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Telekom Austria Q4 sales down 5.6%, sees 3% drop in 2014

2014-02-26 09:13:00| Telecompaper Headlines

(Telecompaper) Telekom Austria Group reported fourth-quarter revenues down 5.6 percent from a year earlier to EUR 1.056 billion, hurt by regulatory price cuts, the shift to flat-rate pricing and negative currency effects. EBITDA declined 17.6 percent to EUR 252 million. The net loss narrowed to EUR 49.5 million from EUR 76.0 million a year ago, helped by lower depreciation and taxes. Revenues are expected to remain under pressure this year, dropping around 3 percent. The operator aims to limit the fall by continuing its focus on the high-end market and converged services in its more mature markets, Austria, Croatia and Bulgaria. To offset the increased marketing spend, the group targets operating cost and capex savings of EUR 100 million in 2014. Overall capex is estimated stable this year at EUR 700 million across the group, excluding any spending on the planned spectrum auctions in Slovenia and Bulgaria. Telekom Austria finished the year with net debt of EUR 3.696 billion or 2.9x EBITDA, up 13.8 percent from a year earlier. The company plans to focus on cash conservation in order to return its debt rating to the BBB level in the medium term. Operating cash flow was up 4.6 percent year-on-year to EUR 262 million. The dividend was reduced to EUR 0.05 per share, in line with the company's earlier outlook, and Telecom Austria said it expects to pay the same amount next year. 

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