Release of 23.10.2014

Ad-hoc: Results for the First Nine Months of 2014

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

Highlights

  • Group revenue decline improves to -4.5% supported by better trends in Austria in Q3 as well as strong growth in Belarus and the Additional Markets segment
  • Subsidy-driven equipment revenues support revenue trends in CEE
  • EUR 110.6 mn negative regulatory effects on Group revenues
  • Group EBITDA comparable margin improves to 34.6% driven by lower OPEX in Austria and strong margin in Belarus
  • Austria:
  • Continuously improving ARPU trends in 2014 driven by high-value focus
  • 75.7% and 23.4% cuts in SACs and SRCs respectively drive margin improvement to 33.0%
  • CEE:
  • Continued strong performance in Belarus on the back of inflation-linked price increases in 2013 and 2014 (FX development better than expected) and higher data usage
  • Macro and regulatory factors (e.g. higher frequency usage fee in Croatia) and fierce competition drive other CEE markets
  • Merger of mobilkom liechtenstein with Telecom Liechtenstein completed on 27 August 2014 results in a positive one-off effect on EBITDA comparable of EUR 26.8 mn
  • Group outlook for FY 2014 unchanged: Revenues of approx. -3.5%, CAPEX* of EUR 650 – 700 mn, intended dividend of EUR 0.05/share

in EUR millionQ3
2014		Q3
2013		%
change		1-9 M
2014		1-9 M
2013		%
change
Revenues 1,048.7 1,036.0 1.2% 2,987.7 3,128.3 -4.5%
EBITDA comparable 414.6 357.9 15.8% 1,034.0 1,025.1 0.9%
Operating income 200.0 121.5 64.7% -22.6 344.7 n.m.
Net income 127.8 51.3 149.2% -190.0 159.2 n.m.
Cash flow generated from operations 300.6 295.5 1.7% 674.0 789.5 -14.6%
Earnings per share (in EUR) 0.27 0.10 183.9% -0.47 0.31 n.m.
Free cash flow per share (in EUR) 0.37 0.30 23.4% 0.47 0.69 -30.8%
Capital expenditures 143.6 167.6 -14.4% 472.5 493.0 -4.2%

 

in EUR million30 Sept 201431 Dec 2013% change
Net debt 3,530.9 3,695.8 -4.5%
Net debt / EBITDA comparable (12 months)                  2.7 2.9 -5.1%

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.
* Does not include investment in 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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