Wireless businesses at home and abroad boost Telekom’s earnings

19 Nov 2003

Austria’s dominant operator Telekom Austria has reported a 38.8% rise in net income for the first nine months of 2003, buoyed by its mobile businesses at home and abroad, and the sale of non-core assets. The Austrian PTO said that net income for the period increased to EUR155.4 million on the back of revenues of EUR2.95 billion, a 1.8% increase year-on-year. Capital expenditure fell 8.5% to EUR339.4 million. Whilst demand for the group’s core domestic voice wireline services continued to fall, its internet access, data and wholesale businesses helped keep fixed line revenues relatively stable, down 1.4% to EUR547.8 million. This was offset by a 5.4% rise in wireless revenues, to EUR537.1 million. Telekom’s wholly-owned domestic cellco, mobilkom austria, saw its revenues rise 4.1% as its subscriber base grew by 5.4% to 3.1 million in one of Europe’s most competitive markets. Telekom’s recently-increased 99% shareholding in Croatian cellco VIPnet also reaped dividends with the latter’s revenues growing 11% in the first nine months of the year on the back of a 15.8% hike in its customers to 1.18 million, equal to more than half the market.