VIENNA, Austria, February 24, 2010 /PRNewswire/ --
- Mobile Communication customer base increases by 6.4% to 18.9 million
customers despite a difficult economic environment
- Increase in access lines in the Fixed Net segment during 4Q 09 for the
first time in more than a decade
- Revenues decline of 7.1% to EUR 4.8 billion driven by lower Fixed Net
revenues, FX movements and lower prices in Mobile Communication
- Successful cost reduction in both segments reduces operating expenses
and softens impact of lower revenues on EBITDA
- 2009 target for operating free cash flow of EUR 1.1 billion achieved as
Capex reduction compensates lower EBITDA on like-for-like basis
- Based on full year results 2009, Management Board proposes dividend of
EUR 0.75 per share
- Reiteration of outlook for 2010 excluding the impact of the merger of
domestic operations
- Merger of domestic operations creates considerable customer advantage
and meets increasing demand for convergent products
% %
in EUR million 4Q 09 4Q 08 change FY 2009 FY 2008 change
Revenues 1,181.5 1,306.5 -9.6% 4,802.0 5,170.3 -7.1%
EBITDA 399.4 -211.6 n.a. 1,794.0 1,280.8 40.1%
Operating income 120.0 -515.7 n.a. 343.9 120.7 184.9%
Net income 63.6 -437.7 n.a. 94.9 -48.8 n.a.
Earnings per share (in
EUR) 0.14 -0.99 n.a. 0.22 -0.11 n.a.
Free cash flow per share
(in EUR) 0.30 0.42 -29.2% 1.52 1.71 -10.9%
Capital expenditures 291.6 273.3 6.7% 711.4 807.6 -11.9%
Dec. Dec. %
in EUR million 31, 09 31, 08 change
Net debt 3,614.8 3,993.3 -9.5%
Net debt/EBITDA (12 months) excluding
restructuring program in 2008 2.0x 2.1x
Reported financial figures include impairment charges of EUR 352.0 million for FY 2009 and restructuring charges of EUR 632.1 million for 4Q 08 and FY 2008.
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 taxes, depreciation and amortization, impairment charges, equity in earnings of affiliates, other financial results and foreign exchange differences. This equals operating income before depreciation, amortization and impairment charges.
Group Review
Telekom Austria Group (VSE: TKA, OTC US: TKAGY) today announced its results for the full year 2009 and the fourth quarter ending December 31, 2009.
"Against a tough economic backdrop, the Group showed a commendable performance in 2009. Throughout the year we focussed on effective cost management in both segments and reduced operative expenses. This enabled us to soften the impact of lower revenues on EBITDA. In addition we managed to reduce net debt by over 9%. In 2009, we achieved a number of improvements: In Fixed Net, following the introduction of attractive product bundles, line-loss decelerated significantly in recent quarters, and we even posted positive quarterly net additions in 4Q 09 for the first time in more than ten years. Elsewhere, the Mobile Communication segment proved once again successful at growing its subscriber base and now serves over 18.9 million customers. Given that we expect a sustained difficult environment in the markets we operate in during 2010, we will continue to improve our offering in order to strengthen our competitive advantage. We further confirm a minimum dividend floor of EUR 0.75 per share", said Hannes Ametsreiter, CEO Telekom Austria Group.
Summary
Year-to-date comparison:
During the full year of 2009 revenues decreased by 7.1% to EUR 4,802.0 million driven by lower revenues in both segments. Fixed Net revenues declined due to a drop in voice volumes. Moreover, revenues from subsidiaries in the Czech Republic, in Slovakia and in Poland, which were sold during 2008 were included in full year revenues for that year. Mobile Communication revenues decreased mainly due to foreign currency translation. Furthermore, revenues were impacted by lower prices due to fierce competition as well as lower interconnection and roaming tariffs.
Operating results of both financial years were impacted by non-recurring items. In 3Q 09, operating income and net income included the impact of impairment charges of EUR 352.0 million resulting from the goodwill related to the acquisitions of Velcom in Belarus and the license of Vip mobile in the Republic of Serbia. While in 4Q 08, reported EBITDA, operating income and net income included the impact of expenses for the restructuring program in the amount of EUR 632.1 million. To facilitate year-to-date comparison the following analysis also shows the comparison on a like-for-like basis.
Strict cost management in both segments reduced operating expenses by EUR 228.9 million, excluding the restructuring charges in 2008. This led to an EBITDA of EUR 1,794.0 million in 2009 and a decline of 6.2% compared to the EBITDA in 2008 on a like-for-like basis. The reported EBITDA amounted to EUR 1,280.8 million in 2008.
Operating income declined by 7.6% to EUR 695.9 million in 2009 compared to the previous year on a like-for-like basis. Reported operating income amounted to EUR 343.9 million in 2009 compared to EUR 120.7 million in 2008.
Net income decreased from EUR 442.8 million in 2008 to EUR 350.1 million in 2009 on a like-for-like basis. Reported net income was EUR 94.9 million in 2009 compared to a loss of EUR 48.8 million in 2008.
Capital expenditures decreased by 11.9% to EUR 711.4 million mainly driven by lower investments in the Mobile Communication segment. Free cash flow declined by 10.9% in line with the development of free cash flow per share which decreased to EUR 1.52. Deleveraging continued with net debt decreasing by 9.5% to EUR 3,614.8 million by the end of December 2009 compared to year-end 2008. Net debt to EBITDA (last 12 months) was 2.0x at year-end 2009.
Quarterly comparison:
In 4Q 09 revenues declined by 9.6% to EUR 1,181.5 million primarily as a result of lower contributions from the Mobile Communication segment.
In 4Q 08, reported EBITDA, operating income and net income included the impact of restructuring charges in the amount of EUR 632.1 million. To facilitate quarterly comparison, following analysis also shows like-for-like comparison.
Reductions in like-for-like operating expenses by 9.5% mitigated the impact of lower revenues and resulted in an EBITDA of EUR 399.4 million in 4Q 09 compared to an EBITDA of EUR 420.5 million in 4Q 08. Reported EBITDA was negative in the amount of EUR 211.6 million in 4Q 08.
On a like-for-like basis, operating income improved from EUR 116.4 million in 4Q 08 to EUR 120.0 million in 4Q 09 due to lower depreciation and amortization charges. Reported results showed an operating loss of EUR 515.7 million in 4Q 08.
While net income was EUR 63.6 million in 4Q 09 compared to a net income of EUR 53.9 million in 4Q 08 on a like-for-like comparison, a reported net loss of EUR 437.7 million was shown in 4Q 08.
(CONTINUA)
