Telekom Austria Ag · VIE:TKA
Telekom Austria — Q4 2023 Earnings Presentation
21 slides from Telekom Austria's earnings presentation, Feb 13, 2024
Slide 1: Results for Q4 2023 and FY 2023
Results for Q4 2023 and FY 2023
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: Highlights Q4 2023
A1 Group Highlights Q4 2023 • Total revenues +2.3% (+5.1% in CCY) driven by service revenues growth in all markets in CCY • increased mobile service revenues, solid traction of solution & connectivity business and tailwind from value protecting measures implemented in most markets • EBITDA before re
Slide 4: Customer-related information
Customer-related information Mobile subscribers (in thousand) RGUs (in thousand) Q4 ‘23 Group ARPU and ARPL* (in €) 26.4 26.9 ▲ ▲ 0.5% 0.3% 25,131 25,245 6,249 6,250 6,271 22,766 23,897 24,116 24,486 6,050 6,077 6,204 6,220 21,864 24% 27% 27% 28% 28% 29% 29% 11.2 11.7 82% 83% 84% 84% 84% 84% 80% 42%
Slide 5: Group revenues
Group revenues Unless otherwise stated, all amounts in € mn Q4 2023 Q4 2022 FY 2023 FY 2022 Service revenues 1,111 1,081 +2.8% 4,348 4,164 +4.4% Equipment revenues 234 235 -0.6% 811 752 +7.9% Other operating income 24 22 +12.7% 92 89 +3.6% Total revenues 1,369 1,338 +2.3% 5,251 5,005 +4.9% Service r
Slide 6: Segment Austria in Q4 2023
Segment Austria in Q4 2023 Highlights Service revenues (€ mn) − Value-protecting measures, solid mobile core and solutions business overcompensating losses in IC and fixed-voice revenues +1.8% • Mobile: 615 626 − Continued demand for high value hardware tariffs and netcubes − Improved availability o
Slide 7: International segments in Q4 2023
International segments in Q4 2023 Highlights Revenues and EBITDA (€ mn) Growing service revenues and EBITDA in all markets except FX driven decline in Belarus. +14.2% 213 +10.8% (BYN) +12.1% +1.1% • Bulgaria: strong results driven by upselling and value protecting 137 -16.9% (BYN) measures as well a
Slide 8: P&L
P&L Unless otherwise stated, all amounts in € mn Q4 2023 Q4 2022 FY 2023 FY 2022 Revenues 1,369 1,338 +2.3% 5,251 5,005 +4.9% FY 2023 OPEX (888) (906) –2.0% (3,327) (3,167) +5.1% Total Costs and Expenses – operationally higher; Restructuring (32) (23) +38.3% (85) (73) 16.8% driven by the increased e
Slide 9: Free cash flow
Free cash flow Unless otherwise stated, all amounts in € mn Q4 2023 Q4 2022 FY 2023 FY 2022 EBITDA 481 432 +11.4% 1.924 1.838 4,7% Free Cash Flow was lower vs FY Restructuring charges, cost of 2022, due to payments for spectrum 39 28 +40.0% 92 74 +24.7% labor obligations fee, higher lease payments a
Slide 10: Focus points
Focus points 10 Results presentation: Q4 2023
Slide 11: A1 successfully spun-off tower business in Q3 2023
A1 successfully spun-off tower business in Q3 2023 On September 22, 2023, the former tower business of Telekom Austria AG (Towers business) was listed on the Vienna Stock Exchange under the newly established EuroTeleSites AG. Rationale: Focus on core telecoms business | Efficient budget allocation |
Slide 12: Austria: Continued investments in fiber and 5G network expansion
Austria: Continued investments in fiber and 5G network expansion Current status Way forward Fiber roll-out on track FTTH: ▪ 73,000 km fiber network in Austria ▪ Scale up in the build-out phase, perform Fiber ▪ EUR 234 mn subsidies granted from BBA 2030 optimization in the last mile 5G: FTTH utilizat
Slide 13: Belarus: Focus on efficient growth to mitigate macro and regulatory headwinds
Belarus: Focus on efficient growth to mitigate macro and regulatory headwinds Macro Financials Focus on efficient growth Depreciation of BYN/EUR: ▪ General ban on price increases to 8.4% 12.7% address inflation 3.85 3.45 Revenues ▪ Industry-wide regulatory measures 2023 still in place, weighing on E
Slide 14: AI in A1 Group: Leverage experience and use cases
AI in A1 Group: Leverage experience and use cases with proven feasibility and high value potential Marketing/Sales Advanced analytics & AI Transformation ▪ Extension of activities into Business Area ▪ Deeper personalization in customer contact @A1 Group Customer Experience ▪ Improvement of experienc
Slide 15: Outlook
Out look 15 Results presentation: Q4 2023
Slide 16: Guidance '24
Guidance ‘24 Total revenues +3-4% CAPEX (excl. spectrum) Around € 800 million ▪ CAPEX: excl. spectrum at around EUR 800 million ▪ A1 Group remains committed to fiber-rollout program in Austria at an unchanged pace ▪ Revaluation of non-business-critical projects both in Austria and CEE ▪ Dividend: Pr
Slide 17: Appendix
App endix 17 Results presentation: Q4 2023
Slide 18: A1 ambitions 2024-2026
A1 ambitions 2024-2026 Revenues EBITDA CAPEX 3-4% increase p.a. 4-5% increase p.a. € 2.8 bn plus frequencies Based on current inflation and exchange rate expectations Based on current inflation and exchange rate expectations Dividend baseline € 0.32 Based on the Group's operational and financial dev
Slide 19: Conservative financial policy and investment-grade ratings
Conservative financial policy and investment-grade ratings As of December 31, 2023 Overview (December 31, 2023) Lines of credit (December 31, 2023) Credit ratings • Total financial debt: € 808 mn • Total committed lines: € 1,415 mn Average cost of debt: 1.71% o Average term to maturity: A3/A- • 2.2
Slide 20: Overview: Restructuring charges and provision vs. FTE
Overview: Restructuring charges and provision vs. FTE Overview restructuring charges (in EUR mn) FTEs addressed 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 Transfer to government 6 3 0 0 0 0 0 0 FTE reduction 95.0 9.1 70.1 100.2 91.3 95.1 100.7 72.4 Social plans 2
Slide 21: Thank you