The spin-off of the radio towers into EuroTeleSites and the associated reduction in net debt by one billion euros was important, according to a statement about the third quarter on Tuesday evening. A1 Telekom Austria continued to focus on implementing efficiency measures, said Alejandro Plater, CEO of A1 Group.
The third quarter alone brought a sales increase of 2.6 percent to 1.3 billion euros compared to the same quarter of the previous year. Profit fell by 2.1 percent to 201 million euros. Over the first three quarters of the year together, Telekom Austria generated 5.9 percent more revenue at EUR 3.88 billion than in the same period last year, and consolidated profit fell slightly from EUR 503 to 502 million. As a result, the net margin fell from 13.7 to 12.9 percent.
The financial figures are still preliminary, as the deconsolidation of the radio towers takes time, “however, the impact of the spin-off on profitability in the third quarter is rather limited, particularly in terms of sales and EBITDA,” says the financial report.
Dividend level will be sustainably increased
Telekom Austria reminds us that it is targeting annual sales growth of three to four percent and EBITDA growth of four to five percent from 2024 to 2026. The basic dividend was increased from 0.20 euros to 0.32 euros. “Based on the business and financial performance of the group, the dividend level will be maintained or sustainably increased.”
Thomas Arnoldner, deputy CEO of the A1 Group, pointed out in the broadcast that the number of mobile customers had increased by 5.7 percent compared to the previous year to 25.1 million at the end of September, which was mainly due to the connection of machines with the Internet (M2M business) and the demand for mobile WLAN routers. “Fiber optic products and solutions and connectivity businesses contributed to the growth,” the company report said.
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