The Telekom Austria Group faces various risks and uncertainties that could affect its results. These risks include, but are not limited to, a further reduction of prices for mobile communication services in Austria and elsewhere and an acceleration of fixed-to-mobile substitution resulting in further access line loss and a decline in fixed net minutes.
The Telekom Austria Group is also subject to risks related to the planned reduction of the number of employees in the Fixed Net segment. Furthermore, the Telekom Austria Group is subject to intensive regulation.
Through its expansion into the Eastern and South-Eastern European region, the company operates in markets that have been experiencing political and economic change. This circumstance has affected and may continue to affect the activities of enterprises operating in this environment. Consequently, operations in the Eastern and South-Eastern European region involve uncertainties, including foreign exchange and tax uncertainties that typically do not exist in other markets.
In recent years, the growth of Telekom Austria Group’s business was marked by an expansion in various markets in Eastern and South-Eastern Europe. However, further growth will be affected by a number of factors, over which Telekom Austria Group has no influence. Further organic growth also depends on the growth of the respective economies and individual telecommunication markets the Telekom Austria Group operates in.
Impacts of the economic downturn on Telekom Austria Group’s results cannot be fully ruled out. In the Mobile Communication segment there are uncertainties with regard to lower roaming revenues as a result of a decrease in travelling. Moreover, customer usage behaviour might change as a result of the economic crisis impacting the financial result of the Telekom Austria Group.