Telekom Austria's A1 Group Reports Q1 2024 Results

Telekom Austria announced its financial results for the first quarter of 2024, showing a modest increase in total revenues of 0.7%, primarily driven by a 3.1% increase in service revenues year-over-year in all markets except Slovenia. The notable growth in service revenues comes from the solutions & connectivity and mobile business segments. However, a significant drop in equipment revenues by 9.8% year-over-year slightly offset these gains.

The company's EBITDA improved by 4.2% compared to Q1 2023. This increase occurred despite heightened core operating expenses, which were influenced by rising workforce and product-related costs. Adjusted for negative foreign exchange impacts, both total revenues and EBITDA excluding restructuring expenses saw an enhancement of 2.2% and 5.7%, respectively.

Furthermore, A1 Group continued its strategic investments by acquiring frequencies in the 26 GHz and additional regional frequencies in the 3.5 GHz spectrum in Austria during March 2024. Looking ahead, the company reaffirmed its financial outlook for 2024, anticipating revenue growth of 3-4% and capital expenditures (excluding spectrum) of approximately EUR 800 million.