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Telekom Austria AG / Results for the Full Year 2017

Published: February 13, 2018; 19:26 · (Vindobona)

Telekom Austria Group announces its results for fourth quarter and full year 2017, ending 31 December 2017. Group total revenues rose by 3.0% on a proforma basis (reported: +4.1%), EBITDA increased by 2.0% (rep.: +3.2%). Revenue increase driven by growth in fixed-line service revenues and equipment revenues, while mobile service revenues were lower due to roaming; the revenue increase was driven by all markets except for the Republic of Macedonia.

Telekom Austria AG / Results for the Full Year 2017 / Picture: © Telekom Austria Group

Today, the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces its results for fourth quarter and full year 2017, ending 31 December 2017.

Key financial and operating highlights in the full year 2017

* Group total revenues rose by 3.0% on a proforma(1) basis (reported: +4.1%),
EBITDA increased by 2.0% (rep.: +3.2%).
* Revenue increase driven by growth in fixed-line service revenues and equipment
revenues, while mobile service revenues were lower due to roaming; the revenue
increase was driven by all markets except for the Republic of Macedonia.
* Full year OPEX increased due to intensified sales activities and investments
in A1 Digital, but also regulation-driven roaming expenses and higher than
usual non-recurring items in Q4.
* EBITDA development in the full year 2017 was also impacted by:
* Restructuring in Austria: positive EUR 18.2 mn in 2017 compared to a negative
EUR 7.2 mn effect in 2016.
* Positive FX effects in 2017: EUR 11.0 mn in revenues; EUR 3.3 mn in EBITDA.
* Positive one-off effects in total revenues and EBITDA of EUR 23.8 mn in 2017
compared to positive one-off effects in EBITDA of EUR 21.4 mn in 2016 (details
see p. 25).
* Solid operational trend in the first nine months of 2017 weakened by
seasonally lower EBITDA margin in Q4 but also higher Q4 OPEX versus last year
driven by additional investments realising market opportunities in the
Christmas season, A1 Digital and higher than usual non-recurring items.
* Negative roaming effect on EBITDA of approx. EUR 20 mn in 2017; high usage
elasticity and higher than expected visitor roaming revenues at a Group level.
* Reported net result of EUR 345.5 mn in 2017 compared to EUR 413.2 mn in 2016,
negatively impacted by brand value amortisation in the amount EUR 123.2 mn in
2017; excluding D&A from brand value amortisation reported net result grew by
13.4% in 2017.
* Free cash flow growth of 65.8% year-on-year to EUR 384.7 mn.
* Group outlook 2018: total revenue growth of 1-2% (on a reported basis), CAPEX
(2) of approximately EUR 750 mn.

(1) Proforma figures include M&A transactions made between the start of the
comparison period and the end of the reporting period.
(2) Does not include investment in spectrum and acquisitions.

All financial figures are based on IFRS; if not stated otherwise, all
comparisons are given year-on-year. EBITDA is defined as net income excluding
financial result, income taxes, depreciation and amortisation and impairment
charges.

Further information about the results can be found here:
https://www.a1.group/en/ir/interim-results

The earnings release can be found here:
https://cdn1.a1.group/final/en/media/pdf/results-qu4-2017.pdf [https://
cdn1.a1.group/final/en/media/pdf/results-qu4-2017.pdf]

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AT0000720008