Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces its results for the first nine months of 2014, ending 30 September 2014.

Highlights

  • Group revenue decline improves to -4.5% supported by better trends in Austria in Q3 as well as strong growth in Belarus and the Additional Markets segment
  • Subsidy-driven equipment revenues support revenue trends in CEE
  • EUR 110.6 mn negative regulatory effects on Group revenues
  • Group EBITDA comparable margin improves to 34.6% driven by lower OPEX in Austria and strong margin in Belarus
  • Austria:
  • Continuously improving ARPU trends in 2014 driven by high-value focus
  • 75.7% and 23.4% cuts in SACs and SRCs respectively drive margin improvement to 33.0%
  • CEE:
  • Continued strong performance in Belarus on the back of inflation-linked price increases in 2013 and 2014 (FX development better than expected) and higher data usage
  • Macro and regulatory factors (e.g. higher frequency usage fee in Croatia) and fierce competition drive other CEE markets
  • Merger of mobilkom liechtenstein with Telecom Liechtenstein completed on 27 August 2014 results in a positive one-off effect on EBITDA comparable of EUR 26.8 mn
  • Group outlook for FY 2014 unchanged: Revenues of approx. -3.5%, CAPEX* of EUR 650 - 700 mn, intended dividend of EUR 0.05/share
in EUR million
Q3
2014
Q3
2013
%
change
1-9 M
2014
1-9 M
2013
%
change
Revenues
1,048.7
1,036.0
1.2%
2,987.7
3,128.3
-4.5%
EBITDA comparable
414.6
357.9
15.8%
1,034.0
1,025.1
0.9%
Operating income
200.0
121.5
64.7%
-22.6
344.7
n.m.
Net income
127.8
51.3
149.2%
-190.0
159.2
n.m.
Cash flow generated from operations
300.6
295.5
1.7%
674.0
789.5
-14.6%
Earnings per share (in EUR)
0.27
0.10
183.9%
-0.47
0.31
n.m.
Free cash flow per share (in EUR)
0.37
0.30
23.4%
0.47
0.69
-30.8%
Capital expenditures
143.6
167.6
-14.4%
472.5
493.0
-4.2%
in EUR million
30 Sept 2014
31 Dec 2013
% change
Net debt
3,530.9
3,695.8
-4.5%
Net debt / EBITDA comparable (12 months)
2.7
2.9
-5.1%

All financial figures are based on IFRS; if not stated otherwise, all comparisons are given year-on-year. EBITDA comparable is defined as net income excluding financial result, income tax expense, depreciation and amortisation, restructuring and impairment charges.
* Does not include investment in spectrum and acquisitions

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