Telekom Austria AG (TA1.F) Earnings Call Transcript
July 11, 2023
Earnings Call Speaker Segments
Welcome to the summary of A1 Group's results for the first half...
And for the second quarter...
Of financial year 2023. In the second quarter, total revenues increased by more than 7% year-on-year to EUR 1.3 billion, over the first half of 2023 by 8% to EUR 2.6 billion. On EBITDA level, we see in Q2 a 6% increase to EUR 486 million; in the first half, a 4% increase to EUR 922 million.
This positive development was largely due to increased service revenues in Bulgaria and Austria in the second quarter. Despite our cost-conscious approach, we are feeling the impact of inflation on the expense side. In particular, electricity costs rose by almost 35% in Q2 and 36% in the first half following the expiry of attractive supply contracts in Austria at the end of 2022.
Operationally, a lot has happened in our international markets. Perhaps a few headlines. In Q1, we secured a spectrum in a public auction in Croatia for a period of 15 years. This has a CapEx impact in Q2 of around EUR 110 million. In Belarus, like everywhere else, we are experiencing rising costs. However, the regulator does not allow us to adjust prices. This is not helpful in an already challenging environment. In Slovenia, we shut down the 3G network at the end of June.
In summary, we had an operationally strong second quarter and a solid first half. As the interest rates have risen significantly over the past 12 months, the financial results deteriorated. In addition, and as expected, the Belarusian ruble depreciated against the euro. This foreign exchange development also had a negative impact on the financial result year-over-year.
At our Annual General Meeting, shareholders approved a dividend of EUR 0.32 per share. This means that we paid a total of EUR 213 million in dividends to our shareholders in June.
Finally, we have invited shareholders to an extraordinary general meeting to be held on the 1st of August. We will ask our shareholders to vote on the spinoff of the tower business. It will be called EuroTeleSites. Following the spin-off, EuroTeleSites will be listed on the Vienna Stock Exchange. We expect this to happen in September or October of this year.
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