Mobiltel acquisition puts Telekom Austria on the up and up

14 Mar 2006

Telekom Austria has reported a 7.9% increase in revenues for the full year 2005, helping to push operating income up by 37% to EUR620 million. Much of the growth was propelled by the group’s mobile business, including the recent acquisition of Bulgarian cellco Mobiltel, whose results were integrated from 12 July 2005 onwards. Group adjusted EBITDA rose 12% to EUR1.76 billion and consolidated net profit was up 83.5% to EUR417.1 million, driven by lower interest expense and lower income tax. Telekom Austria is to recommend a dividend of EUR0.55 per share, more than double the EUR0.24 paid in 2004. Telekom Austria’s domestic ADSL lines in service increased 49.7% to 574,300 at the end of 2005, including 105,800 wholesale customers. Group mobile customers increased 81.1% to 8.96 million, driven by the acquisition of Mobiltel and a strong festive holiday period at all companies; excluding Mobiltel, the mobile subscriber base grew 8.5% to 5.37 million subscribers.

Austria, A1 Telekom Austria Group