Fixed line drags Telekom Austria down

16 May 2007

The Telekom Austria Group has reported a 4.4% drop in net income for the first quarter, with international growth failing to offset declines in its domestic market. Revenues for the three months to the end of March fell slightly year-on-year from EUR1.16 billion (USD1.57 billion) to EUR1.15billion , while EBITDA dropped from EUR504.3 million to EUR474.9 million and net income fell to EUR147.2 million. Sales at Telekom Austria’s fixed line division were down 4.5% to EUR510.8 million due mainly to lower revenues from switched voice services. Sales from mobile services were up 0.9% to EUR694.1 million.

The group had 2.57 million wireline customers at the end of March, down 7% year-on-year, while it saw a 17.1% rise in its ADSL internet customer base to 721,600, including 124,000 wholesale lines. Mobile subscriptions were up 15.7% to 10.6 million.

Austria, A1 Telekom Austria, A1 Telekom Austria Group