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Telekom Austria Q1 revenue down 7%, EBITDA falls 5%
2014-05-08 08:11:00| Telecompaper Headlines
(Telecompaper) Telekom Austria reported first-quarter revenue down 7.0 percent year-on-year to EUR 975.9 million, hurt by regulation, competition in its home market and currency inflation in Belarus. The mobile customer base fell 1.1 percent over the year to 19.99 million at the end of March. EBITDA was down 5.0 percent to EUR 319.9 million, and net profit was down 26.5 percent to EUR 40.8 million. Capital expenditure was reduced by a third compared to a year ago to EUR 99.4 million, while operating cash flow dropped 22.4 percent to EUR 144.8 million. Net debt was still at 2.0x EBITDA, equal to EUR 3.671 billion. In Q1, TA spent EUR 94.5 million renewing spectrum in Bulgaria and acquiring frequency rights in Slovenia. The operator maintained its outlook for an around 3 percent drop in annual revenues this year, capex of around EUR 700 million (excl spectrum) and a dividend of 5 cents a share. The company targets around EUR 100 million in opex and capex savings this year in order to offset the continued pressure on revenue. Telekom Austria added that the Croatian market remains challenging, and the operator is also facing there a significant increase in spectrum fees.
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Category:Telecommunications