A1 Telekom Austria cuts 2020 revenue, investment forecast
14/07/2020 18:59
VIENNA, July 14 (Reuters) - A1 Telekom Austria TELA.VI
lowered its 2020 revenue forecast and cut its spending plans for
the year after lower roaming income due to coronavirus-related
travel restrictions and foreign exchange effects weighed on
second-quarter core profit.
The group, which is controlled by Mexico's America Movil
AMXL.MX and the Austrian state, said on Tuesday it now expects
a 2% decline in full-year revenue after previously forecasting a
1-2% rise from last year's 4.57 billion euros ($5.21 billion).
It said it will cut initially planned investments of 770
million euros until the end of the year by a quarter.
"As the further effects of COVID-19 are difficult to
predict, precautionary cuts in capital expenditure and operating
expenses will help to further secure flexibility," Chief
Operating Officer Alejandro Plater said in a statement.
The new investment plan does not include investments in new
spectrum for 5G applications and potential acquisitions.
A1 Telekom Austria, which operates in six eastern European
countries besides its home market, said revenue decreased 2.4%
to 1.1 billion euros in the second quarter mainly due to lower
roaming income and the devaluation of the Belarus currency. The
group booked negative foreign exchange effects of 16.4 million
euros.
Earnings before interest, tax, depreciation and amortisation
were 0.5% lower at 390.1 million euros in the period.
The group will publish its second-quarter report on July 21.
($1 = 0.8774 euros)
(Reporting by Kirsti Knolle; editing by Emelia
Sithole-Matarise)
((kirsti.knolle@thomsonreuters.com; +43 1 2530 1650 13;))