Telekom Austria Group: Supervisory Board Approves Budget for 2002 (Ad hoc Release)
Vienna, December 18, 2001: The supervisory board of Telekom Austria today approved the budget for 2002. EBITDA is expected to improve in both the wireline and mobile businesses, although at lower growth rates than those seen in 2001. Wireline includes the fixed line, data communications and the internet business segments.
The main headlines for the expected development in 2002 are:- Wireline: Further cost cutting is expected to lead to higher EBITDA. The decline in market shares is expected to plateau next year.
- Mobile: The continuing operating improvement of the international business is expected to offset the impact of reduced interconnection rates and the anticipated entry of a new operator in Austria.
As a result of the foregoing, Telekom Austria is aiming to improve margin at the level
of total managed group EBITDA for the year ended December 31, 2002.
For 2001 the board of Telekom Austria reiterates earlier statements that total managed group EBITDA is expected to reach at least EUR 1.4bn.
Contact:
Hans Fruhmann
Head of Investor Relations at Telekom Austria
Tel: +43 (0) 59059 1-20917
E-Mail: hans.fruhmann@telekom.at
Cautionary Statement for Purposes of the “Safe Harbor” Provisions of the United States Private Securities Litigation Reform Act of 1995. The U.S. Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This press release contains certain forward-looking statements, including, but not limited to, Telekom Austria's estimated revenues and EBITDA for fiscal years 2001 and 2002. Actual operational and financial results may differ materially from Telekom Austria’s expectations contained in the forward-looking statements as a result of various factors, many of which are beyond the control of the Company. These factors include the level of demand for telecommunications services or equipment, particularly with regard to access lines, traffic, bandwidth and new products; competitive forces in liberalized markets, including pricing pressures, technological developments, alternative routing developments and new access technologies, and our ability to retain market share in the face of competition from existing and new market entrants; the effects of our tariff reduction or other marketing initiatives; the regulatory developments and changes, including with respect to the levels of tariffs, the terms of interconnection, unbundling of access lines and international settlement arrangements; our ability to achieve cost savings and realize productivity improvements; the success of new business, operating and financial initiatives, many of which involve start-up costs, and new systems and applications, particularly with regard to the integration of service offerings; the progress of our domestic and international investments and joint ventures and alliances; the effects of the potential disinvestment by our strategic partner Telecom Italia and its subsidiaries; the impact of our new business strategies and transformation program; the availability, terms and deployment of capital and the impact of regulatory and competitive developments on capital expenditures; the outcome of litigation in which we are involved; the level of demand in the market for our shares which can affect our business strategies; changes in the law including with respect to regulatory, civil servants and social security law, including pensions and tax law; and general economic conditions, government and regulatory policies, and business conditions in the markets we serve. The ability to achieve the projected results are also subject to the general risks associated with the Company’s business, as described in its previous filings with the United States Securities and Exchange Commission.
