Annual
report 2024

Network upgrades, innovation and digital optimism

Dear Customers, Partners and Friends, We are proud to present the report on the exceptional results, innovations and social activities of Makedonski Telekom in 2024. This year, we reaffirmed our role as a leader in the telecommunications sector, an innovator in technology and a bridge to the digital future, while every step we took was aimed at providing the best customer experience, as well as care for the society and the environment.

In 2024, we achieved consistent growth across all key indicators, with capital investments (CAPEX) reaching 2,286 million denars by the end of the year, which confirmed our commitment to continuous modernization and development. We continued with massive investments in modernization and expansion of our network. Our infrastructure is the best in the country, and it was confirmed by winning the prestigious Ookla® award for the fastest mobile and fixed network, as well as the best quality of the mobile network. In addition to the development of our 5G and optical network, we also took a pioneering step in the development of the telecommunications infrastructure in the country, by laying the first submarine fibre optic cable in Macedonia. Our strategy is focused on pioneering new technologies in order to ensure the best customer experience. That is why the number one market position was confirmed by the TRI*M customer satisfaction index, as well as the Love Brand index.

We remain a leader in the digital transformation of society. Our Development Center for Advanced Solutions has upgraded all the smart solutions, including those for an innovative telemedicine system, smart lighting, smart meters, IoT control for electricity and water, as well as cybersecurity services. In 2024, we received the prestigious regional Employer Partner certificate from SELECTIO Group, as well as the award for the most desirable employer in the telecommunications sector according to "Vrabotuvanje.com". In 2024, we continued to support Macedonian sports, culture and philanthropy, with a special focus on the young people and the vulnerable groups. Through projects aimed at bridging the digital divide and fostering an equal digital society, we reached almost 33,500 customers. This year, we launched the communication platform #MakeAPlace, with which we opened the topic of true connectivity and overcoming the challenges we face as a society. As part of the Deutsche Telekom Group, we are committed to reducing the harmful impact on the environment. Therefore, through eco-actions and circular economy, we are increasingly influencing the reduction of electronic waste, while our smart city solutions make urban living more sustainable.

We will continue to follow our long-term strategy in the coming years as well. We remain committed to continuous growth, development, innovation and delivering maximum value to our customers, employees, partners and the society as a whole. Makedonski Telekom is more than just a network – we are a bridge to the digital future and a partner in every moment of your life.

Yours faithfully,
Nikola Ljushev, Slavko Projkoski, Emilija Andonovska, Marjan Bogatinovski and Maja Milosavlevska Naumovska.

Achievements 2024

CO2 Neutrality

84%We saved 55 tons of paper

E-bills

60% from renewable sources

Electricity

80% Through TELECOM CLOUD

Energy savings

100%Of our devices

Biodegradable packaging

16.000 Old mobile telephones

Recycled

25.000 customers

Digital inclusion

#1

Customer satisfaction

94points

TRI*M Index

63%

Employee satisfaction

45%

Representation of women in the management

Investments and New Technologies for
the Development of the Best Network

We have completed another successful year, marked by growth and development, innovative and revolutionary solutions, record network quality results, and new technologies that will provide an even better customer experience.

In 2024, we received another confirmation for the quality and speed of the network - we received the prestigious Ookla award for the best network on the territory of Macedonia. The results showed the greatest speed of the mobile and the fixed network and the best quality of the mobile network in the first half of 2024. The superior status of the network was also proven with a second major recognition, this time received at a local level. According to the measuring of the mobile network quality conducted by the Agency for Electronic Communications (AEC), the network of Makedonski Telekom is in the first position with a score of 637.7, which is the highest score in Macedonia for last year.

As new technologies come along, old ones become obsolete and pass into history. Telekom is the first Macedonian operator to deactivate the 3G technology in April of last year. We did this in order to repurpose the frequency spectrum for more advanced technologies such as 4G and 5G, thus keeping up with the global industry trends and providing a higher quality, more stable and faster network. We have continuously expanded the 5G network, which is available to 92% of the population in Macedonia, with gigabit speeds in almost all cities in the country.

The network upgrade and strengthening of the optical network infrastructure continued, and today we have almost 3 times more households covered by optical infrastructure compared to all other operators on the market combined. We are constantly working on the development of modern innovative solutions, introducing new technologies and tools. A large focus is placed on the use of artificial intelligence (AI) in our operations, as well as on new solutions based on artificial intelligence.

In addition to all the novelties, the software and the technological upgrades to the network, in 2024 we also performed substantial field work, setting up the infrastructure for the network of the future. Last July, we took a pioneering step in the development of the country's telecommunications infrastructure by laying the first underwater fibre optic cable under the surface of Lake Debar. The cable stretches for one kilometre and it provides better network stability in the region.

All in all, the past 2024 was a very significant year in terms of achieving the goals of modernizing and upgrading the network. We continued to invest in our own capacities and strengthened our position as a leader in the application of new technologies to provide the best telecommunications services in Macedonia.

#1 TRI*M

Customer
Satisfaction
and Love Brand

Advanced Solutions for the Best Customer Experience

Technology is constantly evolving and therefore we must quickly adapt to the modern solutions in order to provide the best service to our customers. Access to a fast and reliable network and connectivity is our top priority, but we are committed to offering much more than telecommunications services, to offering real value, a whole new level of experience, a new chapter in which the life experiences and satisfaction of our customers are at the centre of our operations.

That is why we are working on new services, products and digital tools, such as apps and chat-bots, which make the usage of our services easier. But we are also taking it one step further.

In 2024, we celebrated one year since the launch of Magenta Moments, our digital program for prizes and benefits for the customers, which offers a range of attractive benefits from local, national and international brands across many categories. Today, we have more than 280,000 customers, and in just one year, more than 100 million impressions were generated and over 950 million hearts were awarded. Our commitment to the best service and customer experience has once again resulted in an exceptionally high rating on the TRI*M index, which measures the customer satisfaction and according to which we are number 1 in Macedonia. In 2024, we reached a value as high as 94, while the industry standard is between 50 and 70, and we were also ranked first according to the Love Brand index. It shows us that we have loyal customers who trust our brand, but it also motivates us to be even better.

Last year, we also introduced the innovative Magenta Home concept, which provides the customers with super-reliable internet everywhere in the home, simple management of the connected devices, complete security protection, and conditions for a top-notch gaming experience. We also introduced a new generation of digital television – Magenta TV, a service that is available anytime, anywhere, on all screens, with high-quality picture and sound, a modern interactive interface, access to applications, a TV library, recording, pausing content, and many other advanced options.

And for the customers of the Telekom MK mobile application, we have also provided a new, modern tool based on artificial intelligence, designed to provide fast, precise and relevant answers to their questions. The Perplexity AI app allows browsing in real time, exploring complex topics, as well as creating generated content. The customers of Makedonski Telekom have been given the opportunity to activate its premium version, Perplexity Pro, and use it for free for the next 12 months.

We remain focused on providing maximum value for the best customer experience.

Partner For The Digitalization of Society

We remain committed to our role as a leader in the digital transformation of society through continuous innovation and the introduction of modern technological solutions.

The portfolio of smart solutions that we have introduced in recent years has now been upgraded in our Advanced Solutions Development Centre. We are focused on creating a result, not just a service, and that is why our solutions are comprehensive, have a measurable value and are adaptable. Our innovative telemedicine solution, a system for remote monitoring of the patient's condition, is the only solution of this type not only in the country, but also in the region. In 2024, it was implemented in the first pilot municipality, the Municipality of Delchevo, in five health care facilities, with exceptional results. With a wider application of this solution, which is adaptable and multi-purpose, the health care and quality of life of the elderly population in the country will be significantly improved.

The transformation into smart cities is ongoing, with new smart solutions being implemented in several municipalities in Macedonia. In the course of 2024, we implemented projects using our own smart lighting solution, which controls and adjusts the status and intensity of light according to the needs. In combination with smart meters, even greater efficiency is achieved, as well as easier maintenance of the public lighting infrastructure.

Through the solution for smart electricity metering and management with IoT control and mobile connectivity, we enable metering and automated management of electricity consumption. With the smart water management solution, not only is water loss reduced, but natural resources are also protected, and this represents digital ecology in the true sense of the word.

We are also dedicated to working on cyber-security solutions, which is of exceptional importance in the digital space. That is why we offer tailor-made solutions for the large customers, but we have also created a service for small and medium-sized enterprises that have almost no IT staff. That is the Security Operations Centre solution, which functions as a centralized point for real-time surveillance, analysis, and response to security incidents, and also contains an advanced component for monitoring and detecting potential cyber threats.

All of our new, innovative and affordable smart solutions were also presented at business conferences across Macedonia to multiple visitors from the business sector and institutional customers. The purpose of these conferences is promotion, education and advisory activities for our customers.

We continue to be a reliable partner for the digitalization of businesses and institutions, through our smart digital solutions, but also with our commitment to ensuring that technology works for the benefit of society and for a better life for all citizens.

New Corporate Culture Standards

Once again, we have confirmed that we are leaders not only in digital transformation, but also in setting the highest standards in caring for our employees. We made a change in our manner of work and we began working cross-functionally, standing behind our motto “T for Team”. At the heart of our way of work is teamwork, which means that the work takes place within empowered and accountable teams where everyone takes responsibility. The goal of the new processes is to create an environment of trust, transparency, and development. Our new concept promotes teamwork, taking responsibility for individual tasks, as well as responsibility for the personal development.

Last year, we became the first company in Macedonia to receive the prestigious regional certificate Employer Partner, a recognition awarded by SELECTIO Group for excellence in human resources practices. This certificate is proof that we meet the highest standards in the field of human resources management. It is this approach that has also brought us a local recognition for our work, after Telekom was declared the most desirable employer in the telecommunications operators category by "Vrabotuvanje.com".

Taking care of the well-being of our employees is one of our main focuses, which is why we started the #Let’sOpenUp for Healthy Habits project and together with all employees we focused on the importance of a healthy and balanced everyday life. With various activities and advice from experts such as nutritionists and psychologists, we have managed to increase the awareness of the importance of physical activity, mental health, and a healthy diet. The Telekom team showed its sporting spirit again this year as well and it participated in the 20th jubilee Wizz Air Skopje Marathon. Furthermore, in the spirit of sports entertainment, as part of the Deutsche Telekom Group, we had the opportunity to be part of the football euphoria called EURO 2024. Deutsche Telekom is the official national partner of EURO 2024, and our colleagues had the opportunity to feel the euphoria of this incredible football spectacle up close and cheer live from the stands. With the Smart Start program, we continue investing in young talents. This internship initiative offers opportunities for career development, gaining practical skills, and participating in meaningful projects. So far, through this program, many students have become part of the team and started their professional path in one of the most innovative companies in the country.

The employees are rewarded for outstanding results and dedication, and development activities, such as mentoring, coaching and international projects, enable continuous personal and professional growth.

Telekom is not only building the digital society, but it is also creating a new corporate culture, which revolves around its people.

Awards:
Best Employer; Employer Partner

„Today we are living in a world where we are more technologically connected than ever before. But are we truly connected? We are losing trust in each other, our faith in a better future, we are isolating and closing ourselves off, and we are increasingly prone to conflict and intolerance. The large brands play a major role in society, and that is why we feel a responsibility to open up about these challenges we face as a society and take concrete steps towards true connection“.

Let’s create space for a real connection

#Let’sOpenUp

In the world we are living in today, people are making countless contacts, businesses are connected like never before, while societies are intertwined with each other. But are we truly connected? This year, we launched the communication platform #Let’sOpenUp, with which we opened the topic of true connection and overcoming the challenges we face as a society.

Our role with this initiative was to inspire people to open up in their inner, emotional, but also physical world. A place that will be filled with more understanding, empathy, and closeness, which will help us truly connect. The campaign is inspired by the works of iconic author Goran Stefanovski, which are etched in our memory and are equally powerful and true to the present day. His work is a reminder that there are more things that connect us than divide us.

The initiative was joined by a number of celebrities from the country, successful musicians, athletes, actors, media workers and activists, who told their stories and called on the public to open up for more good in their lives. It stimulated reflection on a number of problems in society, sensitive topics were addressed and work was done on accepting the differences between people.

As part of this initiative, the song "Mesto" ("Place”) by young artists Young Dadi, Matej Foltz and Zee Bomb was also promoted, which was inspired by the main idea of #Let’sOpenUp and the work of Goran Stefanovski. This song tells the story of old problems, tension, social uproar and diversity through the voice of the new generation. Yet, instead of only criticizing, it also sends a call to the entire generation to find the best in themselves, in the others, in the situation in which we are currently living.

As a culmination of the entire initiative, we also realized one of Makedonski Telekom's largest cultural and social projects to date, with the full support we gave to the play “Zamisli nov svet” ("Imagine a New World") which was staged at the Macedonian National Theater. The theater project “Imagine a New World” brings to life Stefanovski’s words about eternal values such as humanity, understanding and connection, qualities that are often lost in today’s everyday life. The play was made in collaboration with the Macedonian National Theater, directed by Nela Vitošević and produced by Sektor Film, with an outstanding cast. With the play "Imagine a New World", we not only rounded off the activities of the #Let’sOpenUp initiative, but we also once again demonstrated our support for domestic culture, for enduring values, and for the artists who have left a lasting mark on our cultural heritage.

Committed to a better future

In today's connected world, responsibility is extremely important. Responsibility that goes a step further than creating superior infrastructure. Responsibility for sustainability and preserving natural resources, responsibility for society, for reducing the digital divide and an equal digital society. Responsibility for a shared sustainable future.

A Better Society for Everyone

We take our role as a major brand in the community seriously and act to build a better society for all. Our strategic commitment is to support sports, culture and philanthropy, with a focus on youth and vulnerable groups.

Macedonian sport is one of the segments where we constantly provide active support, which traditionally continued during the past year. In 2024, we continued our partnership with the Macedonian Handball National Team, which has been going on for the eighth year in a row, and we supported the national team members who participated in the World Championship in Qatar.

We also support e-sports through the T-esport Championship, which engages young enthusiasts and semi-professional e-sports players from Central and Eastern Europe. This is an opportunity for young players to showcase their skills on a big stage and gain invaluable experience in the world of e-sports. Makedonski Telekom has been a friend of the Ohrid Summer Festival for three decades now, an event that is one of the biggest promoters of our national culture. And as a warm-up for the summer season, we invited young people to be part of the “Summer to Remember”, accompanied by 10,000 free music experiences across Europe and a unique event organized by Telekom Electronic Beats with DJ HEARTSTRING and Sugababes. “A Summer to Remember” is an event created for young people across Deutsche Telekom’s European footprint to gain access to a wide array of music experiences. The objective is for young people from across Europe to connect with each other and create lifetime memories.

We use technology to ensure a better quality of life through projects such as "Emergency Button", in partnership with the Red Cross. The "Emergency Button" aims to provide a rapid response for elderly or frail individuals by simply pressing a button located on a wristwatch-shaped device.

In 2024, the Foundation Telekom for Macedonia began cooperation with the Association Konekt for the crowd-funding platform www.opop.mk, which aims to help many civil society organizations in the country, which are fighting for a better life for the vulnerable groups of citizens, for a healthy environment and for solving local problems, to raise funds, but also to connect with potential future partners and donors. All projects on the platform have a broad and/or long-term impact in solving the citizens' problems and improving the lives of local communities. This is a strategic philanthropic mechanism that allows the donors to strengthen their impact at a higher level by pooling donations.

We remain committed to supporting true values, motivated to give back to the community in which we operate.

Culture

Sport

We Are Investing in a Sustainable Future

As part of the Deutsche Telekom Group, we are committed to reducing our environmental footprint. Climate change affects us all and we have a shared responsibility to make a difference. We have achieved complete CO2 neutrality, and through circular economy we are increasingly making an impact with a view to reducing electronic waste. Through our local e-waste reduction campaign, which carries the Green Magenta label, 40,000 old mobile devices have been collected so far.

As much as 60% of all the electricity we use today comes from renewable sources, and we remain committed to becoming a more sustainable company in every aspect of our operations.

By replacing an incredible 84.14% of paper bills (invoices) with electronic ones, we managed to save as much as 55 tons of paper over the past 365 days. We are proud to have introduced biodegradable packaging in 2024 for the all devices that we release. This is a major step towards eliminating non-recyclable packaging waste and it is another measure in line with last year's Earth Day theme, "Planet vs. Plastics". In addition, during 2024, we recycled as many as 9,600 mobile phones through our eco-initiatives, such as Eco Discount. The functionality of our Telekom Cloud has enabled us to achieve significant electricity savings of up to 80%. On the other hand, the smart city solutions have improved the quality of life and enabled urban life to become more sustainable by reducing energy consumption, as well as light and noise pollution, and by reducing CO2 emissions. This is precisely what is urgently needed, because the cities are responsible for more than 70 percent of the global CO2 emissions.

In addition to making sure we are eco-oriented in our work, we also encourage initiatives that appeal and call on the entire community to join the eco-mission for a cleaner, healthier, and more beautiful world, and with the digital tools and solutions we develop, we create opportunities for this vision to become a reality.

The innovations that are being developed in our system in the future will allow us not only to save, but also to be more efficient, safer and have greater control over our work. Our strategic commitment is long-term and clearly defined– to be the leading digital operator that strives for a sustainable common future.

The restoration of natural resources and their protection will be our focus, as well as our obligation, in the years to come. Our goal is to work together to create a healthier environment and a better future for all.

2024 – a Year of Outstanding Results

Makedonski Telekom closed 2024 with successful results, delivering consistent growth throughout the year. The successful operations are based on the strategy of pioneering new technologies and the best customer experience. The sales revenues increased by 2 percent, while the operating earnings before interest, taxes, depreciation, and amortisation (EBIDTA) increased by 0.3 percent compared to the same period last year. The net income increased by as much as 7.6 percent, while the total capital investments (CAPEX) at the end of 2024 amounted to MKD 2.286 million.

We continued investing in the network infrastructure and the latest technologies, which strengthened our status as the best network. We remain the leaders in fibre optic coverage and at the end of 2024 we had 344 thousand fibre optic access points, which is by 9.6 percent higher compared to the same period of the previous year. Our 5G network is available to 93 percent of the population in Macedonia with gigabit speeds in almost all of the cities. We have once again won the prestigious Ookla® award for the best network. The results have shown the greatest speed of the mobile and the fixed network, as well as the best quality of the mobile network. The superior customer experience continued the trend of increasing the number of customers across all segments. The number of broadband internet customers increased by 3.5 percent and it amounts to 218 thousand, while the total number of internet access points increased by 3.7 percent. In fixed telephony, Makedonski Telekom, with a market share of 62.2 percent and 233 thousand customers, is the market leader. In the mobile segment, the market share amounts to 48.1 percent with a stabile base of 1,28 million customers. The first digital program for rewards and benefits for the customers, Magenta Moments, reached 280 thousand customers, and the number one position in the market was confirmed by the TRI*M index for measuring customer satisfaction, as well as the Love Brand index.

This year as well, we worked on an equal digital society and on decreasing our environmental footprint. By means of projects for reducing the digital gap and for an equal digital society, we reached out to almost 33.500 thousand customers. This year, we continued our eco-campaign for the collection and recycling of old devices and we contribute to the reduction of harmful CO2 emissions by being a CO2 neutral company. Our team is the driving force of our progress and this year we were declared the most desirable employer among the telecommunications companies at a national level. On that occasion, we were awarded the prestigious Employer Partner certificate.

This is our long-term strategy and it is part of our ESG agenda that we will continue to follow in the coming years.

Financial report for 2024 (.pdf)