Telekom Austria, the largest Austrian telecommunications company, has reported a 19% decline in profit for its third quarter ended September 2007. Its net profit decreased to E173.7m in third quarter 2007 from E213.6m in the previous year due to the costs involved with the expansion of wireless services in southeastern Europe.
The company reported third quarter revenues of E1.3 billion, an increase of 3.6% compared to E1.2 billion for the same period in 2006. Earnings before interest, taxes, depreciation and amortization (EBITDA) were E521.2m, a decrease of 5.4% compared to E551.2m in 2006, while the operating income decreased by 8.9% to EUR257.8m compared to EUR282.9m in the previous year. Earnings per share decreased to E0.39 compared to E0.45 in third quarter 2006.
All reportable segments of the company showed year-on-year increase in revenues. Fixed-line revenues increased 2.2% to E541.4m, while mobile revenues increase by 4.2% to E805.3m. Earnings fell in the mobile unit due to the startup costs involved in Serbia and Macedonia operations.
Telekom Austria’s competitors have also reported losses with Deutsche Telekom recording a year-on-year decline of 86.8% in its net profit, which reached E259m from E2 billion in 2006. Its revenue increased 1.4% to E15.7 billion compared to E15.5 billion in 2006.
Telekom Austria’s total mobile customer base grew 11.6% year-on-year to 218 million subscribers, including 4.8 million subscribers in Mobitel, 2.1 million in Vipnet and 479,900 thousands in Si.mobil.
In October 2007, Telekom Austria Group also acquired a 70% stake in Belarusian mobile operator MDC.
Source: ComputerWire daily updates