A1 Telekom Group Q2 results boosted by international operations

17 July 2019 | Laurence Doe

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A1 Telekom Austria’s second-quarter financial report shows higher service revenues, with Bulgaria, Belarus and Serbia the main positive contributors.

The Vienna-headquartered service provider's international operations increased by 4.0% in total revenue, driven by mobile and fixed-line service revenue growth. EBITDA increased by 5.1%, driven particularly by Bulgaria, Croatia and Slovenia.

In its overview, the group says it has achieved a “solid” total revenue growth of more than 2% on 2018’s figures in the second quarter of 2019.

Alejandro Plater (pictured), COO for A1 Telekom Austria Group, said that mobile Wifi routers continued to “dominate” the mobile communications business, while in the fixed-line segment A1 Group “scored particularly well” with its solutions and connectivity business.

“We were recently the first communications provider in Austria to launch a standardised SD-WAN service for the effective networking of company locations,” he said in an analysis of the results.

The carrier is forecasting revenue growth of approximately 2% for the rest of the year. It added that "stable" capital expenditures, excluding leases, would amount to approximately €770 million before spectrum investments and acquisitions were factored.

A1 Group’s service revenues contributed a 2.9% year-on-year increase for the first half of 2019, with the fixed-line segment increasing by 4.2% and in the mobile business by 1.9%.

Thomas Arnoldner, CEO of A1 Telecom Austria Group, stated: “With this performance and our growth strategy, we see ourselves on the right track for the year as a whole and confirm our outlook for the 2019 financial year.”

A1 Group said it is “determined to continuously increase efficiency” regarding group costs, with the objective to turn revenue growth into operational EBITDA for the rest of 2019.

“We remain on a solid growth course and were able to continue the positive developments of the past quarters,” said Arnoldner. “In the second quarter, we recorded revenue growth of 2.6% in the group, with service revenues increasing by 3.0%.

“Group EBITDA increased by 2.7 % in the second quarter, adjusted for restructuring charges, one-off and FX effects. The reported quarterly net result rose from €58.1 million in the second quarter of 2018 to €70 million in the second quarter of 2019.”

A1 Telekom Austria is part of the Communications Blockchain Network (CBN), which met as part of a Global Leaders’ Forum event at this year's International Telecoms Week, to discuss several initiatives, projects and to agree on its latest programmes.

Last year, the group won the award for Best OTT Partnership at the Global Carrier Awards.

See A1 Group's results for the second quarter and first half of 2019.