Results for
Q2 2024 and H1 2024
A1 Group
Summary Q2 2024
- Total revenues up +1.3% driven by service revenue growth (+3.9% yoy) in all markets except Belarus and Slovenia; strong decline in equipment revenues.
- Service revenue growth driven by value-protecting measures, and strong fixed-line performance in international segments.
- EBITDA up 3.8% yoy, margin improvement from 37.4% to 38.3%; +8.3% adjusted for one-offs, restructuring and FX.
- Core OPEX (ex one-offs) driven mainly by higher workforce and product related costs, electricity costs decreased
- Spectrum prolongation in Bulgaria: A1 prolonged and acquired frequencies in the 900 and 1.800 MHz spectrum for EUR 31 mn in June 2024
- Dividend of 36 Eurocents per share for FY 2023 approved by Annual General Meeting (previous year: 32 Eurocents).
- FCF in H1 42% higher due to lower CAPEX and better operational result.
- S&P confirmed its credit rating for Telekom Austria AG with 'A-' in May 2024.
- Outlook confirmed: 3-4% revenue growth, CAPEX of approx. EUR 800 mn (excl. spectrum and M&A)
Please note that this presentation, besides reported values, also contains values on a pro forma basis, due to the towers spin-off in 2023. Pro forma means, data of the comparison period has been adjusted, as if the towers have already been spun-off in the respective period.
3 Results presentation: Q2 2024
Customer-related information
Mobile subscribers (in thousand) | RGUs (in thousand) | |
25,949 | 6,249 | 6,250 | 6,271 | 6,267 | 6,283 | ||||||||||||
24,486 | 25,131 | 25,245 | 25,441 | ||||||||||||||
27% | 27% | 26% | 26% | 25% | |||||||||||||
85% | 86% | ||||||||||||||||
84% | 84% | 86% | 43% | 43% | 44% | 44% | 44% | ||||||||||
30% | 30% | 30% | 30% | 31% | |||||||||||||
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | ||||||||
Subscribers | Share postpaid | Total fixed voice | Total broadband | TV@home | |||||||||||||
Q2 '24 Group ARPU and ARPL (in EUR)
26.527.7
11.411.8
Q2 2023 | Q2 2024 |
ARPU op. in CCY | ARPL op. in CCY |
Mobile subscribers: +6.0% yoy; stable excl.M2M customers
RGUs: +0.5% yoy; Broadband RGUs: +1.9% yoy, Advanced RGUs: +13.8% yoy
ARPL operative +4.4% yoy in CCY
ARPU operative +4.0% yoy in CCY
4 Results presentation: Q2 2024
Group revenues
otherwise stated, all amounts in EUR mn | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | |||
Service revenues | 1,124 | 1,082 | +3.9% | 2,195 | 2,120 | +3.5% | |
Equipment revenues | 168 | 194 | -13.4% | 344 | 389 | -11.6% | |
Other operating income | 24 | 23 | +3.3% | 44 | 47 | -6.5% | |
Total revenues | 1,316 | 1,299 | +1.3% | 2,583 | 2,557 | +1.0% |
Service revenue growth drivers, YTD
Total revenue growth - Group and International, YTD
+3.5% |
+4.6%
+4.3%
2,194.9 |
2,120.2 |
in CCY
+2.4%
-0.5%
+8.9%
+5.8%
in CCY
+2.5%
H1 2023 Mobile | Cubes BB + TV Fixed | IC | Sol & | VR / NR Other H1 2024 |
Core | Voice | Con | Rev. |
Austria | International | Bulgaria | Croatia | Belarus | Other* |
-7.8%
yoy performance
* Incl. corporate and eliminations
5 Results presentation: Q2 2024
Segment Austria in Q2 2024
Key Points
- Total revenues decrease: Q2 2023 profited from large ICT deals (visible in lower equipment and solutions & conn. revenues)
- Service revenue growth in mobile and fixed profiting from value protecting measures; overcompensating losses in IC and voice
Operations
- Value-protectingmeasures +7.8% (as of Apr. 1st 24)
- Mobile: lower total subscriber number driven by voice only customers; net adds positive in Q2
- Fixed: RGU loss due to voice, gains in high-bandwidth BB RGUs not fully compensate for low-bandwidth BB RGU loss
Core OPEX increase: higher workforce costs (collective bargaining agreement but lower FTEs), higher network maintenance and product- related costs but lower electricity costs
One-offs in OPEX: net total of EUR 3 mn related to provisions in Q2 2024
6 Results presentation: Q2 2024
AT Service revenues (EUR mn)
+0.4%
+0.9% w/o IB*
620622
3937
Q2 2023 | Q2 2024 |
AT EBITDA (EUR mn)
+1.1%
270272
Q2 2023 | Q2 2024 |
International Business*
comprising transit and other interconnection, solutions & connectivity) as reported in Austria, shown separately as it is not reflecting Austrian business performance
International segments in Q2 2024
Highlights
Total revenues grew driven by higher service revenues clearly overcompensating the losses in equipment revenues.
- Bulgaria: Strong growth in fixed, mobile and ICT: upselling, value- protecting measures, TV and broadband RGU increase
- Croatia: Value-protecting measures in June 2024, mobile subs and TV RGU growth; focus on monetizing higher network investments of PY
- Belarus: Dividend restrictions as of Q2 2024; higher service revenues in LCY, solid traction in fixed-line service revenues, EBITDA suffers from negative one-off
- Serbia: Service revenue growth supported by pricing measures in March. Postpaid share increased further
- Slovenia: Fierce competition, decline in fixed and mobile service revenues. Core OPEX improved, driven by advertising and electricity
- N.Macedonia: Strong service revenue increase both in retail mobile & retail fixed translated in double-digit EBITDA growth
Revenues and EBITDA (EUR mn)
+4.3% | +5.4% | ||
191 | +10.6% | (BYN) | |
+10.7% | 139 | -2.9% | |
+1.0% | |||
+32.2% | 106 | ||
88 | clean* | ||
59 | -50.8% | ||
24 | |||
Bulgaria | Croatia | Belarus |
+5.3% | |||
97 +21.5% | -4.6% | +5.0% | |
38 | 57 -1.8% | 38 | +16.1% |
13 | 14 | ||
Serbia | Slovenia | North | |
Macedonia |
* excl. negative FX effects and
EUR 24 mn negative one-off effect in Q2 2024 in Belarus
7 Results presentation: Q2 2024
P&L
Unless otherwise stated, all amounts in EUR mn | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | ||||
Revenues | 1,316 | 1,299 | +1.3% | 2,583 | 2,557 | +1.0% | ||
OPEX | (812) | (813) | -0.2% | (1,624) | (1,635) | -0.6% | ||
Restructuring | (18) | (17) | +6.9% | (39) | (38) | 2.6% | ||
EBITDA | 504 | 486 | +3.8% | 959 | 922 | +4.0% | ||
EBITDA margin | 38.3% | 37.4% | +0.9pp | 37.1% | 36.1% | +1.0pp | ||
before restructuring | 522 | 503 | +3.9% | 998 | 960 | +3.9% | ||
Margin | 39.7% | 38.7% | +1.0pp | 38.6% | 37.5% | +1.1pp | ||
FX effects | 1 | - | n.m. | 9 | - | n.m. | ||
one-off effects | 21 | - | n.m. | 21 | - | n.m. | ||
EBITDA underlying | 544 | 503 | 8.3% | 1,028 | 960 | 7.1% | ||
Margin | 41.1% | 38.7% | +2.4pp | 39.4% | 37.5% | +1.8pp | ||
after leases | ||||||||
400 | 436 | -8.3% | 753 | 825 | -8.7% | |||
Margin | 30.4% | 33.6% | -3.2pp | 29.1% | 32.3% | -3.1pp | ||
EBIT | 218 | 241 | -9.3% | 396 | 436 | -9.1% | ||
EBIT margin | 16.6% | 18.5% | -1.9pp | 15.3% | 17.0% | -1.7pp | ||
Financial result | (23) | (27) | -12.9% | (49) | (48) | 2.9% | ||
Income taxes | (49) | (48) | 1.8% | (83) | (86) | -4.0% | ||
Net result | 146 | 166 | -11.9% | 263 | 301 | -12.5% | ||
Net margin | 11.1% | 12.8% | -1.7pp | 10.2% | 11.8% | -1.6pp | ||
Q2 2024 - below EBITDA
EBIT declined due to D&A:
- EUR 43.8 mn higher D&A, mainly due to rights of use assets after tower spin- off
- D&A on a proforma basis increased by EUR 17 mn
Financial result: lower interest on financial liabilities offset higher interest expenses for the tower leases
Net result lower, on pro forma* basis above previous year Q2 and H1 by 8.0% and 9.1% respectively
Pro-forma= as if tower business has already been spun-off in comparison period
8 Results presentation: Q2 2024
Free cash flow
Unless otherwise stated, all amounts in EUR mn | Q2 2024 | Q2 2023 | |
EBITDA | 504 | 486 | 3.8% |
Restructuring charges, cost of labor | 19 | 18 | 5.2% |
obligations | |||
Lease paid (principal, interest, | (96) | (42) | 127.6% |
prepayments) | |||
Income taxes paid | (31) | (31) | -0.2% |
Net interest paid | 4 | (7) | n.m. |
Change working capital and other changes | (11) | (15) | -25.4% |
CAPEX | (247) | (359) | -31.2% |
FCF before soc. plans | 142 | 50 | 183.0% |
Social plans new funded | (19) | (20) | -4.3% |
Free cash flow | 123 | 30 | 309.4% |
FCF/revenues | 9.3% | 2.3% | +7.0pp |
H1 2024 | H1 2023 | |
959 | 922 | 4.0% |
41 | 41 | 1.4% |
(193) | (108) | 78.9% |
(54) | (48) | 11.6% |
7 | (9) | n.m. |
(63) | (26) | 143.8% |
(480) | (606) | -20.8% |
217 | 166 | 30.5% |
(42) | (43) | -2.4% |
175 | 123 | 42.1% |
6.8% | 4.8% | +2.0pp |
Free Cash Flow in H1 2024 higher
due to
-
substantially lower CAPEX due to savings and lower spectrum payments:
EUR 38.7 mn in H1 2024 vs EUR 110 mn in H1 2023 - better operational result
- higher lease paid
- unfavorable changes in working capital
Working capital changes:
- Negative impact from accounts payable (broadband subsidy received in 2023) but
- lower inventories and accounts receivables
9 Results presentation: Q2 2024
Focus points
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Telekom Austria AG published this content on 16 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 July 2024 17:07:04 UTC.