Restructuring impacts Telekom Austria earnings

25 Feb 2009

The Telekom Austria group has reported a net loss of EUR48.8 million (USD62.2 million) for full year 2008 as restructuring costs at its wireline business impacted earnings. The group had seen net profit of EUR492.5 million in 2007. The one-time hit caused by the restructuring programme meant operating income dropped 82% to EUR135.5 million and EBITDA fell 30.2% to EUR1.30 billion. Group turnover was up 5.1%, however, at EUR5.17 billion, driven by the firm’s domestic and international mobile operations. Net debt stood at EUR4 billion at the end of 2008, up 9.4% from twelve months earlier. Telekom Austria’s CEO Boris Nemsic commented: ‘Our results for the full-year 2008 are evidence of a solid operational performance despite strong headwinds from the global economic environment.’ Speaking of the company restructuring, he added: ‘these steps were essential in order to secure the long-term performance of the Telekom Austria Group. For the financial year 2009 we expect revenues of EUR5.1 billion and EBITDA of EUR1.9 billion.’ Telekom Austria claimed 2.3 million domestic fixed line customers, 885,700 broadband internet users and 17.8 million mobile subscribers at the end of December.

Austria, A1 Telekom Austria Group