euro adhoc: Telekom Austria AG / Quarterly or Semiannual Financial Statements / Results for the First Nine Months 2004 (E)

Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.

  • Group revenues increase by 2.7% to EUR 3,031.2 million
  • Group operating income rises by 16.6 % to EUR 414.8 million
  • Consolidated net income increases by 37.0% to EUR 205.2 million
  • Consolidated net debt declines by EUR 565.1 million to EUR 2,072.2 million compared to the end of December 2003
  • Wireline segment benefits from slowing decline in voice and higher wholesale revenues; headcount reduction continues
  • Growth in the wireless segment due to stronger roaming revenues and rising data business

in EUR million 3Q 3Q % 1-9M 1-9M % 04 03 change 04 03 change Revenues 1,046.2 1,019.4 2.6% 3,031.2 2,951.3 2.7% Revenues excluding third party value 1,046.2 1,004.1 4.2% 3,031.2 2,905.4 4.3% added services revenues* Operating income 171.8 151.4 13.5% 414.8 355.6 16.6% Net income 98.8 84.1 17.5% 205.2 149.8 37.0% Adjusted EBITDA** 446.4 423.1 5.5% 1,253.8 1,202.7 4.2% Earnings per share (in EUR) 0.20 0.17 17.4% 0.41 0.30 37.2% Capital expenditures 115.2 131.5 -12.4% 306.6 341.1 -10.1% in EUR million Sep. 30, 04 Dec. 31, 03 % change Net debt 2,072.2 2,637.3 -21.4%

* For comparative purposes, 3Q 03 and 1-9M 03 have been adjusted to reflect the accounting change for third party value added services in 4Q 03.

** Adjusted EBITDA is defined as net income excluding interest, taxes, depreciation, amortization, impairment charges, dividend income, equity in earnings of affiliates, other non-operating income/expense, minority interests and the cumulative effect of changes in accounting principles. This equals operating income before depreciation, amortization and impairment charges.

The full quarterly report and further information is available on our website under www.telekom.at/ir

Further inquiry note:
Martin Bredl
Telekom Austria Public Relations
Phone: +43 (0) 59059 1 11001
mailto: martin.bredl@telekom.at

Hans Fruhmann
Investor Relations Telekom Austria
Tel.: +43 (0) 59059 1 20917
mailto: hans.fruhmann@telekom.at
mailto: investor.relations@telekom.at

end of announcement euro adhoc

emitter: Telekom Austria AG
Lassallestrasse 9
A-1020 Wien
mail: investor.relations@telekom.at
WWW: http://www.telekom.at/ir
ISIN: AT0000720008
indexes:
stockmarkets:
sector: Telecommunications Equipment
language: English

OTS-ORIGINALTEXT UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS | OTB0001