/// 99
EBU operating expenses
Fixed & mobile data revenue (in EUR million) Mobile
162
184
185
Fixed
408
401
392
2008
2009
2010
With a total of EUR 392 million, the total revenue from Fixed Data was 2.3% lower than for 2009. Besides revenue from Fixed Internet, this includes Connectivity revenue for which the migration from older technologies (Leased Lines, Frame Relay, ATM) to the new and more advantageous “Explore” platform (connectivity and managed services) continues. In a saturated and highly competitive Fixed Internet market, EBU kept its broadband customer base fairly stable at 445,000. Fixed Internet customers (in ‘000) 443
446
445
EBU reports a cost of sales for the fullyear 2010 of EUR 685 million, which is 1.6% lower than the previous year, on a like-for-like basis22. The year-over-year decrease results from the positive effect on Cost of Sales from some regulatory measures, i.e. from the lower MTR’s since 1 August 2010 and the application of the financial collecting model for Premium Rate Services. Lower headcount positively impacted EBU’s 2010 HR expenses, going down by 1.1% to EUR 375 million. In 2010, the total EBU headcount decreased by 65 FTEs, leading to a total of 5,263 FTEs by year-end. This also includes the additional headcount following the creation of the new company “Bridging ICT”. In spite of the continued focus on reducing expenses in 2010, EBU’s full-year non-HR expenses of EUR 149 million were 5% up compared to 2009. This is partly explained by a positive one-time effect in 2009.
EBU segment result and contribution margin
Over the full year, EBU reports a segment result of EUR 1,212 million, or 1.6% below the previous year. On a like-for-like basis23, the 2010 segment result was 3.6% lower year-over-year. The full-year negative impact from regulation on the segment result was limited to EUR 3 million. The 2010 contribution margin of EBU stands at 50.0%, compared to 50.8% for 2009, on a like-for-like basis23. Segment result (in EUR million) & margin 47.0%
49.2%
50.0%
1,266
1,231
1,212
2008
2009
2010
Total expenses (in EUR million) Non-HR HR 2008
2009
2010
Cost of sales
178 408
142 379
149 375
844
748
685
2008
2009
2010
19. Compared to 2009, excluding intercompany revenue 20. Non-SMS mobile data 21. As of 1 July 2010, all customers are by default on a maximum financial limit of EUR 49.85 (excl. VAT) per month for Data roaming, unless they have opted out. 22. Compared to 2009, adjusted for intercompany Cost of Sales which are no longer included as of 2010 23. When excluding intercompany items from the 2009 result