Release of 13.08.2014

Ad-hoc: Results for the first half of 2014

Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces its results for the first half of 2014, ending 30 June 2014.

Highlights

  • Group revenues decline by 7.3% and EBITDA comparable declines by 7.2%, mainly driven by regulation, macro-economic effects in CEE as well as extraordinary effects of EUR 28.2 mn net in Austria
    (Clean*: Group revenues -4.1% and Group EBITDA comparable flat at -0.1%)
  • Group EBITDA comparable margin remains flat at 31.9% and increases to 33.2% on a clean basis*
  • Austria benefits from successful strategy implementation: regulation and extraordinary effects account for most of revenue decline; cost cuts and subsidy reductions result in strong EBITDA comparable trends (-0.2% excluding extraordinary effects)
  • Bulgaria: Macro effects and fierce competition drive customer and revenue decline in fixed and mobile; EUR 400 mn impairment due to adjustment of WACC and medium-term expectations
  • Croatia: solid fixed-line performance cannot offset regulatory cuts and effects of mobile competition; spectrum fee introduced in June will burden EBITDA comparable as of H2 2014
  • Belarus and Additional Markets segment achieve revenue and EBITDA comparable growth
  • Spectrum prolongations and acquisitions in Bulgaria and Slovenia strengthen network
  • Next step in implementation of successful convergence strategy: Acquisition of cable operator blizoo in the Republic of Macedonia in June (closed in July)
  • Commitment to broadband funding announced by Austrian government as of 2016
  • Group outlook for FY 2014 refined: Revenues of approx. -3.5% (from approx. -3.0%), CAPEX** of EUR 650 – 700 mn (from approx. EUR 700 mn), intended dividend of EUR 0.05/share

in EUR millionQ2 2014Q2 2013% change1- 6 M 20141- 6 M 2013% change
Revenues 963.0 1,043.2 - 7.7% 1,939.0 2,092.3 - 7.3%
EBITDA comparable 299.4 330.3 - 9.3% 619.4 667.2 - 7.2%
Operating income - 320.0 105.5 n.m. - 222.6 223.3 n.m.
Net income - 358.6 52.5 n.m. - 317.8 108.0 n.m.
Cash flow generated from operations 224.5 302.2 - 25.7% 373.4 494.0 - 24.4%
Earnings per share (in EUR) - 0.82 0.10 n.m. - 0.75 0.21 n.m.
Free cash flow per share (in EUR) - 0.01 0.29 n.m. 0.11 0.39 - 71.9%
Capital expenditures 229.5 176.4 30.1% 329.0 325.4 1.1%

 

in EUR million30 June 201431 Dec 2013% change
Net debt 3,688.1 3,695.8 - 0.2%
Net debt / EBITDA comparable (12 months) 3.0 2.9  

All financial figures are based on IFRS; if not stated otherwise, all comparisons are given year-on-year. EBITDA comparable is defined as net income excluding financial result, income tax expense, depreciation and amortisation, restructuring and impairment charges.

* Excluding extraordinary effects in Austria and FX translation effects
** Does not include investment for spectrum and acquisitions

Interim Results

 
 
 

Disclaimer for forward-looking statements:
This document contains forward-looking statements. These forward-looking statements are usually accompanied by words such as "believe", "intend", "anticipate", "plan", "expect" and similar expressions. Actual events may differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Neither A1 Telekom Austria Group nor any other person accepts any liability for any such forward-looking statements. A1 Telekom Austria Group will not update these forward-looking statements, whether due to changed factual circumstances, changes in assumptions or expectations. This report does not constitute a recommendation or invitation to purchase or sell securities of A1 Telekom Austria Group.

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