Mobile Communication

Note: Detailed data of the Mobile Communication segment are shown in the appendix on pages 27, 28 & 29

Subscriber base grows by 1.5 mn to 18.5 mn

Revenues primarily hit by FX and lower roaming

A rising number of contract subscribers in all mobile operations drove the growth of the customer base in the Mobile Communication segment by 1.5 million to 18.5 million customers as of September 30, 2009.

FX accounting for 50% of revenue decline

Revenues in the Mobile Communication segment fell by 7.1% to EUR 831.8 million in 3Q 09 primarily driven by foreign currency translation, lower international roaming and interconnection revenues, the expiry of the national roaming agreement in Croatia as well as lower prices for voice and data. Foreign currency translation impacted revenues negatively by EUR 27.5 million. On a local currency basis, revenues decreased by 4.1%.

Operating expenses decrease by 4.7%

While operating expenses decreased by 4.7%, Mobile Communication EBITDA declined by 10.4% to EUR 337.5 million in 3Q 09 mainly due to lower contributions from Austria, Bulgaria and Croatia. The losses associated with the launch of operations in the Republic of Serbia and the Republic of Macedonia were halved from EUR 13.5 million in 3Q 08 to EUR 6.8 million in 3Q 09. The negative impact from foreign currency translation amounted to EUR 8.6 million. On a local currency basis, EBITDA declined by 8.1%.

Due to the impairment charges for the goodwill from the acquisition of Velcom in Belarus and for the license of Vip mobile in the Republic of Serbia operating income decreased from EUR 217.1 million in 3Q 08 to an operating loss of EUR 173.6 million in 3Q 09. Excluding the impairment charges operating income was EUR 178.4 million. On a local currency basis and excluding the impairment charges, operating income decreased by 17.7%.

mobilkom austria

Mobiltel

Velcom

Vipnet

Si.mobil

VipMobile

VipOperator