Telekom Austria Group Net Profit Down on Aquisition Costs

Telekom Austria Group has reported that during the first half 2008, revenues grew by 7.7% to EUR 2,54 billion (US$3.7 billion) primarily due to the consolidation of Velcom in Belarus and to higher contributions from the other international operations. Operating income fell by 4.9% from EUR 410.2 million (US$603 million) to EUR 389.9 million (US$573 million) due to higher depreciation and amortization charges. Net income declined by 18.6% to EUR 226 million (US4332 million) due to higher interest expenses mainly as a result of the acquisition of Velcom. EBITDA grew by 2.7% to EUR 967.7 million (US$1.4 billion) as a result of an EBITDA growth in the international operations and the consolidation of Velcom which more than offset a lower contribution from the Fixed Net segment. EBITDA includes exceptional costs in the amount of... [read full story]