Customer Numbers in '000 Q1 2016 Q1 2015 +/- in %
Fixed access lines group-wide 3,255 2,672 +21.8%
- thereof broadband customers 2,268 1,767 +28.3%
Mobile subscribers 20,529 19,993 +2.7%
- thereof broadband customers 1,768 1,708 +3.5%

'After a strong annual result in 2015, the Telekom Austria Group continued on a growth path. The first quarter of 2016 showed positive results both topline and in EBITDA. According to our strategy we have been extending our core business as well as the portfolio, and closed valuable targeted M&A deals. Despite working on our cost base, we have been investing more than originally planned to prepare for the increasing challenges on the telecoms market in the future', said Alejandro Plater, CEO Telekom Austria Group.

For the Group as a whole, revenues in Q1 2016 rose by 1.2 percent to EUR 1,009.4 million compared to the same period in the previous year. With the exception of Belarus and Slovenia all markets are reporting a positive revenue trend. In addition, Bulgaria, Croatia, Slovenia and the Republic of Macedonia are profiting from the mergers and acquisitions in the previous year.
The difference between reported and underlying figures results from M&A, currency translation effects, other operating income and positive as well as negative extraordinary effects.

In Q1 2016 Telekom Austria Group saw an increase in the number of subscribers both in the mobile and the fixed-line business largely driven by the three mergers and acquisitions in 2015.

To turn the strong growth in data services into revenues and earnings, Telekom Austria Group will continue investing in the LTE expansion in its markets and in accelerating the fiber roll-out in Austria. This investment program is reflected in the CAPEX which have risen by 6.6 percent to EUR 134.5 million.

Outlook

In Q1 2016 Telekom Austria Group succeeded in increasing operative EBITDA and revenues, despite strong competition on the Austrian mobile communications market and the continuing difficult situation in Central and Eastern Europe. A devaluation of the Belarus rouble by 10.9 percent dampened growth in euro terms in Belarus while fragile economies continued to have a negative impact on demand and resulted in intense competition across most of the Group's mobile markets. In addition, regulatory headwinds, in particular the high frequency usage fees in Croatia hampered operations.

Most of these business conditions are expected to remain intact in the near future. A further burden on Telekom Austria Group will arise from the abolition of retail roaming in the EU as of May 2016. On a positive note, demand for fixed-line services is expected to remain supportive in all Telekom Austria Group's convergent markets.

In spite of the challenges described above, the management of Telekom Austria Group remains committed to its growth strategy that focuses on three strategic areas: Excel in the core business, expansion of products and services as well as value-accretive mergers and acquisitions.

Telekom Austria AG issued this content on 27 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 April 2016 17:24:07 UTC

Original Document: http://www.telekomaustria.com/en/newsroom/2016-4-27-telekom-austria-group-continues-growth-course-in-first-quarter-2016