Telekom Austria forecasts return to revenue growth in 2015

News General Austria 11 FEB 2015
Telekom Austria forecasts return to revenue growth in 2015

Telekom Austria reported revenues for 2014 down more than expected, but managed to improve its margins thanks to cost efficiency measures. Revenue fell 4.0 percent to EUR 4.02 billion, hurt by regulatory cuts to interconnection and roaming rates, while adjusted EBITDA was down just 0.1 percent to EUR 1.29 billion. As a result, the margin rose to 32.0 percent from 30.8 a year earlier.

The company still had a net loss of EUR 185.4 million for the year, versus a profit of EUR 52.1 million in 2013, due to an impairment charge on its Bulgarian activities. Free cash flow however turned to a positive EUR 156.7 million, after capex was cut 57.4 percent to EUR 757.4 million. The group will pay a dividend of EUR 0.05 per share as promised earlier.

After the recent capital increase of nearly EUR 1 billion, net debt was reduced by 28.3 percent to EUR 2.69 billion at the end of 2014. Following the consolidation in the past year and with the support of its new owner America Movil, Telekom Austria said it was optimistic about 2015 and forecast a return to revenue growth of around 2 percent. 

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General

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A1 Telekom Austria

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Eastern Europe

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Austria

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Voice services, Data services, Financial figures, Internet Access

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