Telekom Austria Group 1Q14 revenues drop 7% y-o-y

8 May 2014

Telekom Austria Group has reported consolidated revenues of EUR975.9 million (USD1.35 billion) for the three months ended 31 March 2014, down 7.0% compared to the EUR1.05 billion generated in 1Q13; the decline was primarily driven by a EUR65.9 million year-on-year sales slump in the company’s domestic market, while Bulgaria and Croatia also saw revenue declines. Meanwhile, group EBITDA dropped 5.0% y-o-y, to EUR319.9 million, with net income dropping 26.5% to EUR40.8 million. CAPEX for the first quarter of 2014 decreased 33.3% y-o-y to EUR99.4 million. Telekom’s Bulgarian and Serbian subsidiaries halved their CAPEX in Q1, while investment in Belarus almost doubled.

In operational terms, the group’s domestic unit A1 Telekom Austria saw its overall wireless base decrease 3.4% y-o-y to 5.646 million, while Mobiltel in Bulgaria saw its user figures drop 6.6% to 4.111 million at the end of the quarter. Croatian unit Vipnet reported a 3.8% drop in subscriber figures, to 1.807 million and VIP Operator in Macedonia saw its numbers decrease 0.7% to 622,200. Meanwhile, the remainder of Telekom’s units all posted subscriber increases in the year to 31 March. VIP Mobile in Serbia saw subscriber growth increase 7.4% y-o-y to 2.044 million, with other growth as follows: Si.Mobil in Slovenia (1.2% to 677,900) and Velcom in Belarus (2.5% to 4.939 million).