Vienna, 18 July 2017: Today, the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces its highlights for the second quarter and the first half of 2017, ending 30 June 2017. The full earnings release including the results for the second quarter and the first half of 2017 will be published on 25 July 2017. The following analysis is presented on a proforma1 basis if not stated otherwise.
Highlights for the second quarter of 2017
- Group total revenues increased by 4.0% (reported: +5.1%), with service revenue growth in all markets except from the Republic of Serbia and the Republic of Macedonia.
- Group EBITDA growth of 7.8% (reported: 9.1%) mainly due to growth in Belarus, Austria, Bulgaria, Croatia and the Republic of Macedonia.
- Negative effects from the stepwise abolition of retail roaming in the EU came in slightly lower than expected in Q2 2017, while the expected losses for the second half of the year remain the same.
- EBITDA growth in Austria was supported by some project-driven revenue contributions which cannot be extrapolated for the rest of the financial year 2017 as well as some non-cash relevant items.
- Total positive FX effects amounted to EUR 8.9 mn for total revenues and EUR 4.2 mn for EBITDA in Q2 2017, stemming almost entirely from Belarus.
- Reported net result increased by 36.5% in the second quarter of 2017 from EUR 82.4 mn to EUR 112.5 mn.
Results on a reported basis were supported by:
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.
There were no one-off effects included in the second quarter of 2016 and 2017.
1 Proforma figures include effects of M&A transactions executed between the start of the comparison period and the end of the reporting period.
Please find further information on the Trading Statement 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 Telekom Austria nor any other person accepts any liability for any such forward-looking statements. Telekom Austria 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 Telekom Austria.
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