Release of 14.02.2023
- 2022 revenues: +5% passing the EUR 5 bn mark. Service revenues grew in all markets
- 2022 EBITDA: +8% despite rising core OPEX
- CAPEX increase driven mainly by intensified fiber and 5G rollout activities
- 2022 Free cash flow: +24% demonstrates strong operating performance and working capital management
- Dividend proposal of EUR 0.32/share; well covered by earnings and free cash flow
- Credit rating upgrade by S&P to A-; best S&P rating in Telekom Austria’s corporate history
- Upgrade of ESG ratings: included in CDP’s A list and Sustainalytics industry top rated list
- Deregulation of Austrian wholesale market
Video clip: The Management Board of A1 Group presents (in English) the results of financial year 2022.
Various materials on Q4 and FY 2022 available at: https://www.a1.group/en/ir/interim-results
Q4 2022 in a nutshell
The fourth quarter of the 2022 financial year was another good one. A1 Group continued to grow its revenues and exceeded the EUR 5 bn mark in financial year 2022.
In Q4 2022, A1 Group increased both service revenues (+6.9%) and equipment revenues (+13.1%). Equipment revenues grew strongly, especially in Austria and Bulgaria, while declining in Belarus and North Macedonia. Service revenues grew in all markets, with retail mobile revenues driving most of the growth. This was the result of continued strong demand for mobile core offerings and high-bandwidth products as well as successful up-selling efforts. Additionally, inflation-linked price increases supported revenue growth. The favorable exchange rate of the Belarusian ruble against the euro (BYN/EUR) accounted for approximately 1 percentage point of the total revenue increase.
Electricity costs eased slightly compared to the previous quarter. However, they were still 21% higher than in the fourth quarter of 2021.
A1 Group continued to invest in the rollout of broadband infrastructure (fiber and 5G). In Q4 2022, the total CAPEX amounted to EUR 330 mn. This was 47.6% higher than in the previous quarter and 27.6% higher than in Q4 2021. This reflects the accelerated fiber rollout in Austria.
Outlook for FY 2023
A1 Group expects to achieve revenue growth of around 4% in the 2023 financial year.
At the same time, electricity costs are forecasted to increase strongly, and management assumes that workforce costs will increase by around 5% at the Group level. To counter cost increases, A1 Group will implement efficiency projects and transformational initiatives.
Management expects CAPEX before investments in spectrum to be around EUR 950 mn. A1 Group will continue its commitment to fiber roll-out in Austria as well as to further expansion of its 5G networks both in Austria and internationally.
The Management Board plans to propose a dividend of EUR 0.32 (2021: EUR 0.28) per share to the Annual General Meeting, subject to the approval of the Supervisory Board.