Massive Losses Expected for Telekom Austria
Loss expectations range from € 194.9m to € 238m. Sales are anticipated to decline by 4.4%.
In 2011, Telekom Austria will report drastic losses, which is mainly due to high write-offs in Belarus, where hyperinflation-accounting is being applied. The telecommunication company announces its annual results next Thursday.
On average, sales estimations by RCB (Raiffeisen Centrobank), Erste Group and Berenberg Bank total € 4.65bn. Against 2010, this would be a decrease by 4.4%. EBITDA expectations reach € 1.18bn on average (-7.5%). In the fourth quarter, Telekom Austria faced one-time restructuring costs.
EBIT is said to be negative. After the end of the fourth quarter, EBIT still amounted to € 208.8m, but write-offs seem to bring operating losses. The Belorussian subsidiary Velcom causes write-offs accounting for € 300m. Liquid funds had to be adapted. Furthermore, the bad economic situation in Belarus is a major burden for the operating business. Nevertheless, the number of customers is expected to show substantial growth rates.
Moreover, sales in Bulgaria decreased due to the difficult economic framework conditions and the fierce competition on the telecommunication market. In Austria, Erste Group also underlined the competitive telecommunication market, which dampens sales figures.