Telekom Austria Group Continues Upward Trend in 3Q 05
November 16 2005 - 1:11AM
PR Newswire (US)
VIENNA, Austria, November 16 /PRNewswire-FirstCall/ -- Telekom
Austria AG (VSE: TKA ; NYSE: TKA) today announced its results for
the first nine months of 2005 ending September 30, 2005. Completion
of the Mobiltel acquisition as of July 12, 2005 positively impacted
the group results. Consolidated 1-9M 05 financial figures of
Telekom Austria include results for Mobiltel for the period from
July 12 through September 30, 2005. Mobiltel is not included in
previous quarters. Year-to-date comparison: During the first nine
months 2005 consolidated group revenues increased by 5.8% to EUR
3,205.8 million. Group operating income increased by 35.8% to EUR
559.4 million, benefiting from a substantial increase of 22.2% to
EUR 444.4 million in the wireless segment due to the first time
consolidation of Mobiltel and from an increase of 45.5% in the
wireline segment to EUR 113.8 million. Group operating income
before depreciation, amortization and impairment charges (adjusted
EBITDA) rose by 9.9% to EUR 1,375.1 million during 1-9M 05. This
increase was caused by a 20.8% rise in the wireless adjusted EBITDA
to EUR 740.6 million which more than offset a 2.3% decrease in
wireline adjusted EBITDA to EUR 633.4 million. Consolidated net
income of Telekom Austria for the first nine months of 2005,
including Mobiltel, rose by 85.6% to EUR 375.5 million, driven by
higher operating income, slightly lower net interest expense and
lower income tax expenses resulting from lower tax rate in Austria.
Earnings per share increased from EUR 0.41 to EUR 0.76. Both
segments, including Mobiltel, contributed almost equally to the
increase in group capital expenditures in 1-9M 05, which rose by
23.3% to EUR 378.0 million. Quarterly comparison: Group revenues
increased by 13.9% to EUR 1,191.3 million during 3Q 05. Wireline
revenues decreased by 2.2% to EUR 534.4 million, primarily due to
lower revenues from "data & IT-solutions including wholesale"
and "switched voice monthly rental & other". Higher revenues
from "Internet access & media" partially offset the decline. On
a comparable basis, excluding the one time recognition of universal
services in the amount of EUR 0.9 million in 3Q 04, the decline
amounted to 2.0%. Wireless revenue increased by 28.1% to EUR 722.2
million, which is primarily attributable to the consolidation of
Mobiltel. On a comparable basis, excluding Mobiltel, wireless
revenues increased by 5.6% to EUR 595.6 million in 3Q 05. This
increase was primarily driven by higher equipment revenues due to
advanced stock build up from dealers for Christmas business, higher
monthly rental as a result of a larger subscriber base, and higher
interconnection revenues both in Austria and abroad. Group
operating income rose by 53.8% to EUR 261.4 million during 3Q 05,
reflecting a rise of 45.5% in the wireline and of 56.1% in the
wireless segment. Group operating income before depreciation,
amortization and impairment charges (adjusted EBITDA) rose by 22.2%
to EUR 543.0 million. Wireline adjusted EBITDA declined by 1.5% to
EUR 217.0 million. Wireless adjusted EBITDA increased by 45.3% to
EUR 325.6 million in 3Q 05. On a comparable basis, excluding
Mobiltel, wireless adjusted EBITDA increased by 9.5% to EUR 245.3
million. Quarterly net income rose by 89.8% to EUR 184.1 million in
3Q 05 primarily as a result of the consolidation of Mobiltel and
due to the higher operating income despite higher net interest
payments. Earnings per share improved by 87.4% from EUR 0.20 to EUR
0.37. Net debt increased by 53.4% to EUR 3,028.9 million primarily
as a result of additional debt incurred for the acquisition of
Mobiltel. The acceleration of the share buyback programme and
higher capital expenditures also contributed to this increase.
Consequently, net gearing increased to 105.3% at the end of
September 2005. Group capital expenditures for 3Q 05 increased by
11.5% to EUR 128.5 million. For more detailed information about the
financial results for the first nine months 2005 please refer to
the corresponding interim report on Telekom Austria's website at
http://www.telekom.at/results-qu3-2005 Contacts: Martin Bredl Head
of Public Relations Phone: +43-(0)59059-1-11001 E-Mail: Peter Zydek
Head of Investor Relations Phone: +43-(0)59059-1-19000 E-Mail:
DATASOURCE: Telekom Austria AG CONTACT: Contacts: Martin Bredl,
Head of Public Relations, Phone: +43-(0)59059-1-11001, E-Mail: .
Peter Zydek, Head of Investor Relations, Phone:
+43-(0)59059-1-19000, E-Mail:
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