Telekom Austria swings to loss in Q3

12 Nov 2009

Telekom Austria posted a surprise net loss of EUR136.3 million (USD204.4 million) as the company incurred impairment charges amounting to EUR352 million; a year earlier Telekom posted net profit of EUR162.9 million. Revenues slipped by 7.3% year-on-year from EUR1.33 billion in the third quarter of 2008 to EUR1.23 billion a year later. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to EUR489 million, down 9% from EUR538 million a year earlier. In the nine months ended 30 September 2009, Telekom reported net profit of EUR31.3 million, down 92% year-on-year. Hannes Ametsreiter, CEO of the Telekom Austria Group, said: ‘The results for the first nine months 2009 reflect weaker economies in foreign markets, negative currency effects and further disrupting roaming regulation. Strict cost management partly compensated for a decrease in revenues and a reduction of capital expenditures mitigated the impact on operating free cash flow. Operating trends in the Fixed Net segment further improved for the seventh consecutive quarter thanks to a continuing strong uptake of product bundles.’

At the end of September 2009 the company had 1.33 million fixed line telephony customers, down from 1.5 million a year earlier. Telekom added 199,600 net new retail broadband subscribers in the twelve months ended 30 September 2009, ending the period with a total of 926,000. The firm’s domestic mobile arm Mobilkom ended the third quarter of 2009 with 4.72 million subscribers, up 8.3% year-on-year. The group’s international mobile operation, which combines networks in Belarus, Bulgaria, Croatia, Liechtenstein, Macedonia, Serbia and Slovenia with Mobilkom, reported a consolidated customer base of 18.47 million at the same date, up from 17 million a year earlier.

Austria, A1 Macedonia (formerly Vip), A1 Serbia (previously VIP Mobile), A1 Telekom Austria, A1 Telekom Austria Group, Mobilkom Liechtenstein (became part of FL1)