Telekom Austria posts 13% drop in Q1 net income

29 Apr 2016

Telekom Austria has published its results for the three months ended 31 March 2016, reporting that on a pro-forma basis, group revenues declined by 2.2% year-on-year to EUR1.009 billion (USD1.14 billion), but grew by 1.2% year-on-year on a reported basis, with increases in all markets except for Belarus and Slovenia. Total revenues in the Austrian segment increased by 1.2% from EUR624.4 million in the first quarter of 2015 to EUR632.0 million twelve months later, mainly driven by a 48.5% jump in equipment revenues. Pro-forma group EBITDA for Q1 2016 declined by 2.5% year-on-year to EUR334.4 million, mainly due to a EUR20.0 million ‘positive extraordinary effect’ in Slovenia in Q1 2015. The company posted net income of EUR81.0 million in the first quarter of 2016, compared to EUR92.7 million in the year-ago quarter.

In operational terms, Telekom Austria Group saw an increase in the number of fixed line subscribers, largely driven by the acquisitions of fixed line reseller Amis in Slovenia and Croatia (consolidated as of 1 September 2015) and cableco Blizoo in Bulgaria (1 October 2015). At 31 March 2016 the group reported a total of 5.593 million wireline customers, an increase of 3.3% from 5.415 million a year earlier, and 20.529 million wireless subscribers, down slightly from 20.551 million in 1Q15. Mobile customer growth in Austria (4.0%) and Slovenia (4.9%) was not able to offset declines in Bulgaria (-4.3%), Croatia (-0.7%), Serbia (-2.5%) and Macedonia (-2.4%).

Austria, A1 Telekom Austria, A1 Telekom Austria Group