Release of 16.07.2019

Results for the Second Quarter and First Half 2019

This press release has: 3 Documents
  • Group total revenues increased by 2.6%, driven by service revenue growth in all markets.
  • Mobile service revenues rose or remained stable in all markets except for Slovenia and were mainly driven by the ongoing strong demand for mobile WiFi routers.
    • Austrian mobile service revenues were stable, driven by growth in mobile WiFi routers as well as increased revenues from high-value customers but were negatively impacted by the EU international calls regulation.
  • Fixed-line service revenues were developing well, with particularly strong growth in solutions and connectivity revenues in Austria and a strong performance in Bulgaria.
  • Mobile contract subscribers rose by 4.4% with growth in all markets except for Bulgaria which was impacted by the removal of inactive SIM-cards.
  • Fixed-line RGUs increased by 0.5%, as broadband RGU growth in CEE and higher TV RGUs com-pensated for the decline of fixed voice.
  • Group EBITDA excluding one-off and FX effects as well as restructuring charges increased by 2.7%, driven by higher service revenues.
    • In Austria EBITDA excluding restructuring charges and a positive one-off effect due to a real estate sale increased by 0.8% as higher service revenues and lower workforce costs were able to compensate for higher cost of services.
    • The increase in EBITDA in the international operations was particularly supported by Bul-garia Croatia and Slovenia.
    • On a reported basis, EBITDA declined due to restructuring charges in Austria, which amounted to EUR 21.1 mn in Q2 2019 (Q2 2018: EUR 0.1 mn).
  • Net result increased from EUR 58.1 mn in Q2 2018 to EUR 70.0 mn in Q2 2019. While the com-parison period was negatively impacted by the brand amortization, in Q2 2019 a tax case in Bulgaria had a negative impact on net income.
  • Free cash flow declined from 123.0 mn in Q2 2018 to EUR 34.2 mn in the reporting period, driven by higher capex paid due to the acquired frequencies from the spectrum auction in Aus-tria which took place in Q1 2019 (3.5 GHz; EUR 64.3 mn) and Belarus (2.1 GHz; EUR 9.5 mn). Additionally, free cash flow was negatively impacted in Q2 2019 by the payment of EUR 23.0 mn in connection with the abovementioned tax case in Bulgaria.
  • Guidance confirmed, with approximately 2 % higher revenues and stable capex at EUR 770 mn excl. leases, spectrum investments and acquisitions in 2019.

 More information can be found at Interim Results.

Martin Stenitzer
Head of Investor Relations
Telekom Austria AG
Phone: +43 (0) 50  664 66 23066

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.