Telekom Austria’s EBITDA grows 5.8% in Q1; net profit doubles

23 Apr 2015

Telekom Austria Group has reported a 2.0% year-on-year decrease in consolidated revenues in the first three months of 2015 to EUR956.0 million (USD1.027 billion) as growth in Croatia and a slowdown of revenue decline in Austria mitigated reported revenue losses in Bulgaria, Belarus and other markets. The overall revenue slide was an improvement on the 7% sales drop reported in Q1 2014, while if excluding currency effects in connection with the devaluation of the Belarusian ruble, quarterly turnover would have been flat year-on-year. Strong operational performance in Austria and Belarus drove group EBITDA up by 5.8% year-on-year to EUR338.5 million in Q1 2015 (up 2.7% year-on-year if excluding one-off items). EBIT increased by 43.5% to EUR139.7 million, and net profit more than doubled compared to the same period of the previous year, rising from EUR40.8 million to EUR92.7 million, helped by intensive cost savings in addition to positive market developments especially in the broadband and TV segment. Operating costs dropped by 1.6% to EUR661.3 million in 1Q15, allowing for an increase in infrastructure investments by 21.8% to EUR121.1 million.

Mobile customer numbers at the group level showed a slight increase to 19.994 million at the end of March 2015; total fixed access lines (broadband and fixed voice) increased by 4.5% to 2.764 million year-on-year.

Revenues at Austrian full-service operator A1 Telekom dropped by 0.8% year-on-year to EUR609.5 million in the first quarter of 2015, but EBITDA increased by 6.3% to EUR207.1 million and EBIT rose by 50.5% to EUR87.4 million. The decline in revenues in Austria was mainly attributed to regulation of roaming (revenues dropping by 5.9%) and interconnection (declining by 3.6%).

Austria, A1 Telekom Austria, A1 Telekom Austria Group