Telekom Austria (TKA) Q1 2025 earnings summary

Executive summary

• Total revenue grew by 3.7% year-over-year, driven by both service and equipment revenues in CEE markets, while Austria saw a slight decline.

• EBITDA increased 5.2% year-over-year (8.1% excluding restructuring), reflecting higher service revenues and cost efficiencies.

• Free cash flow surged to EUR 153 million, up 197% year-over-year, supported by improved operational results, lower CAPEX, and favorable working capital changes.

• Mobile subscribers grew 8.4% year-over-year, mainly due to M2M business; fixed broadband and TV RGUs increased 2.6% and 7.5%, respectively.

• Launched a dedicated competence center for B2B digital services to accelerate growth in this segment.

Financial highlights

• Total revenues reached EUR 1,314 million (+3.7% year-over-year); service revenues were EUR 1,108 million (+3.5%).

• EBITDA was EUR 478 million (+5.2% year-over-year); EBITDA margin improved to 36.4% (+0.5pp).

• Net result increased 7.1% to EUR 125 million; net margin rose to 9.5%.

• Free cash flow margin improved to 11.7% from 4.1% in Q1 2024.

• Net debt/EBITDA (incl. leases) at 1.0x as of March 31, 2025.

Outlook and guidance

• 2025 revenue growth guidance of 2–3% confirmed.

• CAPEX (excluding spectrum) expected at around EUR 800 million, down from previous guidance of EUR 850 million.