Operating Free Cash Flow remains the primary focus of the management and is expected to come out at about EUR 800 million. Telekom Austria Group reiterates its intention to distribute the higher of 65% of the annual net income or at least 75 cents per share as dividend until 2012. The Management Board remains committed to its capital allocation policy including returning excess cash to shareholders via share buy-backs within the 1.8x-2.0x net debt/EBITDA target balance sheet structure and provided stability in its main foreign currencies and operations. Hence, in light of the ongoing challenging operating environment share buyback is not expected to start in 2010.
This outlook is given on a constant currency basis and does not yet include the impact of the announced integration of Fixed Net and Mobile Communication activities in Austria.
Outlook 10* Outlook 10*
as of May 12 as of Feb. 24
Telekom Austria
Group
Revenues EUR 4.7 bn EUR 4.7 bn
EBITDA EUR 1.6 bn EUR 1.6 bn
Capital EUR 0.8 bn EUR 0.8 bn
expenditures
Operating Free
Cash Flow EUR 0.8 bn EUR 0.8 bn
65% of net income, 65% of net income, DPS
DPS of 75 cents of 75 cents minimum
Dividend minimum
*Excluding the impact of the merger of domestic operations
Further Information
For more detailed information about the full-year 2009 please refer to the corresponding report on Telekom Austria Group's website at http://www.telekomaustria.com/interim_re...
Disclaimer:
This news release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements are usually accompanied by words such as "believe," "intend," "anticipate," "plan," "expect" and similar expressions. Actual results 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. These factors include, but are not limited to, the following:
- the level of demand for telecommunications services or equipment,
particularly with regard to access lines, traffic, bandwidth and new
products;
- competitive forces in liberalized markets, including pricing pressures,
technological developments, alternative routing developments and new
access technologies, and our ability to retain market share in the face
of competition from existing and new market entrants;
- the effects of our tariff reduction or other marketing initiatives;
- the regulatory developments and changes, including the levels of
tariffs, the terms of interconnection, unbundling of access lines and
international settlement arrangements;
- our ability to achieve cost savings and realize productivity
improvements;
- the success of new business, operating and financial initiatives, many
of which involve start-up costs, and new systems and applications,
particularly with regard to the integration of service offerings;
- our ability to secure the licenses we need to offer new services and
the cost of these licenses and related network infrastructure
build-outs;
- the progress of our domestic and international investments, joint
ventures and alliances
- the impact of our new business strategies and transformation program;
- the availability, terms and deployment of capital and the impact of
regulatory and competitive developments on capital expenditures;
- the outcome of litigation in which we are involved;
- the level of demand in the market for our shares which can affect our
business strategies;
- changes in the law including regulatory, civil servants and social
security law, including pensions and tax law; and general economic
conditions, government and regulatory policies, and business
conditions in the markets we serve.
Contacts:
Mag. Elisabeth Mattes
Telekom Austria Group
Tel.: +43-664-331-2730
E-Mail: elisabeth.mattes@telekom.at Telekom Austria Group
Mag. Peter Zydek
Group Spokeswoman
Investor Relations
Tel.: +43(0)590591-19001
E-Mail: peter.zydek@telekom.at
Mag. Elisabeth Mattes, Telekom Austria Group, Tel.: +43-664-331-2730, E-Mail: elisabeth.mattes@telekom.at Telekom Austria Group ; Mag. Peter Zydek, Group Spokeswoman, Investor Relations, Tel.: +43(0)590591-19001, E-Mail: peter.zydek@telekom.at
