Telekom Austria AG — Earnings Release 2014

Oct 23, 2014

EANS-Adhoc: Telekom Austria AG / Results for the First Nine Months of 2014 (Ad-hoc)

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Earnings

Vienna, 23 October 2014: Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces its results for the first nine months of 2014, ending 30 September 2014.

Highlights

Group revenue decline improves to -4.5% supported by better trends in Austria in Q3 as well as strong growth in Belarus and the Additional Markets segment

Subsidy-driven equipment revenues support revenue trends in CEE

EUR 110.6 mn negative regulatory effects on Group revenues

Group EBITDA comparable margin improves to 34.6% driven by lower OPEX in Austria and strong margin in Belarus

Austria:

Continuously improving ARPU trends in 2014 driven by high-value focus

75.7% and 23.4% cuts in SACs and SRCs respectively drive margin improvement to 33.0%

CEE:

Continued strong performance in Belarus on the back of inflation-linked price increases in 2013 and 2014 (FX development better than expected) and higher data usage

Macro and regulatory factors (e.g. higher frequency usage fee in Croatia) and fierce competition drive other CEE markets

Merger of mobilkom liechtenstein with Telecom Liechtenstein completed on 27 August 2014 results in a positive one-off effect on EBITDA comparable of EUR 26.8 mn

Group outlook for FY 2014 unchanged: Revenues of approx. -3.5%, CAPEX* of EUR 650 - 700 mn, intended dividend of EUR 0.05/share

in EUR million Revenues EBITDA comparable 414.6 Operating income Net income	200.0 127.8	Q32014 Q32013 %change 1-9M2014 1,048.7 1,036.0 1.2% 357.9 121.5 51.3	15.8% 64.7% 149.2%	2,987.7 1,034.0 -22.6 -190.0		1-9M2013 3,128.3 1,025.1 344.7 159.2	%change -4.5% 0.9% n.m. n.m.
Cash flow generated from operations 300.6 295.5 1.7% 674.0 789.5 -14.6% Earnings per share (in EUR) Free cash flow per share (in EUR) Capital expenditures			0.27 0.37	0.30 143.6 167.6 -14.4% 472.5 493.0 -4.2%	0.10 183.9% -0.47 0.31 n.m.		23.4% 0.47 0.69 -30.8%
in EUR million Net debt Net debt / EBITDA comparable (12 months) 2.7			30 Sept 2014 3,530.9		3,695.8 2.9	31 Dec 2013	%change -4.5% -5.1%

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 investment in spectrum and acquisitions

Kind regards, Telekom Austria Group Investor Relations Team

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-qu3-2014.pdf

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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.

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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