Release of 25.04.2023

Results for Q1 2023


  • Revenues: +8% yoy to EUR 1,258 mn, driven by mobile service revenues and equipment sales
  • EBITDA: +1% yoy to EUR 436 mn, increased core opex; majority of inflation-linked tariff increases to happen in Q2
  • CAPEX: Increase by EUR 67 mn to EUR 247 mn,primarily for the continued broadband roll-out
  • Free cash flow: Below previous year due to higher CAPEX and changes in working capital
  • Croatia: Secured spectrum in a public auction for a period of 15 years, EUR 109 mn impact on CAPEX in Q2
  • Slovenia: New, fully digital mobile operator “re:do” launched
Video clip: The Management Board of A1 Group presents (in English) the results of Q1 2023

Various materials on Q1 2023 available at:

Q1 2023 in a nutshell

The first quarter of the 2023 financial year was another solid one. A1 Group continued to grow its revenues and profits. Total revenues increased by 8% year-on-year to EUR 1,258 mn, with both service and equipment revenues growing in all segments. In total, service revenues increased by 5% and equipment revenues by 26%.

On the cost side, workforce costs increased by 3%, while restructuring costs remained stable. Electricity costs increased significantly both year-over-year and sequentially. The increaseis mainly due to the segment Austria, which had to pay higher prices in Q1 2023. EBITDA increased by 1% year-on-year and EBIT by 0.3%.

The financial result improved due to lower foreign exchange rate (FX) losses. This was mainly due to the Belarusian ruble, which depreciated massively against the euro in the first quarter of the last year due to the conflict in Ukraine. As a result, the net result increased by 3% in Q1 2023.

Q1 2023 earnings per share amounted to at 20 eurocents, despite higher workforce costs, higher electricity costs and the fact that the bulk of the indexed tariff increases are yet to come. In Austria, for example, all indexed tariffs will be increased by more than 8% in Q2 2023.

A1 in Croatia secured spectrum in a public auction for a period of 15 years. These long-term resources will be the basis for further growth, enabling the best user experience and maximum network coverage. The price of EUR 109 mn will be paid in Q2 2023 and will then also be included in the CAPEX figure.

In Slovenia, a very competitive market, A1 launched the fully digital operator re:do. The new brand will address the customers´ demands such as self-servicing all necessary steps, reasonable prices, full transparency and no obligations such as a long binding contract. By the simple installation of an App, the user is equipped with all necessary steps and tools to start the service right away.

As a result of higher CAPEX in Q1 2023 compared to the prior year and changes in working capital, reflecting the high level of CAPEX in Q4 2022, free cash flow reached EUR 93 mn, EUR 104 mn lower than in the first quarter of last year.

As the relevance of the U.S. American Depositary Receipts (ADR) program for Telekom Austria has decreased significantly over the years, the Management Board has decided to end the program. This happened as of 5 p.m. (EST) on April 10, 2023.

The Management Board confirms the guidance given in February 2023 (total revenues +4%, CAPEX excluding frequencies and M&A of around EUR 950 mn).