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Foreign currency movements and other factors hit operator's numbers, though subscribers are up
November 14, 2011
VIENNA -- In the first nine months 2011, revenues of the Telekom Austria Group declined by 4.1% to EUR 3,338.7 million compared to EUR 3,480.1 in the same period of the previous year. This decrease is mainly attributable to the negative impact of foreign currency translations totaling EUR 119.0 million in the period under review, especially as a result of the devaluation of the Belarusian ruble. Other negative external factors included fierce competition in Austria, the persistently challenging market environment in the CEE area as well as further regulatory cuts. Adjusted for the negative effects of foreign currency translation, the group´s revenues would decline by 0.6% year-on-year.
Revenues declined in Austria, Bulgaria and Croatia, while the outstanding operating performance of the Belarusian segment was overshadowed by the devaluation of its local currency against the Euro. The considerably strong revenue growth of 23.2% in the Additional Markets segment, which includes Slovenia, the Republic of Serbia and the Republic of Macedonia and Liechtenstein, could only partly compensate for the decline in revenues at the group level.
The group´s EBITDA comparable dropped by EUR 102.1 million (-7.9%) to EUR 1,190.4 million in the first nine months 2011. The devaluation of the Belarusian ruble alone accounts for EUR 51.1 million of this amount. The increase in the Additional Markets segment could not offset the pressure in earnings in the other segments.
Telekom Austria AG (NYSE: TKA; Vienna: TKA)
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