Release of 26.04.2022
Key financial and operating highlights
- Group total revenues increased by 2.7% year-on-year, driven by service revenue growth in all markets.
- Equipment revenues decreased by 4.2%, as the market environment continued to be unchanged amidst a certain lack of high-value handset availability. A volume-driven decline in Bulgaria, Austria, and Belarus was only partly mitigated by the increase in Serbia.
- Mobile service revenues increased by 5.5% on a Group level, due to the solid performance of the mobile core business, mobile WiFi routers, as well as further recovery of roaming results.
- Fixed-line service revenues rose by 0.9% on a Group level, as solid growth of 9.5% in the international markets more than compensated for the decline in Austria. Continued traction of solution and connectivity business added to this, while EU IC regulation negatively weighed on revenues.
- The number of mobile subscribers rose by 4.5%, driven by the higher number of M2M subscribers as well as the higher number of mobile WiFi routers in all markets.
- The increase in mobile WiFi routers was also driving Internet@home higher, which grew by 4.5%.
- Group total RGUs remained stable as the increase in broadband and TV subscribers offset the voice decline.
- Roaming benefited results in Q1 2022 (positive impact yoy: ~ 1% of revenues; ~ 2 % of EBITDA versus ~negative 3% on EBITDA in Q1 2021) due to returning travelling across the footprint, especially in Austria.
- Group EBITDA before restructuring charges grew by 7.9% (reported: 8.4%) driven by service revenue growth and the better equipment margin despite higher core OPEX.
- In Austria, EBITDA before restructuring charges increased by 6.3% since higher service revenues and improved equipment margin offset higher core OPEX.
- EBITDA in international operations increased by +8.9%. Growth throughout the footprint, with a particularly strong contribution from Belarus, Bulgaria and Serbia.
- Net result improved by 20.0% year-on-year in the first quarter of 2022, as solid operational performance could more than compensate for higher income tax expenses.
- Free cash flow increased in the quarter under review mainly due to the improved operational performance.
- EUR 750 mn bond was repaid from existing cash and proceeds from bank loans on April 4, 2022.
- Outlook 2022 confirmed: total revenue growth of close to 3%, CAPEX (ex. spectrum and acquisitions) increase of approx. 15% y-o-y. Outlook based on depreciation of BYN versus EUR of 5-10% (period average) in 2022.
Further information can be found here:
https://www.a1.group/en/investor-relations