13.08.2014 – 07:01

Telekom Austria AG

EANS-Adhoc: Telekom Austria AG
Telekom Austria Group - Results for the first half of 2014 (Ad-hoc)

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Earnings
13.08.2014


Dear Sir or Madam, 

Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces its results
for the first half of 2014, ending 30 June 2014.

Highlights


>       Group revenues decline by 7.3% and EBITDA comparable declines by 7.2%,
mainly driven by regulation, macro-economic effects in CEE as well as
extraordinary effects of EUR 28.2 mn net in Austria

>       Clean*: Group revenues -4.1% and Group EBITDA comparable flat at -0.1%

>       Group EBITDA comparable margin remains flat at 31.9% and increases to
33.2% on a clean basis* 

>       Austria benefits from successful strategy implementation: regulation and
extraordinary effects account for most of revenue decline; cost cuts and subsidy
reductions result in strong EBITDA comparable trends (-0.2% excluding
extraordinary effects)

>       Bulgaria: Macro effects and fierce competition drive customer and
revenue decline in fixed and mobile; EUR 400 mn impairment due to adjustment of
WACC and medium-term expectations

>       Croatia: solid fixed-line performance cannot offset regulatory cuts and
effects of mobile competition; spectrum fee introduced in June will burden
EBITDA comparable as of H2 2014

>       Belarus and Additional Markets segment achieve revenue and EBITDA
comparable growth

>       Spectrum prolongations and acquisitions in Bulgaria and Slovenia
strengthen network

>       Next step in implementation of successful convergence strategy:
Acquisition of cable operator blizoo in the Republic of Macedonia in June
(closed in July)

>       Commitment to broadband funding announced by Austrian government as of
2016

>       Group outlook for FY 2014 refined: Revenues of approx. -3.5% (from
approx. -3.0%), CAPEX** of EUR 650 - 700 mn (from approx. EUR 700 mn), intended
dividend of EUR 0.05/share


in EUR million             Q2 2014 Q2 2013 %change 1-6M 2014 1-6M 2013 %change
Revenues                    963.0   1,043.2  -7.7%   1,939.0   2,092.3   -7.3%
EBITDA comparable           299.4   330.3    -9.3%   619.4     667.2     -7.2%
Operating income            -320.0  105.5    n.m.    -222.6    223.3     n.m.
Net income                  -358.6  52.5     n.m.    -317.8    108.0     n.m.

Cash flow generated from operations 224.5  302.2  -25.7%   373.4  494.0  -24.4%
Earnings per share (in EUR)         -0.82  0.10   n.m.     -0.75  0.21   n.m.
Free cash flow per share (in EUR)   -0.01  0.29   n.m.     0.11   0.39   -71.9%
Capital expenditures                229.5  176.4  30.1%    329.0  325.4  1.1%
                                                 
in EUR million                           30 June 2014   31 Dec 2013    %change
Net debt                                 3,688.1        3,695.8        -0.2%
Net debt / EBITDA comparable (12 months) 3.0            2.9      
                                                

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.
*   Excluding extraordinary effects in Austria and FX translation effects

**  Does not include investment for spectrum and acquisitions

Further information about the results can be found here: 
http://www.telekomaustria.com/en/ir/interim-results

The earnings release can be found here: 
http://cdn1.telekomaustria.com/final/en/media/pdf/results-qu2-2014.pdf

Kind regards, 
Telekom Austria Group Investor Relations

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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.

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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