e6vk
FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT MAY 18, 2006
Telekom Austria AG
(Exact name of Registrant as specified in its charter)
Telekom Austria, Incorporated
(Translation of Registrants name into English)
Lassallestrasse 9
1020 Vienna, Austria
(011) 43 590-5910
(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F:]
[Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of
1934.]
[If Yes is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):] Not applicable
Results for the
First Quarter 2006
Highlights
|
|
IFRS is leading GAAP from 1Q 06 |
|
|
|
Group revenues increase by 15.8% to EUR 1,158.6 million |
|
|
|
Group operating income grows by 30.7% to EUR 221.6 million |
|
|
|
Consolidated net income increases by 39.2% to EUR 154.0
million, earnings per share grow by 45.5% |
|
|
|
Wireline revenues grow slightly supported by an increase of
Internet revenues and international wholesale |
|
|
|
Higher subscriber numbers result in strong wireless growth |
Note: All financial figures are based on IFRS; if not defined otherwise, all comparisons are
given year-on-year.
Consolidated 1Q 06 financial statements of Telekom Austria include financial figures for Mobiltel.
Mobiltel financial results are not included in 1Q 05.
TABLE OF CONTENTS
Summary
The presentation for the conference call and the key figures of the Telekom Austria Group in
excel format (,,Key figures 1Q 2006) are available on our website
at www.telekom.at
Results for the first half 2006 will be announced on August 23, 2006.
Contacts:
Investor Relations
Peter E. Zydek
Head of Investor Relations
Tel: +43 (0) 59059 1 19001
E-Mail: peter.zydek@telekom.at
Corporate Communications
Martin Bredl
Telekom Austrias Company Spokesman
Tel: +43 (0) 59 059 1 11001
E-Mail: martin.bredl@telekom.at
|
|
|
|
|
|
|
|
|
|
|
|
|
in EUR million |
|
1Q 06 |
|
|
1Q 05 |
|
|
% change |
|
Revenues |
|
|
1,158.6 |
|
|
|
1,000.6 |
|
|
|
15.8 |
% |
Operating income |
|
|
221.6 |
|
|
|
169.6 |
|
|
|
30.7 |
% |
Net income |
|
|
154.0 |
|
|
|
110.6 |
|
|
|
39.2 |
% |
Adjusted EBITDA* |
|
|
504.3 |
|
|
|
432.5 |
|
|
|
16.6 |
% |
Earnings per share (in EUR) |
|
|
0.32 |
|
|
|
0.22 |
|
|
|
45.5 |
% |
|
Capital expenditures |
|
|
121.8 |
|
|
|
119.2 |
|
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
in EUR million |
|
March 31, 2006 |
|
|
Dec. 31, 2005 |
|
|
% change |
|
|
Net debt |
|
|
2,977.4 |
|
|
|
3,113.7 |
|
|
|
-4.4 |
% |
|
|
|
* |
|
Adjusted EBITDA is defined as net income excluding interest, income tax
expense, depreciation and amortization, impairment charges, equity in earnings of
affiliates, income/loss from investments and foreign exchange differences. This
equals operating income before depreciation, amortization and impairment charges. |
Vienna, May 17, 2006 Telekom Austria AG (VSE: TKA; NYSE: TKA) today announced its results
for the first quarter 2006 ending March 31, 2006.
Beginning from 1Q 06 Telekom Austria will report primary financial statements under IFRS. The
financial report for the year 2005 according to IFRS as well as quarterly information of 1Q 05 to
4Q 05 are available on our website at www.telekom.at
During the first quarter 2006 total group revenues increased by 15.8% to EUR 1,158.6 million.
Wireline revenues increased slightly by 0.9% to EUR 534.9 million in 1Q 06 supported by
higher revenues from Internet access & media and wholesale voice & Internet. In the wireless
business, the 30.8% increase in revenues to EUR 688.2 million was primarily attributable to the
consolidation of Mobiltel. On a comparable basis, excluding Mobiltel, wireless revenues increased
by 6.9% to EUR 562.4 million in 1Q 06. The increase was driven by higher traffic revenues and
higher monthly rental revenues as a result of rising subscriber figures as well as higher equipment
revenues.
Group operating income in 1Q 06 rose by 30.7% to EUR 221.6 million. Operating income in the
wireline segment increased by 10.9% to EUR 49.7 million, mainly driven by decreasing depreciation
and amortization charges. Operating income in the wireless segment grew by 37.9% to EUR 171.4
million primarily as a result of the consolidation of Mobiltel. Excluding Mobiltel, operating
income in the wireless segment increased by 2.9% to EUR 127.9 million despite higher depreciation
and amortization and an increase of material and interconnection expenses.
Operating income before depreciation, amortization and impairment charges (adjusted EBITDA) rose by
16.6% to EUR 504.3 million during 1Q 06, with a 4.4% decrease in the wireline segment to EUR 210.4
million being more than offset by a 38.4% increase in the wireless segment to EUR 293.6 million.
Excluding Mobiltel, adjusted EBITDA in the wireless segment rose by 2.1% to EUR 216.6 million,
despite a one-time gain from retirement of long-lived assets in the amount of EUR 6.3 million in 1Q
05.
Primarily as a result of the consolidation of Mobiltel and due to a higher operating income,
consolidated net income of Telekom Austria rose by 39.2% to EUR 154.0 million. Earnings per share
increased by 45.5% from EUR 0.22 to EUR 0.32.
Group capital expenditures for tangible and intangible assets increased by 2.2% to EUR 121.8
million during 1Q 06 compared to the same period last year.
Net debt decreased by EUR 136.3 million to EUR 2,977.4 million at the end of March 2006, compared
to EUR 3,113.7 million at the end of December 2005. Net gearing decreased from 106.7% at December
31, 2005 to 98.7% at the end of March 31, 2006.
2 Telekom Austria Group: Results for the First Quarter 2006
Group Review
Note: Detailed operational figures of the wireline segment are shown in the appendix on page 17.
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireline |
|
|
|
|
|
|
in EUR million |
|
1Q 06 |
|
1Q 05 |
|
% change |
|
Revenues |
|
|
534.9 |
|
|
|
530.2 |
|
|
|
0.9 |
% |
Operating income |
|
|
49.7 |
|
|
|
44.8 |
|
|
|
10.9 |
% |
Adjusted EBITDA* |
|
|
210.4 |
|
|
|
220.1 |
|
|
|
-4.4 |
% |
|
|
|
* |
|
Adjusted EBITDA is defined as net income
excluding interest, income tax expense, depreciation
and amortization, impairment charges, equity in
earnings of affiliates, income/loss from investments
and foreign exchange differences. This equals
operating income before depreciation, amortization and
impairment charges. |
Revenues and operating income by segment
Wireline
The total number of ADSL lines (including 114,100 wholesale customers) rose by 38.8% to
616,000 at the end of March 2006 compared to end of March 2005. In 1Q 06, 39,800 ADSL net adds were
recorded. In 1Q 05, the number of ADSL net adds amounted to 60,300 as a result of strong sales
campaigns following the comprehensive relaunch of the ADSL product portfolio at the end of 2004.
Wireline voice minutes declined by 6.1% to 1.27 billion minutes, a slowdown compared to last years
7.5% decline, while the total voice market shrunk by 7.3% in 1Q 06. This development is primarily
due to ongoing fixed-to-mobile migration. Including Internet dial-up minutes, total minutes
decreased by 16.2% to 1.73 billion. This reflects a stronger decline in dial-up minutes due to the
ongoing growth in broadband lines.
The average voice tariff increased by 1.3% to 7.6 Eurocent per minute during 1Q 06 compared to the
same period last year. This was mainly a result of a shift in the call mix to international
destinations and mobile networks and due to the positive impact from bonus packages, whereas the
reduction of mobile termination tariffs did not have an impact yet. The number of bonus packages
allowing customers to adapt their telephone service to their calling patterns through optional
packages increased by 77.4% to 624,875.
At the end of March 2006, the number of access lines fell by 3.7% to 2.77 million compared to end
of March 2005. The rate of decline remained stable compared to last year. The number of TikTak
lines rose by 8.2% to 1.6 million at the end of March 2006. The number of unbundled lines increased
from 83,500 in 1Q 05 to 146,500 in 1Q 06.
Successful customer retention led to an increase in voice market share to 55.5% at the end of March
2006 compared to 55.4% at year end 2005, and 55.0% at the end of March 2005. Market share including
Internet dial-up increased to 55.9% compared to 55.7% at year-end 2005 and 55.8% at the end of
March 2005.
Wireline revenues increased slightly by 0.9% to EUR 534.9 million in 1Q 06 attributable to higher
revenues from Internet access & media and wholesale voice & Internet.
Other operating income remained unchanged at EUR 9.9 million in 1Q 06, compared to the same period
last year.
Switched voice traffic revenues decline slowed down in 1Q 06 to 1.8% to EUR 99.8 million
compared to a decline of 2.8% in 1Q 05. Revenues from switched voice traffic were impacted by a
lower traffic volume, which was partly offset by higher average tariffs as a result of a change in
call mix to mobile networks and positive effects from bonus packages.
Revenues from switched voice monthly rental and others fell by 4.3% to EUR 133.2 million as a
result of a decrease in access lines and sales promotions waiving the installation fee for new
voice and ADSL lines.
Revenues from Internet access & media grew by 16.0% to EUR 67.3 million mainly driven by the higher
ADSL subscriber base. The e-card, a chip card-based computer system which simplifies public health
administration in Austria also contributed to this growth.
Telekom Austria Group: Results for First Quarter 2006 3
Note: Detailed operational figures of the wireless segment are shown in the appendix on page 18
and 19.
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless |
|
|
|
|
|
|
in EUR million |
|
1Q 06 |
|
1Q 05 |
|
% change |
|
Revenues |
|
|
688.2 |
|
|
|
526.0 |
|
|
|
30.8 |
% |
Operating income |
|
|
171.4 |
|
|
|
124.3 |
|
|
|
37.9 |
% |
Adjusted EBITDA* |
|
|
293.6 |
|
|
|
212.1 |
|
|
|
38.4 |
% |
|
|
|
* |
|
Adjusted EBITDA is defined as net income
excluding interest, income tax expense, depreciation
and amortization, impairment charges, equity in
earnings of affiliates, income/loss from investments
and foreign exchange differences. This equals
operating income before depreciation, amortization and
impairment charges. |
Revenues from payphones & value added services decreased from EUR 12.6 million to EUR 10.8 million
in 1Q 06. Higher revenues from value added services such as calling cards and nationwide telephone
numbers for corporate customers could not offset lower revenues from payphone usage.
Data & IT solutions including wholesale data revenues rose slightly by 0.8% to EUR 103.6 million
with demand from corporate customers for IP Voice solutions, housing & hosting and corporate
network solutions more than offsetting price pressure on leased lines.
Wholesale voice & Internet revenues increased by 4.6% to EUR 92.3 million mainly driven by strong
international voice revenues from international transit. High transit volumes from and to mobile
networks are responsible for this increase and thus compensating a weaker national voice
development.
Other revenues increased slightly by 0.4% to EUR 27.9 million due to higher equipment and directory
service sales.
Wireline depreciation and amortization expenses fell by 8.3% to EUR 160.7 million
compensating higher material and interconnection expenses in 1Q 06. Material expenses rose due to
higher material requirements for LAN solutions and more voice customer equipment sold.
Interconnection expenses increased as lower national termination costs were offset by higher
expenses for international calls as increased volumes translated into higher costs. Personnel costs
increased by 1.1% as pay increases under the collective bargaining agreement were largely offset by
reductions in the headcount and lower expenses for stock options. Services received have risen
strongly due to higher expenses for leased lines for corporate customers expanding abroad. Other
cost increased as lower cost from marketing could not offset an increase of a loss from retirement
of long lived assets from switching equipment by EUR 4.8 million.
Operating income in the wireline segment rose by 10.9% to EUR 49.7 million in 1Q 06.
Operating income before depreciation, amortization and impairment charges (adjusted EBITDA)
decreased by 4.4% to EUR 210.4 million, corresponding to an adjusted EBITDA margin of 39.3% in 1Q
06 compared to 41.5% in 1Q 05.
The number of customers at Czech On Line totalled 193,400 at the end of 1Q 06, compared to 239,000
at the end of 1Q 05. Czech On Lines strong growth of its voice and DSL customers base compared to
last years period could not offset churn from dial-up customers.
Revenues of Czech On Line increased by 11.7% to EUR 6.2 million mainly driven by higher
interconnection and value added service revenues. Operating income fell from EUR 0.2 million in 1Q
05 to a loss of EUR 1.4 million in 1Q 06 due to higher service and sales costs. Operating income
before depreciation, amortization and impairment charges (adjusted EBITDA) fell from EUR 0.8
million in 1Q 05 to a loss of EUR 0.8 million in 1Q 06.
Wireless
The total number of customers in the wireless segment grew by 83.3% to 9.13 million as of
March 31, 2006, compared to end of March 2005 primarily attributable to the acquisition of
Mobiltel. Excluding Mobiltel the wireless subscriber base increased by 9.9% to 5.47 million
subscribers.
Revenues in the wireless segment rose by 30.8% to EUR 688.2 million during 1Q 06 primarily driven
by the contribution of Mobiltel.
4 Telekom Austria Group: Results for the First Quarter 2006
On a comparable basis, excluding Mobiltel, wireless revenues increased by 6.9% to EUR 562.4 million
mainly driven by higher monthly rental revenues as a result of a larger subscriber base and higher
equipment revenues.
Operating income rose by 37.9% to EUR 171.4 million and operating income before depreciation and
amortization and impairment charges (adjusted EBITDA) increased by 38.4% to EUR 293.6 million.
On a comparable basis, excluding Mobiltel, wireless operating income rose by 2.9% to EUR 127.9
million. In 1Q 05 operating income included a one-time gain from retirement of long-lived assets in
the amount of EUR 6.3 million from a one-time sale of an UMTS frequency package in the amount of
EUR 1.1 million and due to GSM equipment sales in the amount of EUR 5.2 million.
Operating income before depreciation, amortization and impairment charges on a comparable basis
(adjusted EBITDA), excluding Mobiltel, rose by 2.1% to EUR 216.6 million in 1Q 06.
mobilkom austria
Austrian mobile penetration reached 107.7 % at the end of March 2006 reflecting multiple SIM
card usage, compared to 99.6% a year ago. mobilkom austria recorded 44,500 net additions in 1Q 06,
exceeding last years figure by 101.7% due to ongoing promotions. mobilkom austrias total
subscriber number reached 3.4 million by the end of March 2006 compared to 3.3 million at the same
time last year.
The market share decreased to 38.9% at the end of March 2006, compared to 40.4% at the end of March
2005 as market penetration was pushed by no-frill operators. Churn rate remained stable at 4.4% in
1Q 06 compared to the same period last year as higher prepaid churn was offset by lower contract
churn.
Data revenues as a proportion of traffic-related revenues increased strongly from 17.0% during 1Q
05 to 21.5% during 1Q 06 reflecting mobilkom austrias strong position in the mobile data business.
This growth was mainly caused by a substantial increase of usage driven by datacards, which were
pushed by strong campaigns and supported by wide coverage with EDGE, UMTS and HSDPA. By the end of
March 2006, mobilkom austria had already sold 70,000 Vodafone Mobile Connect Cards and had more
than 969,000 Vodafone live! customers.
To further strengthen its data business mobilkom austria launched HSDPA (High Speed Downlink Packet
Access) in 1Q 06 in Vienna, building on its nationwide 3G coverage. HSDPA will be expanded to
provincial capitals by mid year 2006.
The number of SMS increased by 35.3% to 182.0 million in 1Q 06 compared to the same period last
year. SMS usage stimulation was mainly caused by the SMS Unlimited Option, which is part of the
Unlimited tariff concept.
Revenues of mobilkom austria increased by 2.6% to EUR 434.2 million during 1Q 06 driven by higher
monthly rental and equipment revenues. The increase in monthly rental revenues resulted from a
higher number of contract subscribers and a higher number of data subscriptions sold. Equipment
revenues rose by 43.1% as more handsets were sold and higher deliveries to dealers compared to last
year.
Elasticity and stimulation of usage following the introduction of the Unlimited Tariffs allowing
unlimited usage led to an increase of average minutes of use charged per subscriber (MoU) by 16.9%
to 148.0 minutes in 1Q 06, which could not fully offset the impact from lower prices. Consequently
average revenues per user (ARPU) declined by 3.7% to EUR 34.2 in 1Q 06 with a lower voice ARPU
being partially offset by growing data ARPU.
Subscriber acquisition costs (SAC) declined by 18.4% to EUR 19.1 million in 1Q 06 and subscriber
retention costs (SRC) decreased by 13.5% to EUR 14.7 million. SACs declined despite higher gross
adds as the average subsidy was well below the high level of 1Q 05
Telekom Austria Group: Results for First Quarter 2006 5
incurred for an UMTS push. SRCs fell 1Q 06 despite a higher number of handset replacements because
of lower cost per handset.
Operating income increased by 4.7% to EUR 111.3 million despite higher expenses for personnel and
services received as well as interconnection costs. Operating income before depreciation,
amortization and impairment charges (adjusted EBITDA) increased by 2.8% to EUR 173.6 million during
1Q 06.
In December 2005, the regulatory authority released a final decision on mobile termination rates
for all mobile network operators in Austria. The decision provides a gliding path model requiring
each mobile operator to reduce mobile termination rates every six month starting January 1, 2006
until a uniform termination charge of 6.79 Eurocent is reached by December 31, 2008 at the latest.
In a first step, the decision covers the period through end of 2006, when a new decision is
expected to be taken to cover the period through 2008.
On January 1, 2006 mobilkom austria reduced its mobile termination rate to 9.34 Eurocents. Under
the gliding path model, mobilkom austria is obliged to reduce its termination rates further to 8.34
Eurocent in July 2006.
Mobiltel
With 3.65 million subscribers at the end of 1Q 06 Mobiltel increased its subscriber base by
16.3% compared to a subscriber base of 3.14 million in 1Q 05. The share of contract customers
increased from 34.4% in 1Q 05 to 35.0% in 1Q 06.
Mobiltels churn rate rose from 4.6% to 6.2% year on year caused by an increase of prepaid churn as
a result of aggressive competition following the entrance of a new operator.
The penetration in Bulgaria reached 84.7% at the end of 1Q 06 compared to 63.2% in 1Q 05 due to the
strong performance of all market operators stimulating market growth.
In 1Q 06 Mobiltels market share decreased to 56.0% from 63.1% in 1Q 05 as a result of overall
market growth and a competitive environment.
Average revenue per user (ARPU) was EUR 10.7 in 1Q 06 compared to EUR 12.0 during the same period
last year. ARPU was mainly impacted by lower average prices as a result of competition.
Mobiltels revenues grew by 7.5% to EUR 126.9 million in 1Q 06 compared to the same period last
year, primarily as a result of higher monthly rental and equipment revenues. The increase of
monthly rental revenues was driven by a higher contract subscriber base. A higher number of
handsets sold with higher average handset prices in 1Q 06 led to an increase in equipment revenues.
Mobiltels operating income decreased by 36.4% to EUR 43.5 million in 1Q 06 mainly due to higher
amortization charges and higher material expenses mainly for handsets and interconnection expenses.
The rise in amortization charges was primarily due to the allocation of EUR 509 million of the
purchase price for Mobiltel to the fair value of the acquired subscriber base being amortized over
a period of 7 years which was not included in the comparative figures of 1Q 05.
Operating income before depreciation, amortization and impairment charges (adjusted EBITDA)
declined from EUR 79.9 million to EUR 77.0 million in 1Q 06 following an extraordinary high level
in 1Q 05.
In March 2006, Mobiltel introduced commercial 3G services and launched the first HSDPA network in
Bulgaria.
Vipnet
Vipnet increased its subscriber numbers compared to last year by 26.2% to 1.66 million at the
end of March 2006. Compared to the previous year contract subscribers increased by 34.7% to 264,900
and prepaid subscribers rose by 24.7% to 1,397,000. The share of contract customers rose from 14.9%
in 1Q 05 to 15.9% in 1Q 06. The churn rate
6 Telekom Austria Group: Results for the First Quarter 2006
fell from 4.3% in 1Q 05 to 3.9% in 1Q 06 as a result of a lower prepaid churn due to adaptation of
customers to match the definition used by competitors.
Vipnets market share decreased from 46.0% in 1Q 05 to 43.3% in 1Q 06 following the entrance of a
third operator into the Croatian market. The mobile penetration rate in Croatia increased strongly
from 64.9% to 87.0% compared year on year.
During 1Q 06, Vipnets revenues rose by 21.1% to EUR 101.1 million. The increase was primarily
driven by higher traffic and equipment revenues as well as roaming revenues. Traffic revenues
benefited from higher minutes of use charged albeit at lower tariffs. The usage increase was
triggered by tariffs with free on-net calls. Equipment revenues in 1Q 06 increased due to a higher
number of handsets sold at lower price per handset. Roaming revenues were driven by national
roaming revenues from the third operator. Average ARPU declined by 12.6% to EUR 16.6 due to an
increase in the prepaid subscriber base as a result of the change in subscriber definition and
lower airtime revenues from on-net calls following the introduction of cheap on-net calls.
Vipnets operating income declined by 7.1% to EUR 14.3 million during 1Q 06 due to higher
depreciation and amortization charges. Operating income before depreciation and amortization
(adjusted EBITDA) rose by 1.2% to EUR 34.7 million. The adjusted EBITDA margin decreased from 41.1%
during 1Q 05 to 34.3% in 1Q 06 reflecting higher cost for marketing and sales, as well as EUR 3.7
million included for the launch of a new Vipnet logo.
In April 2006, Vipnet launched UMTS and now provides 3G coverage to more than 90 percent of the
population with a combination of UMTS and EDGE.
Simobil
In the third quarter 2005, the Slovenian regulatory authority imposed a new definition of
active customers, which mainly effected the number of prepaid customers reported. As a result of
this change, the subscriber figure at Si.mobil increased only slightly by 1.8% to 370,900 at the
end of March 2006 compared to 364,500 at the end of March 2005. The number of contract subscribers
increased by 20.1% to 188,900 and the contract share increased from 43.2% to 50.9% as of end of 1Q
06. Si.mobils churn rate increased from 5.2% in 1Q 05 to 5.6% in 1Q 06 which was driven by prepaid
churn, while contract churn decreased on a year on year basis.
Si.mobils market share was 23.0% at the end of March 31, 2006 compared to 23.3% at the end of
March 2005 impacted by the definition of active customers. In April, Vega the smallest operator in
Slovenia, announced its exit from the Slovenian market and Si.mobil acquired 135 of Vegas sites
for EUR 2.5 million. The sites will be used to enhance the existing network of Si.mobil in terms of
capacity and quality. Penetration in Slovenia increased from 78.9% in 1Q 05 to 81.3% in 1Q 06.
Revenues rose by 24.5% to EUR 26.9 million during 1Q 06 driven by higher traffic, monthly rental
and equipment revenues. Higher number of minutes of use charged albeit at a lower average price,
resulted in higher traffic revenues in 1Q 06. Monthly rental revenues increased due to a larger
contract subscriber base. Equipment revenues increased due to a higher number of shipped terminals
in combination with a higher average price per terminal. Average ARPU increased by 20.7% to EUR
18.1 during 1Q 06 compared to EUR 15.0 in 1Q 05 driven by higher traffic and monthly rental
revenues.
Operating income of Si.mobil decreased slightly from EUR 2.0 million during 1Q 05 to EUR 1.9
million in 1Q 06 as a result of higher depreciation and amortization expenses.
Operating income before depreciation and amortization (adjusted EBITDA) rose by 8.7% to EUR 7.5
million due to higher revenues. The adjusted EBITDA-margin of Si.mobil decreased from 31.9% in 1Q
05 to
Telekom Austria Group: Results for First Quarter 2006 7
27.9% in 1Q 06 as a result of higher marketing expenses and higher subsidies as more contract
customers were added.
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures |
|
|
|
|
|
|
in EUR million |
|
1Q 06 |
|
1Q 05 |
|
% Diff. |
|
Wireline tangible |
|
|
51.0 |
|
|
|
56.2 |
|
|
|
-9.3 |
% |
Wireless tangible |
|
|
52.7 |
|
|
|
48.8 |
|
|
|
8.0 |
% |
Tangible |
|
|
103.7 |
|
|
|
105.0 |
|
|
|
-1.2 |
% |
|
Wireline intangible |
|
|
9.5 |
|
|
|
7.5 |
|
|
|
26.7 |
% |
Wireless intangible |
|
|
8.6 |
|
|
|
6.7 |
|
|
|
28.4 |
% |
Intangible |
|
|
18.1 |
|
|
|
14.2 |
|
|
|
27.5 |
% |
|
Total |
|
|
121.8 |
|
|
|
119.2 |
|
|
|
2.2 |
% |
|
Consolidated net profit
During 1Q 06, net interest expenses declined by 5.8% to EUR 25.8 million despite higher net
debt following the acquisition of Mobiltel in July 2005. This development is primarily a result of
a lower average interest rate compared to last year.
Income tax expenses increased by 15.9% to EUR 40.9 million compared to 1Q 05. The effective tax
rate was 21.0 % in 1Q 06 versus 24.2% in 1Q 05 primarily driven by the lower statutory tax rate of
15% in Bulgaria.
Overall, quarterly net income in 1Q 06 rose by 39.2% to EUR 154.0 million and basic and diluted
earnings per share rose by 45.5% from EUR 0.22 to EUR 0.32.
Capital expenditures
During 1Q 06, group capital expenditures for tangible and intangible assets increased by 2.2%
to 121.8 million.
Wireline tangible expenditures declined by 9.3% to 51.0 million. Lower investments into the
broadband access network as a result of lower purchasing prices of ADSL equipment and lower core
net investments led to this development. The decline was primarily due to EUR 9.7 million included
in 1Q 05 required under the Austrian telecommunications interception ordinance to allow Austrian
law enforcement agencies to standardize the data exchange.
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow and net debt |
|
|
|
|
|
|
in EUR million |
|
1Q 06 |
|
1Q 05 |
|
% change |
|
Cash generated from operations |
|
|
321.2 |
|
|
|
299.0 |
|
|
|
7.4 |
% |
Cash from (used in) investing activities |
|
|
-120.8 |
|
|
|
-194.6 |
|
|
|
37.9 |
% |
Cash from (used in) financing activities |
|
|
-229.1 |
|
|
|
827.9 |
|
|
|
|
|
Effect of exchange rate changes |
|
|
-0.4 |
|
|
|
0.3 |
|
|
|
|
|
Net increase (decrease) in cash and
cash equivalents |
|
|
-29.1 |
|
|
|
932.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in EUR million |
|
March 31, 2006 |
|
|
Dec. 31, 2005 |
|
|
% change |
|
|
Net debt |
|
|
2,977.4 |
|
|
|
3,113.7 |
|
|
|
-4.4 |
% |
Wireless expenditures for tangible assets increased by 8.0% to EUR 52.7 million in 1Q 06 mainly due
to the consolidation of Mobiltel. Excluding Mobiltel, wireless expenditures for tangible assets
declined by 33.8% to EUR 32.3 million. Capital expenditures in 1Q 05 were mainly driven by the
network upgrade for the EDGE technology in Austria. Vipnet in Croatia had slightly higher capital
expenditures for its network in 1Q 06 which were more than offset by the lower investments in
Austria.
Group capital expenditures for intangible assets increased by 27.5% to EUR 18.1 million in 1Q 06.
Wireline capital expenditures for intangible assets rose from EUR 7.5 million to EUR 9.5 million
due to investments in billing software and licenses and software for aonDigital TV. Wireless
capital expenditures for intangible assets increased by 28.4% to EUR 8.6 million in 1Q 06 mainly
due to investments for billing software at mobilkom austria.
Cash flow and net debt
Cash generated from operations increased by 7.4% to EUR 321.2 million in 1Q 06. The higher
operational cash flow in 1Q 06 compared to 1Q 05 resulted from higher net income despite an
increase in the change in working capital from EUR 105.7 million in 1Q 05 to EUR 151.5 million. The
latter increased due to seasonal inventory build-up and timing of cash outflow.
Cash used in investing activities decreased from EUR 194.6 million in 1Q 05 to EUR 120.8 million in
1Q 06. The main reason for the decline is EUR 80.0 million
8 Telekom Austria Group: Results for the First Quarter 2006
paid in 1Q 05 as option price under the call option agreement to purchase Mobiltel.
Financing activities generated a cash ouflow of EUR 229.1 million in 1Q 06 compared to a cash
inflow of EUR 827.9 million in 1Q 05 as two bonds with a nominal value of EUR 500 million each were
issued in January 2005. The purchase of treasury stock during 1Q 06 amounted to EUR 58.7 million
compared to EUR 14.9 million in 1Q 05.
Overall, net debt decreased by EUR 136.3 million to EUR 2,977.4 million as of March 31, 2006
compared EUR 3,113.7 million as of December 31, 2005. The debt to equity ratio (net gearing)
decreased to 98.7%, compared to 106.7% as of December 31, 2005.
Net debt includes long-term debt, short- term borrowings, capital leases, cash and cash
equivalents, marketable securities available for sale, short-term financing with related parties as
well as financial instruments included in other assets and other current assets. Balances from the
cross border lease transactions are excluded from net debt calculation.
Personnel
At the end of March 2006, group headcount amounted to 15,513 employees compared to 13,261
employees at the end of March 05, representing an increase of 17.0%.
The number of full time employees in the wireline segment declined by 87 employees to 9,552
compared to last year mainly due to attrition.
The number of full time employees in the wireless segment increased by 2,339 to 5,961 full time
employees. On a comparable basis, excluding Mobiltel, the number of employees in the wireless
segment decreased by 1.2% to 3,579.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel |
|
End of period |
|
|
|
|
|
Average of period |
(Full-time equivalents) |
|
March 31, 2006 |
|
|
March 31, 2005 |
|
|
change |
|
|
1Q 2006 |
|
|
1Q 2005 |
|
|
change |
|
|
Wireline |
|
|
9,552 |
|
|
|
9,639 |
|
|
|
-87 |
|
|
|
9,550 |
|
|
|
9,653 |
|
|
|
-103 |
|
Wireless |
|
|
5,961 |
|
|
|
3,622 |
|
|
|
2.339 |
|
|
|
6,058 |
|
|
|
3,616 |
|
|
|
2,442 |
|
|
Total |
|
|
15,513 |
|
|
|
13,261 |
|
|
|
2.252 |
|
|
|
15,608 |
|
|
|
13,269 |
|
|
|
2,339 |
|
Other events
In January 2006, Telekom Austria announced the resignation of CEO Heinz Sundt as of May 23,
2006. At the same time, Boris Nemsic was appointed as successor and will become Chief Executive
Officer of Telekom Austria on May 24, 2006 in addition to his position as CEO of mobilkom austria.
Rudolf Fischer was appointed as Deputy CEO.
Telekom Austria acquired 2,986,504 treasury shares at an average purchase price of EUR 19.64 in 1Q
06 for a total amount of EUR 58.7 million. As of March 31, 2006, Telekom Austria held 20,483,610
treasury shares, which were acquired at an average purchase price of EUR 15.38, reducing
shareholders equity by EUR 315.1 million.
Details of the purchases are published each Tuesday on our corporate website under
www.telekom.at
Subsequent events
On April 28, 2006, the Republic of Serbia invited mobile communication operators to
participate in a tender process for a stake in Mobi63 and a licence for a minimum price of EUR
800 million. Telekom Austria has on various occasions expressed its interest to acquire a
controlling stake in the company.
On May 16, 2006 the supervisory board of Telekom Austria extended the management mandates of Boris
Nemsic and Rudolf Fischer for five years until April 30, 2011.
Telekom Austria Group: Results for First Quarter 2006 9
Forecast for 2006 and Multiyear Outlook
The results for the first quarter fully support the outlook for the business year 2006 as
announced with the publication of the full year results for 2005. All key financial figures are
expected to improve in 2006, primarily driven by the consolidation of Mobiltel for full 12 months.
For the financial year 2006 the Telekom Austria Group expects operating revenues to rise by
approximately 5% and adjusted EBITDA by about 10%. Although depreciation and amortization charges
are expected to be marginally higher due to the consolidation of Mobiltel, Telekom Austria
anticipates that operating income and net income will rise by approximately 20%. Thus with a steady
payout ratio of 65%, a further increase in the dividend can be expected.
Capital expenditures in the wireless segment will rise due to the full-year consolidation of
Mobiltel and higher investments in UMTS and HSDPA technologies in order to maintain our
technological leadership in a competitive environment. Lower investments in the wireline segment
will be unable to compensate for this increase. Barring the impact from possible acquisitions and
despite the continuation of the share buyback program and an anticipated increase in cash taxes,
the strong increase of cash flow will permit a reduction of net debt.
In the wireline segment the migration of voice minutes to mobile communications networks is
expected to continue in 2006, leading to lower revenues and adjusted EBITDA. The broadband business
in Austria will continue to grow, but will not fully compensate for the decline in traditional
voice telephony. Supported by a further reduction in depreciation and amortization charges,
operating income in the wireline segment is expected to show strong growth in 2006.
In the wireless segment the contribution from Mobiltel in particular is expected to lead to a
further increase in operating revenues, adjusted EBITDA and operating income. Despite market
consolidation in the Austrian market, price competition on that market is expected to remain
fierce, whereby much of the expected growth of the wireless segment will be generated by Telekom
Austrias international subsidiaries. In this environment all the companies in the wireless segment
will focus on clearly positioning themselves in their respective markets and pushing ahead with the
expansion of mobile data services.
During the period of 2005 to 2009 and disregarding any possible acquisitions, Telekom Austria
expects operating revenues to grow by a compound annual growth rate (CAGR) of approximately 2%.
Adjusted EBITDA in this period should grow on average by approximately 2.5% per annum. Due to a
continued decline in depreciation and amortization charges and lower interest expenses as a result
of the continued reduction of net debt, Telekom Austria expects net income to rise on an average by
roughly 13% per year.
10 Telekom Austria Group: Results for the First Quarter 2006
Disclaimer: Although Telekom Austria has conducted diligence customary in acquisitions in Central and Eastern Europe, based on the information to which Telekom Austria was
given access during the acquisition process, Telekom Austria has not been involved in the management of Mobiltel until July 12, 2005. Financial data prior to this period are given
for comparative purposes only. Telekom Austria does not take responsibility for the correctness of these figures.
This news release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements are usually accompanied by words such as believe,
intend, anticipate, plan, expect and similar expressions. Actual results may differ materially from those anticipated in these forward-looking statements as a result of a
number of factors. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially
from those expressed in any forward-looking statement. These factors include, but are not limited to, the following:
|
|
the level of demand for telecommunications services or equipment, particularly with regard to access lines, traffic, bandwidth and new products; |
|
|
|
competitive forces in liberalized markets, including pricing pressures, technological developments, alternative routing developments and new access technologies, and our
ability to retain market share in the face of competition from existing and new market entrants; |
|
|
|
the effects of our tariff reduction or other marketing initiatives; |
|
|
|
the regulatory developments and changes, including the levels of tariffs, the terms of interconnection, unbundling of access lines and international settlement
arrangements; |
|
|
|
our ability to achieve cost savings and realize productivity improvements; |
|
|
|
the success of new business, operating and financial initiatives, many of which involve start-up costs, and new systems and applications, particularly with regard to the
integration of service offerings; |
|
|
|
our ability to secure the licenses we need to offer new services and the cost of these licenses and related network infrastructure build-outs; |
|
|
|
the progress of our domestic and international investments, joint ventures and alliances |
|
|
|
the impact of our new business strategies and transformation program; |
|
|
|
the availability, terms and deployment of capital and the impact of regulatory and competitive developments on capital expenditures; |
|
|
|
the outcome of litigation in which we are involved; |
|
|
|
the level of demand in the market for our shares which can affect our business strategies; |
|
|
|
changes in the law including regulatory, civil servants and social security law, including pensions and tax law; and general economic conditions, government and regulatory
policies, and business conditions in the markets we serve. |
Telekom Austria Group: Results for First Quarter 2006 11
TELEKOM
AUSTRIA AG
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
March 31, 2006 |
|
|
December 31, 2005 |
|
(in EUR millions) |
|
unaudited |
|
|
audited |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
87.7 |
|
|
|
116.8 |
|
Short term investments |
|
|
15.6 |
|
|
|
15.1 |
|
Accounts receivable trade, net of allowances |
|
|
715.7 |
|
|
|
714.3 |
|
Receivables due from related parties |
|
|
0.0 |
|
|
|
0.0 |
|
Inventories |
|
|
104.5 |
|
|
|
90.9 |
|
Prepaid expenses |
|
|
150.8 |
|
|
|
121.7 |
|
Income taxes receivable |
|
|
1.1 |
|
|
|
9.2 |
|
Non current assets held for sale |
|
|
0.9 |
|
|
|
0.9 |
|
Other current assets |
|
|
25.2 |
|
|
|
27.6 |
|
|
Total Current Assets |
|
|
1,101.5 |
|
|
|
1,096.5 |
|
|
Investments in associates |
|
|
4.3 |
|
|
|
3.7 |
|
Financial assets long-term |
|
|
78.5 |
|
|
|
86.8 |
|
Goodwill |
|
|
1,149.3 |
|
|
|
1,148.9 |
|
Other intangible assets, net |
|
|
1,618.9 |
|
|
|
1,664.0 |
|
Property, plant and equipment, net |
|
|
3,461.1 |
|
|
|
3,583.1 |
|
Other assets |
|
|
10.1 |
|
|
|
6.0 |
|
Receivables due from related parties, long-term finance |
|
|
0.1 |
|
|
|
0.0 |
|
Deferred tax assets |
|
|
58.5 |
|
|
|
68.3 |
|
|
TOTAL ASSETS |
|
|
7,482.3 |
|
|
|
7,657.3 |
|
|
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
615.1 |
|
|
|
704.1 |
|
Accounts payable trade |
|
|
434.2 |
|
|
|
544.2 |
|
Provisions and accrued liabilities |
|
|
174.7 |
|
|
|
166.3 |
|
Payables to related parties |
|
|
6.4 |
|
|
|
11.3 |
|
Income taxes payable |
|
|
19.9 |
|
|
|
6.3 |
|
Other current liabilities |
|
|
196.9 |
|
|
|
206.9 |
|
Deferred income |
|
|
200.7 |
|
|
|
199.5 |
|
|
Total Current Liabilities |
|
|
1,647.9 |
|
|
|
1,838.6 |
|
|
Long-term debt, net of current portion |
|
|
2,479.2 |
|
|
|
2,557.7 |
|
Lease obligations, net of current portion |
|
|
59.0 |
|
|
|
68.7 |
|
Employee benefit obligation |
|
|
117.4 |
|
|
|
119.9 |
|
Provisions long-term |
|
|
86.9 |
|
|
|
85.7 |
|
Deferred tax liabilities |
|
|
23.6 |
|
|
|
17.9 |
|
Other liabilities and deferred income |
|
|
52.6 |
|
|
|
50.0 |
|
|
Total Long Term Liabilities |
|
|
2,818.7 |
|
|
|
2,899.9 |
|
|
Stockholders equity |
|
|
|
|
|
|
|
|
Common stock, no par value shares 560,000,000
authorized (2005: 560,000,000), 500,000,000
issued (2005: 500,000,000), 479,516,390
outstanding (2005: 482,502,894) |
|
|
1,090.5 |
|
|
|
1,090.5 |
|
Treasury shares |
|
|
-315.1 |
|
|
|
-256.4 |
|
Additional capital |
|
|
460.1 |
|
|
|
460.1 |
|
Retained Earnings |
|
|
1,778.1 |
|
|
|
1,624.1 |
|
Revaluation reserve |
|
|
0.5 |
|
|
|
0.4 |
|
Translation adjustments |
|
|
1.5 |
|
|
|
0.0 |
|
Equity attributable to equity holders of the parent |
|
|
3,015.6 |
|
|
|
2,918.7 |
|
|
|
|
|
|
|
|
|
|
|
Minority Interests |
|
|
0.1 |
|
|
|
0.1 |
|
|
Total Stockholders equity |
|
|
3,015.7 |
|
|
|
2,918.8 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
7,482.3 |
|
|
|
7,657.3 |
|
|
12 Telekom Austria Group: Results for the First Quarter 2006
TELEKOM
AUSTRIA AG
Consolidated Statements of Operations*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q 06 |
|
|
1Q 05 |
|
(in EUR millions, except per share information) |
|
|
|
|
|
unaudited |
|
|
unaudited |
|
|
Operating revenues |
|
|
a |
) |
|
|
1,158.6 |
|
|
|
1,000.6 |
|
Other operating income |
|
|
|
|
|
|
13.5 |
|
|
|
17.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
b |
) |
|
|
|
|
|
|
|
|
Materials |
|
|
|
|
|
|
-86.7 |
|
|
|
-69.3 |
|
Employee costs, including benefits and taxes |
|
|
|
|
|
|
-187.7 |
|
|
|
-176.1 |
|
Depreciation and amortization |
|
|
|
|
|
|
-280.2 |
|
|
|
-262.9 |
|
Impairment charges |
|
|
|
|
|
|
-2.5 |
|
|
|
0.0 |
|
Other operating expenses |
|
|
|
|
|
|
-393.3 |
|
|
|
-340.6 |
|
Operating income |
|
|
|
|
|
|
221.6 |
|
|
|
169.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
c |
) |
|
|
5.3 |
|
|
|
8.2 |
|
Interest expense |
|
|
d |
) |
|
|
-31.1 |
|
|
|
-35.6 |
|
Foreign exchange differences |
|
|
|
|
|
|
-0.2 |
|
|
|
0.0 |
|
(Loss) Income from investments |
|
|
|
|
|
|
-0.9 |
|
|
|
3.4 |
|
Equity in earnings of affiliates |
|
|
|
|
|
|
0.3 |
|
|
|
0.2 |
|
|
Income before income taxes |
|
|
|
|
|
|
194.9 |
|
|
|
145.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
|
|
|
|
-40.9 |
|
|
|
-35.3 |
|
|
Net income |
|
|
|
|
|
|
154.0 |
|
|
|
110.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the parent |
|
|
|
|
|
|
154.0 |
|
|
|
110.6 |
|
Minority interests |
|
|
|
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and fully diluted earnings per share |
|
|
|
|
|
|
0.32 |
|
|
|
0.22 |
|
|
|
|
* |
|
Consolidated 1Q 06 financial statements of Telekom Austria include financial figures for Mobiltel. Mobiltel financial results are not included in 1Q 05. |
Telekom Austria Group: Results for First Quarter 2006 13
TELEKOM
AUSTRIA AG
Consolidated Statements of Cash Flows*
|
|
|
|
|
|
|
|
|
|
|
1Q 06 |
|
|
1Q 05 |
|
(in EUR million) |
|
unaudited |
|
|
unaudited |
|
|
Cash generated from operations |
|
|
|
|
|
|
|
|
Net Income |
|
|
154.0 |
|
|
|
110.6 |
|
Adjustments to reconcile net income to cash generated from operations |
|
|
|
|
|
|
|
|
Depreciation, amortization and impairment charges |
|
|
282.7 |
|
|
|
262.9 |
|
Write-offs from and appreciation to investments |
|
|
1.1 |
|
|
|
0.0 |
|
Employee benefit obligation non cash |
|
|
-1.7 |
|
|
|
3.2 |
|
Allowance for doubtful accounts |
|
|
8.1 |
|
|
|
6.3 |
|
Change in deferred taxes |
|
|
15.5 |
|
|
|
24.7 |
|
Equity in earnings of affiliates in excess of dividends received |
|
|
-0.3 |
|
|
|
-0.2 |
|
Stock compensation |
|
|
6.2 |
|
|
|
5.9 |
|
Asset retirement obligation accretion expense |
|
|
0.8 |
|
|
|
0.8 |
|
Gain/Loss on sale of investments |
|
|
-0.2 |
|
|
|
-3.4 |
|
Loss (Gain) on disposal/retirement of equipment |
|
|
6.3 |
|
|
|
-5.8 |
|
Other |
|
|
0.2 |
|
|
|
-0.3 |
|
|
|
|
|
472.7 |
|
|
|
404.7 |
|
|
Changes in assets and liabilities, net of effect of business acquired |
|
|
|
|
|
|
|
|
Accounts receivable trade |
|
|
-9.6 |
|
|
|
39.0 |
|
Due from related parties |
|
|
-0.4 |
|
|
|
0.0 |
|
Inventories |
|
|
-13.6 |
|
|
|
-3.3 |
|
Prepaid expenses and other assets |
|
|
-17.8 |
|
|
|
-11.5 |
|
Accounts payable trade |
|
|
-109.6 |
|
|
|
-153.4 |
|
Employee benefit obligation |
|
|
-0.8 |
|
|
|
-2.3 |
|
Provisions and accrued liabilities |
|
|
8.4 |
|
|
|
5.0 |
|
Due to related parties |
|
|
-4.8 |
|
|
|
-4.3 |
|
Other liabilities and deferred income |
|
|
-3.3 |
|
|
|
25.1 |
|
|
|
|
-151.5 |
|
|
|
-105.7 |
|
|
Cash generated from operations |
|
|
321.2 |
|
|
|
299.0 |
|
|
|
|
|
|
|
|
|
|
|
Cash from (used in) investing activities |
|
|
|
|
|
|
|
|
Capital expenditures, including interest capitalized |
|
|
-121.8 |
|
|
|
-119.2 |
|
Sale of subsidiary, net of cash |
|
|
-0.4 |
|
|
|
0.0 |
|
Purchase of call option to acquire equity instruments |
|
|
0.0 |
|
|
|
-80.0 |
|
Proceeds from sale of equipment |
|
|
1.4 |
|
|
|
14.6 |
|
Purchase of investments short-term |
|
|
0.0 |
|
|
|
-22.0 |
|
Purchase of investments long-term |
|
|
-1.1 |
|
|
|
-0.7 |
|
Proceeds from sale of investments short-term |
|
|
0.1 |
|
|
|
12.1 |
|
Proceeds from sale of investments long-term |
|
|
1.0 |
|
|
|
0.6 |
|
|
Cash used in investing activities |
|
|
-120.8 |
|
|
|
-194.6 |
|
|
|
|
|
|
|
|
|
|
|
Cash from (used in) financing activities |
|
|
|
|
|
|
|
|
Proceeds from issuance of bonds |
|
|
0.0 |
|
|
|
989.0 |
|
Principal payments on long-term debt |
|
|
-53.7 |
|
|
|
-161.7 |
|
Changes in short-term bank borrowings |
|
|
-116.7 |
|
|
|
15.5 |
|
Purchase of treasury shares |
|
|
-58.7 |
|
|
|
-14.9 |
|
|
Cash generated from (used in) financing activities |
|
|
-229.1 |
|
|
|
827.9 |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes |
|
|
-0.4 |
|
|
|
0.3 |
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
-29.1 |
|
|
|
932.7 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
|
116.8 |
|
|
|
288.2 |
|
Cash and cash equivalents at end of period |
|
|
87.7 |
|
|
|
1,220.9 |
|
|
|
|
* |
|
Consolidated 1Q 06 financial statements of Telekom Austria include financial figures for Mobiltel. Mobiltel financial results are not included in 1Q 05. |
14 Telekom Austria Group: Results for the First Quarter 2006
TELEKOM
AUSTRIA AG
Consolidated Statement of Changes in Stockholders Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
Common |
|
Treasury |
|
paid in |
|
Retained |
|
Revaluation |
|
Translation |
|
|
|
|
|
Minority |
|
stockholders |
(in EUR millions) |
|
stock* |
|
stock** |
|
capital |
|
earnings |
|
Reserve |
|
adjustment |
|
Total |
|
Interest |
|
equity |
|
Balance December 31, 2005 |
|
|
1,090.5 |
|
|
|
-256.5 |
|
|
|
460.1 |
|
|
|
1,624.2 |
|
|
|
0.4 |
|
|
|
0.0 |
|
|
|
2,918.7 |
|
|
|
0.1 |
|
|
|
2,918.8 |
|
|
Net unrealized gains on securities, net
of EUR 0.0 deferred income tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.1 |
|
|
|
|
|
|
|
0.1 |
|
|
|
|
|
|
|
0.1 |
|
Foreign currency translation
adjustment net of EUR 0.0 deferred
income tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.5 |
|
|
|
1.5 |
|
|
|
|
|
|
|
1.5 |
|
Net income recognized directly in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.6 |
|
|
|
|
|
|
|
1.6 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
154.0 |
|
|
|
|
|
|
|
|
|
|
|
154.0 |
|
|
|
0.0 |
|
|
|
154.0 |
|
Total recognized income for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
155.6 |
|
|
|
|
|
|
|
155.6 |
|
Purchase of Treasury shares |
|
|
|
|
|
|
-58.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-58.7 |
|
|
|
|
|
|
|
-58.7 |
|
|
Balance March 31, 2006 |
|
|
1,090.5 |
|
|
|
-315.2 |
|
|
|
460.1 |
|
|
|
1,778.2 |
|
|
|
0.5 |
|
|
|
1.5 |
|
|
|
3,015.6 |
|
|
|
0.1 |
|
|
|
3,015.7 |
|
|
|
|
|
* |
|
Number of shares of common stock per March 31, 2005 amounted to 500,000,000 unchanged to December 31, 2005. |
|
** |
|
Number of shares of treasury stock per March 31, 2006 amounted to 20,483,610 compared to 17,497,106 per December 31, 2005 and 7,262,495 per March 31, 2005. |
Net Debt
|
|
|
|
|
|
|
|
|
(in EUR millions) |
|
March 31, 2006 |
|
|
December 31, 2005 |
|
|
Long-term debt |
|
|
2,489.3 |
|
|
|
2,557.7 |
|
Short-term borrowings |
|
|
615.1 |
|
|
|
704.1 |
|
- Short-term portion of capital and cross border lease |
|
|
-11.9 |
|
|
|
-9.4 |
|
+ Capital lease obligations |
|
|
0.2 |
|
|
|
0.6 |
|
Cash and cash equivalents, short-term and long term investments |
|
|
-110.3 |
|
|
|
-139.3 |
|
Financial instruments, included in other assets and other current assets |
|
|
-5.0 |
|
|
|
0.0 |
|
|
Net debt |
|
|
2,977.4 |
|
|
|
3,113.7 |
|
|
Net debt/equity |
|
|
98.7 |
% |
|
|
106.7 |
% |
|
TELEKOM
AUSTRIA AG
Reconciliation from Adjusted EBITDA to Net Income*
|
|
|
|
|
|
|
|
|
(in EUR millions) |
|
1Q 06 |
|
|
1Q 05 |
|
|
Adjusted EBITDA (excluding impairment charges)** |
|
|
504.3 |
|
|
|
432.5 |
|
Impairment charges |
|
|
-2.5 |
|
|
|
0.0 |
|
|
Consolidated adjusted EBITDA** (including impairment charges) |
|
|
501.8 |
|
|
|
432.5 |
|
Depreciation and amortization |
|
|
-280.2 |
|
|
|
-262.9 |
|
Interest income |
|
|
5.2 |
|
|
|
8.2 |
|
|
Interest expense |
|
|
-30.3 |
|
|
|
-34.7 |
|
|
Accretion expense |
|
|
-0.8 |
|
|
|
-0.8 |
|
Foreign exchange differences |
|
|
-0.2 |
|
|
|
0.0 |
|
Income/loss from investments |
|
|
-0.9 |
|
|
|
3.4 |
|
Equity in earnings of affiliates |
|
|
0.3 |
|
|
|
0.2 |
|
|
Income before income taxes |
|
|
194.9 |
|
|
|
145.9 |
|
Income tax expense |
|
|
-40.9 |
|
|
|
-35.3 |
|
|
Net Income |
|
|
154.0 |
|
|
|
110.6 |
|
|
|
|
|
* |
|
Consolidated 1Q 06 financial statements of Telekom Austria include financial figures for Mobiltel. Mobiltel financial results are not included in 1Q 05. |
|
** |
|
Adjusted EBITDA is defined as net income excluding interest, income tax expense, depreciation and amortization, impairment charges, equity in earnings of affiliates, income/loss
from investments and foreign exchange differences. This equals operating income before depreciation, amortization and impairment charges. |
Telekom Austria Group: Results for First Quarter 2006 15
Operating Results by Segment*
|
|
|
|
|
|
|
|
|
|
|
|
|
(in EUR million) |
|
1Q 06 |
|
|
1Q 05 |
|
|
% change |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Wireline |
|
|
534.9 |
|
|
|
530.2 |
|
|
|
0.9 |
% |
Wireless |
|
|
688.2 |
|
|
|
526.0 |
|
|
|
30.8 |
% |
Other & eliminations |
|
|
-64.5 |
|
|
|
-55.6 |
|
|
|
-16.0 |
% |
|
|
|
|
|
Totals revenues |
|
|
1,158.6 |
|
|
|
1,000.6 |
|
|
|
15.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
Wireline |
|
|
49.7 |
|
|
|
44.8 |
|
|
|
10.9 |
% |
Wireless |
|
|
171.4 |
|
|
|
124.3 |
|
|
|
37.9 |
% |
Other & eliminations |
|
|
0.5 |
|
|
|
0.5 |
|
|
|
0.0 |
% |
|
Consolidated operating income |
|
|
221.6 |
|
|
|
169.6 |
|
|
|
30.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA** |
|
|
|
|
|
|
|
|
|
|
|
|
Wireline |
|
|
210.4 |
|
|
|
220.1 |
|
|
|
-4.4 |
% |
Wireless |
|
|
293.6 |
|
|
|
212.1 |
|
|
|
38.4 |
% |
Other & eliminations |
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.0 |
% |
|
Consolidated adjusted EBITDA** |
|
|
504.3 |
|
|
|
432.5 |
|
|
|
16.6 |
% |
|
Capital expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
in EUR million |
|
1Q 06 |
|
|
1Q 05 |
|
|
% change |
|
|
Wireline tangible |
|
|
51.0 |
|
|
|
56.2 |
|
|
|
-9.3 |
% |
Wireless tangible |
|
|
52.7 |
|
|
|
48.8 |
|
|
|
8.0 |
% |
|
Tangible |
|
|
103.7 |
|
|
|
105.0 |
|
|
|
-1.2 |
% |
|
Wireline intangible |
|
|
9.5 |
|
|
|
7.5 |
|
|
|
26.7 |
% |
Wireless intangible |
|
|
8.6 |
|
|
|
6.7 |
|
|
|
28.4 |
% |
|
Intangible |
|
|
18.1 |
|
|
|
14.2 |
|
|
|
27.5 |
% |
|
Total |
|
|
121.8 |
|
|
|
119.2 |
|
|
|
2.2 |
% |
|
Personnel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel (full-time employees) |
|
End of period |
|
|
Average of period |
|
|
|
March 31, 2006 |
|
|
March. 31, 2005 |
|
|
change |
|
|
1Q 06 |
|
|
1Q 05 |
|
|
change |
|
|
Wireline |
|
|
9,552 |
|
|
|
9,639 |
|
|
|
-87 |
|
|
|
9,550 |
|
|
|
9,653 |
|
|
|
-103 |
|
Wireless |
|
|
5,961 |
|
|
|
3,622 |
|
|
|
2,339 |
|
|
|
6,058 |
|
|
|
3,616 |
|
|
|
2,442 |
|
|
Telekom Austria Group |
|
|
15,513 |
|
|
|
13,261 |
|
|
|
2,252 |
|
|
|
15,608 |
|
|
|
13,269 |
|
|
|
2,339 |
|
|
|
|
|
* |
|
Consolidated 1Q 06 financial statements of Telekom Austria include financial figures for
Mobiltel. Mobiltel financial results are not included in 1Q 05. |
|
** |
|
Adjusted EBITDA is defined as net income excluding interest, income tax expense, depreciation
and amortization, impairment charges, equity in earnings of affiliates, income/loss from
investments and foreign exchange differences. This equals operating income before
depreciation, amortization and impairment charges. |
16 Telekom Austria Group: Results for the First Quarter 2006
Operational Data Wireline
|
|
|
|
|
|
|
|
|
|
|
|
|
Lines and channels (in 000): |
|
March 31, 2006 |
|
|
March 31, 2005 |
|
|
% change |
|
|
PSTN access lines |
|
|
2,350.0 |
|
|
|
2,431.2 |
|
|
|
-3.3 |
% |
Basic ISDN access lines |
|
|
412.9 |
|
|
|
437.1 |
|
|
|
-5.6 |
% |
Multi ISDN access lines |
|
|
7.3 |
|
|
|
7.5 |
|
|
|
-2.8 |
% |
|
Total access lines |
|
|
2,770.2 |
|
|
|
2,875.9 |
|
|
|
-3.7 |
% |
Total access channels |
|
|
3,395.9 |
|
|
|
3,531.9 |
|
|
|
-3.8 |
% |
|
ADSL retail access lines |
|
|
501.9 |
|
|
|
349.0 |
|
|
|
43.8 |
% |
ADSL wholesale access lines |
|
|
114.1 |
|
|
|
94.9 |
|
|
|
20.2 |
% |
|
Total ADSL access lines |
|
|
616.0 |
|
|
|
443.9 |
|
|
|
38.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traffic minutes (in millions of minutes) during the period: |
|
1Q 06 |
|
|
1Q 05 |
|
|
% change |
|
|
National |
|
|
954 |
|
|
|
1,029 |
|
|
|
-7.2 |
% |
Fixed-to-mobile |
|
|
205 |
|
|
|
207 |
|
|
|
-1.1 |
% |
International |
|
|
109 |
|
|
|
115 |
|
|
|
-5.1 |
% |
|
Total voice minutes |
|
|
1,268 |
|
|
|
1,351 |
|
|
|
-6.1 |
% |
Internet dial up |
|
|
463 |
|
|
|
715 |
|
|
|
-35.2 |
% |
|
Total wireline minutes |
|
|
1,731 |
|
|
|
2,066 |
|
|
|
-16.2 |
% |
|
Total voice market share |
|
|
55.5 |
% |
|
|
55.0 |
% |
|
|
|
|
Total market share (incl. Internet dial up) |
|
|
55.9 |
% |
|
|
55.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average voice telephony tariff (EUR/min.) |
|
|
0.076 |
|
|
|
0.075 |
|
|
|
1.3 |
% |
Total average Internet dial-up tariff (EUR/min.) |
|
|
0.017 |
|
|
|
0.016 |
|
|
|
6.3 |
% |
ADSL ARPU residential |
|
|
29.0 |
|
|
|
32.1 |
|
|
|
-9.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2006 |
|
|
March 31, 2005 |
|
|
% change |
|
|
Internet subscribers in Austria (in 000) |
|
|
1,458.1 |
|
|
|
1,240.7 |
|
|
|
17.5 |
% |
Czech On Line customers (in 000) |
|
|
193.4 |
|
|
|
239.0 |
|
|
|
-19.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireline operating revenues (in EUR million) |
|
1Q 06 |
|
|
1Q 05 |
|
|
% change |
|
|
Switched voice traffic revenues |
|
|
99.8 |
|
|
|
101.6 |
|
|
|
-1.8 |
% |
Switched voice monthly rental & other voice telephony revenues |
|
|
133.2 |
|
|
|
139.2 |
|
|
|
-4.3 |
% |
Payphones & value added services |
|
|
10.8 |
|
|
|
12.6 |
|
|
|
-14.3 |
% |
Data & IT-solutions including wholesale |
|
|
103.6 |
|
|
|
102.8 |
|
|
|
0.8 |
% |
Internet access & media |
|
|
67.3 |
|
|
|
58.0 |
|
|
|
16.0 |
% |
Wholesale voice telephony & Internet |
|
|
92.3 |
|
|
|
88.2 |
|
|
|
4.6 |
% |
Other |
|
|
27.9 |
|
|
|
27.8 |
|
|
|
0.4 |
% |
|
Total wireline operating revenues |
|
|
534.9 |
|
|
|
530.2 |
|
|
|
0.9 |
% |
|
Telekom
Austria Group: Results for First Quarter
2006 17
Operational Data Wireless*
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless (EUR million) |
|
1Q 06 |
|
|
1Q 05 |
|
|
% change |
|
|
Revenues |
|
|
688.2 |
|
|
|
526.0 |
|
|
|
30.8 |
% |
Operating income |
|
|
171.4 |
|
|
|
124.3 |
|
|
|
37.9 |
% |
Adjusted EBITDA** |
|
|
293.6 |
|
|
|
212.1 |
|
|
|
38.4 |
% |
Data as a portion of traffic-related revenues |
|
|
20.9 |
% |
|
|
19.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless, on a comparable basis, excluding Mobiltel |
|
1Q 06 |
|
|
1Q 05 |
|
|
% change |
|
|
Revenues |
|
|
562.4 |
|
|
|
526.0 |
|
|
|
6.9 |
% |
Operating income |
|
|
127.9 |
|
|
|
124.3 |
|
|
|
2.9 |
% |
Adjusted EBITDA** |
|
|
216.6 |
|
|
|
212.1 |
|
|
|
2.1 |
% |
Data as a portion of traffic-related revenues |
|
|
23.1 |
% |
|
|
19.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2006 |
|
|
March 31, 2005 |
|
|
% change |
|
|
Subscribers (000) |
|
|
9,128.4 |
|
|
|
4,980.5 |
|
|
|
83.3 |
% |
Subscribers, on a comparable basis, excluding Mobiltel |
|
|
5,473.9 |
|
|
|
4,980.5 |
|
|
|
9.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
mobilkom austria*** (EUR million) |
|
1Q 06 |
|
|
1Q 05 |
|
|
% change |
|
|
Revenues |
|
|
434.2 |
|
|
|
423.2 |
|
|
|
2.6 |
% |
Operating income |
|
|
111.3 |
|
|
|
106.3 |
|
|
|
4.7 |
% |
Adjusted EBITDA** |
|
|
173.6 |
|
|
|
168.9 |
|
|
|
2.8 |
% |
Monthly ARPU (EUR) |
|
|
34.2 |
|
|
|
35.5 |
|
|
|
-3.7 |
% |
Data as a portion of traffic-related revenues |
|
|
21.5 |
% |
|
|
17.0 |
% |
|
|
|
|
Subscriber acquisition cost (SAC) |
|
|
19.1 |
|
|
|
23.4 |
|
|
|
-18.4 |
% |
Subscriber retention cost (SRC) |
|
|
14.7 |
|
|
|
17.0 |
|
|
|
-13.5 |
% |
Churn (3 months) |
|
|
4.4 |
% |
|
|
4.4 |
% |
|
|
0.0 |
% |
Monthly MOU charged/ø subscriber |
|
|
148.0 |
|
|
|
126.6 |
|
|
|
16.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2006 |
|
|
March 31, 2005 |
|
|
% change |
|
|
Subscribers (000) |
|
|
3,436.7 |
|
|
|
3,295.7 |
|
|
|
4.3 |
% |
Contract share |
|
|
57.6 |
% |
|
|
54.9 |
% |
|
|
|
|
Market share |
|
|
38.9 |
% |
|
|
40.4 |
% |
|
|
|
|
Market penetration |
|
|
107.7 |
% |
|
|
99.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobiltel (EUR million) |
|
1Q 06 |
|
|
1Q 05 |
|
|
% change |
|
|
Revenues |
|
|
126.9 |
|
|
|
118.0 |
|
|
|
7.5 |
% |
Operating income |
|
|
43.5 |
|
|
|
68.4 |
|
|
|
-36.4 |
% |
Adjusted EBITDA** |
|
|
77.0 |
|
|
|
79.9 |
|
|
|
-3.6 |
% |
Monthly ARPU (EUR) |
|
|
10.7 |
|
|
|
12.0 |
|
|
|
-10.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2006 |
|
|
March 31, 2005 |
|
|
% change |
|
|
Subscribers (000) |
|
|
3,654.5 |
|
|
|
3,143.3 |
|
|
|
16.3 |
% |
Contract share |
|
|
35.0 |
% |
|
|
34.4 |
% |
|
|
|
|
Market share |
|
|
56.0 |
% |
|
|
63.1 |
% |
|
|
|
|
Market penetration |
|
|
84.7 |
% |
|
|
63.2 |
% |
|
|
|
|
|
|
|
* |
|
Consolidated 1Q 06 financial statements of Telekom Austria include financial figures for
Mobiltel. Mobiltel financial results are not included in 1Q 05. |
|
** |
|
Adjusted EBITDA is defined as net income excluding interest, income tax expense, depreciation
and amortization, impairment charges, equity in earnings of affiliates, income/loss from
investments and foreign exchange differences. This equals operating income before
depreciation, amortization and impairment charges. |
|
*** |
|
The reported operating income represents the contribution of the subsidiaries to the
consolidated operating income of operations of Telekom Austria including amortization of fair
value adjustments resulting from past business combinations and therefore may deviate from the
results of the single financial statements. |
18 Telekom Austria Group: Results for the First Quarter 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
Vipnet* (EUR million) |
|
1Q 06 |
|
|
1Q 05 |
|
|
% change |
|
|
Revenues |
|
|
101.1 |
|
|
|
83.5 |
|
|
|
21.1 |
% |
Operating income |
|
|
14.3 |
|
|
|
15.4 |
|
|
|
-7.1 |
% |
Adjusted EBITDA** |
|
|
34.7 |
|
|
|
34.3 |
|
|
|
1.2 |
% |
Monthly ARPU (EUR) |
|
|
16.6 |
|
|
|
19.0 |
|
|
|
-12.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2006 |
|
|
March 31, 2005 |
|
|
% change |
|
|
Subscribers (000) |
|
|
1,661.9 |
|
|
|
1,316.8 |
|
|
|
26.2 |
% |
Contract share |
|
|
15.9 |
% |
|
|
14.9 |
% |
|
|
|
|
Market share |
|
|
43.3 |
% |
|
|
46.0 |
% |
|
|
|
|
Market penetration |
|
|
87.0 |
% |
|
|
64.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Si.mobil* (EUR million) |
|
1Q 06 |
|
|
1Q 05 |
|
|
% change |
|
|
Revenues |
|
|
26.9 |
|
|
|
21.6 |
|
|
|
24.5 |
% |
Operating income |
|
|
1.9 |
|
|
|
2.0 |
|
|
|
-5.0 |
% |
Adjusted EBITDA** |
|
|
7.5 |
|
|
|
6.9 |
|
|
|
8.7 |
% |
Monthly ARPU (EUR) |
|
|
18.1 |
|
|
|
15.0 |
|
|
|
20.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2006 |
|
|
March 31, 2005 |
|
|
% change |
|
|
Subscribers (000) |
|
|
370.9 |
|
|
|
364.5 |
|
|
|
1.8 |
% |
Contract share |
|
|
50.9 |
% |
|
|
43.2 |
% |
|
|
|
|
Market share |
|
|
23.0 |
% |
|
|
23.3 |
% |
|
|
|
|
Market penetration |
|
|
81.3 |
% |
|
|
78.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
mobilkom liechtenstein (EUR million) |
|
1Q 06 |
|
|
1Q 05 |
|
|
% change |
|
|
Revenues |
|
|
5.8 |
|
|
|
2.3 |
|
|
|
152.2 |
% |
Operating income |
|
|
0.6 |
|
|
|
0.6 |
|
|
|
0.0 |
% |
Adjusted EBITDA* |
|
|
0.8 |
|
|
|
0.7 |
|
|
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2006 |
|
|
March 31, 2005 |
|
|
% change |
|
|
Subscribers (000) |
|
|
4.4 |
|
|
|
3.5 |
|
|
|
25.7 |
% |
|
|
|
* |
|
The reported operating income represents the contribution of the subsidiaries to the
consolidated operating income of Telekom Austria including amortization of fair value
adjustments resulting from past business combinations and therefore may deviate from the
results of the single financial statements. |
|
** |
|
Adjusted EBITDA is defined as net income excluding interest, income tax expense, depreciation
and amortization, impairment charges, equity in earnings of affiliates, income/loss from
investments and foreign exchange differences. This equals operating income before
depreciation, amortization and impairment charges. |
Telekom Austria Group: Results for First Quarter 2006 19
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
|
|
|
|
TELEKOM AUSTRIA AG |
|
|
|
|
|
|
|
|
|
|
By: |
/s/ Heinz Sundt |
|
|
|
|
|
Name: Heinz Sundt
Title: Chief Executive Officer |
|
|
|
|
|
|
|
|
|
|
By: |
/s/ Stefano Colombo |
|
|
|
|
|
Name: Stefano Colombo
Title: Chief Financial Officer |
Date: May 18, 2006 |
|
|