Bulgaria & Mobiltel
Within the scope of the declared strategy to exploit growth potential in Southeast Europe, Telekom Austria has now taken first steps to acquire the leading wireless operator in Bulgaria. The Call Right signed on December 16th gives Telekom Austria the right to acquire 100% of the share capital of Mobiltel AD in late 2005.
Information on Bulgaria 1)
- Economic Information:
| Description | 2002 | 2003 | 2004 |
|---|---|---|---|
| GDP Growth (real) | 4.9% | 4.5% | 5.6% |
| Inflation | 5.8% | 2.3% | 6.1% |
| Unemployment rate | 17.8% | 13.6% | 11.9% |
|
Foreign direct investment (in % of GDP) |
5.9% | 10.6% | 10.9% |
|
Foreign direct investment (in EUR million) |
980 | 1,851 | 2,114 |
- The Bulgarian Lew is pegged to the Euro at 1.96 Lew per EUR
- Bulgaria’s credit ratings:
- Standard & Poor’s (S&P): BBB-
- Moody’s: Ba1
- Fitch: BBB-
- Bulgaria's parliament has ratified the country's EU Accession Treaty in May 2005. Bulgaria’s accession to the EU is targeted for 2007.
Additional Information on Mobiltel (financial data according to IFRS) 2)
| Description | 2002 | 2003 | 2004 3) | 1Q 2005 | 2Q 2005 4) |
|---|---|---|---|---|---|
| Mobile penetration | 28.3% | 44.0% | 59.0% | 62.4% | 65.8% |
| Mobiltel market share | 74.0% | 69.4% | 65.1% | 63.9% | 62.4% |
| Subscribers (in 000) | 1,672 | 2,425 | 3,030 | 3,143 | 3,235 |
| Description | 3Q 2005 5) | 4Q 05 6) |
|---|---|---|
| Mobile penetration | 69.7% | 79.50% |
| Mobiltel market share | 60.8% | 57.60% |
| Subscribers (in 000) | 3,333 | 3,594.2 |
| Revenues (in EUR million) | 127.5 | 135.1 |
| EBITDA (in EUR million) | 80.3 | 74.3 |
| EBIT (in EUR million) | 49.3 | 44.7 |
| Capex (in EUR million) | 14.1 |
39 |
Mobiltel’s credit ratings:
- Standard & Poor’s (S&P): BB+ (positive outlook)
- Moody’s: Ba2 (positive outlook)
1) Source: World Bank Group; IMF; EIU; www.parliament.bg; Republic of Bulgaria – National Statistical Institute
2) Company information (publicly available)
3) Pro forma consolidation
4) Mobiltel has not published financial results according to IFRS for the second quarter 2005.
Telekom Austria disclosed the following financial results of Mobiltel for 1H 2005 according to US GAAP: Revenues EUR 248.4 million, adjusted EBITDA EUR 159.2 million and CAPEX EUR 78.8 million
5) As of July 12, 2005 Telekom Austria Group has axquired Mobiltel. Consolidated 3Q 2005 financial figures of Telekom Austria include for the first time financial figures for Mobiltel for the period from July 12 through September 30, 2005.
6) Consolidated 4Q 2005 financial figures of Telekom Austria include for the first time financial figures for Mobiltel for the period from July 12 through December 31, 2005.
