Telekom Austria AG: Results for the First Half 2012

Vienna (pta005/16.08.2012/07:00 UTC+2) Highlights

> First half of 2012 results markedly impacted by heavy competition in major markets and macro-economic headwinds in CEE

> Almost stable Group EBITDA comparable margin reflects effective countermeasures taken in all segments

> Group Revenues decline by 4.9% to EUR 2,118.3 mn mostly due to lower revenues in the Austrian segment

> Intensified focus on cost control results in cost savings amounting to EUR 68.7 mn and dampens revenue pressure on Group EBITDA comparable

> New Ambition Program: rebalancing of initiatives protects target amount of approximately EUR 40 mn operating Free Cash Flow* target for 2012

Revised Group Guidance 2012:
> Revenues: approximately EUR 4.2 bn
> EBITDA comparable: EUR 1.40 bn to EUR 1.45 bn
> CAPEX**: EUR 0.70 bn to EUR 0.75 bn
> Operating Free Cash Flow*: EUR 0.70 bn - EUR 0.75 bn

> Dividend per share of EUR 0.38*** for 2012

in EUR million	Q2 2012	Q2 2011	% change	1-6 M 2012	1-6 M 2011	% change
Revenues	1,063.2	1,109.3	-4.2%	2,118.3	2,227.3	-4.9%
EBITDA comparable	364.8	380.8	-4.2%	726.2	777.6	-6.6%
Operating income	99.1	85.0	16.6%	211.1	42.7	n.m.
Net income	34.0	20.0	70.5%	80.9	-59.2	n.a.
Earnings per share (in EUR)	0.08	0.05	70.6%	0.18	-0.13	n.a.
Free cash flow per share (in EUR)	0.22	0.35	-36.7%	0.33	0.42	-21.7%
Capital Expenditures	185.1	156.7	18.1%	330.9	277.1	19.4%
in EUR million				30. June 2012	31. Dec 2011	% change
Net Debt				3,417.4	3,380.3	1.1%
Net Debt/EBITDA comparable (12 months) excluding restructuring program				2.3x	2.2x

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.
* Operating Free Cash Flow = EBITDA comparable - CAPEX (excluding investments for licenses and spectrum and acquisitions)
** Does not include investments for licenses and spectrum and acquisitions
*** Intension of proposal at AGM 2013

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