Telekom Austria posts flat H1 revenue, cuts full-year forecast

17 Jul 2015

Telekom Austria Group has reported revenue of EUR982.8 million (USD1.1 billion) for the three months ended 30 June 2015, an increase of 2.1% from EUR963.0 million in the year-ago quarter, while turnover for the six-month period was flat year-on-year at EUR1.939 billion, as higher revenues in the Austrian segment were offset by declines in other markets. The firm’s domestic operations saw 1H15 revenues rise by 2.5% year-on-year to EUR1.228 billion, but Bulgaria continued to be affected by macroeconomic and competitive pressure, which resulted in a revenue decline of 5.0% to EUR173.6 million, and turnover in Slovenia declined by 13.0% due to intensified competitive environment as well as negative regulatory effects. As a result of the weaker than expected performance in central and eastern Europe, Telekom Austria says it has cut its full-year revenue forecast and now expects revenue to stay flat in 2015 instead of growth of approximately 2%.

Group EBITDA totalled EUR326.8 million in 2Q15 (up by 9.1%) and EUR665.3 million in 1H15 (an increase of 7.4% year-on-year), with the growth attributed to stringent cost cutting and regulatory cost declines. Telekom Austria reported net income of EUR78.6 million for the three months to end-June 2015, compared to a net loss of EUR305.1 million in the year-ago quarter, and earnings reached EUR171.4 million in the first six months of 2015 (1H14: -EUR264.3 million).

Total mobile customers rose by 0.6% to 20.005 million at the end of June 2015 from 19.878 million twelve months previously, with growth driven by a 4.8% increase in Bulgarian wireless subscribers to 4.305 million. Fixed access lines increased by 5.9% year-on-year to 2.791 million, of which 1.865 million were broadband lines (up by 10.1%), mainly thanks to the acquisition of Blizoo Macedonia as well as solid growth in the Austrian, Bulgarian and Croatian segments.

Austria, A1 Telekom Austria, A1 Telekom Austria Group