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

August 12, 2014

PR Newswire/euro adhoc/ EANS-Adhoc: Telekom Austria AG / Telekom Austria Group - Results for the first half of 2014 (Ad-hoc) ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement. 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: The earnings release can be found here: Kind regards, Telekom Austria Group Investor Relations --- 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: issuer: Telekom Austria AG Lassallestrasse 9 A-1020 Wien mail: WWW: sector: Telecommunications ISIN: AT0000720008 indexes: WBI, ATX Prime, ATX stockmarkets: official market: Wien language: English The content and accuracy of news releases published on this site and/or distributed by PR Newswire or its partners are the sole responsibility of the originating company or organisation. Whilst every effort is made to ensure the accuracy of our services, such releases are not actively monitored or reviewed by PR Newswire or its partners and under no circumstances shall PR Newswire or its partners be liable for any loss or damage resulting from the use of such information. All information should be checked prior to publication.

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