A1 Telekom Austria reports a 63% rise in net profit in 2Q20

15 Jul 2020

A1 Telekom Austria Group has reported total revenues of EUR1.096 billion (USD1.2 billion) for the second quarter of 2020, a decrease of 2.4% from EUR1.123 billion in the year-ago period, mainly due to lower equipment revenues (-8.7% year-on-year), roaming losses and lower other operating income (-33.0% y-o-y) as a result of ‘lockdown measures imposed by almost all governments in its footprint.’ Group EBITDA marginally fell by 0.5% from EUR392.1 million in Q2 2019 to EUR390.1 million twelve months later, as roaming losses were more than outweighed by cost savings. Excluding one-off and currency exchange effects as well as restructuring charges, group EBITDA increased by 3.9% y-o-y. A1 Telekom Austria Group, however, reported a 62.7% increase in net profit from EUR70.0 million to EUR113.8 million over the same period, mainly due to the release of accruals regarding a decided tax case in Bulgaria.

The firm says it expects a 2% decline in total revenue for full year 2020, mainly driven by negative impacts from roaming and currency exchanges, as well as lower equipment revenues. The group also says that it forecasts CAPEX cuts of around 25% compared to the initial outlook (EUR770 million capital expenditures before spectrum and acquisitions) to ensure flexibility and strengthen the free cash flow profile.

At 30 June 2020 A1 Telekom Austria Group reported a total of 21.208 million wireless subscribers, an increase of 0.2% year-on-year, mainly led by growth in Serbia (+0.1%), Slovenia (0.3%) and Croatia (6.6%), while mobile customer numbers declined in Bulgaria (down 2.0%), North Macedonia (-3.1%) and Austria (4.5%). Total wireline RGUs fell by 1.2% y-o-y from 6.176 million to 6.105 million at end-June 2020, as growth in broadband and TV RGUs could not compensate for the decline of fixed voice RGUs in Austria.

Austria, A1 Telekom Austria Group