TELEKOM AUSTRIA AG 
Results for Q1 2024
Cautionary statement
This presentation contains forward-looking statements. These forward-looking statements are usually accompanied by words such as 'believe', 'intend', 'anticipate', 'plan', 'expect' and similar expressions. Actual events may differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Forward- looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Neither Telekom Austria AG nor the A1 Group nor any other person accepts any liability for any such forward-looking statements. A1 Group will not update these forward-looking statements, whether due to changed factual circumstances, changes in assumptions or expectations.
Alternative performance measures are used to describe the operational performance. Please therefore also refer to the financial information presented in the Consolidated Financial Statements, as well as the reconciliation tables provided in the Earnings Release. This presentation was created with care and all data has been checked conscientiously. Nevertheless, the possibility of layout and printing errors cannot be excluded. The use of automated calculation systems may give rise to rounding differences.
This presentation does not constitute a recommendation or invitation to purchase or sell securities of A1 Group.
2 Results presentation: Q1 2024
A1 Group
Highlights Q1 2024
- Total revenues up +0.7% driven by service revenue growth (+3.1% yoy) in local currency in all markets except Slovenia, equipment revenues down 9.8% yoy.
- Service Revenue growth supported by solution & connectivity and mobile business but impacted by negative currency effect, declining interconnection and fixed voice business.
- EBITDA up 4.2% in comparison to Q1 2023, despite higher core OPEX driven mainly by higher workforce and product related costs.
- Excluding negative FX effects, total revenues and EBITDA excl. restructuring rose by 2.2% and 5.7% respectively.
- Spectrum acquisition in Austria: A1 acquired in March 2024 frequencies in the 26 GHz spectrum as well as additional regional frequencies in the 3.5 GHz spectrum.
- Outlook confirmed: 3-4% revenue growth, CAPEX of approx. EUR 800 mn (excl. spectrum and M&A)
Please note that this presentation, besides reported values, also contains values on a pro forma basis, due to the towers spin-off in 2023. Pro forma means, data of the comparison period has been adjusted, as if the towers have already been spun-off in the respective period.
3 Results presentation: Q1 2024
Customer-related information
Mobile subscribers (in thousand) | RGUs (in thousand) | Q1 '24 Group ARPU and ARPL (in EUR) | |||||||||||||||||||||||||||||||
25.8 | 26.3 | ||||||||||||||||||||||||||||||||
6,220 | 6,249 | 6,250 | 6,271 | 6,267 | |||||||||||||||||||||||||||||
24,116 | 24,486 | 25,131 | 25,245 | 25,441 | 28% | 29% | 29% | 30% | 30% | ||||||||||||||||||||||||
11.0 | 11.3 | ||||||||||||||||||||||||||||||||
84% | 84% | 86% | 85% | 86% | 43% | 43% | 43% | 43% | 43% | ||||||||||||||||||||||||
29% | 28% | 27% | 27% | 27% | |||||||||||||||||||||||||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q1 2023 | Q1 2024 | ||||||||||||||||||||||
Subscribers | Share postpaid | Total fixed voice | Total broadband | TV@home | ARPU op. in CCY | ARPL op. in CCY | |||||||||||||||||||||||||||
Mobile subscribers: +5.5% yoy; excl.M2M customers slight decrease
RGUs: +0.8% yoy; Broadband RGUs: +1.8% yoy, Advanced RGUs growth of +15.7%
ARPL operative +1.9% yoy in CCY
ARPU operative +2.8% yoy in CCY
4 Results presentation: Q1 2024
Group revenues
Unless otherwise stated, all amounts in EUR mn | Q1 2024 | Q1 2023 | |
Service revenues | 1,071 | 1,038 | +3.1% |
Equipment revenues | 176 | 195 | -9.8% |
Other operating income | 21 | 24 | -15.6% |
Total revenues | 1,267 | 1,258 | +0.7% |
Service revenue growth drivers, YTD | Total revenues growth - Group and International, YTD | |
+4.0%
in CCY
+0.4% | +0.9% | ||
+7.4% +7.1%
+3.1%
in CCY
+0.3%
Austria | International | Bulgaria | Croatia | Belarus | Other* |
-12.6%
yoy performance
* Incl. corporate and eliminations
5 Results presentation: Q1 2024
Segment Austria in Q1 2024
Key Points
- Results profit from value-protecting measures taken last year, solid retail mobile and solutions & connectivity business
- Losses in IC and equip. revenues, retail fixed line revenues stable
- Acquisition of ICT service provider NTT Austria**
Operations
- Value-protectingmeasures +7.8% (as of Apr. 1st 24)
- Further improving our granular customer segmentation and targeting to address subscriber development in certain segments
Core OPEX increase: higher workforce costs (collective bargaining agreement), higher network maintenance and revenue-related costs
6 Results presentation: Q1 2024
- Subject to approval by the respective authorities
AT Service revenues (EUR mn)
+1.7% | | |
+2.6% w/o IB* | |
595 | 605 |
39 | 35 |
Q1 2023 | Q1 2024 |
International Business*
AT EBITDA (EUR mn)
+1.8%
232236
Q1 2023 | Q1 2024 |
*International business (mainly comprising transit and connectivity revenues) as reported in Austria, shown separately as it is not reflecting Austrian business performance
International segments in Q1 2024
Highlights
Service revenues and EBITDA up in all markets in local currency except for Slovenia, growth rates slowed somewhat after a strong increase in 2023.
- Bulgaria: solid results: value protecting measures, upselling and growing ICT business, TV and broadband subs growth
- Croatia: value protecting measures, intensified network invest & higher subscriber base resulted in solid service revenues and strong EBITDA
- Belarus: good economic start into the year, results still negatively impacted by FX and regulatory environment
- Serbia: service revenue growth supported by price increases in March, higher OPEX driven by workforce and electricity costs
- Slovenia: intense competition, decline in fixed and mobile service revenues, core OPEX lower
- N.Macedonia: EBITDA growth driven by mobile, OPEX higher due to employee and revenue-related costs
Revenues and EBITDA (EUR mn)
+7.4%
177 | +7.1% | +3.1% (BYN) |
128 | -12.6% | |
+12.6% | +0.3% | |
(BYN) | ||
77 | +22.8% | 101 -15.0% |
49 | ||
45 | ||
Bulgaria | Croatia | Belarus |
+1.7% | ||
93 | ||
-8.8% | ||
+2.9% | 56 | +10.1% |
32 | -3.5% | 39 +12.6% |
14 | 13 | |
Serbia | Slovenia | N-Macedonia |
7 Results presentation: Q1 2024
P&L
Unless otherwise stated, all amounts in EUR mn | Q1 2024 | Q1 2023 | |
Revenues | 1,267 | 1,258 | +0.7% |
OPEX | (813) | (822) | -1.1% |
Restructuring | (21) | (21) | -0.7% |
EBITDA | 454 | 436 | +4.2% |
EBITDA margin | 35.9% | 34.7% | +1.2pp |
before restructuring | 475 | 457 | +4.0% |
Margin | 37.5% | 36.3% | +1.2pp |
FX effects | 8 | n.m. | n.m. |
one-off effects | - | - | n.m. |
EBITDA underlying | 483 | 457 | 5.7% |
Margin | 38.2% | 36.4% | +1.8pp |
after leases | 353 | 389 | -9.2% |
Margin | 27.9% | 30.9% | -3.0pp |
EBIT | 178 | 195 | -8.9% |
EBIT margin | 14.0% | 15.5% | -1.5pp |
Financial result | (26) | (21) | 22.5% |
Income taxes | (34) | (39) | -11.1% |
Net result | 117 | 135 | -13.3% |
Net margin | 9.2% | 10.7% | -1.5pp |
Net result (pro forma) | 117 | 106 | 10.5% |
Q1 2024 - below EBITDA
EBIT decline due to higher D&A:
- EUR 36 mn higher D&A, mainly due to D&A on rights of use assets after tower spin-off
- D&A on a proforma basis increased by EUR 8 mn
Financial result: higher interest expense on leases (after spin-off),lower interest on financial debt
Net result lower, on pro forma* basis above previous year by 11%.
*pro forma= as if tower business has already been | ||
8 | Results presentation: Q1 2024 | spun-off in comparison period |
Free cash flow
Unless otherwise stated, all amounts in EUR mn | Q1 2024 | Q1 2023 | |
EBITDA | 454 | 436 | +4.2% |
Restructuring charges, cost of labor | 22 | 23 | -1.7% |
obligations | |||
Lease paid (principal, interest, prepayments) | (97) | (66) | +47.6% |
Income taxes paid | (23) | (17) | +33.0% |
Net interest paid | 3 | (2) | n.m |
Change working capital and other changes | (52) | (11) | n.m. |
CAPEX | (233) | (247) | -5.6% |
FCF before soc. plans | 75 | 116 | -35.7% |
Social plans new funded | (23) | (23) | -0.7% |
Free cash flow | 52 | 93 | -44.4% |
FCF/revenues | 4.1% | 7.4% | -3.3pp |
Free Cash Flow was lower vs Q1 2023, due to higher payments for leases after the spin-off, as well as significant changes in working capital.
Working capital changes had a negative impact of EUR 52 mn in Q1 2024 (Q1 2023: negative EUR 11 mn) mainly due an unfavourable time shift in accounts receivables and a received fiber subsidy in Q1 2023.
9 Results presentation: Q1 2024
Focus points
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Disclaimer
Telekom Austria AG published this content on 16 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 April 2024 17:15:02 UTC.
