A1 Telekom Austria Group: Results for the Second Quarter and First Half 2018

Key financial and operating highlights in the second quarter 2018

  • Group total revenues increased by 1.3% (reported: +1.5%), mainly driven by higher equipment revenues and the solid retail

fixed-line performance. Excluding FX and the minor one-off effects, total revenues grew by 2.3% (reported: +2.5%), with service

revenue growth in all markets except for Slovenia.

  • The strong comparison period Q2 2017 was positively impacted by project-driven revenues and some reversals of accruals in

Austria. Together with higher investments into A1 Digital and a negative FX impact in Q2 2018, this led to a decline in Group

EBITDA of 0.9% (reported: -0.8%).

  • Excluding FX and the minor one-off effects as well as restructuring charges, (the latter having almost zero impact in the respective

periods), Group EBITDA increased slightly by 0.2% (reported: +0.3%), with strong contributions from CEE compensating

for A1 Digital investments; Austria showed an almost stable performance (-0.5%) despite the strong comparable in

Q2 2017.

  • Net result grew by 15.9% in Q2 2018 excluding D&A from the brand value amortisation in connection with the group-wide

rebranding of EUR 72.4 mn (reported net result Q2 2018: EUR 58.0 mn; Q2 2017: EUR 112.5 mn).

  • Reported free cash flow increased by 35.4% to EUR 205.7 mn in the first half of 2018. This was mainly attributable to lower interest

payments and lower capital expenditures paid as well as the operational improvement.

  • Group outlook 2018 unchanged: total revenue growth of 1-2% (on a reported basis), CAPEX1 of approx. EUR 750 mn.

 

More information available at: https://www.a1.group/en/ir/interim-results

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