That was a quarter more than in the first half of 2021. The increase in earnings was even stronger in the second quarter than in the first, according to the half-year report published on Tuesday. Service revenues have increased in all markets of the group, which is very active in Eastern Europe.
The mobile phone business went particularly well, generating eight percent more revenue. Among other things, the start of travel and the associated roaming income helped, especially in Austria and Croatia. The good business result was also supported by the indexation of tariffs in a number of markets and the timely adjustment for inflation. In the fixed network, sales increased by only 1.5 percent. The company sees “cost pressure” in particular because of “disruptions in the energy sector”.
In any case, the Telekom Austria Group confirms the outlook for the 2022 financial year with revenue growth of almost 3 percent. But that also depends on the not really foreseeable development of the Belarusian ruble. Supply chain issues could also affect revenue from the sale of handsets. Investments are likely to increase by around 15 percent year-on-year. This is mainly due to higher investments in Austria in fiber optic expansion and “to a lesser extent” from higher IT investments and the 5G rollout.
In the first half of the year, Telekom Austria increased sales by 3.2 percent to EUR 2.37 billion. Profit increased by 27.3 percent to EUR 297.7 million. Sales in Austria increased by 1.2 percent to EUR 1.34 billion. Mobile communications revenues in Austria rose by 5.8 percent to EUR 504 million, while fixed network revenues fell by 1.1 percent to EUR 687 million. Earnings before taxes (EBIT) in Austria increased by 12.9 percent to EUR 229.4 million. That is almost 60 percent of the total Group EBIT in the first half of 2022.
Source: Nachrichten
