VIENNA, Austria, August 19 /PRNewswire/ --
- Fixed Net line loss cut by 2/3 in 1H 09 to 20,600 lines
- Double digit subscriber growth of 10.1% to 18.1 million customers in
Mobile Communication
- Revenues decline by 5.8% to EUR 2,388.8 million primarily driven by
lower Fixed Net revenues
- EBITDA decreases by 5.2% to EUR 904.8 million while operating costs
decline by 6.7%
- Operating free cash flow grows by 5.9% while free cash flow per share
increases by 2.4% to 0.75 EUR
- Outlook for 2009 on a constant currency basis fully reiterated, as
announced on the occasion of the 1Q 09 results
- Dividend per share floor of 75 cent per share reiterated for 2009-2012
- Management Board has resolved to cancel 17 million treasury shares or
3.7% of share capital as of August 24, 2009, thus, the number of shares
will be reduced to 443 million
- Share buyback envisaged for 2010, subject to stable conditions
% %
in EUR million 2Q 09 2Q 08 change 1H 09 1H 08 change
Revenues 1,191.7 1,276.2 -6.6% 2,388.8 2,535.8 -5.8%
EBITDA 450.0 468.5 -3.9% 904.8 954.2 -5.2%
Operating income 170.2 174.1 -2.2% 350.3 376.4 -6.9%
Net income 82.3 96.3 -14.5% 167.6 226.0 -25.8%
Earnings per share (in
EUR) 0.19 0.22 -14.5% 0.38 0.51 -25.8%
Free cash flow per share
(in EUR) 0.45 0.40 12.1% 0.75 0.73 2.4%
Capital expenditures 149.3 190.7 -21.7% 265.3 350.3 -24.3%
June 30, Dec.31, %
in EUR million 09 08 change
Net debt 4,003.9 3,993.3 0.3%
Net debt/EBITDA (12 months) excluding
restructuring program 2.1x 2.1x
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 interest, income tax expense, depreciation and amortization, impairment charges, equity in earnings of affiliates, income/loss from investments and foreign exchange differences. This equals operating income before depreciation, amortization and impairment charges.
Group Review
Vienna, August 19, 2009 - Telekom Austria Group (VSE: TKA, OTC US: TKAGY) today announced its results for the first half 2009 and the second quarter ending June 30, 2009.
Hannes Ametsreiter, CEO Telekom Austria Group, said: "The challenging economic situation and a disrupting regulatory framework impacted results for the first half year 2009. The decrease in group revenues is mainly attributable to lower Fixed Net revenues, which in turn resulted from lower traffic volumes and declining wholesale revenues. Our product bundles showed a favourable development, proving successful in reducing Fixed Net access line loss by 2/3 and counteracting the Fixed Net business downward trend. Lower contributions from both segments led to a decline in EBITDA, with a strict cost management curbing the impact of lower revenues on EBITDA. Despite a stable performance on the domestic market, the Mobile Communication segment was affected by the weak economic development in Eastern and South-Eastern Europe, currency translation effects along with the roaming regulation. Mobile Communication customer base showed a further favourable development with a double-digit growth rate and reached the 18 million subscriber mark, with contract customers accounting for 90% of this growth. Last but not least, we reiterate once again our guidance for the full year 2009 based on a constant currency basis and further confirm a dividend floor of EUR 0.75 per share."
Summary
Year-to-date comparison:
In the first half of 2009 revenues decreased by 5.8% to EUR 2,388.8 million primarily due to lower revenues in the Fixed Net segment resulting from lower wholesale revenues and voice volumes as well as the sale of the Fixed Net subsidiaries in the Czech Republic, in Slovakia and in Poland respectively. While total operating expenses were reduced by 6.7%, EBITDA declined by 5.2% to EUR 904.8 million due to lower contributions from both business segments. Operating income fell by 6.9% to EUR 350.3 million, with a higher contribution from the Fixed Net segment partly compensating for a lower operating income in the Mobile Communication segment. Net income was EUR 167.6 million in the first six months of 2009 compared to EUR 226.0 million in the same period of the previous year.
Total capital expenditures decreased from EUR 350.3 million to EUR 265.3 million driven by a reduction of capital expenditures in both segments due to postponements and restrictive investment policy. Operating free cash flow grew by 5.9%, while free cash flow per share increased by 2.4% to EUR 0.75. Net debt remained almost stable at EUR 4,003.9 million at the end of June 2009 compared to year-end 2008. Net debt to EBITDA (last 12 months) excluding the impact of the provision in 4Q 2008 for the restructuring program was 2.1x.
Quarterly comparison:
In 2Q 09 revenues declined by 6.6% to EUR 1,191.7 million and EBITDA decreased by 3.9% to EUR 450.0 million. These declines were driven primarily by the Fixed Net segment with almost stable contributions from the Mobile Communication segment. Reductions in operating expenses resulted in a higher profitability of the Fixed Net segment despite lower revenues. Both the domestic mobile business and the operation in Belarus reported EBITDA growth rates, while start-up operations in the Republic of Serbia and the Republic of Macedonia further reduced their EBITDA losses. EBITDA trends for the operations in Bulgaria, Croatia and Slovenia improved as rates of decline slowed down compared to 1Q 09. Operating income decreased by 2.2% to EUR 170.2 million as a higher contribution from the Fixed Net segment partly offset a lower operating income in the Mobile Communication segment. Net income decreased by 14.5% to EUR 82.3 million in 2Q 09 compared to EUR 96.3 million in 2Q 08.
A restrictive investment policy and postponements of investments supported a reduction of capital expenditures from EUR 190.7 million to EUR 149.3 million which allowed an increase of free cash flow per share by 12.1% to EUR 0.45 in 2Q 09. Operating free cash flow increased by 8.2%.
Market Environment
While the sustained migration of Fixed Net voice customers to the Mobile Communication segment has been the main challenge for several years, mobile broadband continues to make steady inroads into the market for internet access. However, following the introduction of attractive product bundles, line loss decelerated significantly during recent quarters. Against this background the Fixed Net segment continues to focus on the stabilization of cash flows by means of a market-oriented product portfolio and attractive pricing schemes as well as a comprehensive cost-cutting program.
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