of Telekom Srpske can be briefly defined as: Provision of high quality telecommunication services for the purposes of satisfying the clients’ demands and facilitating easier integration of economy and individuals into the informatics community, with due respect for interests of share holders and employees.
Financial performance
Telekom Srpske had revenues on BAM 344m (€176m) and net income of BAM 80m (€41m) in 2005.It currently has 35% market share
Market share
Market share is the percentage of a market accounted for by a specific entity. In a survey of nearly 200 senior marketing managers, 67 percent responded that they found the "dollar market share" metric very useful, while 61% found "unit market share" very useful.Marketers need to be able to...
in both the fixed and mobile telephony market in Bosnia and Herzegovina.
The company's share price on BLSE has been doing very well and, since the establishment of the main market index, BIRS
BIRS
The BIRS Index is a share index of the 12 largest companies listed on the Banja Luka Stock Exchange , established on 1 May 2004. BIRS stands for Berzanski indeks Republike Srpske, which is Serbian for The Stock Exchange Index of Republika Srpska....
, it has significantly overperformed the index.
Ownership structure
Current ownership structure of the company is as follows:- Telekom SrbijaTelekom SrbijaTelekom Srbija is a telecommunications company based in Serbia, with its headquarters in Belgrade...
65% - Privatisation funds 10%
- PensionPensionIn general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
and disability insurance fund 10% - RestitutionRestitutionThe law of restitution is the law of gains-based recovery. It is to be contrasted with the law of compensation, which is the law of loss-based recovery. Obligations to make restitution and obligations to pay compensation are each a type of legal response to events in the real world. When a court...
fund 5% - Other shareholders 10%
Telekom Srpske was been privatized in 2006, through a public tender. Telekom Srbija
Telekom Srbija
Telekom Srbija is a telecommunications company based in Serbia, with its headquarters in Belgrade...
, made the highest bid with 646 million euros for a 65% majority stake, while the second highest bidder was Telekom Austria
Telekom Austria
Telekom Austria is a provider of a range of fixed line, mobile, data, and Internet communications services. The company has a 100 per cent share in telecommunications provider A1 Telekom Austria....
with an offer of 467 million euros.
The Government of RS
Republika Srpska
Republika Srpska is one of two main political entities of Bosnia and Herzegovina, the other being the Federation of Bosnia and Herzegovina...
declared Telekom Srpske a company of strategic importance and, therefore, the state capital has been privatised according to the special privatisation program enacted by the Government. Raiffeisen Investment was appointed as the financial advisor to the government. The criteria that potential bidders had to fulfil, included a current minimum of 800,000 fixed-line and 1.5m mobile users, suggesting that the RS Government is hoping for an outside operator who is capable of investing in Telekom Srpske's infrastructure.