Telekom Austria Ag · VIE:TKA
Telekom Austria — Q4 2024 Earnings Presentation
21 slides from Telekom Austria's earnings presentation, Feb 11, 2025
Slide 1: Results for Q4 and the full year 2024
Draft for internal discussion Results for Q4 and the full year 2024 February, 11 2025 1 1
Slide 2: Cautionary statement
Cautionary statement This presentation contains forward-looking statements. These forward-looking statements are usually accompanied by words such as 'believe', 'intend', 'anticipate', 'plan', 'expect' and similar expressions. Actual events may differ materially from those anticipated in these forwa
Slide 3: Summary Q4
A1 Group Summary Q4 ▪ Service revenues +4.0% driven by CEE; growth in all markets ▪ EBITDA +7.1% ▪ FCF EUR 575 mn in FY 2024 (+62%) ▪ Strong equipment sales in Bulgaria, Belarus and Austria. ▪ Belarus: Administrative penalty converted into investments ▪ Convergent in all 7 core markets | A1 Serbia s
Slide 4: Customer development
Customer development Mobile subscribers (in thousand) RGUs (in thousand) Group ARPU and ARPL op.* +1.3% y-o-y 26,666 27,122 +2.2% +3.8% 25,245 25,441 25,949 6,271 6,267 6,283 6,293 6,352 30% 30% 31% 31% 32% 27.6 26.6 85% 86% 86% 85% 86% 44% 44% 44% 44% 44% 11.6 11.3 26% 26% 25% 25% 24% Q4 2023 Q1 20
Slide 5: Group Revenue development
Group Revenue development Unless otherwise stated, all amounts in EUR mn Q4 2024 Q4 2023 FY 2024 FY 2023 Service revenues 1,155 1,111 +4.0% 4,502 4,348 +3.5% Equipment revenues 289 234 +23.8% 813 811 +0.2% Other operating income 32 24 +29.0% 98 92 +5.9% Total revenues 1,476 1,369 +7.8% 5,413 5,251 +
Slide 6: Segment Austria in Q4 2024
Segment Austria in Q4 2024 AT Service revenues (EUR mn) Operations +1.0% − Mobile net adds 10k +0.7% w/o IB* − High-bandwidth BB and TV RGU growth 626 632 − Investments in the market | Increased subsidies for retention and acquisition Q4 2023 Q4 2024 International Business* Financials AT EBITDA (EUR
Slide 7: International Segments in Q4 2024
International Segments in Q4 2024 Revenues and EBITDA (EUR mn) Total international revenues growth 12% • Belarus & Bulgaria: Strong fixed BB and TV subs growth 20% 257 • Bulgaria: Large ICT deals 10% 15% 12%* • Croatia: Growth in retail mobile & fixed / ICT despite 24% 152 1%* 127 67% 9% investments
Slide 8: P&L Q4 and full year 2024
P&L Unless otherwise stated, all Q4 2024 Q4 2023 Δ FY 2024 FY 2023 Δ Q4 and full year 2024 amounts in EUR mn Revenues 1,476 1,369 +7.8% 5,413 5,251 +3.1% OPEX (961) (888) +8.2% (3,391) (3,327) +1.9% EBITDA 515 481 +7.1% 2,021 1,924 +5.1% OPEX increase in Q4: Margin 34.9% 35.2% –0.2pp 37.3% 36.6% +0.
Slide 9: Free Cash Flow
Free Cash Flow Q4 and full year 2024 Unless otherwise stated, all amounts Q4 2024 Q4 2023 Δ FY 2024 FY 2023 Δ in EUR mn EBITDA 515 481 7.1% 2,021 1,924 5.1% Free Cash Flow in FY 2024 higher due to Restructuring charges, cost of labor 26 39 -32.9% 91 92 -1.4% obligations Lease paid (principal, intere
Slide 10: Focus Points Q4
Focus Points O04
Slide 11: Focus topics Q4/2024
Draft for internal discussion Focus topics Q4/2024 Austria … to stay Infrastructure invest relevant for our customers Austria Restructuring 11 11
Slide 12: A1 Austria | Multi-technology strategy and diligent CAPEX spend
A1 Austria | Multi-technology strategy and diligent CAPEX spend 01 Fragmented market 02 High rollout costs 03 Mobile substitution Reinforced partnering Reprioritized rollout Fixed wireless access Targeted partnering with Lower rollout costs and Provide ‘fixed-like’ mobile selective networks increase
Slide 13: A1 Austria | Prioritizing sustainable growth over rapid deployment
A1 Austria | Prioritizing sustainable growth over rapid deployment Fibre 5G • Fixed | Monetizing investments by improving connect/pass 850k 86% ratio • Mobile | 5G | From pop coverage to capacity increase FTTP Homes passed YE24 Pop. Coverage YE24 Growth in advanced BB RGUs & ARPL € 38 X- & Up-sellin
Slide 14: AT Restructuring | long term transformation with mid-term positive impact on FCF
AT Restructuring | long term transformation with mid-term positive impact on FCF Constant decrease of civil servant … and lower EWFs, slowing down …resulting in mid-term share driven by social plans … inflation-driven TWC increase free cash flow upside Inflation 2.0% 8.6% 7.8% -21% 7.625 2.7% 2,014
Slide 15: Gain scale to further grow
Gain scale to further grow … investments in the markets are needed with a standardized delivery AT BLR BLG CRO A1D MAC SLO SRB • Build on our local sales Customer facing Sales asset LOCAL ALONG CUSTOMER JOURNEYS Product Ideation & Marketing • Investments in the markets Customer Service & Field Servi
Slide 16: Summary
Draft for internal discussion Summary Austria Infrastructure … to stay invest relevant for • Multitechnology strategy • X- & Up-selling beyond the our customers core Austria Restructuring Long term transformation with FCF mid-term upside 16 16
Slide 17: Outlook
Outlook
Slide 18: Guidance 2025
Draft for internal discussion Guidance 2025 Revenues CAPEX ex. spectrum 2-3% increase p.a. Around € 850 million Dividend for FY 2024 € 0.40 (previous year: 0.36) Dividend proposal by the management board to the AGM 2025 for the financial year 2024 18 18 15
Slide 19: Appendix
Appendix
Slide 20: Conservative financial policy and investment-grade ratings
Conservative financial policy and investment-grade ratings As of December 31, 2024 Overview (December 31, 2024) Lines of credit (December 31, 2024) Credit ratings • Total financial debt: EUR 749 mn • Total committed lines: EUR 1,315 mn A3/A- • Average cost of debt: 1.50% o Average term to maturity:
Slide 21: Draft for internal discussion
21 21 Draft for internal discussion