Outlook
Forecast for 2008
| Outlook 2008 | As of Aug. 20, 08 | As of May 14, 08 | As of Feb. 27, 08 |
|---|---|---|---|
| Telekom Austria Group | |||
| Revenues | 5 % | 5 % | 5 % |
| EBITDA | 3 % | 3 % | 3 % |
| Operating income | Stable | Stable | Stable |
| Net income | -12 % | - 12 % | - 12 % |
| Capital Expenditures | - 5 % | - 5 % | - 5 % |
| Fixed Net | |||
| Revenues | - 3% | - 3 % | - 3 % |
| EBITDA | - 12 % | - 12 % | - 12 % |
| Mobile Communications | |||
| Revenues | 10 % | 10 % | 10 % |
| EBITDA | 10 % | 10 % | 10 % |
The Telekom Austria Group fully reiterates its outlook for the full year 2008 as published on the occasion of the 2007 full-year results as well as of the results of the first quarter 2008.
Accelerated by the consolidation of recently acquired Velcom in Belarus, international operations will continue to drive operating results of the Telekom Austria Group in 2008.
The Telekom Austria Group expects revenues in 2008 to increase by approximately 5% compared to the previous year. EBITDA is expected to grow by about 3%, with growth from international operations over-compensating for a lower contribution from the Fixed Net segment. Operating income is expected to remain stable. Net debt increased in 2007 due to the acquisition of Velcom in Belarus and higher shareholder remuneration. This will lead to higher interest expenses and a decline in net income of approximately 12% in 2008.
Nevertheless, higher EBITDA and a reduction of approximately 5% in capital expenditures will allow for an increase in operating free cash flow by about 10%.
The Fixed Net segment is expected to continue to operate in a challenging environment characterized by fixed to mobile substitution for voice and broadband internet services. Primarily, as a result of the loss of access lines incurred in 2007 and a continuing reduction of the access line base in 2008 as well as a lower broadband ARPU, revenues are expected to decrease by approximately 3%, while EBITDA will show a decline of about 12%.
In the Mobile Communication segment revenues and EBITDA are expected to grow by about 10% due to strong international operations, primarily driven by the consolidation of Velcom in Belarus as well as improving results from the start- up operations in the Republic of Serbia and the Republic of Macedonia.
Based on the expected strong cash flow generation of the Telekom Austria Group the Management Board plans to propose a dividend of at least EUR 0.75 per eligible share for 2008 to be paid after approval by the Annual General Meeting held in 2009.
Please note that this text contains forward-looking statements. The website contains forward-looking statements that could result in risks and uncertainties. Forward-looking statements usually use expressions such as "believe", "is the aim", "assume", "plan", "expect" and similar wording. Due to a number of factors the actual events can deviate considerably from expected development. Forward-looking statements naturally contain risks and uncertainties. We would like to point out that due to a number of important factors the actual results can deviate considerably from the forward-looking statements.
