EANS-News: Results for the 3rd Quarter and First Nine Months 2020 CNE

Tuesday, 20. October 2020 19:00
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Quarterly Report

Vienna -

* Group total revenues decreased by 0.9% due to roaming losses and negative FX
  effects partly outweighed by higher equipment revenues. Excluding FX effects,
  mainly stemming from Belarus, total revenues grew by 1.7%.

o Mobile service revenues declined by 3.8% on a Group level, solely driven by
    the above-mentioned roaming losses and negative FX effects.
  o Fixed-line service revenues were stable (0.0%) as the growth in Bulgaria and
    Slovenia was able to compensate for the decline in Austria and other CEE
    markets.
  o Equipment revenues rose by 7.2%, mainly driven by Austria and Bulgaria.

* Mobile contract subscriber numbers rose by 4.1%, 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 in low-bandwidth broadband
  and fixed-line voice RGUs in Austria.
* Group EBITDA before restructuring increased by 0.5% as roaming and FX losses
  were outweighed by operational efficiency, especially related to the
  workforce, maintenance and advertising. Excluding FX and one-off effects as
  well as restructuring charges EBITDA rose by 4.3%.

o In Austria, EBITDA before restructuring increased by 4.7%, as OPEX savings,
    especially in product-related costs, advertising costs, and a better
    equipment margin, were sufficient to more than offset roaming losses.
  o In the CEE markets, EBITDA excluding FX and one-off effects grew by 3.3%
    (reported: -5.3%) due to growth in Belarus, Bulgaria, and Slovenia.

* CAPEX fell by 32.6% due to acquired frequencies in the comparison period and
  reduced spending in the reporting period following the CAPEX cuts.

o In Q3 2020, free cash flow after social plans new declined by 2.2% to EUR
    172.5 mn, as lower capital expenditures were offset by lower accounts
    payables in the reporting period.

* We are currently working on the development of alternatives that would allow
  us to reap more benefits from our tower assets through a targeted management
  focus on internal efficiencies and higher tenancy ratios.
* Outlook 2020 unchanged: ~-2% decline in total revenues, mainly driven by
  negative impacts from roaming and FX; 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 23066
E-mail: martin.stenitzer@a1.group

end of announcement                         euro adhoc
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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

EAX0009    2020-10-20/19:00

Related Links: Telekom Austria AG
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