Telekom Austria Group Net Profit Down on Aquisition Costs

Telekom Austria Group has reported that during the first half 2008, revenues grew by 7.7% to EUR 2,54 billion (US$3.7 billion) primarily due to the consolidation of Velcom in Belarus and to higher contributions from the other international operations.

Operating income fell by 4.9% from EUR 410.2 million (US$603 million) to EUR 389.9 million (US$573 million) due to higher depreciation and amortization charges. Net income declined by 18.6% to EUR 226 million (US4332 million) due to higher interest expenses mainly as a result of the acquisition of Velcom.

EBITDA grew by 2.7% to EUR 967.7 million (US$1.4 billion) as a result of an EBITDA growth in the international operations and the consolidation of Velcom which more than offset a lower contribution from the Fixed Net segment. EBITDA includes exceptional costs in the amount of EUR 19.7 million.

Capital expenditures for tangible and intangible assets decreased by 7.0% to EUR 350.3 million (US$514.8 million) due to lower capital expenditures in both segments. Net debt remained stable at EUR 4,402.1 million (US$6.5 billion) at the end of June 2008 compared to the end of December 2007 despite the payment of the dividend.

Posted to the site on 20th August 2008