Telekom Austria (TKA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues rose 2.1% year-over-year, driven by service revenue growth in all markets except Slovenia, while equipment revenues declined, mainly in Austria.

• EBITDA increased 5.1% in Q3 2024, with margin improving to 40.4%; adjusted EBITDA up 4.9% excluding one-offs, restructuring, and FX.

• Free cash flow surged 28.7% in the first nine months, mainly from lower CAPEX and improved operational results.

• Net result fell 10.8% in Q3 2024 due to higher D&A.

• Received a gold medal in the EcoVadis sustainability rating, ranking in the top 3% globally.

Financial highlights

• Q3 2024 total revenues: €1,354 million (+2.1%); service revenues: €1,151 million (+3.1%); equipment revenues: €180 million (-4.4%).

• Q3 2024 EBITDA: €548 million (+5.1%); Q1-Q3 2024 EBITDA: €1,506 million (+4.4%).

• Q3 2024 net result: €178 million (-10.8%); Q1-Q3 2024 net result: €441 million (-11.8%).

• Q3 2024 free cash flow: €173 million (+17.6%); Q1-Q3 2024 free cash flow: €348 million (+28.7%).

• Q3 2024 EBITDA margin: 40.4% (+1.1pp); Q1-Q3 2024 EBITDA margin: 38.3% (+1.1pp).

Outlook and guidance

• 2024 guidance reaffirmed: total revenue growth of 3-4% and CAPEX (excluding spectrum and M&A) around €800 million.

• Outlook based on current inflation and exchange rate expectations.

• Plans to expand B2B digital services and invest in market efficiency to maintain relevance and future-proof the business.