EANS-Adhoc: Telekom Austria AG / Results for the First Nine Months of 2014 (Ad-hoc)

--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------

Earnings
23.10.2014

Vienna, 23 October 2014: Today the Telekom Austria Group (VSE: TKA,
OTC US: TKAGY) announces its results for the first nine months of
2014, ending 30 September 2014.

Highlights

> Group revenue decline improves to -4.5% supported by better trends in
Austria in Q3 as well as strong growth in Belarus and the Additional Markets
segment

> Subsidy-driven equipment revenues support revenue trends in CEE

> EUR 110.6 mn negative regulatory effects on Group revenues

> Group EBITDA comparable margin improves to 34.6% driven by lower OPEX in
Austria and strong margin in Belarus

> Austria:

> Continuously improving ARPU trends in 2014 driven by high-value focus

> 75.7% and 23.4% cuts in SACs and SRCs respectively drive margin
improvement to 33.0%

> CEE:

> Continued strong performance in Belarus on the back of inflation-linked
price increases in 2013 and 2014 (FX development better than expected) and
higher data usage

> Macro and regulatory factors (e.g. higher frequency usage fee in
Croatia) and fierce competition drive other CEE markets

> Merger of mobilkom liechtenstein with Telecom Liechtenstein completed on
27 August 2014 results in a positive one-off effect on EBITDA comparable of EUR
26.8 mn

> Group outlook for FY 2014 unchanged: Revenues of approx.
-3.5%, CAPEX* of EUR 650 - 700 mn, intended dividend of EUR
0.05/share

in EUR million Q32014 Q32013 %change 1-9M2014 1-9M2013 %change
Revenues 1,048.7 1,036.0 1.2% 2,987.7 3,128.3 -4.5%
EBITDA comparable 414.6 357.9 15.8% 1,034.0 1,025.1 0.9%
Operating income 200.0 121.5 64.7% -22.6 344.7 n.m.
Net income 127.8 51.3 149.2% -190.0 159.2 n.m.

Cash flow generated from operations 300.6 295.5 1.7% 674.0 789.5 -14.6%
Earnings per share (in EUR) 0.27 0.10 183.9% -0.47 0.31 n.m.
Free cash flow per share (in EUR) 0.37 0.30 23.4% 0.47 0.69 -30.8%
Capital expenditures 143.6 167.6 -14.4% 472.5 493.0 -4.2%

in EUR million 30 Sept 2014 31 Dec 2013 %change
Net debt 3,530.9 3,695.8 -4.5%
Net debt / EBITDA comparable (12 months) 2.7 2.9 -5.1%

All financial figures are based on IFRS; if not stated otherwise, all
comparisons are given year-on-year. EBITDA comparable is defined as net income
excluding financial result, income tax expense, depreciation and amortisation,
restructuring and impairment charges.
* Does not include investment in spectrum and acquisitions

Kind regards,
Telekom Austria Group Investor Relations Team

Further information about the results can be found here:
http://www.telekomaustria.com/en/ir/interim-results

The earnings release can be found here: http://cdn1.telekomaustria.co
m/final/en/media/pdf/results-qu3-2014.pdf

---

Disclaimer for forward-looking statements: This document contains
forward-looking statements. These forward-looking statements are
usually accompanied by words such as "believe", "intend",
"anticipate", "plan", "expect" and similar expressions. Actual events
may differ materially from those anticipated in these forward-looking
statements as a result of a number of factors. Forward-looking
statements involve inherent risks and uncertainties. A number of
important factors could cause actual results or outcomes to differ
materially from those expressed in any forward-looking statement.
Neither Telekom Austria nor any other person accepts any liability
for any such forward-looking statements. Telekom Austria will not
update these forward-looking statements, whether due to changed
factual circumstances, changes in assumptions or expectations. This
report does not constitute a recommendation or invitation to purchase
or sell securities of Telekom Austria.

Further inquiry note:
Matthias Stieber
Director Investor Relations
Tel.: +43 (0) 50 664 39126
mailto: matthias.stieber@telekomaustria.com

end of announcement euro adhoc
--------------------------------------------------------------------------------

issuer: Telekom Austria AG
Lassallestrasse 9
A-1020 Wien
mail: investor.relations@telekomaustria.com
WWW: www.telekomaustria.com/ir
sector: Telecommunications
ISIN: AT0000720008
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien
language: English