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A1 Group: EBITDA Grows Despite Roaming Losses

A1 group revenues decreased 0.9% due to roaming losses and negative currency effects, which were partially offset by higher device sales. Without these currency effects, mainly related to Belarus, sales increased by 1.7%. a1 ebitda

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Group EBITDA before restructuring charges rose 0.5% as roaming declines and currency translation losses were more than offset by operational efficiency, particularly in personnel, maintenance, and advertising costs. Excluding one-time and currency effects and restructuring expenses, EBITDA increased by 4.3%.

In Austria, EBITDA before restructuring expenses rose by 4.7%, as operational efficiency, especially with regard to product-related costs, advertising costs, and a higher margin on end devices, more than offset the roaming losses.

In international business, EBITDA excluding one-time and currency effects increased by 3.3% (reported: -5.3%), which was due to growth in Belarus, Bulgaria, and Slovenia.

Thomas Arnoldner, CEO of A1 Telekom Austria Group, on the highlights of the third quarter of 2020:

“In the third quarter we were again able to continue our solid operating performance. Group revenues decreased by 0.9% due to roaming losses and negative foreign exchange effects, which mainly resulted from the devaluation of the Belarusian ruble and were partly offset by higher equipment revenues. Excluding the impact of foreign exchange rates, total revenues increased by 1.7%. Group EBITDA before restructuring increased slightly by 0.5%.

Net profit for the third quarter was EUR 142.6m, up 4.6% compared to the same period of the previous year.

Our group continues to benefit from its operational strength, ongoing operational efficiency, solid capital structure, and resilience. Furthermore, A1 Telekom Austria Group stands for reliability in the crisis and supports the digital transformation with its infrastructure.”

Alejandro Plater, COO of A1 Telekom Austria Group, continues: “Austria showed a solid development: revenues remained stable in Q3 and EBITDA before restructuring increased by 4.7% as operational efficiency and a better equipment margin more than compensated for roaming losses.

Operational growth was also achieved in the CEE markets: Excluding foreign exchange and the reimbursement of frequency fees in Croatia (one-off effect), revenues increased by 3.6% and EBITDA grew by 3.3%. a1 ebitda

A cautious investment policy contributed to the growth in free cash flow. A1 Telekom Austria Group will continue to focus strongly on efficiency improvements to mitigate the expected negative impact of Covid-19 later this year”.

The A1 Telekom Austria Group is currently developing scenarios in which the company can derive more benefits from the passive mobile infrastructure (the so-called “tower business”) through a higher focus of management on internal efficiency and higher occupancy rates of the mobile locations.

 

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