Telekom Austria Group: Full-Year 2008 Results Underpin Strong Operational Performance
by Impact Wire Wednesday, February 25, 2009
- Strong operational performance increases clean EBITDA by 3.9% to 1,927.7 mn
- Reported EBITDA of EUR 1,295.6 mn depressed by EUR 632.1 mn restructuring charge of the Fixed Net
- Material slowdown of Fixed Net access line loss and line growth in November and December 2008
- All Mobile Communication operations contribute to subscriber base growth of 15.2% to 17.8 million customers
- Revenues of ~ EUR 5.1 bn and EBITDA of ~ EUR 1.9 bn expected for 2009
- Dividend per share floor of 75 cent introduced for 2009-2012
Telekom Austria Group (VSE: TKA, OTC US: TKAGY) today announced its results for the full year 2008 and the fourth quarter ending December 31, 2008.
Restructuring measures announced
In 4Q 08 the Telekom Austria Group announced a restructuring program of its Fixed Net operations, which required expenses of EUR 632.1 million and affected EBITDA, operating income and net income for 4Q 08 and the full year 2008. However, these expenses did not materially impact the cash flow of the Telekom Austria Group and will improve future results.
During 2008 revenues grew by 5.1% to EUR 5,170.3 million mainly due to the performance of the mobile communications operations including the consolidation of Velcom, which more than offset the impact of the EU Roaming- Regulation and the lower contribution from the Fixed Net segment. EBITDA decreased by 30.2% to EUR 1,295.6 million driven by the above mentioned restructuring program in the Fixed Net segment, which required expenses of EUR 632.1 million. Excluding the restructuring program EBITDA increased by 3.9% to EUR 1,927.7 million.
Operating income declined by 82.2% to EUR 135.5 million. Net loss amounted to EUR 48.8 million compared to a net income of EUR 492.5 million for FY 2007 primarily impacted by the restructuring program. Capital expenditures for tangible and intangible assets decreased from EUR 851.3 million to EUR 807.6 million as lower capital expenditures in the Fixed Net segment more than offset higher capital expenditures in the Mobile Communication segment.
Net debt decreased by 9.4% to EUR 3,993.3 million at the end of 2008 compared to the end of 2007.
Revenues increased by 1.4% to EUR 1,306.5 million in 4Q 08 primarily driven by the strong performance of mobilkom austria and Velcom in Belarus. The EUR 632.1 million expenses recorded for the restructuring program resulted in a negative EBITDA of EUR 212.0 million. Excluding the restructuring expenses EBITDA grew by 7.4% to EUR 420.1 million.
An operating loss of EUR 516.1 million and a net loss of EUR 437.7 million were recorded in 4Q 08 due to the restructuring program. Loss per share was EUR 0.99 in 4Q 08.
Capital expenditures for tangible and intangible assets decreased by 13.6% to EUR 273.3 million mainly due to lower capital expenditures in the Fixed Net segment offsetting higher capital expenditures at Velcom in Belarus and at mobilkom austria.
For more detailed information about the full year results 2008 please refer to the corresponding report on Telekom Austria Group's website at www.telekomaustria.com/interim_reports
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