Telekom Austria Group reports first Quarter 2017

  • Group total revenues and EBITDA increased by 4.9% and 1.5% respectively on a reported basis (proforma*: revenue +4,1%, EBITDA +0,6%)
  • Operationally, revenue growth was mostly a consequence of improved service revenue trends, but also higher equipment revenues
  • Negative roaming impact in line with expectations
  • Acquisition of fixed-line operator Metronet in Croatia and acquisition of the fixed-line provider Atlant Telecom in Belarus
  • Revenues and EBITDA included positive one-off effects
  • CEE: Ongoing strong operational trends in Croatia and Belarus, continuing improvements in Bulgaria
  • Group outlook 2017 unchanged: approx. +1% total revenues, CAPEX of approx. EUR 725 mn
Customer Numbers in ‘000 Q1 2017 reported Q1 2016 proforma* +/- in % Q1 2016 reported +/- in %
RGUs** 5,920.0 5,888.1 +0.5% 5,593.5 +5.8%
Wireless suscribers 20,621.7 20,529.2 +0.5% 20,529.2 +0.5%
- Postpaid 15,074.4 14,803.5 +1.8% 14,803.5 +1.8%
- Prepaid 5,547.4 5,725.8 -3.1% 5,725.8 -3.1%
Key Financial Figures in EUR Million
Total revenues 1,058.9 1,017.5 +4.1% 1,009.4 +4.9%
EBITDA 339.5 337.4 +0.6% 334.4 +1.5%
Net result 96.4 - - 81.0 +19.0%

“We are continuing our growth path. In addition, we are accelerating our investments in infrastructure and innovation, as shown with the establishment of A1 Digital. All our figures on group level show an upward trend. We saw an increase in revenues by 4.9 percent as well as a growing net result of 19 percent”, says Alejandro Plater, CEO & COO Telekom Austria Group.

Following factors impact the year-on-year comparison of the operating results of the Telekom Austria Group in the first quarter 2017 and should be considered in the analysis:

  • The acquisition of the fixed-line operator Metronet in Croatia, which was closed on 15 February 2017. The company has been consolidated as of 1 February 2017.
  • The acquisition of the fixed-line provider Atlant Telecom and its subsidiary TeleSet in Belarus, consolidated as of 1 December 2016.

In the first quarter of 2017, the CEE markets, except from Belarus, continued to see a shift from prepaid to postpaid offers. This resulted in a slightly higher mobile subscriber base in the Group (+0.5% year-on-year), as the increase in postpaid subscribers more than offset the losses in the prepaid segment. The number of revenue generating units (RGUs) in the fixed-line business rose by 5.8% year-on-year (proforma: +0.5%), driven by the acquisitions of the fixed-line operators Atlant Telecom in Belarus and Metronet in Croatia. Operationally, RGU growth in the Croatian, Belarusian, Slovenian and Macedonian segments more than offset declines in Austria and Bulgaria.

Group total revenues increased by 4.9% year-on-year on a reported basis (proforma: +4.1%). Excluding one-off and FX effects in Q1 2017 and in the comparison period, reported revenues grew by 2.3% (proforma: +1.5%). Total revenue growth was driven by the strong operational performance in Belarus, which additionally benefitted from a favourable FX development, as well as higher total revenues in Austria, Croatia, Bulgaria and Slovenia. These increases were partly offset by lower total revenues in the Republic of Serbia and in the Republic of Macedonia.

Negative effects stemming from the gradual abolition of retail roaming in the EU as of 30 April 2016 came in as expected and derive mostly from Austria, with smaller impacts in Bulgaria, Croatia and Slovenia.

Reported total revenues in the Austrian segment increased by 1.9% year-on-year in the first quarter of 2017. This was driven by the above-mentioned positive one-off effects in the total amount of EUR 14.2 mn in fixed-line and other revenues as well as other operating income.

In the Bulgarian segment, total revenues rose by 6.7% in Q1 2017 compared to the same period last year and were entirely driven by the increase in equipment revenues while service revenues were almost stable. Reported total revenues in the Croatian segment rose by 11.2% year-on-year (proforma: +5.9%) and continued to profit especially from the strong growth in the fixed-line business as well as better trends in the mobile business. Additionally, fixed-line revenues in the Croatian segment benefitted from the acquisition of Metronet in Q1 2017.

Total revenues in the Belarusian segment increased by 34.8% year-on-year (proforma: +28.1%), driven by continuing solid operational growth and the acquisition of Atlant Telecom in Q4 2016 as well as the supportive FX development in Q1 2017. The Belarusian Rouble appreciated by 12.5% compared to the same period last year. Total revenues still rose by 19.9% on a local currency basis (proforma: +13.9%).

In the Slovenian segment, total revenues increased by 2.3% year-on-year, driven by higher mobile service revenues as well as higher fixed-line service revenues due to the growth in fixed-line RGUs. Total revenues in the Serbian segment decreased by 2.6% year-on-year as the competitive and regulatory environment remained challenging which led to lower mobile service revenues. In the Republic of Macedonia, total revenues decreased by 6.2% year-on-year mostly due to a decline in interconnection revenues.

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