A

NNUAL
REPORT
2014
MISSION:
Our mission is to combine technology and lifestyle to make
customer life enriched and easier.

VISION:
Our vision is to be the most preferred Data Service Provider
for the best customer experience.

VALUES:
• Satisfy our customers with innovative technology and
superior quality, value and service.
• Convert key trends into best products and services
• Act with uncompromising honesty and integrity in
everything we do.
• Passionate about the job we do so that we come to work
every day with ideas about how to make a difference. We
do not forget that passion is contagious.
• Always have positive attitude.

WORK PRINCIPLES
• Professionalism
• Openness
• Cooperation
• High quality services
• Customer focused
ALBtelecom in numbers

Key Indicators 2013 2014

Total Assets (EUR million) 219.82 206.83
Consolidated Income (EUR million) 84.20 75.76
EBITDA (EUR million) 18.40 10.02

250
EBITDA (EUR million)

200 Consolidated Income (EUR million)

Total Assets (EUR million)

150

100

50

0
Year 2013 Year 2014

Active Subscribers 2013 2014

Total Active Subscribers 633.493 609.090
Fixed 209.256 177.318
xDSL 64.068
IPTV 15.118
Voice 138.429 98.132
Mobile 424.237 431.772

800
Mobile
700
Voice
600
500 IPTV

400 xDSL
300 Fixed
200
Total Active Subscribers
100
0
Year 2013 Year 2014

4
Active Subscribers Market Share 2013 2014
Fixed Voice 75% 74%
Fixed Broadband 40% 40%
Mobile 12% 13%

Mobile

Fixed Broadband

Fixed Voice

Year 2013 Year 2014

SHAREHOLDING STRUCTURE

As at 31 December 2014 No. Of Shares (000) Values (000 EUR) %

ALBTelecom 15.000 108.727 100%
CETEL (Calik 80%, Turk
11.400 82.633 76%
Telecom 20%)
Ministry of Economy,
Transport and Energy 2.515 18.232 17%
(METE)
Albanian Post 450 3.262 3%
Other Shareholders 635 4.061 4%

800
700
Other Shareholders
600
500 Albanian Post

400 Ministry of Economy, Transport and Energy (METE)

300
CETEL (Calik 80%, Turk Telecom 20%)
200
ALBTelecom
100
0
No. Of Shares (000) Values (000 EUR)
In %

5
ALBtelecom Shareholding Structure

ALBTELECOM SH.A.

CETEL  TELEKOM
OTHER
ILETISIM SANAYI VE
SHAREHOLDERS
TICARET ANONIM
AS SHOWN IN THE
SIRKETI
COMMERCIAL REGISTER

76%
WITH NATIONAL
REGISTRATION
CENTRE

16 ,7 %
MINISTRY OF ECONOMIC
DEVELOPMENT, TRADE
& ENTREPRENEURSHIP
3%
ALBANIAN POST
SH.A.
4 ,2%
OTHERS

6
 76% Cetel Telekom İletişim Sanayi
ve Ticaret Anonim Şirket

16.7% Ministry of Economic

Development, Trade &
Entrepreneurship

3% Albanian Post sh.a.

4,2% Others

76 percent of ALBtelecom shares is owned by CETEL a.s. in Ankara, and by the

Albanian Government and other shareholders (24 percent). CETEL a.s. itself is
owned by one of the biggest companies in Turkey, Çalik Group, with 80 percent of
the shares and by Turk Telekom, with 20 per cent of the shares, turning this into a
successful entrepreneurship.

7
Çalik Group

8
 Mr. Ahmet Çalık
President of Çalık Holding

ÇALIK HOLDING CONTINUES TO ADD VALUE TO ITS

AREAS OF BUSINESS.
Established by the initiatives taken in 1981 by Ahmet Çalık, a member of Çalık
family engaged in trade activities since the 1930s, Çalık Holding currently
operates in sectors of energy, telecom, textile, construction, finance and
mining.
One of the largest industrial enterprises in Turkey, Çalık Holding employs
about 24,000 people in 17 countries. The Group conducts businesses in
Central Asia, Balkans, Middle East and Africa as one of the leading Turkish
investors with around 7.5 billion USD of annual consolidated asset size.

9
Çalik Group
Achieving consistent growth both in Turkey and
other countries of activity since its foundation,
the Group acquired ALBtelecom, the Albanian
fixed line operator and internet provider
in 2007; Yeşilırmak Electricity Distribution
Company -YEDAŞ, electricity distributer for 5
provinces in Turkey in 2010; Kosovo Electricity
Distribution Company in 2012; and lastly ARAS
EDAŞ, a company operating in 7 provinces in
2013.
Çalık Holding's Energy Group became one of
the preferred companies in countries with rich
energy reserves such as Central Asia, Middle
East, and Africa, and sustained its business
portfolio in 2013 thanks to its reliability in
the global energy sector and its business
mentality differentiating the Group from its
competitors.
Çalık Enerji continued the construction of three
power plants which started in Turkmenistan's
Ahal, Lebap, Mari provinces in 2013 and
signed a contract for two additional power
plants in Ahal and Derweze. The Company
positioned itself as the largest EPC Contractor
in Georgia with the Gardabani project in 2013
and completed two power plants with a total
capacity of 2000-MW in Iraq during the same
year. The Adacami HEPP Project in Rize was
also completed in 2013.
Gap İnşaat undertook the EPC contract of the
"Turkmenbashi International Sea Port" which is
designed as a logistics hub for the route from
Asia to Europe consisting of 6 ports and one
shipyard with a project value of 1.5 billion USD.
Çalık Gayrimenkul, property development
and urban renewal Company of Çalık Group,
received the grand prize for "Tarlabaşı 360" in
"Urban Renewal" category at the "European
Property Awards 2013", the most prestigious
real estate awards ceremony in Europe.
Delivering operations in line with growth
strategies proven to be effective, Lidya
Madencilik, a Çalık Holding Company operating
10
in the mining sector, increased its share in
Polimetal Madencilik, its joint venture with
Alacer Gold from 50 percent to 80 percent in
2013,.
During the same year, the gold production
in the Çöpler Gold Mine, owned by Anagold,
an affiliate of Lidya Madencilik, exceeded
270,000 ounces by a 43 percent increase over
the previous year.
Carrying out its projects with an innovative
and sustainable business approach, Aktif Bank
established Aktif Bank Sukuk Varlık Kiralama
A.Ş. in 2013 for the purpose of issuing lease
certificates. Aktif Bank surpassed global
giants and was given the grand prize for
its "Aktif Nokta" project in the "Physical
Distribution Channels" category during
the event held by the European Financial
Management and Marketing Association
(EFMA).
BKT, a Çalık Holding Company operating
in Albania and Kosovo, was recognized for
the third time in the last four years as "The
Best Bank" by The Banker, one of the most
prestigious magazines on international
financial markets.
On the other hand, the Group sold its shares
in Turkuvaz Media Group as part of its
strategy to focus on main fields of business.
Recognized for its prestige, reliability and
strong financial structure demonstrated
by continuous activities across different
geographies in the world, Çalık Holding
collaborates with major companies on an
international level. The Group stands out
as a leading and powerful player in its main
sectors of focus thanks to its long-established
corporate structure, rich company culture,
highly qualified human resource, pioneering
initiatives, innovative approaches and
accurate strategies, and continues to
operate in all business fields aligned with its
sustainable growth target.
Türk Telekom

TÜRK TELEKOM HAS ALWAYS BEEN THE MAJOR

COMMUNICATION NETWORK IN TURKEY SINCE 1840.
Türk Telekom, Turkey’s leading communication and convergence technology group,
offers integrated telecommunication services from fixed voice and GSM to broadband.
Türk Telekom owns a 100% shares in broadband provider TTNET; the convergence
technologies company Argela, IT solution provider Innova, online education company
Sebit, call center company AssisTT, wholesale data and capacity service provider Türk
Telekom International AT AG, and its subsidiaries, and  a 89.99% shares of Avea, one of
the three mobile operators in Turkey.
55% of Türk Telekom shares belong to Oger Telekomünikasyon AŞ and 30% of shares
belong to Turkish Republic Prime Ministry Under-secretariat of Treasury. The remaining
15% is publicly traded. Türk Telekom shares are traded at Istanbul Stock Exchange as of
May 2008.
Türk Telekom’s consolidated investment has exceeded 17.3 billion TL since 2005, and
with its investments, Türk Telekom continues to create value for the economy, its
customers and the society. 

11
 and
Company Telecommunication Milestones
December 5 The Ministry of Post Telegraph Telephones
1912
was established.

The first manual telephone central office with 200 numbers is

1921
installed.

A new automatic departmental telephone central with 150

1930 numbers and cable network restricted only for the connection of
ministries and other central institutions is added to Tirana.

The first public telephone central is mounted in Tirana with 800

numbers; teletype devices are mounted in several districts of the
1947 e country and the first course is opened with the best technicians
of the time.

4000 numbers are added to the Tirana central and new automatic
centrals are mounted in the main cities of the country like Shkodra,
1955 - 1960 Gjirokastra, Korça, etc. a process which finishes in all cities and
districts of the country in 1983.

The telephone connection of all the villages in the country is

December 3 1973 completed, a system mainly based on air lines and in some areas
on cable network.

The first automatic telegraph central is set into operation,

containing 200 numbers, crossbar technology, produced by
1978 Ericsson and ensured entrance of telegraph offices into Gentex
automatic transmission, later to be upgraded by the telex
electronic central of the French production Sagem.

The first two digital local centrals, produced by “Italtel”, are set
1990 into operation in Tirana (3000 numbers) and in Durres (2000
numbers).

“Telekomi Shqiptar” is established as a state enterprise providing

1992 telecommunications services to fixed network.

“Telekomi Shqiptar” signs contracts with the company Alcatel for

installing 66 thousand telephone numbers, and with the company
1994 Sirti for the construction of the interurban transmission network,
based on the SDH technology with optical fibers and radio relay.

12
 Albania became part of a fiber optic network: Germany-Austria-
1996 Croatia –Albania –Greece.

Posta Shqiptare sh.a. and ALBtelecom sh.a. became joint stock

1999
companies.

ALBtelecom is granted the license for the third GSM operator:

March 2004 “Eagle Mobile”.

2007 Çalik Holding and Turk Telecom acquire 76% of ALBtelecom shares.

The third mobile telephony operator Eagle Mobile starts

March 2008 operation. Eagle Mobile reaches 97.8 % population coverage and
90.8% territory coverage.

International access through international fiber optics. Over

2010 10GB/s transmitted by the fiber system in all directions.

2.000 km fiber optics installed through backbone system

2011 throughout Albania.

Completion of technological transformation to ensure high speed

2012 broadband data through Xdsl. Development of CISCO technology
central network.

“Eagle Mobile” is granted the third individual authorization for the

December 17 2012 provision of 3G services.

• ALBtelecom and Eagle Mobile merged in one company,

• Fiber extension to urban areas (Fiber to Home);
2013 • Launch of 3G service through fiber connections;
• Wi-Fi offered in urban areas

• March - Launch of VDSL

• April - ALBtelecom and Eagle Mobile introduced the new
unified brand to the public in amaranth color and the new
2014 image of the company.
• April - ALBtelecom and Eagle Mobile launched IPTV services,
becoming thus the first company in Albania able to provide
converged fixed telephony, broadband Internet, mobile and
TV services.

13
Board of ALBtelecom

Giuseppe Farina
Chairman of the Board
of ALBtelecom

Mehmet Ertuğrul Gürler Rami Aslan

Member Member

14
Erkan Serbülent Tabak Mahmut Can Çalık
Member Member

Tahsin Yılmaz Frederik Seiti

Member Member

15
Management team of ALBtelecom

Ayse Özden Burak Yurtsever

Chief of Corporate Chief of Finance Group
Services Group

Indrit Daci Murat Çakmak

Chief of Consumer Chief of
Business Group Technology Group

Erjola Hoxha
Head of Marketing Communication
Division

16
 Ervin Shpori Floreta Zhulali
Chief of Legal Regulation and Chief of Enterprise
Competition Group Business Group

Vahap Yeroğlu
Chief of
IT Group

Irida Bonati Alban Tartari

Head of Human Resources Head of Public Relations
Division Division

17
Chairman’s Message
2014, another successful year for ALBtelecom, the only company providing on a national level
fixed and mobile telephony services, high speed internet and TV. We have the biggest fiber optic
infrastructure in the country, the highest number of WI-FI hot spots and great mobile coverage.
ALBtelecom is a telecommunications giant.
A 103 years old giant who is getting younger
and more dynamic each year.
We are the only company providing on a
national level fixed and mobile telephony
services, high speed internet and TV. Our aim
is to continuously improve the life quality of
Albanian people and make communication
simpler for the society by the means of high
quality, European standard products, best
customer care and ‘one stop shop’ experience.
As ALBtelecom & Eagle Mobile, we work with
the best telecommunications partners in the
World and each year we invest millions of
euro for our infrastructure and the newest
technologies to provide world-class services
to our customers. IPTV service launched
nation-wide in 2014 and 4G-LTE network to
be live in September 2015 are two recent
examples of our vision and strategy.
In terms of data usage and smart phone in
penetration, we see a long way to go therefore
a big opportunity in Albania. In a very near
future, we expect a steady increase both in
fixed and mobile data usage. We are technically
and commercially ready for this future shaped
around data. We have the biggest fiber optic
infrastructure in the country, the highest
number of Wi-Fi hot spots and great mobile
coverage. We have also recently updated our
THE WAY WE DO BUSINESS, FAIRLY AND WITH
INTEGRITY IN ALL LEVELS OF ORGANIZATION, SETS
US APART IN THE MARKETPLACE, WHILE STRONG
CORPORATE GOVERNANCE AND BUSINESS ETHICS
ARE OUR PRIORITY.
19
strategic vision as “To be the most preferred
data service provider for the best customer
experience.”
In line with our social responsibility, we
are working with educational and health
institutions as well as State Social Services to
support Children’s Home in different cities.
So we care, work and spend our energy for
Albania.
As we look into the future, we are inspired
by the opportunities in front of us. The
core advantages we have as a strong
telecommunication company will facilitate
the challenges deriving from the highly
competitive market we are operating in. The
way we do business, fairly and with integrity
in all levels of organization, sets us apart
in the marketplace, while strong corporate
governance and business ethics, are our
priority.
2015 and the years that follow ALBtelecom
will continue to pursue its growth and
development.
Finally, I would like to take this opportunity
to express, personally and on behalf of the
Board of Directors, my sincerest appreciation
to our loyal and prospective customers,
our employees, and our stakeholders for
accompanying us on this journey.
GIUSEPPE FARINA
CHAIRMAN OF THE BOARD OF ALBTELECOM
CEO’s message
2014 witnesses very positive results for ALBtelecom, since our fixed and mobile businesses are
positive EBITDA operations. In mobile revenue, our Year-to-date growth compared with 2013 is
over 17%. In fixed voice and broadband with 77% and 40% of market share respectively, we are by
far the leading operator. We successfully launched ALBtv, our IPTV product.

2014 was a successful year for ALBtelecom & we are able to maintain our fixed subscriber
Eagle Mobile. Our good performance on all base thanks to our international minutes
areas of the business has already started to and high speed internet offering. Only by
reflect in our financials and this positive trend paying the fixed fee, our fixed subscribers
and our growth still continue. can enjoy the best broadband experience by
ALBtelecom. In terms of revenue, we kept
We have started a “U” turn in 2013 and by
the steady growth on broadband which has
the end of 2014 I can happily say that both
already started to fuel more with the launch
ALBtelecom and Eagle Mobile, our fixed
of IPTV.
and mobile businesses, are positive EBITDA
operations. This year, we successfully launched ALBtv,
our IPTV product. It simplifies the life of
In mobile revenue, our Year-to-date growth
the customer with single postpaid bill for
compared to 2013 is over 17%. This is an
TV, high speed broadband access and fixed-
excellent increase especially in such a highly
line packaged in a single value for money.
competitive environment. Our monthly top-
As ALBtelecom, we invested a lot to bring
up recharges are in average 30% higher
advanced IPTV technology to Albanian
compared to the same period of the previous
people to replace old-fashioned television
year. Our mobile market share has reached
broadcasting. I would like to thank all our
15% and continues to increase steadily.
subscribers who showed a record interest and
So I should say I am very proud of the
demand for ALBtv.
performance of our mobile business. With
our 4G-LTE service to be live in September Additionally, taking advantage of our Next-
2015, we will start offering the latest mobile Generation Network, we launched for the
technology to our subscribers, which will also first time  in the market VDSL services for
help our subscriber number, market share and fixed internet access for speeds more than
profitability to increase even further. 100 mbps. Our Wi-Fi service has reached
200 hotspots at the end of 2014. Our mobile
As ALBtelecom & Eagle Mobile, we are always
business portfolio is renewed with new mobile
trying to offer the best quality services with
plans, bundling National and International
the most competitive prices. In line with
minutes, SMS, data as well as for the first
European Union practices, the tariffs will be
time roaming benefits. ICT solutions were
adjusted in 2015 decreasing the club effect in
expanded by introducing Colocation service,
the market. That will work in the favor of fair
and Virtual PBX. Our collection ratios have
competition, we will be able to provide more
reached 97% in fixed and 93% in mobile.
to our subscribers and at the end of the day
Albanian end-users will benefit. We have even more ambitious targets for 2015
and we are confident to achieve them as well
Our fixed business is also going well. We are
thanks to our strong brand, latest technology
by far the leading operator in fixed voice and
infrastructure, competitive commercial
broadband, with 77% and 40% market share
offers, and qualified staff and experienced
respectively. Despite the global trend of
Board of Directors.
shifting usage from fixed telephony to mobile,

IT IS WITH THE COORDINATED EFFORTS OF THE

QUALIFIED STAFF AND LONG-EXPERIENCED BOARD
DR. ERKAN TABAK
OF DIRECTORS, THAT WE CLOSED ANOTHER YEAR AS CEO & BOARD MEMBER
A LEADING OPERATOR, WITH INNOVATIVE SERVICES.

20
ALBtelecom Awards

MARCH 2014 � ALBTELECOM IS APPRECIATED FROM THE MINISTRY OF

SOCIAL WELFARE AND YOUTH AS “THE FRIENDS OF SOCIAL
WELFARE”
ALBtelecom, due to its support and collaboration with the
Ministry of Social Welfare and Youth for various social projects,
in a special ceremony was awarded with the appreciation
certificate “Friends of Social Welfare”

MAY 2014 � ALBTELECOM RECEIVES THE “AWARD OF MERIT” FROM

“THE SPORT UNITES US” ASSOCIATION
The award was given to the company that brought innovation
in marketing during the Super League 2013-2014 season, by
“giving a good example through the modern sponsorship of
one of the most popular Albanian football teams “Partizani”.

22
 JULY 2014 � ALBTELECOM CEO DR. ERKAN TABAK RECEIVES
APPRECIATION AWARD FROM SARANDA CITY
The CEO of ALBtelecom and Eagle Mobile, Dr. Erkan TABAK,
received the title "Gratitude of the Town of Saranda" for the
contribution ALBtelecom has given to this town, both for the
best service coverage, worthy of a tourist town like Saranda,
and the social projects realized in the Children’s Home in this
town.

DECEMBER 19 2014 • The Ministry of Social Welfare and Youth has awarded
Social Solidarity Prize for the year 2014 to Mr. Ahmet Çalik,
President of Çalik Holding, with motivation: “For special
attention and contribution of Çalik Holding companies in
Albania”.

23
Evaluation of 2014 Activities
CONSUMER BUSINESS MARKETING
RETAIL BUSINESS AND
CONSUMER SERVICES AND DUO
PLAY ACTIVITIES:
• VDSL service launch (consumer and
business). Taking advantage of NGN and
investments ALBtelecom launched for the
first time fix internet access through use
of VDSL technology. The internet access
packages were launched in the form of
duo play (internet and telephony) and were
initially introduced as two asymmetrical
packages with download speeds of 30 and
100 Mbps for consumer customers in April,
followed in June with 50 and 100 Mbps for
business customers.
• IPTV service launch: After years of tentative
analysis, the year 2014 saw the introduction
of ALBtv, the IPTV classical model through fix
access. The initiative was introduced through
triple play packages, initially with one provider
and for the full launch introduced with two
content providers. The 2014 launch was for
consumer customers only and provided basic
IPTV functionalities such as Live TV, VoD, EPG
and control. For this initiative a phased launch
was done with introducing in two cities firstly
in April, then progressing into a national
launch in October 2014.
• Wi-Fi service enhanced footprint to reach
200 hotspots at end of 2014, and extended
validity of premium package to full one day
• After the success of 2013 with regional
based initiatives, the targeted initiatives
were used in introducing new services, or
creating customized packages.
• Duo play packages for small and medium
businesses, first time a try for free internet
(with 1 GB) in one region.
• Renewal of all mobile business portfolio
with ten new mobile plans, which bundle
different volumes of National and
International minutes, SMS, Data volumes
as well as for the first time inclusion of
roaming benefits in a tariff plan.
24
DEDICATED CORPORATE
SERVICES (B2B):
• ICT solutions were expanded by introducing
Colocation service, and Virtual PBX service.
Work initiated also for further expanding
the portfolio, and unifying their end user
interface.
• Business segment activities were for the
first time supported by integrated bid and
offer preparation.
• Work initiated also in further improving
dedicated mobile and data solutions.
• During 2014, detailed and thorough
marketing analysis work was initiated to
update dedicated solutions according to
investments done, costs incurred, and
competition benchmarks.
WHOLESALE SERVICES:
• Bitstream access service re-launch: Firstly
introduced in 2012 in meeting regulatory
requirements, during 2014 Bitstream
Access service was revised in pricing, and
was further developed by presenting it
to key ISP in the market. The service was
further developed by including the contract
activation and packages in centralized BSS
and OSS systems. All the efforts have paid
off by proving that ALBtelecom can actually
develop more and sell wholesale internet
and data services in Albanian market, and as
of end 2014, wholesale ports reaching 1%
of total active base.
• Leased lines were modified according to
regulatory requirements in May 2014.
• Unified reference offers were centralized in a
separate category on our official public page.
CUSTOMER EXPERIENCE,
IMPROVEMENTS AND FUTURE
INITIATIVES:
• Fix Internet was further improved by
introducing centralized innovative
functionalities and policies: notifications,
volume interface for Wi-Fi, speed throttling,
stabilized speed testing process, fair usage.
• Not to forget the work done in stabilizing
presales, sales and after sales processes.
• A focus also for enhancing customer
experience by reaching a milestone of
merging two of core services (PSTN and
ADSL) into one contract.
• Work performed in identifying all areas
without fix services coverage.
• Work was initiated for identifying future fix
broadband evolution services such as FTTx,
and other services.
Roaming service was expanded by facilitating
SMS sending and further footprint and
reduction in IOT. The service was enhanced
by expanding promo countries in preferential
voice, SMS and roaming data charging.
DEVICES AND TERMINALS:
• ALBtelecom successfully managed to
integrate fix services devices (portfolio,
testing, and customization) for ADSL/VDSL
service, and new IPTV service.
BUSINESS BASE SEGMENTATION:
• In order to achieve a more in depth customer
behaviour knowledge or specific patterns,
the business base was segmented into
SOHO, SMEs, Corporate and Institutions.
• This segmentation was used to better
target specific segments and customers
through tailored products in different price
or volume ranges.
• Common mobile and fixed customers were
identified and were targeted through
converged offers (fixed, mobile and data &
internet services)

2013 2014 Delta 2014 vs 2013

Net Ending Base for Prepaid

576,257 431,772 (144,485)
Subscribers

Net Ending Base for

100,422 94,653 (5,769)
Postpaid Subscribers

Prepaid Active per event

323,815 337,119 13,304
AKEP

One month Active Prepaid 261,765 278,950 17,185

One Month Active Postpaid 58,775 49,640 (9,135)

Fixed ADSL Users 70,827 82,474 11,647

Fixed Users 209,256 182,591 (26,665)

25
Evaluation of 2014 Activities
The merger of the two large companies,
ALBtelecom and Eagle Mobile a year ago,
generated the necessity of communicating the
two brands as a single company. This was made
possible through a large re-branding campaign by
unifying the two brands, which carry resembling
elements with each other, in a natural manner
and conveying the visual message that these
brands belong to the same company.
After a thorough study and important strategic
decision for the Company of ALBtelecom & Eagle
Mobile, all positive values of these two brands
came embodied and reflected in a powerful and
dignified presentation, both qualitative and
dynamic, which brought a bold innovation to the
Albanian market, represented in the portrait of
successful Albanian singer, Elvana Gjata.
The new spirit of dynamism, innovation,
modernization and power, not only in technology
but also in marketing, guaranteed indisputable
success and positioning our Company as
communications leader in the Albanian market. In
the same line of communication, we successfully
carried out 26 full advertising campaigns, coming
up with unique elements in communication and
bringing innovation throughout the Albanian
market.
The support of these campaigns with special
events produced an atmosphere of celebration
by embracing a large number of young people
and clients. "ALBtelecom Loves You" was the
campaign that traveled throughout Albania
conveying ALBtelecom’s care for its customers as
well as “Kisses” and gifts as a sign of appreciation
to our customers while welcoming new ones.
The greatest gifts were delivered through the
summer draw, where an automatic mechanism
selected the winners of a Super Porsche car
and an apartment in the center of Tirana. The
campaign's big closing event, "Fest On", filled
downtown Tirana with the sounds of celebration,
best singers and modern music for three
consecutive nights, where ALBtelecom exhibited
its contribution to improving the values and

26
cultural life in the capital.
For the first time, Eagle Mobile Packages came as
an ads series, where the fantasy and imagination
of the main characters created a cool new
stream of delivering offers for every situation.
This approach brought forward the messages
in an attractive flair and filled with witty humor
whilst making the offers in subtle yet attractive
manner.
Besides the three successful services of
ALBtelecom, arranged as a surprise, was the
launching for the first time of the unique ALBtv
service across the country, which brought a
completely new dimension of technology in the
Albanian market.
The opening of new ALBtelecom & Eagle
Mobile stores at Don Bosco Str. in Tirana as
well as another store in Berat, and moreover
the branding update in all our stores, ensured
the visible and dignified unification of brands
initiated at the beginning of the year.
For the first time ALBtelecom & Eagle
Mobile leads the "Top List" in audio-visual
communication in 2014, leaving behind strong
competitors in the field of telecommunications.
This has been achieved not only through air time
of TV spots on different TV programs but also
through sponsorships of TV programs/important
TV shows. Thus ensuring a fruitful and efficient
investment in targeting the right audience.
The increased communication in Digital and
Social Media, where the deployment of web
banners in most active online sites and especially
the creation of interactive games on Facebook,
attracted more and more users to become
an active part of our games, and making the
ALBtelecom website quite attractive.
During 2014, we presented our company with
a clear profile, important and dignified in the
telecommunication market in Albania, where in
contrast to our competitors, our customers can
find four services in a single bill, with a better
quality, technology and service.

27
Evaluation of 2014 Activities
IPTV SERVICE

APRIL 2014 ALBtelecom launched IPTV services becoming thus the first company
in Albania able to provide converged fixed telephony, broadband,
mobile and TV services.
Through the combined ALBtv packages ALBtelecom offers for
the first time in Albania the comfort of obtaining all essential
communication services from the same operator and under the
same bill.
IPTV is an advanced interactive television experience that combines
traditional TV, Video on Demand, HD format and value-added
features such as EPG, EPG personalization and Parental PIN Control.
With the launch of IPTV service, ALBtelecom has acquired a unique
position in the Albanian competitive landscape:
• We are providing the best value for money relying on the stable
network, highly competitive packages, rich content selection and
an unmatchable user experience.
• Having a very wide footprint both in terms on network and
distribution channels, we are uniquely able to reach a significant
fraction of the market.

OCTOBER 13 2014 ALBTV GEOGRAPHICAL ROLL-OUT TIMELINE

Initially launched in Korçë and Pogradec area, the service was
gradually rolled-out in other regions. October 13, 2014 marks the
national launch of ALBtv.

APR. 2014 JUN. 2014 JUL. 2014 AUG. 2014 SEPT. 2014 OCT. 2014

Tepelenë
Korçë Ersekë Fier, Shkodër Vlorë Librazhd Nationwide
Peshkopi
Pogradec Bilisht Patos, Ballsh Kukës

28
ALBTV 2014 FIGURES
In the first few months after the launch, ALBtv encountered a very fast take-up in the market with
approximately 1700 new activations/month.

15,000
Subscribers

31
December
600,000 EUR
2014 Revenues

1,700
Avg. new activations/month

COMMERCIAL OFFERING
The service offers a rich choice of content based on the cooperation with the two biggest content
providers in Albania: Digitalb and Tring Communication.
ALBtv SMALL MEDIUM LARGE EXTRA LARGE ALBtv was launched in the market with
Price (All/
1,300 2,200 2,900 4,000 a very attractive commercial offering:
month)
TV Content Tring Base Package Tring Full Package • Packages with Tring as well as
Extra
Services
VoD, EPG, Parental Control PIN Digitalb Content
Bandwidth 1 Mbps 2 Mbps 4 Mbps 8 Mbps
• Fixed telephony and broadband
Volume 1 GB Unlimited
On-net Min 2000
benefits to satisfy every pocket
60 and need
60
Off-net Min 60 International 60 International International
International
+ 60 Off-net • Integration of a mobile
Mobile 1 SIM Card + 6 Monthly Combined Packages 1000 for free
proposition to effectively launch
the first quad-play product in
PAKETAT MEDIUM LARGE EXTRA LARGE
ALBtv
SMALL FILLESTARE
FAMILJARE FAMILJARE PREMIUM the market
Price (All/
month)
1,300 2,500 3,500 5,500 • Integration of VAS services such
TV Content Digitalb Beginner Digitalb Family 1
Digitalb Digitalb as VoD, EPG, Parental Control
Family 2 Premium
PIN
Extra
VoD, EPG, Parental Control PIN
Services
Bandwidth 1 Mbps 2 Mbps 4 Mbps 8 Mbps
Volume 1 GB Unlimited
On-net Min 2000
60
60
Off-net Min 60 International 60 International International
International
+ 60 Off-net
Mobile 1 SIM Card + 6 Monthly Combined Packages 1000 for free

29
Evaluation of 2014 Activities
IT GROUP
ALBtelecom as a leader in the field of
telecommunication in Albania, it was the first
company in the country, which has undertaken
and carried out local investments in cloud
computing technology. This technology is
present and available for all business chain
in Albania, ranging from personal, SOHO,
small medium business (SMB) and going up
to corporate businesses. Cloud Computing
Platform models that ALBtelecom offers for
the domestic market are identically the same
as the models offered by major international
companies, which operate in this business.
ALBtelecom with this platform has provided
a new innovation in the Albanian market,
guaranteeing to all potential subscribers to
this service:
1. Maximum speeds platforms accessed by
consequent lower time data processing
and high performance of the service.
2. Highest safety for subscribers’ data,
keeping, processing and carrying within
a national network, inside national
locations.
3. Data Centers of such data processing are
located within the territory of Albania,
with address published for all interested
parties. These Data Center are protected,
controlled and certified according to all
national and international standards,
for example: TIER3 certificates, safety
certificates ISO 27001 etc. Also these
locations are 24x7 monitored and
supervised by a specialized staff of
systems specialists and network operating
center (NOC) specialists.
ALBtelecom unlike other operators, is not
focused only on standard telecommunications
services, but it has developed additional
services in the domain of Information
Technology. With this potential development
for Albanian market, ALBtelecom is the only
company which offers the local potential
clients the opportunity to start their modern
activities such as e-commerce, with minimal
cost and high quality of service.
30
ALBtelecom is seeing the development of
information technology or data services
as the next big step in which will pass all
telecommunication companies for next 10
years. Therefore this company together with
the desire to be the preferred provider for all
local subscribers, has started the investment
on this direction. Interested parties already
are not required to navigate in Internet
and require a bid online, but may navigate
to official ALBtelecom website (www.
albtelecom.al) or ask in its stores throughout
Albania to receive the service they require.
Another novelty, that it is not possible in case
of an international provider, is the fact that
customers with a simple request may visit
environment where are processed and stored
their data, so they can visit Data Centers.
ALBtelecom had also taken into consideration
the redundancy of the processes in case that
there may be a technical problem to primary
site, by building a second Data Center in
order to process and store data without any
disruption to service and any effect to the
subscribers. This Data Center is based on
international technical specifications as in
the crow flies is about 40 km far away from
the first Data Center.
ALBtelecom has successfully completed
implementation of the first convergent
billing platform. This platform together
with Customer Relation Management (CRM)
platform and Enterprise Resource Planning
(ERP) have created a unique and contemporary
ecosystem realized so far in Albania.
INTERNATIONAL
INTERCONNECTION
International Interconnection Agreements that
ALBtelecom has established with important
carriers of international market, have enabled
the highest quality connections in national
market for a global reach. These connections
are offered not only to customers of fix and
mobile networks of ALBtelecom but also to
other operators in the Albanian market.
Our focus is to maximize profits by
taking advantage of latest trends of
telecommunication market and by cooperating
and developing the bilateral relations with
international telecommunication operators.
Currently, ALBtelecom strictly manages 23
agreements with international operators
following the best practices, effective and
reliable partnership as well as evaluating new
agreements.
During 2014 and ongoing, the focus of the
company’s policy has been the increase of
customer base and variety of offers and
services for local customers of ALBtelecom
and Eagle Mobile. In accordance with these
objectives, International Interconnection, has
managed to provide the lowest price per unit
for international market by effectively using the
transit routes, also by establishing preferential
agreements with strategic international
operators.
Preferential agreements are important projects
of taking the opportunities with partnerships in
the countries where a lot of Albanian live and
work. Such agreements have been finalized
during 2014 with Greece and Italy proving very
good results.
All these policies have impacted positively the
reduction of international interconnection
enabling the best offers in the market for our
customers, as well as the accomplishing the
objectives of the company to be number 1 in
porting in mobile numbers, significant increase
of fix and mobile usage to international
destinations.
31
DATA WHOLESALE
ALBtelecom provides wholesale services
of high-performance, IP, Data and network
transport facilities for national and international
telecommunication operators.
We are proud of being pioneers of telecom
industry in Albania, a position we have gained
by being the first telecommunication company
in Albania, innovative, reliable and customer
oriented. Our advanced products and services
are delivered in a cost-effective and sustainable
manner based on a deep understanding of
customer needs. Through improved success
and innovative services we secure customer
satisfaction.
The wholesale market is changing rapidly. While
prices are dropping down, the amount of data
in traffic is quickly growing. In order to find
balance, stay ahead of competition and achieve
profitability we have commercially improved
wholesale services and strategies. Only
through advanced service offerings, business
and financial modeling we have achieved direct
margins and generated better revenues.
ALBtelecom offers a range of services such
as: Internet Access, Data, Leased Line, Duct
infrastructure, Co-location, Dark FO, LLU,
Beatstream, IXP. These services are made
possible by collaborating with strategic
partners in the international market so the
services offered are of high quality.
As below, some figures of data wholesale
achievements for 2014:
• Revenues have increased by 25%.
• Expenses have decreased by 23% meanwhile
the purchased capacity has increased.
• Profit has increased by 53%.
• Number of national internet operators has
increased by 27%.
• Number of national data service operators
has increased by 47%.
• IP delivered capacity has increased by 37%.
• Data delivered capacity has increased by
62%.
• Number of access points has increased by
54%.
Evaluation of 2014 Activities
HUMAN RESOURCES
STATISTICAL DATA

FTE number as of December 2014 - 994 where 42% are males and 58% females. Average age 35

13% of the staff are in managerial positions where 44% are Females and 56% Males.

» ALBTELECOM TRAINING ACADEMY

ALBtelecom Training Academy is to create and Another topic covered in the Training academy
maintain a solid foundation of knowledge, has been Service Culture, which enhances our
skills and confidence by providing quality performance and helps maintain a Company
training and development opportunities for Culture that stresses out people’s values and
our employees. The Training Academy in skills and create excellent customer impressions
ALBtelecom is a mechanism to understand, that last forever.
transmit and materialize the Mission, Vision
During 2014, 70% of the staff has received
and Core Values of our Company, which
training.
indeed are the motto of what we actually do
in our everyday work. Training Academy is 28 % of the trainings have been internal and
providing periodical training programs, soft 72% External
skills and hard skills trainings, tailored trainings
and seminars, workshops etc. The variety of Training Distribution
topics covered in the ALBtelecom Training
Academy is interesting, starting form Global 28%
Economic Crises, Developed GSM System, NGN
System, Finance, Psychology, Social topics, 72%
Communication in the Workplace and in the
Media, Marketing, IT and continuing with Health
Internal Trainings External Training
and Safety in the workplace and life.

32
» ALBTELECOM BUSINESS ACADEMY
ABA started as an education program for the best performers within the training academy of
ALBtelecom.
Being officially licensed as a professional training program, the ALBtelecom Business Academy
was introduced in 2014 with a class of 38 participants; the top performers of ALBtelecom in 2013
and some employees of the Ministry of Social Welfare and Youth and the Ministry of Education.
The participants took lessons from well-known professors and top managers, and together they
made this program interactive, fun, enjoyable, and most importantly very productive.

Sales Integrated Assessment System

Our focus for 2014 has been as well the sale staff motivational programs. We published the
Consumer Business Sales and Support Integrated Assessment System Procedure where the main
purpose was to set the standards for a periodic performance appraisal of sales representatives
and specify the details of the evaluation. This process identifies the best sales persons and
motivate them by giving various career opportunities in the company.

33
Evaluation of 2014 Activities
Job Shadowing
Following the talent development of the people we initiated the Job Shadowing for the talents and
gave career opportunities to the internal employees. This project provides a unique opportunity
to find out how other staff work and what their roles involve. It develops a deeper knowledge and
understanding of other roles and functions within the company.

By being part of this project the employees will be able to:

• See how other staff and teams work.
• Gain insight into the roles and responsibilities of other members of staff and other departments.
• Reflect and learn from others.
• See the bigger picture and understand more about how the team functions.

Career Days
ALBtelecom has a close relationship with the Universities, public and private ones.
The HR cooperates with different divisions and universities to plan the internships according
to the field of study of the candidates. It is the duty of every division to provide a friendly
and helpful environment for the interns. The main purpose of the internship is not only
to help students put into practice the theoretical knowledge gained at school, but to also
consider the best internship students as potential candidates for the future recruitment
processes.
In 2014 we had 167 students that completed the internship in our company in different divisions.
104 out of 167 students were coming from Informatics and electronic branch.

Out of this process we organized the Career Day with Polytechnic University and Natural Sciences
students in order to identify the best ones and considering them as potential candidates for hiring.
In 2014 the employability of the interns was 4%.

34
ACTIVITIES
PIT STOP EVENT
It was organized for the first time in September 2014. The main focus was to highlight the
achievements of the company. The top management showed its acknowledgment of each
employees’ contribution and emphasized that every single employee can make the difference.

SOCIAL ACTIVITIES
Social activities are attracting a high number of employees. We have organized many social
activities such as chess, bowling, football and volleyball championship.

35
Evaluation of 2014 Activities
RISK MANAGEMENT
ALBtelecom’s risk management objective is to ensure competitive business activities at minimum
risk levels and without compromising its vision, values and codes of conducts. Risk management
is integrated within the company’s annual strategy planning process and key risks highlighted
therein by business units are tracked through various control, monitoring and review processes.
Every Business Unit reports their strategic risk matrix in their annual strategy plan, based on a
thorough risk assessment process. The risks are then aggregated from the Business Unit strategy
plans and presented to the Top Management for continuous consideration during the decision
making process. Business Units annually update the strategic risks indicated in the strategy plan
and also report key strategic risks that have emerged, including the status of actions to mitigate
the risks.

RISK FACTORS IN ALBTELECOM Business and Technical processes such as

1. Financial Risks
Financial risks are continuously monitored
and analyzed. Main fields with high potential
for financial risk include Credit Management,
Collection, Offer Profitability and Charging
Issues. Necessary measures are being
continuously taken to mitigate these risks,
reduce the risk of financial losses and to protect
the benefits of our subscribers.
• In terms of Credit Management, there are
different procedures to monitor, detect
and take action in case of high volume
subscribers. This monitoring covers all
aspects of traffic be it Voice, SMS or GPRS
which may be performed locally or abroad.
• For Collection, a consolidated team has
been built which covers payments, dunning
and follow up processes. Automatic controls
are performed after every dunning process
to ensure the quality of the process and
guarantee accurate charging.
• Product and Offer Profitability is also
strongly addressed. In the highly competitive
environment of telecommunications
industry, our aim is to offer to our
subscribers the best products and offers
while performing pre and after offer
analysis to minimize fraud and exploitation
of our favorable tariffs.
• Charging is continuously monitored by
Operational Risk Management Division.
Provisioning, Tariff Implementation, Real
Time Charging are periodically monitored in
order to provide zero mistake charging and
billing with the help of the best systems in
the world.
2. Operational Risks
Operational risks are always evident in the
telecom line of business due to the considerable
number of systems being used, fraudulent
activities outside the company as well as
the huge amount of data maintained for our
customers’ activity. The main operational risks
which are strongly addressed in ALBtelecom
are:
• The growing trend of ALBtelecom services
in the Albanian market and the considerable
number of interconnection and roaming
agreements with the international partners
brings with it the potential for exposure
to fraud and corruption, stakeholders
who may have a differing set of business
values from those under which ALBtelecom
operates. Such occurrences apart from the
financial damage can be seen also as failure
to adhere to the values that ALBtelecom
commits to in our global operations and
may damage customer perception of the
ALBtelecom brand as well as adversely
impact company’s results of operations.
Most types of fraudulent activity such as
international traffic bypass, appliances or
network hacking, intentional offer abuse,

36
 subscription fraud, are successfully addressed via different real time control measures
undertaken within Operational Risk Management Division as well as in cooperation with the
other sectors that might be affected.
• The introduction of new business models and technologies in the telecom sector may lead to
structural changes and different competitive models. Failure to meet the maturing demands
in the marketplace has the potential to impact ALBtelecom’s position in service offerings,
customer relationships and the value chain. This is why the company has addressed such concerns
via the implementation of the new SAP Billing System as well as the 4G-LTE infrastructure in
order to increase capabilities in terms of convergent charging, network quality and coverage
and reliability of service.

QUALITY with ISO standards, respectively with ISO 9001:

MANAGEMENT
The quality and reliability of ALBtelecom
services depend on the stability of its network
and the networks of other service providers
with which it interconnects. These networks are
vulnerable to damage or service interruptions.
Repeated, prolonged or catastrophic network
or IT system failures could damage the Group’s
reputation and ability to attract and retain
subscribers. Different measures are taken
from all interested parties be them technical or
business to address such issues in the shortest
time possible and with minimal effects on our
customers.
ALBtelecom handles substantial volumes of
confidential information. Loss, mismanagement
or unauthorized disclosure of such information,
e.g. through cybersecurity attacks or even
internal access, could adversely affect the
Group’s business and reputation. In order to
minimize such risks, measures have been taken
to reduce the access rights as well as to have a
better protection for customer information in
terms of IT infrastructure.
As ALBtelecom, we are making the greatest
effort to maintain the highest level of quality
and security. In 2014, ALBtelecom successfully
passed the external surveillance audits for the
Quality Management System and Information
Security Management System by an independent
accredited institution. The findings indicated
that the systems implemented are in compliance
2008 and ISO 27001:2005. The audit covered
the procedures/controls implemented in
ALBtelecom and confirmed the effectiveness
of the Quality Management System and
Information Security Management System.
During 2014, ALBtelecom has worked on
establishing an Occupational Health and
Safety Management System and has a target
to be certified in 2015 for OHSAS 18001 by an
independent accredited institution.
INFORMATION SECURITY POLICY
AND QUALITY POLICY
In 2014, ALBtelecom published Information
Security Policy and Quality Policy. These
policies place the highest company priority on
activities related to information security and
quality management systems.
INFORMATION SECURITY POLICY
ALBtelecom has established Information
Security Management System based on
ISO 27001:2013 Standard in order to ensure
security of client data, business continuity
and minimize business damage by managing
information security incidents. Our Top
Management is committed to work closely
with our customers, employees, stakeholders
and regulatory bodies in order to develop
and improve this system. As part of this
commitment, we aim to:

37
Evaluation of 2014 Activities
• Use training and communication to all employees to ensure proper Information Security
Management awareness;
• Establish Information Security culture in ALBtelecom as a long-term commitment;
• Ensure proper security, confidentiality, integrity and availability of the information;
• Safeguard security of our information assets through effective business continuity
management;
• Ensure that all information security breaches and incidents are reported and properly followed;
• Ensure that we understand and comply with the relevant legal and regulatory information
security requirements;
The Information Security Policy is reviewed on an annual basis in management review meetings to
ensure its effectiveness and accordance.

QUALITY POLICY
ALBtelecom is committed to establishing and maintaining a Quality Management System based
on ISO 9001:2008 Standard that enables all employees to continue to improve products and
services and to provide a total customer satisfaction. As part of our commitment on quality, we
aim:
• To improve customer satisfaction;
• To improve process efficiency;
• To improve employee productivity and motivation;
• To improve effectiveness;
We encourage cooperation within the company by focusing on the needs of our customers,
employees, stakeholders and regulatory bodies. We take measures and follow policies and
procedures to ensure that these processes are followed properly and monitored regularly.
In order to reach customer satisfaction and company objectives we follow a systematic review
of the Quality Management System. ALBtelecom assures that all employees are aware of their
responsibilities regarding Quality. The Quality Management Policy is reviewed on an annual basis
in management review meetings to ensure its effectiveness and accordance.

38
CSR Activities of ALBtelecom and Eagle 2014

ALBtelecom responded to Top-

Channel’s social initiative. Revenues
gathered from the SMS-s to short
1-4 January 2014
number 55099 in the 1-4 January
(2014) period, went to isolated families
in the Province of Shkodra.

ALBtelecom & Eagle Mobile, being

part of the Campaign “Albania wishes,
Albania donates” launched between
the dates 24-31 December 2013, all
January 2nd 2014
revenues coming from sent SMS-s
at number 0674067677 went to
Orphanage “Zyber Hallulli”. 

ALBtelecom donated 80 decorative

trees to the Municipality of Tirana in
order to be planted alongside two
February 4th 2014 streets in the capital city where the
greenery was missing.

ALBtelecom & Eagle Mobile financially

supported the Association “New
Horizon Cultural Centre” for the
organization of the artistic event
March 4th 2014 “Simfonia e Jetës” (The Symphony of
Life) on March 4th, 2014, at Opera and
Ballet Theatre. This was part of 8th of
March (International Day of Women)
festivities.

ALBtelecom has made its contribution

to improving the quality of services
in the University Hospital of Lung
Diseases "Shefqet Ndroqi" (The
March 9th 2014 Sanatorium) in Tirana. The company
has contributed to the furnishing of
the doctors' rooms in the University
Hospital, where there are also donated
desktop computers, tables and new
static chairs.

40
 ALBtelecom & Eagle Mobile supported
Turkish Embassy in Tirana in order
April 23th 2014 to organize the cultural activity of
International Day of Children.

ALBtelecom supported Vlora-Volley

April 24th 2014 team by providing sports’ materials.

ALBtelecom supported the Week of

Innovation undertaken by Minister
of State of Innovation and Public
Administration. 10 computers were
May 9-16th 2014 donated to the Albanian School of
Public Administration and PROTIK’s
KODE Project was supported within
the innovation week.

ALBtelecom & Eagle Mobile brought

joy to the children of Saranda’s
Orphanage within the framework of
International Day of Orphan Children.
May 20th 2014 Rehabilitation projects of Saranda and
Vlora’s Orphanages were promised by
the General Director of ALBtelecom &
Eagle Mobile during this event.

ALBtelecom, in collaboration with the

State Committee on Cults, brought
joy to the children of Elbasan’s
Orphanage within the framework
June 1st 2014
of 1st of June (Children’s Holiday)
festivities. Toys and clothes were
donated to these children.

41
CSR Activities of ALBtelecom and Eagle 2014

ALBtelecom donated 300 food

July 19th 2014 packages for people in need in the
framework of Ramadan Month.

ALBtelecom donated swimming suits,

July 21 st
2014 summer toys and clothes for the
orphans of Saranda.

ALBtelecom donated office

July 2014 equipment for the Foundation
“Autism speaks Albanian”

ALBtelecom organized the ceremony

September 3 rd
2014 of Doctor Honoris Causa for
Mr. Ahmet ÇALIK.

ALBtelecom donated equipment for

the laboratory of Public Relations and
October 1st 2014 Marketing Department of the Faculty
of History and Philology, University of
Tirana.

42
 ALBtelecom inaugurated the
October 16th 2014 rehabilitation of the Children’s Home
of Saranda.

ALBtelecom inaugurated the

October 16 th
2014 rehabilitation of the Children’s Home
of Vlora.

ALBtelecom rehabilitated the cinema

October 21st 2014 hall of Children’s Home in Tirana.

ALBtelecom sponsored the cultural

activity organized by The First Lady
of Albania with Ambassadresses
October 24th 2014 accredited in Tirana, in the framework
of support, protection and stimulation
of cultural heritage.

ALBtelecom donated free internet for

1 year for Children Home of Shkodra.
Also employees of the company
November 6th 2014 voluntarily donated more than 100
different books for the orphans of this
home.

43
 CSR Activities of ALBtelecom and Eagle 2014

ALBtelecom offered free wi-fi service

in the anti-nuclear tunnel. The
underground world of dictatorship
November - December 2014 comes to light to be present to the
public in the commemoration of the
70th anniversary of Albania’s liberation
from Nazi-fascists and 25th anniversary
of the Berlin Wall’s fall.

ALBtelecom was one of the sponsors

of Presidential Ball organized in
December 19th 2014
the end of year by President of the
Republic of Albania.

ALBtelecom organized the reward

ceremony of Mr. Ahmet ÇALIK
December 19th 2014 with Social Solidarity Prize and an
event with children of Zyber Hallulli
Orphanage.

ALBtelecom’s employees voluntary

December 2014 supported a family in need ( IT Group).

ALBtelecom’s employees donated a

special dinner for the Elderly House in
2014
Tirana. (Initiative of Customer Service
Directorate)

44
 Experience Sharing Forums (with
Marketing Club of Epoka University,
with the pupils of Mehmet Akif
April 23th 2014 College, with students of Bedër
University, with students of Master
of Journalism and Communication
Department, University of Tirana)

45
Audit Report

46
Albtelecom sh.a
The financial statements for the year ended 31 December 2014
(All the amounts are disclosed in thousand ALL, except when otherwise stated)

STATEMENT OF FINANCIAL POSITION

As at 31 December 2014

Notes 31 December 2014 31 December 2013

ASSETS

Non-current assets
Property, plant and equipment 4 24,459,097 25,691,124
Intangible assets 5 698,853 724,542
Other accounts receivable 6 43,308 45,871

Total non-current assets 25,201,258 26,461,537

Current assets
Inventory 7 510,492 567,867
Prepayment and deferred expenses 8 849,410 516,198
Other accounts receivable 9 405,241 499,475
Trade receivables 9 2,502,378 3,085,760
Cash and cash equivalent 10 169,792 523,599
Total current assets 4,437,313 5,192,899
Total Assets 29,638,571 31,654,436

EQUITY
Share capital 11 15,000,000 15,000,000
Other reserves (4,783,971) (2,287,240)
Total comprehensive incomes (2,673,849) (2,496,731)
Total equity 7,542,180 10,216,029
LIABILITIES
Non-current liabilities
Long term loans 12 8,991,662 10,789,679
Provisions 13 218,786 218,786
Non-current trade payables 14 2,561,506 4,007,030
Deferred tax 21 668,095
Grants and deferred incomes 15 468,091 358,591

Total non-current liabilities 12,908,140 15,374,086

Current liabilities
Short term borrowings 12 4,008,027 2,448,787
Trade Payables 14 4,592,915 3,120,606
Grants, deferred incomes and other
liabilities 15 138,878 182,258
Other accounts payable 16 448,431 312,670

Total current liabilities 9,188,251 6,064,321

Total liabilities 22,096,391 21,438,407

Total equity and liabilities 29,638,571 31,654,436

The notes are an integral part of these financial statements

47
Audit Report

Albtelecom sh.a
The financial statements for the year ended 31 December 2014
(All the amounts are disclosed in thousand ALL, except when otherwise stated)

STATEMENT OF PROFIT OR LOSS

For the year ended 31 December 2014

Notes 31 December 2014 31 December 2013

Revenues 17 10,598,672 11,787,206

Cost of service sold 18 (7,350,713) (6,110,749)
Gross profit (loss) 3,247,959 5,676,457

Sales and distribution expenses 18 (2,105,333) (2,082,826)

General and administrative expenses 18 (2,443,028) (3,288,406)
Other revenues / expenses from
operating activities 19 271,370 (1,867,402)
Profit (Loss) from operating activities (1,029,032) (1,562,177)

Net financial income (expenses) 20 (976,722) (909,284)

Net financial income (expenses) (976,722) (909,284)

Profit before tax (2,005,754) (2,471,461)

Income tax expense 21 - (25,270)

Current year profit / (loss) (2,005,754) (2,496,731)

Total profit /(loss) of the year attributed

to:
The shareholders of the company (2,005,754) (2,496,731)
Non-controlling interests - -

The notes are an integral part of these financial statements

48
Albtelecom sh.a
The financial statements for the year ended 31 December 2014
(All the amounts are disclosed in thousand ALL, except when otherwise stated)

STATEMENT OF OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2014

31 December 2014 31 December 2013

Current year Profit /(Loss) (2,005,754) (2,496,731)

Other comprehensive income

Items that may be reclassified later in profit
/ loss:

Items that cannot be reclassified later in

profit / loss:
Deferred tax recorded directly in other
comprehensive income 21 (668,095)

Current year other comprehensive income (668,095) -

Total other comprehensive income (2,673,849) (2,496,731)

Total other comprehensive income

attributed to
Shareholders of the company (2,673,849) (2,496,731)
Non-controlling interests - -

The notes are an integral part of these financial statements

49
Audit Report

Albtelecom sh.a
The financial statements for the year ended 31 December 2014
(All the amounts are disclosed in thousand ALL, except when otherwise stated)

STATEMENT OF CASH FLOWS

For the year ended 31 December 2014

Notes
31 December 2014 31 December 2013

Cash flows from operating activities

Profit before tax (2,005,754) (2,471,461)
Adjustments for non-monetary items:
Depreciation and amortization 2,519,828 2,110,293
Result from the sale of property, plant and
(261,915) 1,901,213
equipment
Other provisions and impairment 297,119 621,990
Interest gains (4,011) (14,858)
Interest expenses 1,075,066 709,036

Changes in working capital

Changes in inventory 57,375 (266,305)
Changes in trade and other receivables 344,404 23,370
Changes in trade and other payables 1,450,324 905,212
Cash and cash equivalents generated from
3,472,436 3,518,490
operating activities

Paid interests (974,523) (561,147)

Prepaid income tax during the year - (251,375)
Net cash and cash equivalents from
2,497,913 2,705,968
operating activities

Investing activities
Purchase of property plant and equipment (1,397,824) (10,879,829)
Sale of property plant and equipment 324,374
Cash flow generated from the merge with
1,049,447
Eagle Mobile
Cash and cash equivalent generated from the
109,686
merge with Eagle Mobile
Received interest 4,011 14,858
Net cash flows generated from investing
(1,069,439) (9,705,838)
activities

Financing activities
(Repayments)/ inflows from long term
(1,445,524) 1,590,278
suppliers
(Repayments)/ inflows from long term
2,563 89,587
receivables
Net (Repayments)/ inflows form loans (339,320) 5,417,860
Paid dividends
Net cash flows from financing activities (1,782,281) 7,097,725

Changes in cash and cash equivalents (353,807) 97,855

Cash and cash equivalent at the beginning 523,599 425,744
Cash and cash equivalent at the end of the
169,792 523,599
period

The notes to financial statements are an integral part of these financial statements

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