EANS-News: Telekom Austria AG / Results for the Second Quarter 2020 - ATTACHMENT CNE

Tuesday, 14. July 2020 19:00
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Quarterly Report

Vienna -

* Group total revenues decreased by 2.4%, due to lower equipment revenues and
  roaming losses as well as lower other operating income, following a real
  estate sale in Austria in the comparison period. Additionally, revenues were
  also impacted by negative FX effects stemming mainly from Belarus and to a
  lower extent from Croatia. Excluding FX and one-off effects, total revenues
  remained stable (-0.2%).

o Mobile service revenues declined by 1.1% on a Group level as the growth in
    Austria, Bulgaria and Serbia was outweighed by roaming losses and negative
    FX effects
  o Fixed-line service revenues increased slightly by 0.4% as the growth in
    Bulgaria and Slovenia made up for the decline in Austria and other
    international markets

* Mobile contract subscribers rose by 3.7% with growth in almost all markets
* Fixed-line RGUs decreased by 1.2%, as the growth in high-bandwidth broadband
  and TV RGUs could not compensate for the decline of low-bandwidth broadband
  and fixed voice RGUs in Austria
* Group EBITDA before restructuring charges increased by 0.5% (reported: -0.5%)
  as roaming losses were more than outweighed by cost savings. Excluding one-off
  and FX effects as well as restructuring charges, Group EBITDA increased by
  3.9%.
* In Austria EBITDA before restructuring charges increased by 0.4% (reported: -
  1.3%) as mobile service revenues were able to grow despite the roaming losses,
  additionally supported by OPEX savings. Excluding a one-off effect in the
  comparison period, EBITDA before restructuring grew by 3.7%.

o EBITDA in the international operations declined by 0.9%, mainly due to
    negative FX effects in Belarus and roaming losses in Croatia, while
    Bulgarian segment showed again a strong growth

* Net result increased by 62.7% compared to the previous year, both periods
  being significantly impacted by decided tax cases in Bulgaria
* Q2 2020 showed a particularly strong free cash flow generation of EUR 158.8 mn
  (Q2 2019: EUR 34.2 mn), due to lower capital expenditures paid and better
  working capital trends in the reporting period, while Q2 2019 was impacted by
  paid frequencies for spectrum auctions.
* Outlook 2020: ~2% decline of total revenues, mainly driven by negative impacts
  from roaming and FX as well as lower equipment revenues; Capex cuts of ~25%
  compared to the initial outlook (EUR 770 mn capital expenditures before
  spectrum and acquisitions) to ensure flexibility and to strengthen the free
  cash flow profile

Further inquiry note:
Martin Stenitzer
Head of Investor Relations
Telekom Austria AG
Phone: +43 (0) 50  664 66 23066
E-mail: martin.stenitzer@a1.group

end of announcement                         euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/documents/287/5/10524199/1/TKA_Q2_2020_Results.pdf

issuer:       Telekom Austria AG
              Lassallestrasse 9
              A-1020 Wien
phone:        004350664 47500
FAX:          
mail:         investor.relations@a1.group
WWW:          www.a1.group
ISIN:         AT0000720008
indexes:      ATX, WBI
stockmarkets: Wien
language:     English

EAX0008    2020-07-14/19:00

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