EANS-Adhoc: Telekom Austria AG / Results for the Full Year and the Fourth Quarter 2013

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annual result
26.02.2014

Vienna, 26 February 2014 - Today the Telekom Austria Group (VSE: TKA,
OTC US: TKAGY) announces its results for the full year and the fourth
quarter 2013, ending 31 December 2013.

Highlights for the Full Year 2013

> 3.4% revenue and 11.6% EBITDA comparable decline
driven by mature markets Austria, Bulgaria and Croatia while
Belarusian and Additional markets segments see continued growth

> Regulatory effects contribute EUR 122.1 mn to
revenue decline

> EUR 118.1 mn gross costs savings facilitate
investments into the premium mobile customer segment to target ARPU
decline in mature markets via higher subsidies

> Convergence strategy yields access line growth of
1,600 lines in Austria as well as growth of 1.4% and of 18.4% in
Bulgaria and Croatia respectively

> 10.1% and 6.3% revenue growth in Belarus and Additional Markets
segment

> Acquisition of YESSS! and other assets for approx. EUR 400
mn(1)

> EUR 1.03 bn spectrum acquisition in Austria bolsters strategic
network position for the future

> Downgrade to Baa2 (stable) and BBB- (stable) due to resulting higher
leverage

> A1 wins 'connect' network test

> Outlook 2014: Group revenue to decline by approx. 3%, CAPEX(2)
stable at approx. EUR 700 mn

> Proposed dividend: EUR 0.05/share for the years 2013 and 2014

respectively

in EUR million Q4 2013 Q4 2012* %change 1-12M 2013 1-12M 2012* %change
Revenues 1,055.7 1,117.8 -5.6% 4,183.9 4,329.7 -3.4%
EBITDA comparable 262.3 319.1 -17.8% 1,287.4 1,455.7 -11.6%
Operating income 32.8 69.0 -52.5% 377.6 457.1 -17.4%
Net income -49.5 -76.0 n.m. 109.7 104.0 5.5%
Cash flow generated from operations 262.0 250.6 4.6% 1,051.6 1,047.9 0.3%
Earnings per share (in EUR) -0.11 -0.17 n.m. 0.20 0.23 -16.7%
Free cash flow per share (in EUR) -2.31 0.03 n.m. -1.62 0.74 n.m.
Capital expenditures 1,286.1 238.8 n.m. 1,779.1 728.2 144.3%

in EUR million 31 Dec 2013 31 Dec 2012 %change
Net debt 3,695.8 3,248.9 13.8%
Net debt / EBITDA comparable (12 months) 2.9 2.2 28.6%

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.

(1) After purchase price adjustments (2) Does not include
investments for spectrum and acquisitions * As of 1 January 2013 IAS
19 - Employee Benefits (amended) - became effective. Accordingly, the
reported results for the interim and full year 2012 were adjusted
retrospectively

The Group Management Report for the full year 2013 can be found in
the Annual Report via the following link:
http://cdn1.telekomaustria.com/final/en/media/
pdf/TAG_AnnualReport_2013.pdf

For information regarding the quarterly results please see: http://
cdn1.telekomaustria.com/final/en/media/pdf/results-qu4-2013.pdf
_

Disclaimer for forward-looking statements:

This document contains forward-looking statements. These
forward-looking statements are usually accompanied by words such as
"believe", "intend", "anticipate", "plan", "expect" and similar
expressions. Actual events may differ materially from those
anticipated in these forward-looking statements as a result of a
number of factors. Forward-looking statements involve inherent risks
and uncertainties. A number of important factors could cause actual
results or outcomes to differ materially from those expressed in any
forward-looking statement. Neither Telekom Austria nor any other
person accepts any liability for any such forward-looking statements.
Telekom Austria will not update these forward-looking statements,
whether due to changed factual circumstances, changes in assumptions
or expectations. This report does not constitute a recommendation or
invitation to purchase or sell securities of Telekom Austria.

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