EANS-Adhoc: Telekom Austria AG / Results for the First Half 2013

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Mid Year Results/6-month report
12.08.2013

Vienna, 12 August 2013 - The Telekom Austria Group (VSE: TKA, OTC US:
TKAGY) today announces its results for the first half 2013 ending 30
June 2013.

Highlights

> Group revenues decline by 1.2% year-on-year driven by regulatory burden,
fierce competition and macroeconomic headwinds in CEE

> EUR 75.5 mn Group gross cost savings help mitigate higher upfront costs
for customer acquisition, retention and marketing activities, and limit EBITDA
comparable decline to 8.1%

> Austria: Launch of new A1 and bob tariffs reflects high-value focus;
higher subsidies squeeze EBITDA comparable margin to 29.4%

> Bulgaria: Two-thirds of revenue decline caused by MTR cuts while price
pressure continues amidst political woes

> Croatia: Cost savings initiatives and one-time effects lead to a rise in
the EBITDA comparable margin

> Continued revenue and EBITDA comparable growth in Belarus and the
Addi-tional Markets segment

> 2013 Group guidance refined: Revenues of approx. EUR 4.1 bn reiterated
and CAPEX* outlook refined to EUR 650 - 700 mn

in EUR million Q2 2013 Q2 2012 %change 1-6M 2013 1-6M 2012 %change
Revenues 1,043.2 1,063.2 -1.9% 2,092.3 2,118.3 -1.2%
EBITDA comparable 330.3 364.8 -9.5% 667.2 726.2 -8.1%
Operating income 105.5 99.1 6.4% 223.3 211.1 5.8%
Net income 52.5 34.0 54.2% 108.0 80.9 33.5%
Earnings per share
(in EUR) 0.10 0.08 29.4% 0.21 0.18 16.4%
Free cash flow per
share (in EUR) 0.29 0.22 30.6% 0.39 0.33 17.8%
Capital
expenditures 176.4 185.1 -4.7% 325.4 330.9 -1.7%

in EUR million 30 June 13 31 Dec 12 %change
Net debt 2,843.4 3,248.9 -12.5%
Net debt / EBITDA comparable (12 months) 2.0x 2.2x

All financial figures are based on IFRS; if not stated otherwise, all
comparisons are given year-on-year. EBITDA comparable is defined as net income
excluding financial result, income tax expense, depreciation and amortisation,
restructuring and impairment charges.

* Does not include investments for licenses and spectrum nor
acquisitions.

The earnings release is available here:
http://www.telekomaustria.com/dateien/results-qu2-2013.pdf.

For further information, please see here:
http://www.telekomaustria.com/ir/current-results.php.

Further inquiry note:
Matthias Stieber
Director Investor Relations
Tel.: +43 (0) 50 664 39126
mailto: matthias.stieber@telekomaustria.com

end of announcement euro adhoc
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issuer: Telekom Austria AG
Lassallestrasse 9
A-1020 Wien
mail: investor.relations@telekomaustria.com
WWW: www.telekomaustria.com/ir
sector: Telecommunications
ISIN: AT0000720008
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien
language: English