Telekom Austria AG: Results for the first nine months 2011

Results for the third quarter 2011

Vienna, Austria (pta006/14.11.2011/07:00 UTC+1) Highlights
> Demand for fixed broadband and product bundles drives fixed access line
growth of 11,700 lines in Austria
> Mobile broadband, smartphones and no frills drive mobile subscriber growth in
all operations
> Further convergence milestone: B.net cable acquisition in Croatia
> Group revenue decline and lower Group EBITDA comparable mainly driven by competition in Austria and FX devaluation in Belarus
> In Q3 2011 slight rise in Group revenues and almost stable Group EBITDA comparable excluding FX translation effects due to strong operational performance and strict focus on cost control
> Subscriber growth and increased usage translate into strong revenue and EBITDA comparable growth in the Additional Markets segment
> Guidance 2011 reiterated: Group revenues approximately EUR 4.50 bn, Group EBITDA comparable up to EUR 1.55 bn
> Dividend floor of EUR 0.76 reiterated for the years 2011 and 2012

in EUR million	Q3 2011	Q3 2010	% change	1-9 M 2011	1-9 M 2010	% change
Revenues	1,111.4	1,185.4	-6.2%	3,338.7	3,480.1	-4.1%
EBITDA comparable	412.9	449.1	-8.1%	1,190.4	1,292.5	-7.9%
Operating income	166.1	176.0	-5.6%	208.8	476.4	-56.2%
Net income	127.9	96.5	32.5%	68.7	256.5	-73.2%
Earnings per share (in EUR)	0.29	0.22	32.7%	0.16	0.58	-73.2%
Free cash flow per share (in EUR)	0.44	0.51	-13.9%	0.86	1.36	-36.5%
Capital Expenditures	177.8	146.8	21.1%	454.9	443.3	2.6%
in EUR million				Sept. 30, 2011	Dec. 31, 2010	% change
Net Debt				3,488.6	3,305.2	5.5%
Net Debt/EBITDA comparable (12 months) excluding restructuring program				2.3x	2.0x

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 amortization, restructuring and impairment charges.

The full report and further information is available on our website under http://www.telekomaustria.com/ir/publications-cc-en.php

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