Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on TELEKOM AUSTRIA AG. We currently have 9 research reports from 1 professional analysts.
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TELEKOM AUSTRIA AG
TELEKOM AUSTRIA AG
Increase in net income driven by a tax benefit
31 Jan 17
The company reported final 2016 results. In Q4 16, revenues declined 0.7% to €1,098m. The gross margin declined from 53.6% to 52.2% and the EBIT margin plummeted from 11.2% to 4.8%. EBIT dropped 57.7% to €2.4m mainly due to higher selling, general & administrative expenses. Net profit, however, increased 28.7% to €100.5m due to a tax benefit of €90m. This tax benefit was mainly related to the recognition of higher deferred tax assets on tax losses. Management is expecting higher tax results in the future within the Austrian tax group. In the financial year 2016, revenues increased 2.1% to €4.2bn. The increase was mainly driven by higher equipment revenues which jumped 15.2% to €450.2m. EBIT declined 14.9% to €486.7m and the EBIT margin from 13.9% to 11.6%. EBITDA declined 1.2% to €1.35bn. The negative roaming effect impacted EBITDA by €38m in 2016. The net income as reported increased 5.2% to €413.2m (including interest expenses for hybrid owners 5.5%). The increase was driven by a total tax benefit of €53.5m. Earnings before taxes dropped 13.7% to €359.7m.
Operating performance not really inspiring
28 Oct 16
In Q3 16, revenues increased 4.7% to €1.07bn. The increase was mainly driven by the strong equipment business. Equipment revenues grew 21.4% to €111.6m. Service revenues increased 3% to €961.6m although the retail roaming tariffs in the EU were abolished as of April 2016. EBITDA excluding extraordinary income of €34.8m remained stable at around €380.4m. The EBITDA margin declined from 37.4% to 35.4%. EBIT excluding extraordinaries also declined by 12.7% to €167.7m. The EBIT margin dropped from 18.7% to 15.6%.
Substantially higher dividend announced!
25 Jul 16
The company reported Q2 16 results. Revenues increased 3.5% to €1.03bn and EBIT declined 4% to €114.5m (estimate: €133.6m). Excluding the currency impact, revenues increased 2.6% and EBIT 4.7%. Based on pro-forma results which include M&A activities, total revenues declined marginally by 0.2% and EBITDA increased 0.7% to €329.3m (excluding the M&A impact +2.9%). The company faced ongoing challenges in the Austrian mobile market (price competition) and Eastern Europe. In addition, the abolishment of retail roaming in the EU as of 30 April, which mainly impacted Austria, overshadowed the operational improvements.
Still a long way to go!
28 Apr 16
Telekom Austria reported Q1 16 results. Revenues declined 2.2% to €1bn. EBIT plummeted by 15.6% to €117.2m and the EBIT margin declined from 13.4% to 11.6% due to negative currency effects mainly in Slowenia (€26m). Net income declined 12.6% from €92.7m to €81m excluding minorities. Including minorities and interest payments to hybrid bond holders, net income dropped 13.6% to €74.7m.
10 Feb 16
The company reported Q4 15 results. Revenues increased 4.5% to €1,076m and EBIT turned from a loss of €39.8m to a profit of €124m. EBITDA including effects from restructuring and impairment tests jumped 99% from €169.5m to €337.4m. Net income reached €84.3m compared to a loss of €48.9m in Q4 14. Average monthly revenue per user declined from €16.5 to €15.8 in Q4 15. In the financial year 2015, revenues remained stable at around €4.0bn (estimate: €4.07bn). The total number of mobile subscribers increased 3.5% to €20.7m. Operating income turned from a loss of €3m to a profit of €574m (estimate: €581m). Net income improved from a loss of €185.4m to a profit of €392.8m. This figure however still includes the interest expenses of around €33.8m to be paid to the hybrid bond holders. In 2014, the company booked impairment charges of around €340.6m in Bulgaria.
Performance stabilises in a volatile FX environment
23 Oct 15
In Q3 15 ending in September, revenues declined 3.5% to €1.01bn. The decline was mainly driven by the international markets where revenues declined 10.3% to €392m. EBITDA dropped 7.5% to €378.7m and EBIT only 5.5% to €189.1m. The EBITDA margin declined from 39% to 37.4% and the EBIT margin from 19.1% to 18.7%. Net income however improved by 7.3% to €137.1m. Revenues in the first nine months declined marginally by 1.2% to €2.95bn. Foreign currency contributed €72.2m negatively to growth. The gross margin dropped from 67.6% to 67%. EBITDA however improved 51.8% to €1.03bn and the EBITDA margin increased from 22.8% to a more normal rate of 35.1%. In the second quarter of 2015, the company faced impairment charges of around €340.5m. The number of subscribers in mobile increased 1.4% (mainly in Bulgaria and the Republic of Serbia) to 20.2m and 10.4% to 2.9m in the fixed-line business mainly driven by the acquisition of Amis in Slovenia. Net income turned from a loss of €155.4m to a profit of €283.1m.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
Ready to dominate TV distribution and prepared for new competition from Iliad
20 Feb 17
TI has released a good set of Q4 results: Revenues were up organically by 0.8% yoy (vs -5.2% in Q1, -4.2% in Q2 and -1.2% in Q3) while the EBITDA (excluding the negative impact of non-recurring items) has increased sharply by 5.9% yoy as in Q3 but vs a decline of 1.7% in H1! EBITDA has clearly benefited from the actions implemented in the “cost recovery plan” that started in Q2 in the Domestic Business and in Q3 in the Brazil Business. In Italy, revenues were up by 2.7% yoy (vs +1% in Q3 and -1.7% in the H1). The solid, structural recovery of Mobile revenues was confirmed, thanks both to the maintenance of market share and the stabilisation of ARPU levels. But the key point is the EBITDA which has grown by 8.4% (vs 7.9% in Q3, +6.9% in Q2 and -5.2% in Q1). Excluding non-recurring restructuring charges, EBITDA would have grown by +4.5% in 2016, with an EBITDA margin of 45.9%, up 1.9ppts on 2015. In Brazil, Q4 revenues were down organically and at constant change by only 1.7% yoy (vs -5.2% in Q3 and -14% in H1)! The main issue is that the total number of subscribers (c.63m with a market share of 26%) was still down by 4.3% vs end 2015. Note, however, that like its competitors the group has seen its prepaid customer base contract sharply in 2016, due to the adoption of a restrictive policy for the disconnection of inactive customers according to Anatel’s new criteria (the Brazilian National Telecommunications Agency). Q4 EBITDA was up by 2.8% yoy (vs +0.5% in Q3 and -10.9% in H1) with the start in Q3 of cost-cutting operations.
Ronez performing, debt facilities agreed
21 Feb 17
Confirming our view that Ronez is a high-quality maiden acquisition, SigmaRoc today announces that trading and operational performance at the verticallyintegrated aggregates business on the Channel Islands has been strong in the first few weeks of trading since the deal completed in early 2017. January sales volumes are reportedly above budget, a healthy order book is in place for the remainder of the quarter, and requisite back-office systems are being developed faster and at lower cost than initially anticipated. Furthermore, SigmaRoc has agreed terms with Santander Bank for a £2m revolving credit facility and is close to agreeing an £18m term facility – once finalized these debt facilities should see SigmaRoc sufficiently capitalized to progress initial projects in management’s pipeline of growth opportunities. We thus continue to believe that Ronez has potential to generate EBITDA to the group of at least £6m pa as efficiencies continue to be unlocked under the new independent ownership structure, providing SigmaRoc with a firm platform from which to leverage more acquisitions and/or organic investments and thus deliver further earnings growth as it progresses its niche buy-and-build strategy.
Small Cap Breakfast
09 Feb 17
GBGI—Schedule One from the integrated provider of international benefits insurance focused on providing tailored insurance products. Looking to raise £32m with admission expected 22 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management Ramsdens Holdings –Schedule One from the financial services provider and retailer, operating in the core business segments of foreign currency exchange, pawnbroking loans, precious metals buying and selling and retailing of second hand and new jewellery. Expected admission to AIM 15 Feb raising circa £15.6m. Expected mkt cap £26.5m.
New Screen – Consistent Growth + “11 with legs”
17 Dec 15
To represent the theme of “Consistent Growth”, we introduce our second basket of small-cap stocks selected by a screening process. This will sit alongside our first (deep value) basket introduced and described in our note dated 26th May 2015 (Our first screen – 10 deep value stocks to consider). The screening criteria address both the extent AND the quality of growth in EPS and sales, which we consider add a worthwhile additional element to stock selection. The process results in a basket of 25 stocks, the performance of which we will track over time, allowing comparison of investment styles, but also highlighting interesting companies. We have taken a closer look at 11 stocks “11 with legs” (see list on the right) in this screen.