Telekom Austria AG — Earnings Release 2003

Aug 26, 2003

News Details

Ad-hoc | 26 August 2003 07:00

Telekom Austria AG english

Telekom Austria Group: Results for the First Half 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, August 26, 2003 – Telekom Austria AG (VSE: TKA; NYSE: TKA) today announced its results for the first half 2003 and the second quarter 2003 ending on June 30, 2003. During the first half 2003 total group revenues increased by 1.8% to EUR 1,931.9 million while adjusted EBITDA rose by 1.4% to EUR 779.6 million. Additionally adjusted for changes in idle workforce costs, net loss from retirement of long- lived assets and voluntary retirement provisions, adjusted EBITDA rose by 3.5% to EUR 798.5 million. The strength of the wireless business segment contributed both to the increase in group revenues and adjusted EBITDA. In the wireline business segment, lower revenues were primarily a result of declining market volumes and prices; adjusted EBITDA fell due to lower reversals of voluntary retirement provisions in 2003. Higher depreciation and amortization expenses led to a decline in total operating income by 6.0% to EUR 204.2 million. During 1H 03 consolidated net income of Telekom Austria rose by 31.1% to EUR 71.3 million as a result of the reduction of minority interests following the acquisition of the remaining 25% stake in mobilkom austria in June 2002. Earnings per share improved from EUR 0.11 to EUR 0.14. Capital expenditures fell by 9.8% to EUR 210.0 million during 1H 03, including the impact of the non-cash effect of adopting SFAS 143 amounting to EUR 7.6 million. Excluding the impact of SFAS 143 the decline amounts to 13.1%. End of part 1 of ad hoc announcement of Telekom Austria. Follows part 2 end of ad-hoc-announcement (c)DGAP 26.08.2003 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 3.2% to EUR 965.4 million and a rise in adjusted EBITDA by 1.3% to EUR 373.7 million. Additionally adjusted for changes in idle workforce costs, net loss from retirement of long- lived assets and voluntary retirement provisions, group adjusted EBITDA rose by 8.2% to EUR 386.0 million. Group operating income fell by 8.9% during 2Q 03 compared to the same period last year. Net income rose by 66.9% to EUR 28.2 million and group capex declined by 14.6% to EUR 129.7 million. The operating improvement and lower capital expenditures led to a decrease in net debt to EUR 2,970.4 million at the end of June 2003, compared with EUR 3,204.2 million at the end of December 2002. Net debt reflects the financing of the purchase price for the additional stakes in VIPnet for an amount of EUR 69.7 million. The stakes were acquired in January and in June of 2003 respectively and increased the participation to 99%. Note: In order to comply with new SEC regulations 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 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) 260700 Aug 03