Telekom Austria Group sees Q1 revenues drop slightly; domestic user numbers boosted by integration of Yesss!

8 May 2013

Telekom Austria Group has reported consolidated revenues of EUR1.049 billion (USD1.373 billion) for the three months ended 31 March 2013, down 0.6% compared to the EUR1.055 billion generated in 1Q12. The company blames the drop on decreasing revenues in Austria and Bulgaria, ‘as a consequence of continuing difficult market conditions and regulatory provisions’. However, lower revenues in the aforementioned segments were partially mitigated by strong revenue growth in Belarus, as well as Telekom’s ‘Additional Markets’ (Serbia, Slovenia, Macedonia). Meanwhile, group EBITDA dropped 6.8% year-on-year, to EUR336.9 million. However, Telekom said that it posted net income of EUR55.5 million, up from EUR46.9 million in 1Q12. CAPEX for the first quarter of 2013 increased 2.2% y-o-y to EUR149.0 million.

In operational terms, domestic unit A1 Telekom Austria was boosted by the integration of recently acquired mobile virtual network operator (MVNO) Yesss!, which was acquired from Orange Austria in January 2013 as part of a larger deal which saw Orange sold to Hutchison Whampoa’s 3 Austria unit. Buoyed by the new subscriber accounts, A1 saw its overall wireless base increase 15.1% y-o-y to 6.085 million; excluding Yesss! the annual growth rate was 2.7%. Elsewhere, two Telekom Austria subsidiaries saw their customer totals decline y-o-y, namely Vipnet in Croatia (down 4.4% to 1.878 million) and Mobiltel in Bulgaria (down 1.5% to 5.403 million). The remainder of Telekom’s units all posted subscriber increases in the year to 31 March. VIP Mobile in Serbia saw subscriber growth increase 13.8% y-o-y to 1.904 million, with other growth as follows: VIP Operator in Macedonia (7.8% to 626,500), Si.Mobil in Slovenia (4.1% to 669,600) and MDC (Velcom) in Belarus (+3.9% to 4.818 million).

Austria, A1 Telekom Austria, A1 Telekom Austria Group, Yesss!