The Telekom Austria Group has reported a slight decrease in revenues for 2010 but has reported doubling of its net profits.
The company’s revenues for 2010 dropped by 3.1% to US$6.34 billion while profits increased by 106% to US$266 million. Net debt also fell by 9% to US$4.5 billion.
Austria (-4%), Bulgaria (-8%) and Croatia (-5%) showed a slight decline in revenues, whereas Belarus and the Additional Markets segments (Slovenia, Republic of Serbia, Republic of Macedonia and Liechtenstein) recorded a growth of 14% and 8% respectively.
According to Hannes Ametsreiter, CEO Telekom Austria Group, for the first time in 13 years, they were able to return to fixed line customer growth. This demonstrates the effectiveness of their convergence strategy, which they are currently dedicated to implementing in their two largest markets Austria and Bulgaria.
Hannes added that against the backdrop of a challenging market environment,they have adopted the necessary measures – such as the merger of their fixed line and mobile communication operations in Austria – to realize selective growth opportunities going forward. In the years to come, they will have to tackle a number of issues with regard to regulation and competition.
However, they are confident to achieve their targets over the mid-term. The main goal is to secure the Group’s market leadership in Central and Southeastern Europe and to become the most efficient and innovative telecom operator in this region.
At year-end 2010, the Telekom Austria Group had 22 million customers across its operations in 8 countries of Central and Southeastern Europe, a market with 41 million inhabitants.