VIENNA, May 16 /PRNewswire-FirstCall/ -- Telekom Austria AG (VSE: TKA; NYSE: TKA) today announced its results for the first quarter 2007 ending March 31, 2007. Beginning with 1Q 07 the Telekom Austria Group reports three segments. Fixed Net comprises primarily the former Wireline segment, whereas Mobile Communication encompasses the former Wireless segment. In addition, the Telekom Austria Group also reports a third segment Corporate consisting of all non-operative functions related to the governance of the Telekom Austria Group. Prior years have been adjusted for comparison. During 1Q 07 revenues remained almost stable at EUR 1,145.8 million compared to 1Q 06, with higher revenues in the Mobile Communication segment almost offsetting lower revenues in the Fixed Net segment. Revenues in the Fixed Net segment declined by 4.5% to EUR 510.8 million in 1Q 07 due to lower revenues from Switched Voice, which were partly offset by higher revenues in Data & IT solutions and Internet Access & Media. Mobile Communication revenues rose by 0.9% to EUR 694.1 million in the reporting quarter compared to 1Q 06 as a result of rising monthly rental, traffic and other revenues. Operating income before depreciation, amortization and impairment charges (adjusted EBITDA) declined by 5.8% to EUR 474.9 million in 1Q 07 impacted by lower revenues in the Fixed Net segment, higher marketing expenses in the Mobile Communication segment and start-up costs for the operations in the Republic of Serbia. Operating income decreased by 4.9% to EUR 210.7 million during the reporting period. The decline in operating income of the Mobile Communication segment due to higher depreciation and amortization charges for investments in the mobile networks was accompanied by stable operating income of the Fixed Net segment due to lower depreciation and amortization charges. Net income was lower by 4.4% at EUR 147.2 million in the reporting quarter due to the lower operating income. Earnings per share remained stable at EUR 0.32 as a result of previous share buybacks. Cash flow from operations per share increased by 22.0% to EUR 0.81 per share also as a result of previous share buybacks. Capital expenditures for tangible and intangible assets increased from EUR 121.8 million in 1Q 06 to EUR 167.3 million in 1Q 07 as a result of the rollout of HSDPA and HSUPA in Austria, infrastructure investments of EUR 7.5 million in the Republic of Serbia and license costs of EUR 10 million in the Republic of Macedonia. Net debt decreased by 5.2% to EUR 3,003.6 million as of end of March 2007 in comparison to end of December 2006 primarily due to strong free cash flow generation. The net debt to equity ratio (net gearing) was 103.0% compared to 112.2% at the end of December 2006. For more detailed information about the financial results for the first quarter 2007 please refer to the corresponding interim report on Telekom Austria's website at http://www.telekom.at/interim_reports Contacts: Elisabeth Mattes Group Spokeswoman Phone: +43-664-331-2730 E-Mail: Peter Zydek Head of Investor Relations Phone: +43-(0)59059-1-19000 E-Mail: DATASOURCE: Telekom Austria AG CONTACT: Contacts: Elisabeth Mattes, Group Spokeswoman, Phone: +43-664-331-2730, E-Mail: ; Peter Zydek, Head of Investor Relations, Phone: +43-(0)59059-1-19000, E-Mail:

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