Release of 26.02.2014

Results for the Full Year and the Fourth Quarter 2013 (Ad-hoc)

Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces its results for the full year and the fourth quarter 2013, ending 31 December 2013.

Highlights for the Full Year 2013

  • 3.4% revenue and 11.6% EBITDA comparable decline driven by mature markets Austria, Bulgaria and Croatia while Belarusian and Additional markets segments see continued growth
  • Regulatory effects contribute EUR 122.1 mn to revenue decline
  • EUR 118.1 mn gross costs savings facilitate investments into the premium mobile customer segment to target ARPU decline in mature markets via higher subsidies
  • Convergence strategy yields access line growth of 1,600 lines in Austria as well as growth of 1.4% and of 18.4% in Bulgaria and Croatia respectively
  • 10.1% and 6.3% revenue growth in Belarus and Additional Markets segment
  • Acquisition of YESSS! and other assets for approx. EUR 400 mn*
  • EUR 1.03 bn spectrum acquisition in Austria bolsters strategic network position for the future
  • Downgrade to Baa2 (stable) and BBB- (stable) due to resulting higher leverage
  • A1 wins 'connect' network test
  • Outlook 2014: Group revenue to decline by approx. 3%, CAPEX** stable at approx. EUR 700 mn
  • Proposed dividend: EUR 0.05/share for the years 2013 and 2014 respectively

in EUR millionQ4 2013Q4 2012***% change1- 12 M 20131- 12 M 2012***% change
Revenues 1,055.7 1,117.8 -5.6% 4,183.9 4,329.7 -3.4%
EBITDA comparable 262.3 319.1 -17.8% 1,287.4 1,455.7 -11.6%
Operating income 32.8 69.0 -52.5% 377.6 457.1 -17.4%
Net income -49.5 -76.0 n.m. 109.7 104.0 5.5%
Cash flow generated from operations 262.0 250.6 4.6% 1,051.6 1,047.9 0.3%
Earnings per share (in EUR) -0.11 -0.17 n.m. 0.20 0.23 -16.7%
Free cash flow per share (in EUR) -2.31 0.03 n.m. -1.62 0.74 n.m.
Capital expenditures 1,286.1 238.8 n.m. 1,779.1 728.2 144.3%

 

in EUR million31 Dec 201331 Dec 2012% change
Net debt 3,695.8 3,248.9 13.8%
Net debt / EBITDA comparable (12 months) 2.9 2.2 28.6%
All financial figures are based on IFRS; if not stated otherwise, all comparisons are given year-on-year. EBITDA comparable is defined as net income excluding financial result, income tax expense, depreciation and amortisation, restructuring and impairment charges.

* After purchase price adjustments
** Does not include investments for spectrum and acquisitions
*** As of 1 January 2013 IAS 19 – Employee Benefits (amended) – became effective. Accordingly, the reported results for the interim and full year 2012 were adjusted retrospectively

Interim Results

 
 
 

Disclaimer for forward-looking statements:
This document contains forward-looking statements. These forward-looking statements are usually accompanied by words such as "believe", "intend", "anticipate", "plan", "expect" and similar expressions. Actual events may differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Neither A1 Telekom Austria Group nor any other person accepts any liability for any such forward-looking statements. A1 Telekom Austria Group will not update these forward-looking statements, whether due to changed factual circumstances, changes in assumptions or expectations. This report does not constitute a recommendation or invitation to purchase or sell securities of A1 Telekom Austria Group.

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