Telekom Austria Group results for the second quarter 2017: Higher service revenues translated into EBITDA growth

Vienna, 25 July 2017

Alejandro Plater, CEO Telekom Austria Group, commenting on the highlights and the results:

“According to our strategy, we are continuing to focus on growth in our core and we have been organically strengthening our capabilities thanks to M&A activities. The solid performance in our markets and the positive results in the second quarter with increases in group revenues, EBITDA and net result show that we are on a good path.

In April 2017 we have been implementing the powerful brand A1 in Slovenia which is an illustrative example of our strategic approach to utilize well-proven, successful solutions in more than one market. This measure is expected to have the potential to make a contribution to the Group's efficiency and growth targets.

A common focus in the Telekom Austria Group on cloud, IoT and digital services. Our subsidiary A1 digital launched its new OTT cloud marketplace by end of June with releasing new features and new cloud services to existing customers and users. Furthermore the cloud marketplace became available for the Bulgarian and Croatian markets. For the remaining year we will see further services and more markets to be added.

We are not only supporting our customers in the digitalisation process, but we also need to digitalise ourselves and our internal processes. In this context we will put a strong internal focus on this topic in the remaining year with new groupwide initiatives.”

Highlights second quarter 2017:

  • Group total revenues increased by 4.0% (reported: +5.1%), with service revenue growth in all markets except from the Republic of Serbia and the Republic of Macedonia.
  • Group EBITDA growth of 7.8% (reported: 9.1%) mainly due to growth in Belarus, Austria, Bulgaria, Croatia and the Republic of Macedonia.
  • Negative effects from the stepwise abolition of retail roaming in the EU came in slightly lower than expected, while the expected losses for the second half of the year remain the same.
  • CEE:
    • Bulgaria: EBITDA growth after years of decline driven by higher total service revenues, better equipment margin and cost efficiencies
    • Ongoing solid operational performance in Croatia and Belarus
    • Other segments affected by fierce competition and regulatory headwinds
  • Total positive FX effects amounted to EUR 8.9 mn for total revenues and EUR 4.2 mn for EBITDA in Q2 2017, stemming almost entirely from Belarus.
  • Reported net result increased by 36.5% in the second quarter of 2017 from EUR 82.4 mn to EUR 112.5 mn.

Detailed information can be found in the earnings release: https://www.telekomaustria.com/en/newsroom/ir-news

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