Telekom Austria reports revenues of EUR 1.118 billion for the first quarter of this year, decreasing 0.7 percent year-on-year, despite an increasing demand for fixed and mobile broadband as well as smartphones. This could not off-set further pressure on revenues caused by a challenging economic environment, fierce competition and regulatory cuts put further pressure on revenues. Revenue growth in the Belarusian and additional markets segments mitigated the revenue declines in the Austrian and Croatian segments. Revenues in the Bulgarian segment remained almost stable. The group EBITDA comparable, which does not include restructuring and impairment charges, declined by 7.1 percent to EUR 396.7 million during the first quarter of 2011. Lower results from the Austrian, Bulgarian and Croatian segments could only partly be compensated by growth in the Belarusian and additional markets segments. As announced on 23 February, a restructuring charge in the amount of EUR 184.1 million was recorded for the Austrian operators and lead to a group operating loss of EUR 42.3 million in the first quarter compared to an operating income of EUR 166.3 million in the same period of the previous year. Consequently a net loss of EUR 79.2 million was recorded compared to a net profit of EUR 91.2 million in the first quarter of 2010. Telekom Austria’s group capital expenditures declined by 11.7 percent to EUR 120.4 million primarily due to lower investments in Belorussia and Croatia.
Telekom Austria Group keeps the same outlook for the full financial year, as reported on 23 February of this year. The revenues are expected to amount to up to EUR 4.60 billion. Focus on cost control will mitigate the impact from lower revenues and is anticipated to result in an EBITDA comparable, which does not include impairment and restructuring charges, of up to EUR 1.60 billion. Capital expenditures of the Telekom Austria Group are forecasted to reach up to EUR 800 million and do not include investments for license or spectrum acquisitions. Operating free cash flow remains the primary focus of management and is expected to amount to approximately EUR 800 million. The Telekom Austria Group intends to distribute 55 percent of free cash flow to its shareholders as dividends. For the years 2011 and 2012, a minimum dividend of EUR 0.76 per share has been put in place. Maintaining a stable investment grade rating of at least BBB (stable outlook) remains central to the Group’s financial profile.
