Telekom Austria Group: Significant Increase in Results Trough Strong Contribution from all Group Operations

VIENNA, Austria, March 6  /PRNewswire-FirstCall/ -- Telekom Austria AG (VSE: TKA; NYSE: TKA) today announced its results for the Financial Year 2006 and the fourth quarter ending December 31, 2006.

Year-on-year comparison:

During 2006, revenues increased by 9.0% to EUR 4,759.6 million. Operating income grew by 24.6% to EUR 772.4 million as a result of strong contribution of the wireline and wireless segments.

Operating income before depreciation, amortization and impairment charges (adjusted EBITDA) increased by 8.4% to EUR 1,906.8 million including exceptional items for the amount of EUR 26.5 million for a voluntary termination and option incentive program and a newly introduced employee participation program.

Net income grew by 37.4% to EUR 561.8 million during 2006. Earnings per share increased by 41.7% to EUR 1.19 compared to 2005.

Capital expenditure for tangible and intangible assets increased by 58.8% to EUR 996.7 million during 2006 mainly due to the acquisition of the 3rd mobile license in Serbia for EUR 320 million.

Net debt increased by 1.8% to EUR 3,169.0 million at the end of 2006 following the acquisition of the license in Serbia.

The management board of the Telekom Austria Group will recommend to the annual general meeting to increase the dividend by 36.4% to EUR 0.75 compared to the last year.

Quarterly comparison:

Revenues increased by 2.6% to EUR 1,199.3 million during 4Q 06 compared to 4Q 05.

Operating income rose by 28.7% to EUR 76.7 million during the reporting period as a result of an increase in wireless operating income by 5.7% as well as a lower operating loss in the wireline segment. Adjusted EBITDA declined by 1.7% to EUR 375.1 million in 4Q 06 due to exceptional items for the amount of EUR 26.5 million recorded in 4Q 06. This amount included EUR 16.4 million for a voluntary termination and option incentive program and EUR 10.1 million for a newly introduced employee participation program.

Net income rose significantly by 63.6% to EUR 63.3 million in 4Q 06 due to a higher operating income as well as positive effect of reforms in income tax in the amount of EUR 34.9 million in Bulgaria and Slovenia. Earnings per share increased by 55.6% to EUR 0.14 in 4Q 06.

Capital expenditure for tangible and intangible assets increased from EUR 249.6 million to EUR 575.3 million during 4Q 06 compared to the fourth quarter of the previous year due to the acquisition of the license in Serbia for EUR 320 million.

For more detailed information about the financial results for the full year 2006 please refer to the corresponding interim report on Telekom Austria's website at http://www.telekom.at/results-2006

  Contacts:

  Elisabeth Mattes               Peter Zydek
  Group Spokeswoman              Head of Investor Relations
  Phone: [phone]        Phone: [phone]
  E-Mail:      E-Mail: 

DATASOURCE: Telekom Austria Gruppe



CONTACT:  Elisabeth Mattes, Group Spokeswoman, [phone],

; Peter Zydek, Head of Investor Relations,

[phone],  



Web site: http://www.telekom.at/results-2006 

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