Telekom Austria Group: Q1 08 Driven by Consolidation of MDC and Strong International Contribution

VIENNA, Austria, May 14  /PRNewswire-FirstCall/ -- - Both segments contribute to revenue growth of 9.9% to EUR 1,259.6 million

- EBITDA grows by 4.7% to EUR 498.6 million driven by strong mobile operations and consolidation of MDC

- Mobile communication subscriber base rises by 50.2% to 15.9 million customers

- Fixed Net access line loss halved to 32,400, broadband net adds increase by 138.9% 

  - Fixed Net broadband lines increase by 13.3% to 817,600
  - Outlook for full year 2008 reiterated


- Proposal of at least stable dividend per share of 75 cents planned for 2008

Telekom Austria Group (VSE: TKA, OTC US: TKAGY) today announced its results for the first quarter 2008 ending March 31, 2008.

Revenues increased by 9.9% to EUR 1,259.6 million in 1Q 08 compared to 1Q 07 driven by the consolidation of MDC and eTel as well as by the strong performance of international operations. EBITDA grew by 4.7% to EUR 498.6 million mainly due to the consolidation of MDC and higher contributions from the established mobile communication operations.

Operating income increased by 1.5% to EUR 215.2 million despite higher depreciation and amortization expenses due to the contribution of acquisitions and start-up operations.

Net income decreased by 11.9% to EUR 129.7 million during 1Q 08 mainly due to higher interest expenses following the acquisition of MDC. Earnings per share decreased by 8.4% to EUR 0.29 as a lower average number of outstanding shares as a consequence of treasury shares acquired in 2007 partly compensated for lower net income.

Capital expenditures for tangible and intangible assets decreased by 4.6% to EUR 159.6 in 1Q 08 due to lower intangible capital expenditures in Mobile Communication. The acquisition of a licence for the Republic of Macedonia for EUR 10.0 million was included in 1Q 07 which more than offset the increase in intangible capital expenditures in Fixed Net. Tangible capital expenditures remained stable.

In line with the focus on deleveraging net debt decreased by 3.8% to EUR 4,237.8 million at the end of March 2008 compared to the end of December 2007. Therefore, net debt to EBITDA (last 12 months) decreased from 2.4x to 2.3x.

For more detailed information about the first quarter 2008 please refer to the corresponding report on Telekom Austria Group's website at http://www.telekomaustria.com/interim_reports

  Contacts:

  Elisabeth Mattes
  Group Spokeswoman
  Phone: [phone]
  E-Mail: 

  Peter Zydek
  Head of Investor Relations
  Phone: [phone]
  E-Mail: 

DATASOURCE: Telekom Austria Group



CONTACT:  Contacts: Elisabeth Mattes, Group Spokeswoman, Phone:

[phone], E-Mail: ; Peter Zydek, Head of

Investor Relations, Phone: [phone], E-Mail:

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