Telekom Austria Group reported an increase in fourth-quarter results, helped by its expansion in fixed-line markets in eastern Europe. Revenues rose 4.5 percent year-on-year to EUR 1.076 billion, thanks to the takeovers of Amis in Slovenia and Croatia, One in Macedonia and Blizoo in Bulgaria. The company also benefited from a EUR 10 million settlement of claims with Telekom Slovenije. Adjusted EBITDA was up 27.3 percent to EUR 320.8 million, helped by a reversal of provisions and lower restructuring charges in Austria. Excluding the one-time items and forex effects, EBITDA was up 7.7 percent, the company said. The net result moved to a profit of EUR 84.3 million compared to a loss of EUR 48.9 million in Q4 2014.
Over the full year, Telekom Austria met its outlook for flat revenues, with an increase of just 0.2 percent to EUR 4.027 billion. Growth in Austria and the acquisitions were offset by negative currency effects, particularly in Belarus, as well as the weaker economic climate in east Europe. Capital expenditure of EUR 780 million for the year was slightly higher than forecast, driven by the fibre expansion in Austria, but is expected to fall this year to around EUR 750 million, excluding spectrum and licences. Operating cash flow was up 19.0 percent to EUR 1.072 billion, and the company maintained its dividend at EUR 0.05 per share.
Telekom Austria said it expects similar market conditions in 2016, as well as the negative impact of the changes in EU roaming regulations. Excluding currency effects, it aims to grow revenues around 1 percent, while maintaining the dividend at 5 cents a share. The focus will be on expanding LTE across its markets and fibre in Austria, as well as continued growth through acquisitions and cost efficiency. Additional spectrum auctions are also expected this year in Croatia, Serbia and Macedonia.
