Vienna, 13 August 2014
Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces its results for the first half of 2014, ending 30 June 2014.
Highlights
-
Group revenues decline by 7.3% and EBITDA comparable declines by 7.2%, mainly driven by regulation, macro-economic effects in CEE as well as extraordinary effects of EUR 28.2 mn net in Austria
(Clean*: Group revenues -4.1% and Group EBITDA comparable flat at -0.1%) - Group EBITDA comparable margin remains flat at 31.9% and increases to 33.2% on a clean basis*
- Austria benefits from successful strategy implementation: regulation and extraordinary effects account for most of revenue decline; cost cuts and subsidy reductions result in strong EBITDA comparable trends (-0.2% excluding extraordinary effects)
- Bulgaria: Macro effects and fierce competition drive customer and revenue decline in fixed and mobile; EUR 400 mn impairment due to adjustment of WACC and medium-term expectations
- Croatia: solid fixed-line performance cannot offset regulatory cuts and effects of mobile competition; spectrum fee introduced in June will burden EBITDA comparable as of H2 2014
- Belarus and Additional Markets segment achieve revenue and EBITDA comparable growth
- Spectrum prolongations and acquisitions in Bulgaria and Slovenia strengthen network
- Next step in implementation of successful convergence strategy: Acquisition of cable operator blizoo in the Republic of Macedonia in June (closed in July)
- Commitment to broadband funding announced by Austrian government as of 2016
- Group outlook for FY 2014 refined: Revenues of approx. -3.5% (from approx. -3.0%), CAPEX** of EUR 650 - 700 mn (from approx. EUR 700 mn), intended dividend of EUR 0.05/share
in EUR million | Q2 2014 | Q2 2013 | % change | 1- 6 M 2014 | 1- 6 M 2013 | % change |
Revenues | 963.0 | 1,043.2 | - 7.7% | 1,939.0 | 2,092.3 | - 7.3% |
EBITDA comparable | 299.4 | 330.3 | - 9.3% | 619.4 | 667.2 | - 7.2% |
Operating income | - 320.0 | 105.5 | n.m. | - 222.6 | 223.3 | n.m. |
Net income | - 358.6 | 52.5 | n.m. | - 317.8 | 108.0 | n.m. |
Cash flow generated from operations | 224.5 | 302.2 | - 25.7% | 373.4 | 494.0 | - 24.4% |
Earnings per share (in EUR) | - 0.82 | 0.10 | n.m. | - 0.75 | 0.21 | n.m. |
Free cash flow per share (in EUR) | - 0.01 | 0.29 | n.m. | 0.11 | 0.39 | - 71.9% |
Capital expenditures | 229.5 |
in EUR million | 30 June 2014 | 31 Dec 2013 | % change |
Net debt | 3,688.1 | 3,695.8 | - 0.2% |
Net debt / EBITDA comparable (12 months) | 3.0 | 2.9 |
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.
* Excluding extraordinary effects in Austria and FX translation effects
** Does not include investment for spectrum and acquisitions
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