Image: ROBERT JAEGER (APA)
This corresponds to an increase of 39.5 percent. Sales climbed 5.4 percent to EUR 5.01 billion, according to the state-owned group’s annual financial report, which was published on Tuesday evening. Analysts had expected both an increase in sales and significant growth in earnings figures.
“We have successfully continued our growth course of the past years, which is also above average in an international comparison, in 2022,” Thomas Arnoldner, CEO of the A1 Group, was quoted as saying in a press release. “The year as a whole was characterized by very good financial and operational performance, despite the challenging macroeconomic environment.” The executive highlighted EBITDA, which rose 7.7 percent to €1.84 billion, “as solid service revenue growth in all markets more than offset increases in costs.”
Mobile revenues rose to EUR 2.97 billion. That was an increase of 5.6 percent. Fixed-network revenues climbed 5.1 percent to EUR 1.94 billion. EBIT increased by 15.6 percent to EUR 871 million. Due to the good results, the Management Board plans to propose an increased dividend of EUR 0.32 (2021: EUR 0.28) per share to the Annual General Meeting.
“Outlook positive”
“The outlook for 2023 is positive,” it said in the broadcast. “We are assuming sales growth of around 4 percent for the A1 Group.” Almost one billion euros will be invested – focus on broadband in Austria and 5G group-wide. Efficiency measures, especially in the energy sector, should be promoted.
“Positive trends prevailed in most markets in 2022 and strong demand for high bandwidth, ICT solutions and connectivity remained stable,” said Alejandro Plater, COO of A1 Group. “Service revenues for the full year were up 5.2 percent with growth in all markets.”
In mobile communications, the number of subscribers increased by 5 percent to a total of 24 million at the end of 2022. The growth was primarily driven by strong growth in the M2M business. The number of Internet@home customers in the group rose by 5.4 percent. This is due to the increase in mobile WiFi routers, but also in broadband RGUs.
Just a week ago, the state holding ÖBAG, which holds the Republic’s shares in Telekom Austria (TA), and the Mexican majority owner America Movil extended their TA syndicate agreement until 2033. In the course of this they announced that the approximately 15,000 mobile phone masts of Telekom Austria would be split off. A sale of the transmission masts is not planned.
The outsourcing of the radio mast operation includes the technical operation of the respective system with foundation, steel construction, container and air conditioning as well as the power supply, but no antennas, mobile phone signal transmission, radio antennas and antenna feed lines. As part of this spin-off, a total of around 150 employees – 50 of them in Austria – will transfer to the new company. This is done while preserving their previous rights, according to the circles involved. According to ÖBAG, the split-off step is being followed by international examples. It is hoped that the separation will also enable Telekom Austria’s competitors to use the transmission mast infrastructure in Austria and Eastern Europe.
“The spin-off of the cell towers is expected to be completed during 2023, subject to the necessary corporate and regulatory approvals,” the cell towers said today. “With this step, we are following international examples, creating more transparency and generating better use of the existing systems.”
In addition, the syndicate contract was changed in a crucial point. For example, the Management Board of Telekom Austria will be reduced to two people after the existing Management Board contracts expire at the end of August, and the right to nominate the CEO will change from ÖBAG to America Movil. For this purpose, ÖBAG may appoint the second executive board and two further supervisory board members, including the chairman. The Telekom board currently consists of three members. Chief Executive Officer (CEO) is Arnoldner. The board sent by the Mexicans Plater is responsible for the operational business. CFO is Siegfried Mayrhofer, who will leave the company when his contract expires at the end of August 2023, it was announced last Monday.
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