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Telekom Austria Group Returns to Profit Despite Lower Revenues
Published on:
Telekom Austria Group has reported that its first half revenues fell by 4.9 percent to EUR2.12 billion (US$1.7 billion). Excluding currency translation and hyperinflationary effects in Belarus, group revenues would have increased by 1.9%.
Net profit was EUR80.9 million (US$64.8 million), compared to a loss of EUR59.2 million a year ago, thanks to lower restructuring costs. The company also added subscribers, with mobile customers up by 3.9% to 20.4 million and landline customers rising by 6.4% to 2.6 million.
Strong competition in the three main operating markets of Austria, Bulgaria and Croatia as well as an overall weak economic environment across the Group's operational footprint led to a decline in group revenues by 4.9% in the first half of 2012.
EBITDA dropped by 6.6% at the group level; with Croatia, Slovenia, the Republic of Serbia and the Republic of Macedonia registering an increase; while Austria, Bulgaria and Belarus reported a decline.
Hannes Ametsreiter, CEO Telekom Austria Group commented: "Our business environment has become considerably more challenging. However, thanks to our convergence strategy, we are in a better position to counteract these negative effects compared to other operators. In the first half of 2012, we were able to exceed capital market expectations. Although the overall weak economic environment and considerably fiercer price competition in Austria, Bulgaria and Croatia will impact our margins for the full year".
The Group also revised its outlook due to price erosion, regulation and a challenging economic environment.
For the full year 2012, the company expects group revenues of EUR 4.2 billion (instead of approx. EUR 4.4 billion as previously forecasted) and EBITDA comparable to range between EUR 1.40 billion and EUR 1.45 billion (instead of approx. EUR 1.5 billion as previously indicated).
Tags: [telekom austria] [Austria]
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