Release of 23.06.2022

A1 Telekom Austria Group: Guarantee for Prosperity – Positive Economic Effects Attributed to A1 Austria

Economica Research on "Positive Economic Effects Attributed to A1 Austria"

f.l.t.r.: Marcus Grausam, CEO A1Austria; Christian Helmenstein, Economica; Thomas Arnoldner, CEO A1 Group

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A1 Austria and Economica present a study on the economic effects of A1

This week, A1 Austria and Economica, an economic research institute located in Vienna, presented a study on which economic effects are being generated in Austria by A1's ongoing operations and investments. By means of a "satellite account," all indirect and induced effects resulting from intermediate inputs and consumption by employees in Austria were determined in addition to the direct effects incurring directly to A1 Telekom Austria Group and A1 Austria.

Professor Dr. Christian Helmenstein, CEO of Economica, comments on the results: “A1 is one of the essential pillars of business in Austria, not only because it is assigned to state-owned companies, but also because it operates critical and thus security-relevant infrastructure. The analyzed effects on gross value added, employment, wages and salaries as well as taxes and duties clearly show the important and stabilizing function A1 plays even in times of a difficult economic situation. Here, A1 acts both as an anchor of stability for Austrian employment and as a driver of economic activity both in the upstream supplier network and through significant investments”.

A1 Group CEO Thomas Arnoldner says: „The results of this current study once again underscore A1's importance for Austria - at the national and regional level, where investment in digital infrastructure is a significant factor in companies' future choice of location. At the heart of A1's corporate strategy is the vision of "Empowering digital life", a strategy we are implementing with the fast expansion of infrastructure, digital innovations and a strong focus on sustainability. In this way, we secure jobs, revitalize innovative strength and create greater resilience in the economy as well as long-term advantages in global competition”.

Every 155th* Euro generated in Austria by A1
The direct gross value added effect of A1 amounts to EUR 1,519.5 million in 2021. Intermediary consumption generates an indirect gross value added effect of EUR 587.4 million for A1's Austria-wide upstream suppliers. Furthermore, the income of employees and upstream suppliers is connected with additional consumption, which is reflected in an induced gross value added effect of EUR 188.3 million. In total, all effects add up to a total gross value added of EUR 2,295.1 million in 2021. Every euro generated at A1 therefore generates a further EUR 0.51 in gross value added in Austria. In a direct comparison, A1 generates about two-thirds of the value added of all advertising and market research services in Austria. The total effect even exceeds the direct value added of the entire civil engineering and underground construction sector.

In view of the total gross value added of around EUR 2.3 billion, every 155th* euro generated in Austria can be attributed to A1. The total value added share of A1 in Austria is approximately 0.65%.

More than twice the average: 171,000 euros gross value added per employee
The direct employment effect of A1 in 2021 amounts to 8,897 jobs or 8,322 full-time equivalents (FTEs) in Austria. The indirect employment effect comprises 5,774 employment relationships or 4,750 FTEs, and 2,567 employment relationships or 2,017 FTEs are induced by A1's activities. The individual employment effects result in an employment multiplier of 1.94. This means that 100 jobs at A1 secure another 94 jobs in Austria.

Overall, therefore, a share of around 0.37 percent of Austria's total workforce* is attributable to A1's operating performance in 2021. The productivity level of A1, measured in terms of value added generated per direct employment relationship, is EUR 171,000 - more than 2.2 times the Austria-wide average and - if A1 were a separate sector - would rank tenth among the 74 sectors.

Fiscal effects of more than 1 billion euros
In 2021, the amount of all taxes and duties for Austria collected by A1 or collected on behalf of third parties amounted to EUR 716.2 million. Including taxes and duties of indirect and induced effects, a total fiscal effect of EUR 1.036 billion arises for Austria from A1's ongoing business activities. This value corresponds to roughly twice the revenue of all import duties.

High investment in digital infrastructure
The total volume of A1's investment activity in Austria in 2021 was around EUR 463.5 million. Approximately EUR 247.6 million of this amount generated value-added effects in Austria and triggered a gross value-added effect of a further EUR 149.5 million throughout Austria. Each directly generated euro of value added is associated with a further 0.51 euro via indirect and induced effects.

In addition, 1,616 employment relationships, EUR 61.9 million in wages and salaries, and a total fiscal effect of EUR 52.6 million in Austria are included with the investment activity.

A1 Austria CEO Marcus Grausam: "With the expansion of 5G and the A1 fiber network, we are taking responsibility for Austria. With investments of around EUR 600 million this year, we are ensuring that every company and every private household will benefit from the digital opportunities of the future. This year alone, A1 has already expanded the fiber network by more than 2,000 kilometers to 65,000 kilometers, put more than 700 additional 5G sites into operation and will connect around 200,000 households directly to the fiber network. We are making sure that these investments will go to as many people as possible and are focusing on expansion in both urban and rural areas. In the long term, this will give us a clear head start throughout Austria."


*Basis 2019

 


About A1 Telekom Austria Group
A1 Telekom Austria Group, listed on the Vienna Stock Exchange, is a leading provider of digital services and communications solutions in Central and Eastern Europe with around 26 million customers, currently operating in seven countries under the brand A1: Austria, Bulgaria, Croatia, Belarus, Slovenia, the Republic of North Macedonia and the Republic of Serbia.

Offering communications, payment and entertainment services as well as integrated business solutions, A1 Telekom Austria Group achieved revenues of 4.75 billion Euros by year end 2021. Around 18,000 employees and state of the art broadband infrastructure make digital business and lifestyle possible and enable people, companies and things to connect everywhere anytime. As European unit of América Móvil, one of the largest wireless services provider in the world, A1 Telekom Austria Group is headquartered in Vienna and gives access to global solutions.

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Economica Research on Positive Economic Effects Attributed to A1 Austria
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Contact

(1)Michael Höfler (en)
Dr. Michael Höfler
A1 Group Spokesperson
+43 664 66 30362
michael.hoefler@a1.group