Telekom Austria Ag

Welcome to the summary of A1 Group's results for the first quarter of the financial year 2024. Total revenues increased by 0.7% year-over-year to almost 1.3 billion euro. Service revenues grew in all segments in local currency, except in Slovenia. In total, service revenues increased by 3.1%, which more than offset the decline in equipment revenues of around 10%.

Total revenues in Austria increased by 0.4% up to 680 million euros in the first quarter, mainly driven by 1.7% higher service revenues, also here offsetting the decline in equipment revenues.

In our international operations, in addition to a good operational performance, previous value-protecting measures have supported solid revenue growth. while growth rates slowed somehow after a strong increase in 2023. In Bulgaria, revenues increased by 7.4%. Mainly driven by higher service revenues and improved ICT business performance. In Croatia, revenues increased by 7.1%. In Belarus, by 3.1% in local currency. In Serbia, by 1.7%. And in North Macedonia, by 10.1%. In Slovenia, revenues decreased by 8.8%.

In the first quarter of 2024, we were able to increase the customer base once again. Overall, the total number of mobile subscribers increased by 5.5% and also the RGU's increased slightly by 0.8%. While voice RGU's decreased, broadband RGU's grew, mainly driven by a significant increase in advanced broadband RGU's.

Looking at the cost side, core OPEX on group level increased by 4.4% in comparison to Q1 2023. This was mainly due to a higher total workforce cost and network maintenance cost. Electricity costs decreased slightly and remained at a high level.

As a result, EBITDA rose by 4.2% to 454 million euros in the first quarter 2024. EBITDA margin was at 35.9%. Excluding negative currency effects, total revenues and EBITDA rose by 2.2% and 5.7% respectively.

CAPEX decreased slightly to €233 million in Q1 2024.

Another highlight was the recent spectrum acquisition in Austria in March. We acquired frequencies in the 26 GHz spectrum as well as additional regional frequencies in the 3.5 GHz spectrum for €7.2 million. With these frequencies, we are enhancing our capacity to provide future-oriented 5G services and solidifying our position as a provider of outstanding network quality in Austria.

Earnings per share were around 18 euro cents in the quarter, despite continued pressure on the cost side.

Finally, we confirm the guidance for 2024. Revenues are forecasted to increase by 3% to 4%, and capex, including investments in Spectrum, is expected to amount to around $800 million.