Telekom Austria Group lowered its outlook for full-year revenues to flat versus 2014, due to weak economic conditions in its eastern European markets and negative currency effects, especially in Belarus. The company previously expected an around 2 percent increase in annual revenues, but over the first six months of 2015, revenues were flat year-on-year at EUR 1.94 billion. The company said its efforts at cost reductions to offset the weaker revenues had been successful so far, helping EBITDA in the first half rise 7.4 percent to EUR 665 million.
Net profit improved to EUR 171 million from a loss of EUR 264 million a year ago when it took an impairment charge for Belarus. Operating cash flow was up 43 percent to EUR 535 million, as capital expenditure declined 16.7 percent to EUR 274 million. Telekom Austria maintained its outlook for full-year capex of EUR 700-750 million and a dividend of 5 cents a share.
The group finished June with just over 20 million mobile subscribers, up 0.6 percent from a year earlier, led by growth in Bulgaria and Serbia. The fixed subscriber base grew a stronger 5.9 percent to 2.8 million, helped by the acquisition of Blizoo in Macedonia.
