Telekom Austria net income falls 34.2%

13 May 2009

Austria’s incumbent telco, Telekom Austria, has reported net income of EUR85.3 million (USD118 million) for the first quarter of 2009, a 34.2% year-on-year decline. Revenues for the three months ended 31 March fell to EUR1.2 billion, down from EUR1.26 billion in the same period a year earlier. CEO of Telekom Austria, Hannes Ametsreiter, said, ‘The decline in revenues in the first quarter of 2009 is mainly due to lower revenue generation in the fixed line segment which was due to lower wholesale revenues and the disposal of subsidiaries.’ Capital expenditure was down by 27.3% to EUR116 million, from EUR159 million in 1Q 2008. The company also managed to reduce net debt by over EUR100 million in the three month period, with EUR3.87 billion outstanding as of 31 March 2009. Telekom saw its fixed line customer base continue to decline, albeit at a slower rate, losing 8,000 net customers in 1Q 2009. The total number of unbundled lines fell from 299,600 to 295,700. Subsidiary cellco Mobilkom Austria, the country’s largest mobile operator by subscribers, saw its customer base grow by 11.7% year-on-year, up to 4.6 million at the end of March.

Austria, A1 Telekom Austria, A1 Telekom Austria Group