Release of 14.07.2020
Covid-19 and foreign exchange effects in Q2 2020 mitigated by solid operating performance
Thomas Arnoldner, CEO of A1 Telekom Austria Group, on the highlights of the second quarter 2020:
"In the second quarter a strong operating performance enabled us to mitigate Covid-19 and foreign exchange effects. Revenues declined by 2.4% due to Covid-19-related roaming losses, lower equipment revenues and foreign exchange effects. Group EBITDA before restructuring increased slightly by 0.5%.
The net result for Q2 was EUR 113.8m, 62.7% higher than in the same period of the previous year, both periods being significantly impacted by tax cases in Bulgaria.
We now provide an outlook again for the full year 2020. Due to the Covid-19 and foreign exchange effects, we expect a moderate decline in revenues of approximately 2%.
The group continues to benefit from its operational strength and solid capital structure. Furthermore, we see that the Covid-19 crisis has given digitalization a boost: from e-learning, videoconferencing and TV streaming to security solutions, e-health and cloud services. A high-performance broadband infrastructure and smart solutions are becoming increasingly important and are also in demand in the longer term."
Alejandro Plater, COO of A1 Telekom Austria Group, further states:
"Austria recorded a positive development and saw growth in the number of mobile contract customers by 1.6% in the second quarter, with demand for high-value tariffs and WiFi-routers being very strong. For business customers, the focus was on home office solutions and bandwidth upgrades. Overall, EBITDA growth before restructuring was 0.4% despite roaming losses.
The CEE markets also saw good operational development. Excluding foreign exchange effects, which mainly affected Belarus, revenue increased by 1.3% and EBITDA before restructuring by 3.2%.
As the further effects of Covid-19 are difficult to predict, precautionary cuts in capital expenditure and operating expenses will help to further secure flexibility.”
More information is available in the trading statement:
https://newsroom.a1.group/News.aspx?l=english
The highlights for the second quarter and the first half of 2020 are published in line with the reporting date of our parent company América Móvil, S.A.B. de C.V. The half year report will be published on 21 July 2020.
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