Telekom Austria nine-month profit plummets

Telekom Austria bounced back to profitability in the third quarter, however its net income in the nine months to end-September fell 73% year-on-year following a loss-making second quarter.
Net income in the third quarter hit €127.9 million, up 32.5% year-on-year and a vast improvement on the €59.9 million loss recorded in the second quarter. That loss looks to be the major factor in the plummeting nine-month figure – net income fell from €256.5 million at end-September 2010 to €68.7 million this year.
Revenue fell 6.2% year-on-year in the third quarter, and 4.1% over the nine months, while EBITDA was down 8.1% and 7.9% respectively. The Austrian incumbent blames tough domestic competition and a forex loss in Belarus for the declines, which come despite the firm growing mobile subscriber numbers, and increasing the number of fixed line broadband services it provides by almost 12,000 lines in Austria.

The firm is standing by a lowered full-year forecast of €4.5 billion in revenue and EBITDA of €1.5 billion. The outlook was cut from €4.6 billion and €1.6 billion respectively following the poor second quarter.