For the fourth quarter, Telekom Austria reported a net loss of 99.2m euros ($106.2m), down from a net loss of 120.7m euros ($129.2m), on revenue up 3.8% at 1.0bn euros ($1.08bn), from 971.1m euros ($1.04bn) in the same year-ago quarter. For the year to December 31, it reported net income of 12.8m euros ($13.7m), compared with a net loss of 104.6m euros ($112m) in 2001, on revenue up 1.3% at 3.9bn euros ($4.18bn), compared with 3.8bn euros ($4.13bn) in 2001.

The company reduced net debt by 77.9m euros ($83.4m) to 3.2bn euros ($3.43bn) as of December 31, 2002. This reduction took place, despite the debt incurred to finance its June 693.1m euro ($742m) acquisition of the remaining 25% stake in Mobilkom Austria held by Telecom Italia SpA.

Fixed-line revenue fell 6.5% to 2.0bn euros ($2.20bn) in 2002, reflecting lower traffic volumes and lower average prices stemming from competitive tariff schemes introduced to shore up market share against competitors.

Mobile revenue rose 11.5% to 1.9bn euros ($2.04bn). The rise was primarily driven by a 12% subscriber growth in Austria and in Telekom Austria’s foreign mobile operations in Slovenia and Croatia. In Austria itself, the company’s market share rose to 44% from 43% in 2001, as subscriber numbers increased 5.3% to more than 3 million people.

Our efforts of the past two years, to cut costs, to stabilize fixed-line market shares, and continue to increase revenues in our mobile communications division, are now showing successful results, said CEO Heinz Sundt. The Vienna, Austria-based operator reduced its workforce to 14,951, down from 16,586 a year earlier.

Looking forward, Telekom Austria predicted a slight increase in revenue and earnings before interest, tax, and depreciation and amortization. It said net income is also expected to rise in 2003, and it also plans to resume a dividend payment for 2003.

However, speculation continues that a majority stake in Austria Telekom will soon be acquired by Swiss incumbent Swisscom AG, which according to the Austrian Press Agency could make a decision on the acquisition by the end of April.

The Austria government agency OIAG currently holds 47.2% in Telekom Austria. Last November, Telecom Italia sold half of its 30% stake in the operator, and the Italian operator is entitled to sell its remaining stake later this year.

Source:Computerwire