Telekom Austria Revenues Fall Q1 due to Bulgaria Operations

Bulgaria's first and biggest mobile operator Mtel is owned by Telekom Austria. Photo by BGNES

Telekom Austria, the country’s largest telecom company and owner of Bulgaria's mobile operator MTel, announced Wednesday revenues in the first quarter of 2010 decreased by 5.9% to EUR 1,126.0 M driven by lower revenues from domestic operations and Bulgaria.

Cost reductions in the Mobile Communication segment absorbed half of the pressure on revenues and limited EBITDA declined to 6.4%. EBITDA was EUR 425.9 million in 1Q 10.

Operating income fell by 7.7% to EUR 166.3 M, while net income increased from EUR 85.3 M by 6.9% to EUR 91.2 M mainly due to lower depreciation and amortization as well as lower interest expenses.

While the ongoing reduction of line losses allowed a stabilization of operating trends in the Fixed Net segment, Mobile Communication continues to be impacted by a fierce competitive environment combined with regulative interventions, the company said.

Total capital expenditures increased to EUR 136.4 M in 1Q 10 compared to a particular low amount of EUR 116.0 M in 1Q 09. The increase was mainly driven by investments in the core net of the Fixed Net segment. Net debt declined by 4.6% to EUR 3,450.2 M at the end of March 2010 compared to 3,614.8 M at year-end 2009.

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