Telekom posts profit

24 Aug 2004

Telekom Austria has posted a 26% rise in its second quarter profit on the back of lower interest payments and a boost in sales. Net income in the three months to the end of June was EUR35.7 million, from EUR28.3 million twelve months earlier, driven by a 3% rise in sales to EUR995.6 million. Fixed line services accounted for more than half of turnover, despite a 3.2% drop in access lines. Domestic wireless unit Mobilkom increased its customer base by 3.4% to 3.17 million, but lost one percentage point in market share as its rivals’ growth outstripped its own. Telekom used the results to announce that it is considering expanding its wireless footprint into Serbia and Bosnia; it already operates in neighbouring Slovenia and Croatia. Interest expenses narrowed by 20% to EUR31 million, helping the group to reduce its net debt by EUR270 million, to EUR2.37 billion at the end of June.