Telekom Austria Group has reported consolidated revenues of EUR1.055 billion (USD1.368 billion) for the three months ended 31 March 2012, down 5.6% compared to the EUR1.118 billion generated in 1Q11. The company blames the slump on ‘intensified competition in Austria, Bulgaria and Croatia as well as macroeconomic headwinds in the Central and Eastern Europe (CEE) region’. However, lower revenues in the Austrian, Bulgarian and Belarusian segments were partially mitigated by strong revenue growth in Croatia, as well as Telekom’s ‘Additional Markets’ (Serbia, Slovenia, Macedonia). In Belarus, despite strong subscriber growth and higher usage, which resulted in a revenue increase of 70.6% in the local currency, the results were impacted by hyperinflation accounting and foreign exchange translations to the tune of EUR96.5 million. Meanwhile, group EBITDA dropped 8.9% year-on-year, to EUR361.4 million. However, Telekom said that it posted net income of EUR46.9 million, compared to a net loss of EUR79.2 million in 1Q11. CAPEX for the first quarter of 2012 increased 21.1% y-o-y to EUR145.8 million.