Tough market conditions drive down Telekom revenue by 4.2%

16 Aug 2012

Telekom Austria Group has posted total revenues of EUR1.063 billion (USD1.308 billion) for the three months ended 30 June 2012, down 4.2% from the corresponding period of 2011. Earnings before interest, tax, depreciation and amortisation (EBITDA) also fell by 4.2% year-on-year to EUR364.8 million. Intense competition in the Austrian, Bulgarian and Belarusian markets were blamed for the drop, alongside ‘regulatory burdens,’ though improvements in the Croatian market, resulting from the fixed line business acquired last year, served to offset these effects somewhat. Net profit for the period under review was EUR34 million, up from EUR20 million a year earlier, whilst CAPEX was increased by 18.1% y-o-y to EUR185.1 million. The group has restated its guidance for 2012, expecting revenues to be in the region of EUR4.2 billion, EBITDA between EUR1.40 billion and EUR1.45 billion and CAPEX of EUR700 million-EUR750 million.

Austria, A1 Telekom Austria Group