Telekom Austria (TKA) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue rose 4.9% to €5.251bn; reported EBITDA increased 4.7% to €1.924bn, while adjusted EBITDA grew 5.1% to €2.008bn.

• FY net result increased 1.8% to €646mn; Q4 revenue rose 2.3% to €1.369bn and EBITDA increased 11.4% to €481mn.

• Q4 revenue grew 5.1% excluding FX; EBITDA increased 7.3% excluding restructuring, one-offs and FX.

Financial highlights

• FY service revenue rose 4.4% to €4.348bn; equipment revenue increased 7.9% to €811mn, and other operating income was €92mn.

• FY EBIT increased 4.5% to €911mn; EPS was €0.97 versus €0.95, and Q4 net result rose 10.3% to €145mn.

• FY reported EBITDA included €77mn negative FX, €34mn positive one-offs and €85mn restructuring charges; adjusted EBITDA was €2.008bn, up 5.1%.

• FY operating costs rose with electricity, workforce and product-related costs; positive one-offs were partly offset by negative FX effects.

• FY CAPEX was €1.093bn, up 15.7%, including €133mn for spectrum; excluding spectrum, CAPEX rose 2.6% to €959.6mn.

Outlook and guidance

• FY 2024 revenue growth guidance is 3–4%, mainly from service revenue growth across Austria and international markets; workforce and electricity costs are expected to pressure costs.

• FY 2024 CAPEX before spectrum is expected at €800mn, supporting fiber rollout and 5G expansion; spectrum tenders are expected in Austria, Bulgaria, Serbia and Slovenia.

• 2024–2026 annual ambitions are revenue growth of 3–4%, EBITDA growth of 4–5% and CAPEX of €2.8bn plus frequencies.

• Proposed FY 2023 dividend is €0.36 per share versus €0.32 for FY 2022, subject to approval; the 2024–2026 dividend baseline is €0.32.