Telekom Austria Group: Strong International Growth Counteracts Challenging Domestic Market

Telekom Austria AG (VSE: TKA;NYSE: TKA) today announced its results for the first quarter 2007 ending March 31, 2007.
    Beginning with 1Q 07 the Telekom Austria Group reports three segments.
Fixed Net comprises primarily the former Wireline segment, whereas Mobile
Communication encompasses the former Wireless segment. In addition, the
Telekom Austria Group also reports a third segment Corporate consisting of
all non-operative functions related to the governance of the Telekom
Austria Group. Prior years have been adjusted for comparison.
    During 1Q 07 revenues remained almost stable at EUR 1,145.8 million
compared to 1Q 06, with higher revenues in the Mobile Communication segment
almost offsetting lower revenues in the Fixed Net segment.
    Revenues in the Fixed Net segment declined by 4.5% to EUR 510.8 million
in 1Q 07 due to lower revenues from Switched Voice, which were partly
offset by higher revenues in Data & IT solutions and Internet Access &
Media. Mobile Communication revenues rose by 0.9% to EUR 694.1 million in
the reporting quarter compared to 1Q 06 as a result of rising monthly
rental, traffic and other revenues.
    Operating income before depreciation, amortization and impairment
charges (adjusted EBITDA) declined by 5.8% to EUR 474.9 million in 1Q 07
impacted by lower revenues in the Fixed Net segment, higher marketing
expenses in the Mobile Communication segment and start-up costs for the
operations in the Republic of Serbia.
    Operating income decreased by 4.9% to EUR 210.7 million during the
reporting period. The decline in operating income of the Mobile
Communication segment due to higher depreciation and amortization charges
for investments in the mobile networks was accompanied by stable operating
income of the Fixed Net segment due to lower depreciation and amortization
charges.
    Net income was lower by 4.4% at EUR 147.2 million in the reporting
quarter due to the lower operating income. Earnings per share remained
stable at EUR 0.32 as a result of previous share buybacks. Cash flow from
operations per share increased by 22.0% to EUR 0.81 per share also as a
result of previous share buybacks.
    Capital expenditures for tangible and intangible assets increased from
EUR 121.8 million in 1Q 06 to EUR 167.3 million in 1Q 07 as a result of the
rollout of HSDPA and HSUPA in Austria, infrastructure investments of EUR
7.5 million in the Republic of Serbia and license costs of EUR 10 million
in the Republic of Macedonia.
    Net debt decreased by 5.2% to EUR 3,003.6 million as of end of March
2007 in comparison to end of December 2006 primarily due to strong free
cash flow generation. The net debt to equity ratio (net gearing) was 103.0%
compared to 112.2% at the end of December 2006.

   

Six in frame for Macedonia’s fourth mobile licence

According to the Macedonian Electronic Communications Agency, six firms have expressed an interest in bidding for the country’s fourth mobile licence. The companies to have submitted a letter of interest are believed to include two unnamed domestic concerns, and four international ones, drawn from India, Russia, Switzerland and ,Germany. The regulator published its intention to search for a fourth mobile operator on 3 April and set a deadline of 10 May for applications. It is looking to beef up competition in the mobile market which is dominated by T-Mobile Macedonia (formerly MobiMak) and Cosmofon. A third player, Austria’s Mobilkom, is due to enter the market in September.

   

Six companies consider bidding for Macedonia’s fourth mobile operator

Six companies from home and abroad have shown their interest in becoming Macedonia’s fourth mobile operator, news from Skopje reported on Friday.

Two Macedonian companies and four foreign ones — from India, Russia, Switzerland and Germany — have submitted a letter of interest, Macedonian Electronic Communications Agency said in a statement.

The agency published a notice about the project on April 3, with an application deadline on May 10, Macedonia’s official news agency MIA reported. The Macedonian government decided to set up the fourth operator in order to increase competitiveness in the sector and to keep the price down.

Two mobile companies — T-Mobile and Kosmofon — are now operating in the Macedonian market, while the third one — Austria ‘s Mobilkom — will launch its services in Macedonia in the coming September.

   
 

Government now calling for 4th mobile operator in Macedonia

Telegeography writes…In the wake of the successful award of a third mobile licence to Mobilkom of Austria in January this year, the Macedonian government has reportedly announced its intention to license a fourth mobile network operator to further boost competition in the sector. According to a report from Skopje-based Makfax online, the regulator, the Agency for Electronic Communications, will issue a public notice on the introduction of fourth mobile operator, subject to it receiving interest from bidders in the international community. The terms and criteria for the fourth network operator will be specified in due course.

According to TeleGeography’s GlobalComms database, Prime Minister Nikola Gruevski announced plans to license a third mobile operator to compete with the country’s two incumbents — T-Mobile Macedonia (formerly MobiMak) a wholly owned subsidiary of national PTO T-Com Macedonia, and Cosmofon, run by Greek telco OTE’s mobile arm Cosmote in September 2006. The tender began in December 2006, under the terms and conditions of which the successful bidder was required to pay a one-off upfront payment of at least EUR5 million for rights to the frequency spectrum. Two months later, Mobilkom of Austria’s bid to become the country’s third mobile operator was approved by the government. The Austrian firm was the sole company to enter a bid, offering EUR10 million (USD13 million) for the ten-year (renewable) GSM licence.

 

Mobile Cellular Statistics (Free)

Mobile cellular subscribers
    Cellular mobile subscribers As % of total
        CAGR Telephone
    (k) (%) subscribers
    2000 2005 2000 – 05 2005
1 Algeria 86 13’661.4 175.5 84.2
2 Angola 25.8 1’611.1 128.6 94.3
3 Benin 55.5 750 68.3 90.8
4 Botswana 222.2 823.1 29.9 86.2
5 Burkina Faso 25.2 633.6 90.5 87.4
6 Burundi 16.3 153 56.5 78.4
7 Cameroon 103.3 2’252.5 85.2 95.7
8 Cape Verde 19.7 81.7 32.9 53.4
9 Central African Rep. 5 100 82.3 90.9
10 Chad 5.5 210 107.2 94.2
11 Comoros - 16.1 - 48.7
12 Congo 70 490 47.6 96.9
13 Congo (Dem. Rep.) 15 2’746.0 183.5 99.6
14 C´te d’Ivoire 473 2’349.4 37.8 90.1
15 Djibouti 0.2 44.1 186.1 80.3
16 Egypt 1’359.9 13’629.6 58.6 56.7
17 Equatorial Guinea 5 96.9 80.9 90.6
18 Eritrea - 40.4 - 51.7
19 Ethiopia 17.8 410.6 87.4 40.2
20 Gabon 120 652.3 40.3 94.3
21 Gambia 5.6 247.5 113.3 84.9
22 Ghana 130 2’842.4 85.3 89.8
23 Guinea 42.1 189 35 85.5
24 Guinea-Bissau - 95 - 90.3
25 Kenya 127.4 4’612.0 105 94.2
26 Lesotho 21.6 249.8 63.2 83.9
27 Liberia 1.5 160 154.5
28 Libya 40 234.8 55.7 14.5
29 Madagascar 63.1 510.3 51.9 88.4
30 Malawi 49 429.3 54.4 80.7
31 Mali 10.4 869.6 142.4 92.1
32 Mauritania 15.3 745.6 117.6 94.8
33 Mauritius 180 656.8 29.5 64.8
34 Mayotte - 48.1 -
35 Morocco 2’342.0 12’392.8 39.5 90.2
36 Mozambique 51.1 1’220.0 88.6 94.6
37 Namibia 82 495 43.3 78.1
38 Niger 2.1 299.9 170.9 92.6
39 Nigeria 30 18’587.0 261.8 93.8
40 R©union 276.1 579.2 20.3
41 Rwanda 39 290 49.4 85.8
42 S. Tom© & Principe - 12 - 52.3
43 Senegal 250.3 1’730.1 47.2 86.6
44 Seychelles 26 57 17 72.7
45 Sierra Leone 11.9 113.2 111.7
46 Somalia 80 500 44.3 83.3
47 South Africa 8’339.0 33’960.0 32.4 87.8
48 Sudan 23 1’827.9 139.9 73.2
49 Swaziland 33 200 43.4 85.1
50 Tanzania 110.5 3’389.8 98.3 95.6
51 Togo 50 436 54.2 87.4
52 Tunisia 119.2 5’680.7 116.6 81.9
53 Uganda 126.9 1’315.3 59.6 93.8
54 Zambia 98.9 946.6 57.1 90.9
55 Zimbabwe 266.4 668.1 20.2 67.1
  Africa 15’668.7 137’342.5 54.4 83.3
           
           
Mobile cellular subscribers
    Cellular mobile subscribers As % of total
        CAGR Telephone
    (k) (%) subscribers
    2000 2005 2000 – 05 2005
56 Antigua & Barbuda 22 86 31.3 70.8
57 Argentina 6’488.0 22’156.4 27.8 70.1
58 Aruba 15 134.4 55 78.1
59 Bahamas 31.5 186 55.9 57.1
60 Barbados 28.5 206.2 48.6 60.5
61 Belize 16.8 119.6 48 77.7
62 Bermuda 13 49 39.3
63 Bolivia 582.6 2’421.4 33 78.9
64 Brazil 23’188.2 86’210.0 30 68.4
65 Canada 8’727.0 17’017.0 14.3 45
66 Chile 3’401.5 10’569.6 25.5 75.5
67 Colombia 2’256.8 21’850.0 57.5 74
68 Costa Rica 211.6 1’101.0 39.1 44.2
69 Cuba 6.5 135.5 83.4 13.7
70 Dominica 1.2 41.8 143 66.6
71 Dominican Rep. 705.4 3’623.3 38.7 80.2
72 Ecuador 482.2 6’246.3 66.9 78.8
73 El Salvador 743.6 2’411.8 26.5 71.3
74 French Guiana 39.8 98 25.2
75 Grenada 4.3 43.3 78.2 57
76 Guadeloupe 169.8 314.7 16.7
77 Guatemala 856.8 4’510.1 39.4 78.3
78 Guyana 39.8 281.4 47.8 71.9
79 Haiti 55 400 64.2 74.1
80 Honduras 155.3 1’281.5 52.5 72.2
81 Jamaica 367 2’804.4 50.2 89.8
82 Martinique 162.1 295.4 16.2
83 Mexico 14’077.9 47’141.0 27.3 70.7
84 Neth. Antilles 30 200 60.7
85 Nicaragua 90.3 1’119.4 65.4 83.5
86 Panama 410.4 1’351.9 26.9 75.4
87 Paraguay 820.8 1’887.0 18.1 85.5
88 Peru 1’273.9 5’583.4 34.4 71.3
89 Puerto Rico 926.4 2’682.0 30.4 70.7
90 St. Kitts and Nevis 1.2 10 69.9 28.6
91 St. Lucia 2.5 93 147
92 St. Vincent and the Grenadines 2.4 70.6 97.3 75.8
93 Suriname 41 232.8 41.5 74.2
94 Trinidad & Tobago 161.9 800 37.7 71.2
95 United States 109’478.0 213’000.0 14.2 54.8
96 Uruguay 410.8 1’154.9 23 53.4
97 Venezuela 5’447.2 12’495.7 18.1 77.6
98 Virgin Islands (US) 35 64.2 16.4 47.5
  Americas 181’981.1 472’479.8 21 61.5
           
Mobile cellular subscribers
    Cellular mobile subscribers As % of total
        CAGR Telephone
    (k) (%) subscribers
    2000 2005 2000 – 05 2005
99 Afghanistan - 1’200.0 - 92.3
100 Armenia 17.5 320 78.9 25.9
101 Azerbaijan 420.4 2’242.0 39.8 67.2
102 Bahrain 205.7 748.7 29.5 79.2
103 Bangladesh 279 9’000.0 100.3 89.4
104 Bhutan - 37.8 - 53.6
105 Brunei Darussalam 95 232.9 19.6 73.5
106 Cambodia 130.5 1’062.0 52.1 97
107 China 85’260.0 393’428.0 35.8 52.9
108 D.P.R. Korea - -
109 Georgia 194.7 1’459.2 49.6 55.2
110 Hong Kong, China 5’447.3 8’693.4 9.8 69.6
111 India 3’577.1 90’000.0 90.6 64.4
112 Indonesia 3’669.3 46’910.0 66.5 78.6
113 Iran (I.R.) 962.6 7’222.5 49.6 27.6
114 Iraq - 574 - 35.7
115 Israel 4’400.0 7’757.0 12 72.5
116 Japan 66’784.4 96’484.0 7.6 62.4
117 Jordan 388.9 1’624.1 42.9 71.8
118 Kazakhstan 197.3 4’955.2 90.5 52.5
119 Korea (Rep.) 26’816.4 38’342.3 7.4 61.8
120 Kuwait 476 2’379.8 38 82.3
121 Kyrgyzstan 9 541.7 126.9 55.2
122 Lao P.D.R. 12.7 638.2 119 89.4
123 Lebanon 743 990 5.9 50
124 Macao, China 141.1 532.8 30.4 75.3
125 Malaysia 5’121.7 19’545.0 30.7 81.7
126 Maldives 7.6 202.1 92.5 86.2
127 Mongolia 154.6 557.2 29.2 78.1
128 Myanmar 13.4 183.4 68.8 26.7
129 Nepal 10.2 227.3 85.9 31.9
130 Oman 162 1’333.2 52.4 83.4
131 Pakistan 306.5 12’771.2 110.8 70.8
132 Palestine 175.9 1’094.6 44.1 75.8
133 Philippines 6’454.4 34’779.0 40.1 91.2
134 Qatar 120.9 716.8 42.8 77.7
135 Saudi Arabia 1’375.9 13’300.0 57.4 77.8
136 Singapore 2’747.4 4’384.6 9.8 70.4
137 Sri Lanka 430.2 3’361.8 50.9 73
138 Syria 30 2’950.0 150.3 50.4
139 Taiwan, China 17’873.8 22’170.7 4.4 62
140 Tajikistan 1.2 265 196.3 16.3
141 Thailand 3’056.0 27’378.7 73 80.1
142 Turkmenistan 7.5 50.1 60.8 2.4
143 United Arab Emirates 1’428.1 4’534.5 26 78.6
144 Uzbekistan 53.1 720 68.4 15.7
145 Viet Nam 788.6 9’593.2 64.8 37.7
146 Yemen 32 2’000.0 128.7 57.3
  Asia 240’579.0 879’493.9 29.6 59.5
           
           
Mobile cellular subscribers
    Cellular mobile subscribers As % of total
        CAGR Telephone
    (k) (%) subscribers
    2000 2005 2000 – 05 2005
147 Albania 29.8 1’259.6 155 82.1
148 Andorra 23.5 64.6 22.4 64.6
149 Austria 6’117.0 8’650.0 7.2 69.8
150 Belarus 49.4 4’098.0 142 55.5
151 Belgium 5’629.0 9’460.0 10.9 66.5
152 Bosnia and Herzegovina 93.4 1’594.4 76.4 62.2
153 Bulgaria 738 6’244.9 53.3 71.5
154 Croatia 1’033.0 3’649.7 28.7 66
155 Cyprus 218.3 718.8 26.9 63.1
156 Czech Republic 4’346.0 11’775.9 22.1 78.5
157 Denmark 3’363.6 5’449.2 10.1 61.9
158 Estonia 557 1’445.3 21 76.6
159 Faroe Islands 17 42 19.9 63.8
160 Finland 3’728.6 5’270.0 7.2 71.3
161 France 29’052.4 48’099.0 10.6 58.8
162 Germany 48’202.0 79’200.0 10.4 59
163 Greece 5’932.4 10’260.4 11.6 61.9
164 Greenland 16 32.2 19.1
165 Guernsey 21.9 43.8 19 49.3
166 Hungary 3’076.3 9’320.0 24.8 73.5
167 Iceland 214.9 304 7.2 61.1
168 Ireland 2’461.0 4’270.0 11.7 67.5
169 Italy 42’246.0 72’200.0 11.3 74.2
170 Jersey 44.7 83.9 17
171 Latvia 401.3 1’871.6 36.1 71.9
172 Liechtenstein 10 27.5 22.4 57.9
173 Lithuania 524 4’353.4 52.7 85.2
174 Luxembourg 303.3 720 18.9 74.6
175 Malta 114.4 324 23.1 61.6
176 Moldova 139 1’089.8 51 54
177 Monaco 13.9 17.2 4.3 33.6
178 Netherlands 10’755.0 15’834.0 8 67.6
179 Norway 3’224.0 4’754.5 8.1 69.3
180 Poland 6’747.0 29’166.4 34 71.1
181 Portugal 6’665.0 11’447.3 11.4 73
182 Romania 2’499.0 13’354.1 39.8 75.3
183 Russia 3’263.2 120’000.0 105.6 75
184 Serbia and Montenegro 1’303.6 5’229.0 32 63.8
185 Slovak Republic 1’243.7 4’540.4 29.6 79.1
186 Slovenia 1’215.6 1’759.2 7.7 68.3
187 Spain 24’265.1 41’327.9 11.2 69.3
188 Sweden 6’372.3 9’087.0 7.4 63.3
189 Switzerland 4’638.5 6’834.0 8.1 57
190 TFYR Macedonia 115.7 1’261.3 61.2 70.3
191 Turkey 16’133.4 43’609.0 22 69.7
192 Ukraine 818.5 17’214.3 83.9 53.1
193 United Kingdom 43’452.0 65’500.0 8.6 67.3
  Europe 291’428.7 682’857.6 18.6 67.8
           
           
Mobile cellular subscribers
    Cellular mobile subscribers As % of total
        CAGR Telephone
    (k) (%) subscribers
    2000 2005 2000 – 05 2005
194 American Samoa 2 2.2 3.1 17.9
195 Australia 8’562.0 18’420.0 16.6 64.5
196 Fiji 55.1 205 30.1 64.6
197 French Polynesia 39.9 87 16.9 62
198 Guam 27.2 98 37.8
199 Kiribati 0.3 0.6 19.7
200 Marshall Islands 0.4 0.6 9.6 11.8
201 Micronesia - 14.1 - 53.1
202 New Caledonia 49.9 134.3 21.9 70.8
203 New Zealand 1’542.0 3’530.0 18 67.1
204 Northern Marianas 3 20.5 61.6
205 Papua New Guinea 8.6 75 54.4 54.1
206 Samoa 2.5 24 57.2 55.2
207 Solomon Islands 1.2 6 39.1 44.8
208 Tonga 0.2 29.9 178 68.5
209 Vanuatu 0.4 12.7 103.4 64.6
  Oceania 10’294.6 22’659.9 17.1 64.9
   
           
Mobile cellular subscribers
    Cellular mobile subscribers As % of total
        CAGR Telephone
    (k) (%) subscribers
    2000 2005 2000 – 05 2005
  WTI 739’952.1 2’194’833.7 24.3 63.5
           
Source: ITU      

Cosmote posts better than expected 9M results

OTE’s wireless arm Cosmote has reported a 7.3% increase in net profit for the first nine months of 2006, to EUR273.9 million (USD350 million), beating analysts’ consensus expectations of EUR258.8 million. Revenues climbed 26.2% year-on-year to EUR1.63 billion while EBITDA rose by 12.9% to EUR643.1 million. Of the total turnover, EUR1.22 billion was generated by its Greek operation, up 7% on the same period of 2005. In terms of subscribers, Cosmote Greece claimed over five million subscribers at the end of September, up 11% year-on-year. Outside of its domestic market Cosmote operates in four countries: Albania (via AMC), Bulgaria (Globul), Macedonia (Cosmofon) and Romania (Cosmote). In Bulgaria Cosmote reported strong subscriber additions including a recond number of post-paid additions, while in Macedonia, Cosmofon achieved a positive net income result for the first time.

Source-  telegeography   

Cosmote nears 10 million subscribers

Mobile operator Cosmote is nearing 10 million subscribers across its operations in five countries of southeast Europe. The company reported 26.7 percent growth in the number of subscribers over the 12 months to end-September to almost 10 million. In the third quarter, group revenues rose 18.4 percent from a year earlier to EUR 593.5 million, and EBITDA improved 11 percent to EUR 248.6 million. Net profit was up 21 percent to EUR 117 million. The growth came form a strong performance in Cosmote’s home market Greece and at Globul in Bulgaria, as well as a turn to profitability in Macedonia. In Romania, revenues were up sharply, while losses widened due to the continued expansion of activities.

Source-  telecompaper