Telekom Srbija 2012 Profit May Drop 55% on Year: Novosti

Dec. 31 (Bloomberg) -- Telekom Srbija AD, Serbia’s state-controlled phone company, expects a 55 percent drop in 2012 profit to about 10 billion dinars ($116 million), Vecernje Novosti reported, citing acting General Manager Predrag Culibrk.

The decline is mostly due to dinar weakness in the first half of the year that made Telekom’s foreign loans more expensive than expected, the newspaper quoted Culibrk as saying.

The former monopoly will double investments in 2013 to try to keep up with competitors, the newspaper said.

To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net