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16.07.2019 – 19:00

Telekom Austria AG

EANS-News: Telekom Austria AG
Results for the Second Quarter and First Half 2019 - ATTACHMENT

  Corporate news transmitted by euro adhoc with the aim of a Europe-wide
  distribution. The issuer is responsible for the content of this announcement.

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* Group total revenues increased by 2.6%, driven by service revenue growth in
  all markets.
* Mobile service revenues rose or remained stable in all markets except for
  Slovenia and were mainly driven by the ongoing strong demand for mobile WiFi

  o Austrian mobile service revenues were stable, driven by growth in mobile
    WiFi routers as well as increased revenues from high-value customers but
    were negatively impacted by the EU international calls regulation.

* Fixed-line service revenues were developing well, with particularly strong
  growth in solutions and connectivity revenues in Austria and a strong
  performance in Bulgaria.

  o Mobile contract subscribers rose by 4.4% with growth in all markets except
    for Bulgaria which was impacted by the removal of inactive SIM-cards.
  o Fixed-line RGUs increased by 0.5%, as broadband RGU growth in CEE and higher
    TV RGUs compensated for the decline of fixed voice.

* Group EBITDA excluding one-off and FX effects as well as restructuring charges
  increased by 2.7%, driven by higher service revenues.

  o In Austria EBITDA excluding restructuring charges and a positive one-off
    effect due to a real estate sale increased by 0.8% as higher service
    revenues and lower workforce costs were able to compensate for higher cost
    of services.
  o The increase in EBITDA in the international operations was particularly
    supported by Bulgaria Croatia and Slovenia.
  o On a reported basis, EBITDA declined due to restructuring charges in
    Austria, which amounted to EUR 21.1 mn in Q2 2019 (Q2 2018: EUR 0.1 mn).

* Net result increased from EUR 58.1 mn in Q2 2018 to EUR 70.0 mn in Q2 2019.
  While the comparison period was negatively impacted by the brand amortization,
  in Q2 2019 a tax case in Bulgaria had a negative impact on net income.
* Free cash flow declined from 123.0 mn in Q2 2018 to EUR 34.2 mn in the
  reporting period, driven by higher capex paid due to the acquired frequencies
  from the spectrum auction in Austria which took place in Q1 2019 (3.5 GHz; EUR
  64.3 mn) and Belarus (2.1 GHz; EUR 9.5 mn). Additionally, free cash flow was
  negatively impacted in Q2 2019 by the payment of EUR 23.0 mn in connection
  with the abovementioned tax case in Bulgaria.
* Guidance confirmed, with approximately 2 % higher revenues and stable capex at
  EUR 770 mn excl. leases, spectrum investments and acquisitions in 2019.

Further inquiry note:
Martin Stenitzer
Head of Investor Relations
Telekom Austria AG
Phone: +43 (0) 50  664 66 23066

end of announcement                         euro adhoc

Attachments with Announcement:

issuer:       Telekom Austria AG
              Lassallestrasse 9
              A-1020 Wien
phone:        004350664 47500
ISIN:         AT0000720008
indexes:      ATX, WBI
stockmarkets: Wien
language:     English

Original content of: Telekom Austria AG, transmitted by news aktuell