|Customer Numbers in '000||1-6 M 2016 reported||1-6 M 2015 pro forma*||+/- in %|
|Key Financial Figures in EUR Million Pursuant to IFRS|
* Proforma figures include effects of M&A transactions executed during the last twelve months
** Revenue Generating Units (Fixed Voice, Fixed Broadband, Fixed TV)
"The third quarter in a row we deliver numbers above market expectations. While revenues and EBITDA decline due to changed reporting standards, we see group wide increase of our customer base. Including our recent mergers and acquisitions Telekom Austria Group shows top line growth by 2.3% and EBITDA increase of 1.3%. As the market environment for the whole industry will continue to change we raised our investments by almost 20 per cent to maintain future growth potential", said Alejandro Plater, CEO Telekom Austria Group.
The results of the first half of 2016 reflect, in addition to operational developments, extraordinary effects and the impact of the following, most recent M&A activities to strengthen the market position in the countries the Telekom Austria Group operates in:
Extraordinary effects in the amount of EUR -2.1 mn for total revenues (1-6M 2015: EUR +28.6 mn) and EUR +7.0 mn for EBITDA (1-6M 2015: EUR +25.3 mn) were included in the results. Thereof, a EUR 20.0 mn positive extraordinary effect in Slovenia in January 2015 had the biggest influence (included in other operating income).
Total FX effects amounted to a negative EUR 54.5 mn for total revenues and negative EUR 26.1 mn for EBITDA in the first half of 2016. Negative effects stemming from the abolition of retail roaming within the EU per 30 April 2016 came in as expected and stem mostly from Austria, while the amount of the negative impact has so far been largely negligible in Bulgaria, Croatia and Slovenia.
In the first half of 2016, Telekom Austria Group saw a slight decrease in the number of mobile subscribers as increases in Austria and Slovenia failed to offset declines in the other segments. In general, CEE markets saw a shift from prepaid to postpaid offers. Fixed RGUs grew by 2.7% year-on-year, mainly due to Bulgaria, Croatia and Slovenia.
Group total revenues declined by 1.2% year-on-year (reported: +2.3%) primarily due to the positive extraordinary effect in Slovenia in 2015. Growth in Austria, Croatia and the Republic of Serbia was outweighed by lower total revenues in Bulgaria, Belarus, Slovenia and the Republic of Macedonia.
Group total costs and expenses were cut by 1.3% year-on-year (reported: +2.8%) to EUR 1,376.4 mn in the first half of 2016. Restructuring charges came in at EUR 0.9 mn in the first half of 2016 compared to EUR 9.2 mn in the comparison period. This decline was due to a greater number of employees exempt from work ('freigestellte Mitarbeiter') who had re-entered the workforce. This outweighed the negative effect of an interest rate adjustment.
Group EBITDA decreased by 1.0% year-on-year (reported: +1.3%) in the first half of 2016, entirely due to the above-mentioned extraordinary effect in Slovenia.
Depreciation and amortisation rose by 4.5% (reported: +9.0%) to EUR 431.9 mn, mainly driven by Austria due to the depreciation of equipment in Q2 2016 and of spectrum licenses starting in Q1 2016. Altogether, this led to a decline in operating income of 9.8% (reported: -10.5%) to EUR 231.7 mn.
The negative reported financial result decreased from EUR 74.5 mn in the first half of 2015 to EUR 48.8 mn in the first half of 2016, resulting from lower interest expenses on financial liabilities. Reported income taxes rose by 47.2% year-on-year to EUR 19.5 mn. In total, this resulted in a 4.6% year-on-year decline in the reported net result to EUR 163.4 mn in the first half of 2016.