A1 Telecom Austria grows rapidly in landline than mobile communication

The A1 Telecom Austria Group, which is active in seven European countries, greatly increased its number of mobile customers in 2024 and which of the landline connections can grow easily. However, the landline, which is owned by Mexican Amrika Mavil since 2014, has brought the company more sales than the mobile phone segment.

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He leaves from Tuesday A1 annual data published Outside. The company operates both mobile phones and zamindars in Austria, Bulgaria, Croatia, Northern Macedonia, Slovenia, Belarus and Serbia. In the latter country, however, the A1 fixed network services are available only from the beginning of 2025. Autumn in 2023, A1 divides the radio tower business in Austria, which complicates the comparison of the year. Until otherwise it is said, the following figures come from reporting provided for the financial law.

The annual turnover of the A1 Telecom Austria Group increased by 3.1 percent to 5.4 billion euros in 2024. Of these, 3.2 billion euros (+2.3%) come from mobile phone business, from landline (+4%) to 2.1 billion euros. The financial commercial figure in the telecom industry has increased by 5.1 percent to two billion euros. Operative cash flow has increased by 5.7 percent to 1.8 billion euros. However, the operating result fell 5.4 percent to 861 million euros.

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Radio shutdown effects

This deviation is particularly due to high depreciation on use rights, which in turn is due to the spin -off of Austrian radio towers. In the Euroketes AG (ETS), with the transfer of parts of the passive infrastructure of mobile radio stations, the contracts between A1 and ETS were finished leasing, as A1 continues to use the system for its mobile network Wants to keep These on one side of lease contracts (lease rates are paid) from the contracts that are paid), on the other to a property (right to use). These use rights should be written in the period of leasing contracts, so there are high depreciation.

The bottom line is that the spin -off of Austrian radio towers leads to a low profit, but the debt burden has to be demolished in the long term and each has high profit. The shares of the Eurokements AG were distributed to the A1 shareholders at that time in Autumn 2023. The new papers crashed immediately, but the ETS course has almost reached the expense level.

Since the A1 Telecom Austria Group 2024 had to pay taxes, the net result was not as much as the operating result. The decline of three percent means 627 million euros in the annual profit. Nevertheless, management suggests that the dividend should be raised in ninth place in 40 cents per share. Nevertheless, the A1 shares were given more than one percent on Tuesday. Incidentally, if the radio tower effect was considered by the 2023 A1 number, the 2024 net results would be instead of three percent of minus as a result of an increase of 12.5 percent.

More customer

In late 2024, the A1 Telecom Austria Group counted a 27.1 million mobile phone connection, an increase of 7.4 percent. The number of already paid connections is shrinking (prepaid), while development is not largely back to humans, but on machines (M2M): more and more machines are getting mobile phone connections.

The number of revenue producing units referred to as an unexpected landline connection has increased by 1.3 percent to 6.4 million. As already mentioned, there is a greater increase in sales of fixed networks than the sale of mobile phones (+2.3%) (+4%).

Austria Stays

In April, A1 used a inflation segment in the end customer contracts in April to increase prices for existing customers. This inspired some customers to replace the providers, but the total sales. For the whole year, A1 Telecom Austria can report an increase in sales of six per thousand to EUR 2.7 billion. Austrian contribution to group sales is 49 percent for the first time.

The Austrian division is still connected to the Austrian division 151 million euros (-3%) with transit and connection business with third countries. Overall, the annual sales increased by three per thousand to EUR 2.8 billion. Ebitda fell 2.3 percent to one billion euro, the operating result also declined by 21.5 percent to 387 million euros. Here are the effects of the radio shutdown discussed above.

The number of Austrian mobile phone connections remains stable, that is, climbed to 5.1 million per thousand. In 2023, there was still a small minus of six per thousand. Thanks to the minimum price increase, mobile phone turnover 2024 has increased by half percent to 1.3 billion euros.

A1 should report quick customer loss for Austrian landline. In 2023, 3.4 percent of the connections went offline, in 2024 it is 4.2 percent. This fall is not limited to net telephone connections, but also affects internet connections with low bandwidths. These customers are often cheap online with mobile radio routers. For high bandwidths, A1 can complete more landline contracts, which means the decline in sales in landline is limited to eight per thousand (now 1.4 billion euros). Accordingly, the A1 management will continue to invest in fiber optic connections in 2025, even if to some extent.

Slovenia shrinks, other countries grow

The A1 Telecom reports an increase by five of the other six markets in Austria sales and Ebitda. Both the major figures in Slovenia only develop negatively. There, flat rate mobile radio tariff is difficult in A1 contestants.

Overall, the network operator has implemented 2.6 billion euros in six countries outside Austria, which is an increase of 5.6 percent. Ebitda also jumped up to eleven percent, up to one billion euro. Of these, 513 million remain as an operating result, as an increase of 7.3 percent.

(DS)