Telekom Austria Ag · VIE:TKA
Telekom Austria — Q2 2024 Earnings Presentation
19 slides from Telekom Austria's earnings presentation, Jul 16, 2024
Slide 1: Results for Q2 2024 and H1 2024
Results for Q2 2024 and H1 2024
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 Q2 2024
A1 Group Summary Q2 2024 • Total revenues up +1.3% driven by service revenue growth (+3.9% yoy) in all markets except Belarus and Slovenia; strong decline in equipment revenues. • Service revenue growth driven by value-protecting measures, and strong fixed-line performance in international segments.
Slide 4: Customer-related information
Customer-related information Mobile subscribers (in thousand) RGUs (in thousand) Q2 ‘24 Group ARPU and ARPL (in EUR) 6,249 6,250 6,271 6,267 6,283 26.5 27.7 25,131 25,245 25,441 25,949 24,486 27% 27% 26% 26% 25% 85% 86% 11.4 11.8 84% 84% 86% 43% 43% 44% 44% 44% 30% 30% 30% 30% 31% Q2 2023 Q3 2023 Q4
Slide 5: Group revenues
Group revenues Unless otherwise stated, all amounts in EUR mn Q2 2024 Q2 2023 H1 2024 H1 2023 Service revenues 1,124 1,082 +3.9% 2,195 2,120 +3.5% Equipment revenues 168 194 -13.4% 344 389 -11.6% Other operating income 24 23 +3.3% 44 47 -6.5% Total revenues 1,316 1,299 +1.3% 2,583 2,557 +1.0% Servic
Slide 6: Segment Austria in Q2 2024
Segment Austria in Q2 2024 Key Points AT Service revenues (EUR mn) +0.4% − Total revenues decrease: Q2 2023 profited from large ICT deals +0.9% w/o IB* (visible in lower equipment and solutions & conn. revenues) − Service revenue growth in mobile and fixed profiting from value 620 622 protecting mea
Slide 7: International segments in Q2 2024
International segments in Q2 2024 Highlights Revenues and EBITDA (EUR mn) Total revenues grew driven by higher service revenues clearly overcompensating the losses in equipment revenues. +4.3% +5.4% • Bulgaria: Strong growth in fixed, mobile and ICT: upselling, value- 191 +10.6% (BYN) -2.9% protecti
Slide 8: P&L Q2 2024 - below EBITDA
P&L Unless otherwise stated, all amounts in EUR mn Q2 2024 Q2 2023 H1 2024 H1 2023 Revenues 1,316 1,299 +1.3% 2,583 2,557 +1.0% Q2 2024 - below EBITDA OPEX (812) (813) –0.2% (1,624) (1,635) –0.6% Restructuring (18) (17) +6.9% (39) (38) 2.6% EBIT declined due to D&A: EBITDA 504 486 +3.8% 959 922 +4.0
Slide 9: Free cash flow
Free cash flow Unless otherwise stated, all amounts in EUR mn Q2 2024 Q2 2023 H1 2024 H1 2023 Free Cash Flow in H1 2024 higher EBITDA 504 486 3.8% 959 922 4.0% due to Restructuring charges, cost of labor 19 18 5.2% 41 41 1.4% obligations • substantially lower CAPEX due to Lease paid (principal, inte
Slide 10: Focus points
Focus points 10 Results presentation: Q2 2024
Slide 11: Austria: More challenging market environment
Austria: More challenging market environment Mobile market Fixed market • MVNOs: Attractive offers & intense • Fiber roll-out accelerated but needs communication from MVNOs time to be effective • Price sensitivity due to inflation • Higher number of infrastructure players • SIM-only market share inc
Slide 12: Austria – Striking a balance between revenue market share and customer growth
Austria – Striking a balance between revenue market share and customer growth Net adds back to growth in Q2 2024 Net adds – Internet@home subscribers Service revenue drivers (excl. int. business) 1,158 1,138 Jun-23 Dec-23 Jun-24 Back to growth +1.8% in Q2‘24 H1 2023 Mobile Fixed BB Fixed IC Sol & Co
Slide 13: Accelerating internal transformation with a Competence Delivery Center (CDC)
Accelerating internal transformation with a Competence Delivery Center (CDC) • Repurposing costs (indirect to direct) to exploit opportunities & invest in the market • One CDC with different delivery centers (DCs), from 7 local to 1 international team i.e. • Efficiency gains and employee cost reduct
Slide 14: Outlook
Out look 14 Results presentation: Q2 2024
Slide 15: Guidance 2024
Guidance 2024 Total revenues +3-4% CAPEX (excl. spectrum) Around EUR 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:
Slide 16: Appendix
App endix 16 Results presentation: Q2 2024
Slide 17: A1 ambitions 2024-2026
A1 ambitions 2024-2026 Revenues EBITDA CAPEX 3-4% increase p.a. 4-5% increase p.a. EUR 2.8 bn plus frequencies Based on current inflation and exchange rate expectations Based on current inflation and exchange rate expectations Dividend baseline EUR 0.32 Based on the Group's operational and financial
Slide 18: Conservative financial policy and investment-grade ratings
Conservative financial policy and investment-grade ratings As of June 30, 2024 Overview (June 30, 2024) Lines of credit (June 30, 2024) Credit ratings • Total financial debt: EUR 748 mn • Total committed lines: EUR 1,315 mn A3/A- • Average cost of debt: 1.50% o Average term to maturity: 1.76 years B
Slide 19: Thank you