In the first half of this year, the Telekom Austria Group saw its revenues drop by 2.9 percent year-on-year to EUR 2.23 billion with operational success not able to fully compensate for the negative impact of the macroeconomic environment and, more specifically, for the negative effects of intensive competition and persistently intrusive regulatory measures. The revenues for the first half include the negative impact on revenues of the 54 percent devaluation of the Belarusian ruble against the euro as of 24 May which amounted to EUR 43.3 million of a total decline of EUR 67.3 million. The EBITDA for H1 decreased with 7.8 percent to EUR 777.6 million. This decline of EUR 65.8 million is due to regulatory effects, which account for a drop of EUR 15.6 million, as well as to the devaluation of the currencies, which accounts for a decline in EBITDA comparable of EUR 19.0 million. The remaining decrease of EUR 31.3 million is mainly attributable to a competition-related decline in earnings, which could only be partly offset by strict cost management. The group EBIT dropped by more than EUR 250 million to EUR 42.7 million including a negative effect of EUR 218.6 million associated with the restructuring program in Austria. The restructuring cost and Belarusian ruble devaluation led to a net loss of EUR 59.2 million for the first half of this year compared with a net profit of EUR 159.9 million in the first half of 2010.
Against the backdrop of a furthermore challenging economic environment in all operating markets of the Telekom Austria Group, persisting competitive pressure and the currency devaluation in Belarus, the management board has adjusted the outlook for the full year 2011. However, this refined outlook for 2011 reflects the group’s confidence in mitigating the negative effects mentioned above through clear customer focus, intensified marketing of innovative products and strict cost management. The full year revenues are expected to amount to approximately EUR 4.50 billion compared with EUR 4.6 billion forecasted in May of this year. EBITDA comparable is anticipated to reach up to EUR 1.55 billion compared with EUR 1.6 billion in May of this year. Operating free cash flow is expected to total up to EUR 800 million and capital expenditures for the group is forecasted to reach EUR 750 to EUR 800 million. Furthermore, the management confirms a minimum dividend floor of 76 eurocents per share for the 2011 financial year.
