Release of 20.10.2020
Key financial and operating highlights in the third quarter 2020
- Group total revenues decreased by 0.9% due to roaming losses and negative FX effects partly outweighed by higher equipment revenues. Excluding FX effects, mainly stemming from Belarus, total revenues grew by 1.7%.
- Mobile service revenues declined by 3.8% on a Group level, solely driven by the above-mentioned roaming losses and negative FX effects.
- Fixed-line service revenues were stable (0.0%) as the growth in Bulgaria and Slovenia was able to compensate for the decline in Austria and other CEE markets.
- Equipment revenues rose by 7.2%, mainly driven by Austria and Bulgaria.
- Mobile contract subscriber numbers rose by 4.1%, with growth in almost all markets.
- Fixed-line RGUs decreased by 1.2%, as the growth in high-bandwidth broadband and TV RGUs could not compensate for the decline in low-bandwidth broadband and fixed-line voice RGUs in Austria.
- Group EBITDA before restructuring increased by 0.5% as roaming and FX losses were outweighed by operational efficiency, especially related to the workforce, maintenance and advertising. Excluding FX and one-off effects as well as restructuring charges EBITDA rose by 4.3%.
- In Austria, EBITDA before restructuring increased by 4.7%, as OPEX savings, especially in product-related costs, advertising costs, and a better equipment margin, were sufficient to more than offset roaming losses.
- In the CEE markets, EBITDA excluding FX and one-off effects grew by 3.3% (reported: -5.3%) due to growth in Belarus, Bulgaria, and Slovenia.
- CAPEX fell by 32.6% due to acquired frequencies in the comparison period and reduced spending in the reporting period following the CAPEX cuts.
- In Q3 2020, free cash flow after social plans new declined by 2.2% to EUR 172.5 mn, as lower capital expenditures were offset by lower accounts payables in the reporting period.
- We are currently working on the development of alternatives that would allow us to reap more benefits from our tower assets through a targeted management focus on internal efficiencies and higher tenancy ratios.
- Outlook 2020 unchanged: ~-2% decline in total revenues, mainly driven by negative impacts from roaming and FX; CAPEX cuts of ~25% compared to the initial outlook (EUR 770 mn capital expenditures before spectrum and acquisitions) to ensure flexibility and to strengthen the free cash flow profile.
More information can be found at
Interim Results.