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Telekom Austria AG

EANS-Adhoc: Telekom Austria AG
Results for the Full Year and the Fourth Quarter 2013

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  ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
  distribution. The issuer is solely responsible for the content of this
  announcement.
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annual result
26.02.2014


Vienna, 26 February 2014 - Today the Telekom Austria Group (VSE: TKA, OTC US:
TKAGY) announces its results for the full year and the fourth quarter 2013,
ending 31 December 2013.
 
Highlights for the Full Year 2013
 
>                3.4% revenue and 11.6% EBITDA comparable decline driven by
mature markets Austria, Bulgaria and Croatia while Belarusian and Additional
markets segments see continued growth

>                Regulatory effects contribute EUR 122.1 mn to revenue decline

>                EUR 118.1 mn gross costs savings facilitate investments into
the premium mobile customer segment to target ARPU decline in mature markets via
higher subsidies

>                Convergence strategy yields access line growth of 1,600 lines
in Austria as well as growth of 1.4% and of 18.4% in Bulgaria and Croatia
respectively


>                10.1% and 6.3% revenue growth in Belarus and Additional Markets
segment

>                Acquisition of YESSS! and other assets for approx. EUR 400
mn(1)

>                EUR 1.03 bn spectrum acquisition in Austria bolsters strategic
network position for the future

>         Downgrade to Baa2 (stable) and BBB- (stable) due to resulting higher
leverage

>         A1 wins 'connect' network test

>                Outlook 2014: Group revenue to decline by approx. 3%, CAPEX(2)
stable at approx. EUR 700 mn

>                Proposed dividend: EUR 0.05/share for the years 2013 and 2014

respectively
 


in EUR million    Q4 2013  Q4 2012*  %change  1-12M 2013  1-12M 2012*  %change
Revenues          1,055.7  1,117.8     -5.6%  4,183.9     4,329.7      -3.4%
EBITDA comparable    262.3 319.1 -17.8% 1,287.4 1,455.7 -11.6%
Operating income    32.8   69.0   -52.5%  377.6  457.1  -17.4%
Net income    -49.5  -76.0  n.m.  109.7  104.0  5.5%
Cash flow generated from operations   262.0  250.6  4.6%  1,051.6  1,047.9  0.3%
Earnings per share (in EUR)     -0.11  -0.17  n.m.  0.20  0.23  -16.7%
Free cash flow per share (in EUR)    -2.31  0.03  n.m.  -1.62  0.74  n.m.
Capital expenditures  1,286.1  238.8  n.m.  1,779.1  728.2  144.3%

in EUR million                       31 Dec 2013  31 Dec 2012  %change
Net debt                             3,695.8      3,248.9      13.8%
Net debt / EBITDA comparable (12 months) 2.9      2.2          28.6%


All financial figures are based on IFRS; if not stated otherwise, all
comparisons are given year-on-year. EBITDA comparable is defined as net income
excluding financial result, income tax expense, depreciation and amortisation,
restructuring and impairment charges.

(1)     After purchase price adjustments
(2)    Does not include investments for spectrum and acquisitions
* As of 1 January 2013 IAS 19 - Employee Benefits (amended) - became
effective. Accordingly, the reported results for the interim and full year 2012
were adjusted retrospectively
 
The Group Management Report for the full year 2013 can be found in the Annual
Report via the following link: http://cdn1.telekomaustria.com/final/en/media/
pdf/TAG_AnnualReport_2013.pdf

For information regarding the quarterly results please see: http://
cdn1.telekomaustria.com/final/en/media/pdf/results-qu4-2013.pdf
_

Disclaimer for forward-looking statements:

This document contains forward-looking statements. These forward-looking
statements are usually accompanied by words such as "believe", "intend",
"anticipate", "plan", "expect" and similar expressions. Actual events 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. Neither Telekom Austria nor any other person accepts any liability
for any such forward-looking statements. Telekom Austria will not update these
forward-looking statements, whether due to changed factual circumstances,
changes in assumptions or expectations. This report does not constitute a
recommendation or invitation to purchase or sell securities of Telekom Austria.


Further inquiry note:
Matthias Stieber
Director Investor Relations
Tel.: +43 (0) 50 664 39126
mailto:matthias.stieber@telekomaustria.com

end of announcement                               euro adhoc 
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issuer:      Telekom Austria AG
             Lassallestrasse 9
             A-1020 Wien
mail:         investor.relations@telekomaustria.com
WWW:      www.telekomaustria.com/ir
sector:      Telecommunications
ISIN:        AT0000720008
indexes:     WBI, ATX Prime, ATX
stockmarkets: official market: Wien 
language:   English

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