Telekom revises profits forecast

24 Aug 2005

Telekom Austria has raised its 2005 full-year profits forecast after seeing a jump in profits from mobile services in the second quarter. The state-backed telco had net profits of EUR75.7 million in the three months to the end of June, more than double the EUR34.6 million reported a year earlier. The rise has led the company to predict profit growth of 50% this year, double its previous growth estimate of 25%. Net profits reached EUR227 million in 2004. Sales were up 1.5% in the second quarter to EUR1.01 billion, with EUR535.3 million of this coming from mobile services. Telekom’s wireless operations in eastern Europe are performing particularly well, with Croatian mobile subsidiary VIPnet reporting a 12% jump in quarterly sales to EUR103.3 million and Si.mobil in Slovenia seeing sales up 14% to EUR23.7 million.

Austria, A1 Telekom Austria Group