EANS-News: Telekom Austria AG / Results for the Fourth Quarter and Full Year 2018
Corporate news transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is responsible for the content of this announcement.
Vienna – Vienna, 12 February 2019 – today, the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces its results for the fourth quarter and full year 2018, ending 31 December 2018.
Key financial and operating highlights
- Group revenue increase of 3.1% in Q4 2018 driven primarily by higher service revenues from both fixed-line and mobile but also increased equipment revenues.
- Service revenue growth in all segments except for Slovenia (in Belarus excl. FX effects).
- EBITDA excl. restructuring showed a strong increase of 8.3% in Q4 2018 as higher service revenues more than outweighed higher product-related costs.
o Excl. restructuring, EBITDA rose by 8.6% in Austria, driven by strong service revenue growth, which was additionally supported by the completion of large corporate projects in solutions & connectivity in Q4 2018. o Solid trends in CEE continued, with especially strong contributions from Bulgaria and Republic of Serbia.
- Postpaid subscriber base increased by 4.1%, with growth in all markets; RGUs increased by 3.7%, driven by CEE markets.
- Net income decreased by 29.7% in the full-year 2018 to EUR 242.7 mn due to the amortization of brand values (EUR 197.9 mn in D&A in 2018; EUR 121.8 mn in 2017) and higher income taxes as prior-year was positively impacted by the recognition of deferred tax assets on tax losses carried forward.
- CAPEX increased in the full-year 2018 due to investments in Austria (fiber roll-out, datacenter) and investments in CEE in late 2018.
- Free cash flow in FY 2018 stable compared to the prior year as the higher cash flow from operations and lower interest payments outweighed higher CAPEX paid.
- Group outlook 2019: total revenue growth of approx. 2% (reported basis(1), CAPEX(2) of approx. EUR 770 mn.
(1)Based on IFRS 15. (2)Pre IFRS 16 accounting. Does not include investment in spectrum and acquisitions.
If not stated otherwise, all financial figures are based on IAS 18; all comparisons are given year-on-year. EBITDA is defined as net income excluding financial result, income taxes, depreciation and amortization and impairment charges.
Proforma figures include M&A transactions made between the start of the comparison period and the end of the reporting period.
The earnings release can be found here:
Disclaimer for forward-looking statements:
This document 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 A1 Telekom Austria Group nor any other person accepts any liability for any such forward-looking statements. A1 Telekom Austria Group will not update these forward-looking statements, whether due to changed factual circumstances, changes in assumptions or expectations. This report does not constitute a recommendation or invitation to purchase or sell securities of A1 Telekom Austria Group.
end of announcement euro adhoc
Attachments with Announcement:
issuer: Telekom Austria AG
phone: 004350664 47500
indexes: WBI, ATX
Digital press kit: http://www.ots.at/pressemappe/2161/aom