Telekom Austria Group With a Net Profit of Almost EUR 400 Million for the Full-Year 2015 and for the First Time more than 24 Million Customers

Vienna, 09 February 2016

  • Increase in revenues* of 1.3% to approximately EUR 4.1 billion
  • EBITDA comparable** rises by 4.0% to EUR 1,370.9 million
  • Investments of EUR 780 million in future technologies and broadband rollout
  • Improved sales execution and more operational efficiency contribute to a net profit of EUR 392.8 million
  • Strong customer net additions in both the fixed line and mobile business lead for the first time to an increase in the Group's customer base to over 24 million
  • Outlook for the full-year 2016 envisages revenue growth of roughly 1%

Customer Numbers in '000 20152014+/- in %Fixed access lines group-wide3,368.32,723.3+23.7%- thereof broadband lines2,312.51,800.5+28.4%Mobile subscribers20,710.820,008.4+3.5%- thereof broadband customers1,557.31,505.7+3.4% Key Financial Figures in EUR Million Pursuant to IFRSGroup revenues4,096.84,046.2+1.3%EBITDA comparable*1,370.91,317.6+4.0%EBIT574.0-3.0n.m.Net profit/loss392.8-185.4n.m.Capital expenditures780.0757.4+3.0%

*) Excluding currency translation and one-off effects (clean) **) EBITDA excluding effects from restructuring and impairment tests as well as currency translation and one-off effects (clean)

"The Telekom Austria Group looks back on a year of intensive changes. Our efforts are paying off, as we were able to post a net profit of roughly EUR 400 million for the full-year 2015, thus achieving the best set of full-year results of the past five years. This success could be achieved thanks to all employees of the Group. However, our industry is currently facing unprecedented upheavals on a global level. We must, therefore, invest in infrastructure, new technologies and know-how moving forward. This requires a solid financial basis and, above all, further growth", said Alejandro Plater, CEO Telekom Austria Group.

Telekom Austria Group's revenues for the full-year 2015 increased by 1.3% from EUR 4,046.2 to EUR 4,096.8 million, developing better than expected. However, the development of revenues was strongly impacted by one-off and currency translation effects in the period under review. Including these effects, revenues increased by 0.2%, thus remaining stable compared to the previous year. This favorable revenue development was mainly due to a strong fourth quarter as well as to the positive performance on the Austrian domestic market.

Including one-off and currency translation effects , reported EBITDA comparable for the full-year 2015 grew by 6.7% to EUR 1,372.6 million. Excluding these effects, clean EBITDA comparable increased by 4.0% to EUR 1,370.9 million. Group earnings were driven by operational efficiency, synergies with América Móvil, for instance in the purchasing area, as well as improved sales execution. As a result, overall profitability rose by 2.1 percentage points, resulting in an EBITDA margin of 34.1%.

Higher capital resources allow the Telekom Austria Group to continue to rank among the largest investors in the CEE area. The profits realized in the course of the past year were reinvested in network and broadband rollout with a view to adapting the Group's overall infrastructure to the technological requirements of the future. A total of EUR 780.0 million were invested in all operating markets across the Group; thereof EUR 452.4 million alone were invested in Austria, where the company's headquarters are located. This represents a plus of 13.5% compared to the same period in the previous year.

Customer numbers showed an increase in all operating markets except for a slight drop in the Croatian and Serbian mobile business. The entire Group could profit from this favorable development, which was positively influenced by targeted acquisitions in line with the Group's convergent strategy. Fixed access lines rose by 23.7% to 3,368.300 and mobile subscribers grew by 3.5% to 20,710.800 thousand in 2015, with the Telekom Austria Group thus exceeding the 24-million customer mark for the first time. Besides, strong demand for broadband access as well as the trend towards higher data consumption continued unabated in the period under review.

More detailed information about full-year results and related developments will be provided at the press conference of the Telekom Austria Group, to be held on February 10, 2016 at 10 am CET in the A1 hall at the company's headquarters on Lassallestraße 9, 1020 Vienna. The press conference will also be broadcasted live on the corporate website at www.telekomaustria.com.

Outlook

In the year under review, important decisions about the further course and future development of the Telekom Austria Group were made. The solid backing provided by the strong partnership between the Federal Republic of Austria and the majority shareholder América Móvil strengthens the management's confidence that the company will continue to pursue the growth path initiated over the past year moving forward. The Group's target for the full-year 2016 envisages an increase in revenues of roughly 1% and CAPEX before spectrum investments and acquisitions of EUR 750 million. In order to ensure its financial flexibility, Telekom Austria Group remains committed to maintaining its Baa2/BBB ratings from Moody's and Standard & Poor's.

1 One-off effects: EUR -28.2 million, change in accounting principles in 2014, EUR +10.5 million, reversal of provisions in 2015 / currency translation effects: EUR 80.7 million in 2015 2 One-off effects: EUR +26,8 million merger Liechtenstein in 2014, EUR +30.0 million legal matter in Slovenia in 2015, EUR -30.1 million provisions for civil servants in 2014 / currency translation effects: EUR 38.8 million in 2015

Interim Results

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