Telekom Srbija posts record €2.3 billion revenue as profits accelerate

Telekom Srbija is moving into what it describes as a more mature financial and strategic phase, delivering record annual revenues of €2.3 billion while profitability accelerates. For investors, the key signal is not only scale growth, but a shift toward higher-margin operations built around infrastructure ownership and content-linked services—an evolution that can change how cash is generated and reinvested.

Profitability strengthens alongside revenue growth

The company reported operating profit of €1.3 billion, with Serbia remaining the core earnings engine. Revenues generated in Serbia reached €1.65 billion, while operating profit in the domestic market stood at €960 million, reinforcing the centrality of the home market to group performance.

On the bottom line, audited results confirmed net profit exceeding €200 million in 2025. Forward guidance points to a further step-up to over €300 million in 2026, supported by strong first-quarter performance.

A transformation measured against Telekom’s starting point

The latest results are particularly notable when compared with Telekom’s earlier position. In 2018, total revenues were below €1 billion; within seven years, the company has effectively more than doubled its top line during its transformation cycle.

This trajectory is tied to a deliberate consolidation strategy that leverages control over fixed infrastructure, content production, and bundled services. The group describes this as a vertically integrated platform—combining connectivity with content—that competitors increasingly rely on for network and content layers, creating additional wholesale and licensing revenue streams.

Regional expansion and potential EU integration catalyst

Beyond domestic dominance, Telekom is extending its regional and international footprint across multiple European markets, including Germany, Austria, and the Western Balkans. Management also signaled ambitions that include entry into the US market and deeper monetisation strategies focused on diaspora communities.

A strategic pillar highlighted in the results is telecom market integration with the European Union. In particular, management pointed to the anticipated removal of roaming charges between the EU and Western Balkans—potentially as early as 2027—which would represent a structural shift by integrating Serbia more fully into a broader European telecom market.

Implications for capital allocation in Serbia’s telecom-heavy economy

Telekom’s performance also reflects the growing role of telecommunications in Serbia’s economy, where the sector already contributes over 8% of GDP. With scale, investment capacity, and infrastructure ownership concentrated within the group, Telekom positions itself as a backbone for digital and economic development.

Financially, management’s metrics suggest a transition from a growth phase toward a cash-generating platform: higher operating margins and expanding net profit can support continued CAPEX deployment across 5G networks, fiber infrastructure, and digital services. The same profitability trend can also create flexibility for dividend flows and debt optimisation.

Overall, Telekom Srbija is presenting itself less as a purely national telecom operator and more as a regional digital infrastructure and media platform—combining connectivity with content while strengthening cross-border positioning. With revenues at €2.3 billion and profitability trending upward toward guidance of over €300 million net profit in 2026, its direction increasingly aligns with European mid-tier telecom groups in both scale and strategy.