Mobile arm buoys Telekom Austria’s Q2

26 Aug 2003

Austria’s dominant telco Telekom Austria, reported a 67% rise in profits for the three months to 30 June 2003, thanks in the main to cost cutting and a strong performance from Mobilkom Austria, in which it now holds a 100% stake after buying out Telecom Italia’s 25% interest in June. The Austrian PTO said its net income increase to EUR28.2 million from EUR16.9 million for the corresponding period of 2002, on the back of rising sales of EUR965.4 million, from EUR935.3 million previously. Despite the moderate increases, the company has been forced to introduce cost cutting to tackle the problem of falling revenues from its core fixed line business, higher interconnection costs and new workers’ pensions legislation. On a more positive note, Mobilkom Austria said its second quarter EBITDA rose by 10% to EUR177.4 million, while sales increased by 9.6% to EUR498.5 million.