T

Telekom Austria AG
VSE:TKA

Watchlist Manager
Telekom Austria AG
VSE:TKA
Watchlist
Price: 9.42 EUR -0.95% Market Closed
Market Cap: €6.3B

Q1-2025 Earnings Call

AI Summary
Earnings Call on Apr 29, 2025

Solid Start: A1 began FY2025 with solid growth despite a challenging macro environment.

Revenue Growth: Total revenues and service revenues both rose nearly 4%.

Broad-Based Demand: Service revenues increased across all Central and Eastern European markets, boosted by broadband, digital B2B services, and TV.

Subscriber Growth: Mobile and TV customer bases grew by over 8%, while broadband customers increased by 3%.

Profitability: EBITDA increased by 5%, driven by service revenue and operational efficiencies.

Strong Cash Flow: Free cash flow exceeded EUR 150 million.

Guidance Maintained: Revenue growth guidance of 2–3% for 2025 was confirmed, with CapEx before spectrum expected around EUR 800 million.

Revenue and Market Performance

A1 delivered close to 4% growth in both total and service revenues for the first quarter of FY2025, reflecting solid operational performance despite ongoing macroeconomic and market challenges.

Geographic Demand Trends

Service revenues increased in all Central and Eastern European markets, benefiting from strong demand across high-speed broadband, B2B digital services, and TV products.

Subscriber Growth

Mobile customer base expanded by more than 8%, TV customers also grew by 8%, and broadband internet customers were up 3%, highlighting continued success in attracting and retaining users.

Operational Efficiency & Profitability

EBITDA rose by 5% due to solid service revenue growth and a continued focus on operational efficiencies, supporting profitability improvements.

Cash Flow

Free cash flow in the first quarter surpassed EUR 150 million, providing healthy financial flexibility.

Network Quality

A1 continued to receive external recognition for its network, including leading positions in network quality tests in Austria and Bulgaria.

B2B Digital Services Expansion

The company prioritized expanding its B2B digital service portfolio, launching a dedicated competence center to accelerate growth and delivery in this business segment.

2025 Outlook and Guidance

A1 confirmed its guidance for 2025, expecting revenue growth of 2% to 3% and capex before spectrum of around EUR 800 million, reflecting confidence in ongoing business momentum.

Mobile Customer Base Growth
More than 8%
No Additional Information
TV Customer Growth
8%
No Additional Information
Broadband Internet Customer Growth
3%
No Additional Information
Free Cash Flow
More than EUR 150 million
No Additional Information
Mobile Customer Base Growth
More than 8%
No Additional Information
TV Customer Growth
8%
No Additional Information
Broadband Internet Customer Growth
3%
No Additional Information
Free Cash Flow
More than EUR 150 million
No Additional Information

Earnings Call Transcript

Transcript
from 0
A
Alejandro Plater
executive

Welcome to the summary of A1 results for the first quarter.

T
Thomas Arnoldner
executive

Of the financial year 2025.

A
Alejandro Plater
executive

Despite a challenging macro and market environment, we started the year 2025 with a good solid performance. We are doing this by staying relevant to customers, always anticipated customer demands and technology trends, and by working together as a team as One A1.

This solid performance is reflected in a close to 4% growth both in total revenues and service revenues.

T
Thomas Arnoldner
executive

Service revenues increased in all our Central and Eastern European markets. Results once again benefited from solid demand for our high-speed broadband, B2B digital services and TV products supported by value protecting measures.

A
Alejandro Plater
executive

Also, our subscriber base continue to grow. In the mobile business, our customer base grew more than 8%. On the other hand, in the fixed-line business, TV customers were up by also 8%. The broadband Internet customer base also went up by 3%.

T
Thomas Arnoldner
executive

EBITDA grew by 5%, thanks to the solid service revenue development and our continued focus on increasing operational efficiencies.

The free cash flow amounted to more than EUR 150 million. The quality of our network continues to be recognized externally. A1 Austria topped the renowned cheap network test following multiple previous wins. A1 Bulgaria was ranked the fourth fastest mobile network worldwide by Okla.

A
Alejandro Plater
executive

Another focus area in the first quarter was to continuously add more capabilities in our B2B digital service portfolio with the aim to further accelerate growth in this area.

In order to accelerate execution on this business area, we have launched in the first quarter, a dedicated competent center for B2B digital services bundling our resources and know-how into one strong delivery center.

T
Thomas Arnoldner
executive

At the same time, our local presence is one of our key assets, and we want to build on it. Together, we will continue our growth path by constantly anticipating and challenging ourselves on how we can stay relevant for our customers.

A
Alejandro Plater
executive

For 2025, we confirm our guidance for revenue growth of 2% to 3%. CapEx before spectrum is expected to be around EUR 800 million.

Other Earnings Calls
Get AI-powered insights for any company or topic.
Open AI Assistant

Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett