Group Report
January 1 to September 30, 2016

In mobile communications, significantly higher revenues from sales of mobile terminal equipment completely offset the slight decline in service revenues, which was due to offsetting effects: lower mobile termination and roaming charges contributed to a reduction in voice revenues. This was contrasted by higher revenues from mobile data services, which increased by 8.0 percent compared with the prior-year period. This positive development is, among other factors, the result of our high-speed mobile network and its huge reach. The positive trend in the fixed-network business is mainly due to higher revenue from TV and broadband business, which accounted for 48 percent of total fixed-network revenues in the first nine months of 2016. The number of broadband lines increased gradually, due in particular to the roll-out of fiber-optic lines. Our TV business also profited from this, attracting customers with its innovative services across all screens and by the variety of programs. The MagentaOne offering in the consumer and the business customer segment also contributed to this trend. Thanks to these positive contributions, we more than offset the revenue declines in both traditional telephony and the business customer segment B2B/ICT.

Adjusted EBITDA increased by 3.2 percent year-on-year in the first three quarters of 2016 to EUR 415 million. In organic terms, adjusted EBITDA grew by as much as 4.8 percent, due in part to higher organic revenue. This effect was partly offset by higher direct costs. Indirect costs were at the same level as in the prior year.

Austria. In Austria, we generated revenue of EUR 635 million in the first nine months of 2016, up 4.3 percent compared with the first nine months of the prior year. This increase is largely attributable to higher revenue from mobile data business: the contract customer additions increased the usage of data services. Data services accounted for 28 percent of total revenue. In addition, increased visitor revenues as well as higher revenues from the sale of mobile terminal equipment had a positive impact on revenue development. Overall, the positive effects more than offset the revenue declines in voice telephony, which are mainly attributable to lower roaming charges.

Adjusted EBITDA increased by 11.3 percent year-on-year in the first nine months of 2016 to EUR 217 million. Higher revenue offset an increase in direct costs attributable to market investments. Indirect costs were up slightly on the prior-year period.


EBIT in our Europe operating segment decreased by 4.6 percent as of the end of the third quarter of 2016 to EUR 1.1 billion, due to the decline in EBITDA. EBIT was also reduced by an increase in depreciation, amortization and impairment losses.

Cash capex

In the first nine months of 2016, our Europe operating segment reported cash capex of EUR 2.3 billion, an increase of EUR 1.1 billion, mainly due to the acquisition of mobile spectrum in Poland, the Czech Republic, and Montenegro in 2016, as well as the frequency extension in the Netherlands.