Results for the First Half 2010
Vienna, August 18, 2010 – Today, Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announced its results for the first half 2010 and the second quarter ending June 30, 2010.
Highlights
| ■ | Continued challenging operating environment driven by fierce competition, regulatory induced pressure and macro-economic headwinds |
| ■ | Stabilization of Fixed Net line losses to 6,000 in 2Q 2010 vs. 12,600 in 2Q 2009 |
| ■ | Further Mobile Communication subscriber growth of 5.9% to 19.2 mn customers |
| ■ | Slow-down of Group revenue decline to -3.9% due to lower revenue reduction in the Fixed Net and the Mobile Communication segments |
| ■ | Group EBITDA declines by 8.3% due to higher revenue related Fixed Net expenses and lower mobile revenues, cushioned by cost reductions |
| ■ | Free cash flow generation remains strong with EUR 365.2 mn |
| ■ | Including impact from merger of domestic operations the management expects revenues of approx. EUR 4.7 bn and an EBITDA of EUR 1.60 to 1.65 bn for FY 2010 |
| ■ | DPS floor of EUR 0.75 reiterated |
| in EUR million | 2Q 2010 | 2Q 2009 | % change | 1-6 M 2010 | 1-6 M 2009 | % change |
|---|
| Revenues | 1,168.7 | 1,191.7 | -1.9% | 2,294.7 | 2,388.8 | -3.9% |
| EBITDA | 403.8 | 450.0 | -10.3% | 829.7 | 904.8 | -8.3% |
| Operating income | 134.2 | 170.2 | -21.2% | 300.5 | 350.3 | -14.2% |
| Net income | 68.7 | 82.3 | -16.5% | 159.9 | 167.6 | -4.6% |
| Earnings per share (in EUR) | 0.16 | 0.19 | -16.4% | 0.36 | 0.38 | -4.6% |
| Free cash flow per share (in EUR) | 0.45 | 0.45 | 0.8% | 0.83 | 0.75 | 10.8% |
| Capital expenditures | 160.1 | 149.3 | 7.2% | 296.5 | 265.3 | 11.8% |
| | | | | | | |
| in EUR million | | | | Jun. 30, 2010 | Dec. 31, 2009 | % change |
|---|
| Net debt | | | | 3,590.3 | 3,614.8 | -0.7% |
| Net debt/EBITDA (12 months) | | 2.1x | 2.0x | |
All financial figures are based on IFRS; if not stated otherwise, all comparisons are given year-on-year. EBITDA is defined as net income excluding financial result, income tax expense, depreciation and amortization. This equals operating income before depreciation, amortization and impairment charges.