Telekom Austria Group Q3 revenues drop 6.2%; net income grows 32.5%

14 Nov 2011

Telekom Austria has reported group revenues of EUR1.111 billion (USD1.528 billion) for the three months ended 30 September 2011, down 6.2% compared to the EUR1.185 billion generated during 3Q10. The company blames the slump on price pressure in Austria, ongoing economic headwinds in Croatia and Bulgaria and the devaluation of the local currency in Belarus. Meanwhile EBITDA dropped 8.1% year-on-year, to EUR412.9 million, with positive contributions from Telekom’s ‘Additional Markets’ (Serbia, Slovenia, Macedonia) unable to compensate for lower returns in Austria, Bulgaria, Croatia and Belarus. The company’s operating income dropped 5.6%, to EUR166.1 million, whilst net income increased 32.5% to EUR127.9 million for the three-month period under review. Meanwhile, CAPEX increased 21.1% year-on-year to EUR177.8 million, primarily due to higher network investments in Telekom’s domestic market.

In operational terms, Telekom’s domestic mobile subscriber base increased by 3.9% year-on-year to reach 5.21 million, with mobile broadband customers increasing 17% to 721,400 at end-September. Telekom’s fixed access lines grew 1.0% to 2.33 million, and its broadband subscriber base expanded 11.4% to 1.25 million. In Bulgaria, Mobiltel’s subscriber base increased 1.1% to 5.29 million customers; 3G exhibited a strong performance during the twelve months ending 30 September, with the subscriber base growing 81.6% to 177,600. During the same period, Velcom, Belarus’s number two operator by users, increased its mobile subscriber base by 7.3% to 4.53 million, supported by strong growth of mobile broadband customers, to 349,600. Vipnet, the second largest mobile operator in Croatia, increased its subscriber base by 1.6% to 2.17 million customers, while its 3G subscriber base increased by 19.1% to 195,300. Si.mobil, the second largest operator in Slovenia, increased its subscriber base 4.2% to 631,000 customers, with mobile broadband users up 4.8% to 15,200 during the corresponding period. VIP Mobile, the third largest mobile operator in Serbia, continued to grow its mobile subscriber base, which stood at 1.59 million at the end of September 2011, a rise of 24.1% year-on-year. Finally, Macedonia’s number three player VIP Mobile, grew its subscriber base to 548,500 customers at the end of 3Q11.

Austria, A1 Telekom Austria Group