Telekom Austria Group reports revenues of EUR 1.111 billion for the third quarter of this year decreasing 6.2 percent year-on-year mainly caused by the devaluation of the Belarus ruble. The excluding foreign currency effects, the revenues dropped with 0.2 percent with Croatia and Bulgaria’s lower revenues being offset by growth in the Additional Markets segment. The third quarter EBITDA excluding restructuring and impairment charges decreased by 8.1 percent to EUR 412.9 million. This decline mainly derived from the Belarusian segment as its strong operational performance was overshadowed by negative foreign currency translations. Lower EBITDA comparable in the Austrian, Bulgarian and Croatian segments were caused by lower revenues and were mitigated partially by continued strict cost control. The negative impact of foreign currency translations on Group EBITDA comparable amounted to EUR 34.9 million. Excluding the foreign currency effects, the EBTIDA was stable at EUR 447.8 million. During the third quarter a restructuring charge in the amount of EUR 6.1 million related to the employee restructuring in the Austrian segment was recorded compared to EUR 12.3 million in the same period in 2010. Telekom Austria Group’s operating profit dropped from EUR 176 million in Q3 2010 to EUR 166.1 million in the third quarter of this year and the net profit for the quarter grew with 32.5 percent to EUR 127.9 million as a result of higher deferred tax benefits. The capex grew with 21.1 percent to EUR 177.8 million due to higher investments in the next generation network in Austria. The total mobile customer base grew with 5.8 percent year-on-year to 19.98 million on 30 September of this year and the fixed broadband customer base amounted to 1.37 million customers, including 103,800 in Bulgaria and 63,100 in Croatia.
For the first nine months 2011 group revenues declined by 4.1 percent to EUR 3.34 billion including a negative impact of foreign currency translations of EUR 119.0 million. The group EBITDA dropped with 7.9 percent to EUR 1.19 billion, including EUR 53.3 million of negative foreign currency effects. Excluding these effects the EBITDA dropped with 3.8 percent year-on-year. Telekom Austria Group’s net profit for the first nine months of this year decreased from EUR 256.5 million in the first nine months of 2010 to EUR 68.7 million. The capex increased by 2.6 percent to EUR 454.9 million due to higher investments in the next generation network in Austria well as investments related to infrastructure in Bulgaria and the Additional Markets segment. For the full year, Telekom Austria reiterates its outlook given at the publication of the second quarter results on 17 August: full year revenues ofapproximately EUR 4.50 billion, EBITDA of EUR 1.55 billion, operating free cash flow up to EUR 800 million and capital expenditures between EUR 750 to EUR 800 million. Furthermore, the management confirms a minimum dividend floor of EUR 0.76 per share for the 2011 financial year.
