EANS-Adhoc: Telekom Austria AG / Telekom Austria Group - Results for the first half of 2014 (Ad-hoc)

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
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announcement.
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Earnings
13.08.2014

Dear Sir or Madam,

Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces
its results for the first half of 2014, ending 30 June 2014.

Highlights

> Group revenues decline by 7.3% and EBITDA comparable declines by 7.2%,
mainly driven by regulation, macro-economic effects in CEE as well as
extraordinary effects of EUR 28.2 mn net in Austria

> Clean*: Group revenues -4.1% and Group EBITDA comparable flat at -0.1%

> Group EBITDA comparable margin remains flat at 31.9% and increases to
33.2% on a clean basis*

> Austria benefits from successful strategy implementation: regulation and
extraordinary effects account for most of revenue decline; cost cuts and subsidy
reductions result in strong EBITDA comparable trends (-0.2% excluding
extraordinary effects)

> Bulgaria: Macro effects and fierce competition drive customer and
revenue decline in fixed and mobile; EUR 400 mn impairment due to adjustment of
WACC and medium-term expectations

> Croatia: solid fixed-line performance cannot offset regulatory cuts and
effects of mobile competition; spectrum fee introduced in June will burden
EBITDA comparable as of H2 2014

> Belarus and Additional Markets segment achieve revenue and EBITDA
comparable growth

> Spectrum prolongations and acquisitions in Bulgaria and Slovenia
strengthen network

> Next step in implementation of successful convergence strategy:
Acquisition of cable operator blizoo in the Republic of Macedonia in June
(closed in July)

> Commitment to broadband funding announced by Austrian government as of
2016

> Group outlook for FY 2014 refined: Revenues of approx. -3.5% (from
approx. -3.0%), CAPEX** of EUR 650 - 700 mn (from approx. EUR 700 mn), intended
dividend of EUR 0.05/share

in EUR million Q2 2014 Q2 2013 %change 1-6M 2014 1-6M 2013 %change
Revenues 963.0 1,043.2 -7.7% 1,939.0 2,092.3 -7.3%
EBITDA comparable 299.4 330.3 -9.3% 619.4 667.2 -7.2%
Operating income -320.0 105.5 n.m. -222.6 223.3 n.m.
Net income -358.6 52.5 n.m. -317.8 108.0 n.m.

Cash flow generated from operations 224.5 302.2 -25.7% 373.4 494.0 -24.4%
Earnings per share (in EUR) -0.82 0.10 n.m. -0.75 0.21 n.m.
Free cash flow per share (in EUR) -0.01 0.29 n.m. 0.11 0.39 -71.9%
Capital expenditures 229.5 176.4 30.1% 329.0 325.4 1.1%

in EUR million 30 June 2014 31 Dec 2013 %change
Net debt 3,688.1 3,695.8 -0.2%
Net debt / EBITDA comparable (12 months) 3.0 2.9

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.
* Excluding extraordinary effects in Austria and FX translation effects

** Does not include investment for spectrum and acquisitions

Further information about the results can be found here:
http://www.telekomaustria.com/en/ir/interim-results

The earnings release can be found here: http://cdn1.telekomaustria.co
m/final/en/media/pdf/results-qu2-2014.pdf

Kind regards,
Telekom Austria Group Investor Relations

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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.

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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