Telekom Austria AG — Earnings Release 2013

Nov 14, 2013

EANS-Adhoc: Results for the First Nine Months and the Third Quarter 2013

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Vienna, 14 November 2013: Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces its results for the first nine months and the third quarter 2013, ending 30 September 2013.

Highlights for the First Nine Months 2013

Group revenues down 2.6% year-on-year as growth in Belarus and in the Additional Markets segments partly mitigates decline in Austria, Bulgaria and Croatia

Gross cost savings of EUR 112.9 mn cannot offset an increase in operating expenses in Austria and the Additional markets segment

Lower revenues and higher costs for acquisition and retention stemming from the high-value customer segment lead to a Group EBITDA comparable decline of 9.8%

While overall revenues still decline by 3.6% in Austria, the high-value focus and convergence strategy continue to yield encouraging results

International businesses see revenues fall by 2.4% due to challenging macro-economic trends and regulatory burdens

FY 2013 Group guidance unchanged: Revenues of approx. EUR 4.1 bn, CAPEX* of EUR 650 - 700 mn and an intended dividend of EUR 0.05/share

in EUR million					Q3 2013 Q3 2012 % change 1-9M 2013 1-9M 2012 % change
Revenues		1,036.0 1,093.7	-5.3%	3,128.3	3,212.0	-2.6%
EBITDA comparable	357.9	410.4	-12.8%	1,025.1	1,136.6	-9.8%
Operating income	121.5	177.0	-31.4%	344.7	388.1	-11.2%
Net income	51.3	99.2	-48.3%	159.2	180.1	-11.6%
Earnings per
share (in EUR)	0.10	0.22	-56.9%	0.31	0.41	-24.0%
Free cash flow per
share (in EUR)	0.30	0.37	-20.4%	0.69	0.70	-2.4%
Capital expenditures	167.6	158.4	5.8%	493.0	489.4	0.7%
in EUR million			30 Sept 2013		31 Dec 2012	% change
Net debt		2,708.8		3,248.9	-16.6%
Net debt / EBITDA comparable (12 months)				2.0x	2.2x

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.

* Does not include investments for spectrum nor acquisitions.

The earnings release is available here: http://www.telekomaustria.com/dateien/results-qu3-2013.pdf For further information, please see here: http://www.telekomaustria.com/ir/current-results.php

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 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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