Telekom Austria revenue slides 3.4% on competition, regulatory effects

26 Feb 2014

Telekom Austria has announced revenues of EUR4.184 billion (USD5.7 billion) for the twelve months ended 31 December 2013, a decrease of 3.4% from EUR4.329 billion the previous year, as fourth-quarter revenue dropped 5.6% year-on-year to EUR1.056 billion. EBITDA totalled EUR1.287 billion in full year 2013, down 11.6% from EUR1.456 billion, and dropped 17.9% year-on-year in 4Q13 to EUR262.3 million. The company said that the decline in full year revenue and EBITDA was driven by competitive price pressure in the mature markets of Austria, Bulgaria and Croatia, while regulatory effects contributed EUR122.1 million to the fall in revenue, although Belarus and ‘additional market segments’ saw revenue growth of 10.1% and 6.3%, respectively. Net income increased 5.5% in 2013 to EUR109.7 million, but the firm posted a net loss of EUR49.5 million in the fourth quarter, narrowed from a loss of EUR76.0 million in 4Q12, thanks to lower interest expenses together with lower tax expenses.

As at 31 December 2013 Telekom Austria reported a total of 20.117 million mobile customers, up 2.5% from 19.626 million twelve months earlier, while total group fixed access lines rose 1.3% to 2.637 million. In its domestic market, wireless subscribers grew 10.3% year-on-year to 5.715 million, primarily as a result of the acquisition of the no-frills provider YESSS!, and fixed access lines increased 0.1% to 2.284 million.