The presentation for the conference call and the key figures of the Telekom Austria Group in excel format („Key Figures 3Q 2008“) are available on our website at www.telekomaustria.com
Results for the financial year 2008 will be announced on February 25, 2009
During the first nine months 2008 revenues grew by 6.4% to EUR 3,863.8 million mainly due to a strong performance of international operations including the consolidation of Velcom, which offset a lower contribution from the domestic market.
EBITDA grew by 3.0% to EUR 1,507.6 million driven by international operations including the consolidation of Velcom. Operating income declined by 2.5% to EUR 651.6 million due to higher depreciation and amortization charges. Net income declined by 13.9% to EUR 388.9 million mainly due to higher interest expenses following the acquisition of Velcom.
Capital expenditures for tangible and intangible assets remained stable at EUR 534.3 million despite enlarged operations as lower capital expenditures in the Fixed Net segment compensated for higher capital expenditures in the Mobile Communication segment.
Net debt decreased by 5.4% to EUR 4,170.8 million at the end of 3Q 08 compared to the end of 2007.
Revenues increased by 4.0% to EUR 1,328.0 million in 3Q 08 primarily driven by the consolidation of Velcom. The third quarter of the year is characterized by seasonally higher roaming volumes due to summer vacations. Therefore, roaming revenues declined especially during 3Q 08 as a consequence of the regulation of international voice roaming traffic, which was introduced by the European Union in the second half of 2007.
EBITDA grew by 3.6% to EUR 539.9 million primarily due to the consolidation of Velcom and mobilkom austria’s higher profitability. Operating income grew by 1.5% to EUR 261.7 million. Net income decreased by 6.2% to EUR 162.9 million during 3Q 08 mainly due to higher interest expenses following the acquisition of Velcom. Earnings per share declined by 5.5% to EUR 0.37.
Capital expenditures for tangible and intangible assets increased by 16.4% to EUR 184.0 million mainly due to higher investments in Bulgaria and the consolidation of Velcom.
Restructuring measures announced:
On November 10, 2008 the Telekom Austria Group announced the next step from the current restructuring program of its Fixed Net operations which will require a non-cash provision in the amount of approximately EUR 630 million and will impact reported EBITDA in 4Q 2008. However, it will not impact the cash flow of the Telekom Austria Group and will improve future earnings. For further details see Subsequent Events on page 10.