Telekom Austria AG — Earnings Release 2003

Nov 19, 2003

News Details

Ad-hoc | 19 November 2003 07:00

Telekom Austria AG: Results for the First Nine Months 2003

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Ad hoc announcement of Telekom Austria Part 1 Vienna, November 19, 2003 – Telekom Austria AG (VSE: TKA; NYSE: TKA) today announced its results for the first nine months of 2003 and the third quarter ending September 30, 2003. During the first nine months of 2003 total group revenues increased by 1.8% to EUR 2,951.3 million while adjusted EBITDA increased by 1.9% to EUR 1,202.7 million. Although unfavorable market trends continued to impact wireline revenues, the adjusted EBITDA margin rose due to lower costs. The wireless business segment saw further growth in spite of an unabating competitive environment in Austria. Adjusted EBITDA was driven by the rising contribution from the international business. Total operating income increased by 0.4% to EUR 355.6 million. During 1-9M 03 consolidated net income of Telekom Austria rose by 38.8% to EUR 155.4 million. The increase was driven by improved operating results, the impact of the acquisition of the remaining 25% stake in mobilkom austria in June 2002, the higher shareholding in VIPnet (99%) and the gain from the sale of a 26% interest in Herold Business Data AG, the leading Austrian telephone directory provider, in the amount of EUR 18.4 million during 3Q 03. Earnings per share improved from EUR 0.22 to EUR 0.31. Capital expenditures fell by 8.5% to EUR 339.4 million during 1-9M 03, including the impact of the non-cash effect of adopting SFAS 143 amounting to EUR 7.7 million. Excluding the impact of SFAS 143 the decline amounts to 10.6%. End of part 1 of ad hoc announcement of Telekom Austria. Follows part 2 end of ad-hoc-announcement (c)DGAP 19.11.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Ad hoc announcement of Telekom Austria Part 2 Quarterly figures show an increase in group revenues by 1.7% to EUR 1,019.4 million and a rise in adjusted EBITDA by 2.9% to EUR 423.1 million. Slightly lower depreciation and amortization charges contributed to the increase in group operating income by 10.5% to EUR 151.4 million during 3Q 03 compared to the same period last year. Net income rose by 46.0% to EUR 84.1 million and group capex declined by 6.2% to EUR 129.4 million. Strong cash flow generation allowed a further reduction in the net debt to EUR 2,801.8 million at the end of September 2003, compared with EUR 3,204.2 million at the end of December 2002. During the third quarter Telekom Austria successfully placed its inaugural bond in the amount of EUR 750 million, extending the company’s debt maturity profile. In November 2003 the supervisory board of Telekom Austria has decided to establish an audit committee in line with the SEC requirements to oversee the financial reporting of the Telekom Austria Group. Note: We have changed the label of our traditionally reported EBITDA to “adjusted EBITDA” without any impact on the way in which we calculate the measure. Adjusted EBITDA is defined as net income excluding interest, taxes, depreciation, amortization, impairment charges, dividend income, equity in earnings of affiliates, other non-operating income/expense, minority interests and the cumulative effect of changes in accounting principles. The label for EBIT was changed to operating income. All financial figures based on U.S. GAAP and unaudited. Further information please find on the website http://www.telekom.at Hans Fruhmann Head of Investor Relations Tel: +43 (0) 59059 1 20917 E-Mail: hans.fruhmann@telekom.at ——————————————————————————– WKN: 072000; ISIN: AT0000720008; Index: ATX Listed: Amtlicher Handel in Wien; Freiverkehr in Düsseldorf, Frankfurt, München und Stuttgart; New York (ADR) 190700 Nov 03