Telekom Austria Group has announced its financial results for the first half 2008 and the second quarter ending June 30, 2008.
During the first half 2008, revenues grew by 7.7% to EUR 2,535.8 million primarily due to the consolidation of Velcom in Belarus and to higher contributions from the other international operations. EBITDA grew by 2.7% to EUR 967.7 million from EUR 942.4 million as a result of an EBITDA growth in the international operations and the consolidation of Velcom which more than offset a lower contribution from the Fixed Net segment. EBITDA includes exceptional costs in the amount of EUR 19.7 million.
Operating income decreased by 4.9% from EUR 410.2 million to EUR 389.9 million due to higher depreciation and amortization charges. Net income declined by 18.6% to EUR 226.0 million due to higher interest expenses mainly as a result of the acquisition of Velcom.
Capital expenditures for tangible and intangible assets decreased by 7.0% to EUR 350.3 million due to lower capital expenditures in both segments. Net debt remained stable at EUR 4,402.1 million at the end of June 2008 compared to the end of December 2007 despite the payment of the dividend.
Revenues increased by 5.6% to EUR 1,276.2 million in 2Q 08 as higher revenues from international operations including the consolidation of Velcom overcompensated for lower revenues from the Fixed Net segment and lower roaming revenues.
Roaming revenues were impacted by a seasonal effect in 2Q 08 as the roaming intensive Easter holidays were in 1Q 08, whereas in 2007 they were in the second quarter. This seasonality amplified the effect of lower roaming prices and resulted in lower roaming revenues.
EBITDA grew by 0.6% to EUR 469.1 million as the consolidation of Velcom and higher contributions from the established international operations offset lower contributions from the Austrian operations, which included exceptional costs in the amount of EUR 7.7 million, as well as start-up costs in the Republic of Serbia and the Republic of Macedonia.
Operating income declined by 11.8% to EUR 174.7 million due to higher depreciation and amortization charges. Net income decreased by 26.3% to EUR 96.3 million during 2Q 08 mainly due to higher interest expenses following the acquisition of Velcom. As a consequence earnings per share declined by 24.9% to EUR 0.22.
Capital expenditures for tangible and intangible assets decreased by 8.9% to EUR 190.7 million mainly due to lower investments in Austria and in the Republic of Serbia despite the consolidation of Velcom.