Telekom Austria Reports Sligtly Lower Income on Higher Operating Costs

Telekom Austria Group has reported a slight rise in its first half revenues, to €2.358 (US$3.18) billion as reported growth in the international operations more than offset lower revenues from domestic operations. Net income fell by 2.5% to €277.8 (US$374.5) million. Preparation for the launch of operations in the Republic of Serbia and in the Republic of Macedonia and lower contribution from domestic businesses led to a decline in EBITDA by 4.3% to €939.6 million (US$1.27 billion).

An increase in operating income of Fixed Net partly compensated for lower operating income of the Mobile Communication segment resulting in a decline in operating income by 1.6% to €407.4 (US$549) million.

Capital expenditures for tangible and intangible assets increased by 38.0% to €376.7 (US$507.8) million due to infrastructure investments for the start-up operations in the Republic of Serbia and in the Republic of Macedonia as well as investments in the network infrastructure.

Net debt increased by 6.0% to €3.36 (US$4.5) billion at the end of June 2007. Net debt to annualized EBITDA increased by 7.5% to 1.8x at the end of June 2007 compared to the end of December 2006.

Posted to the site on 22nd August 2007