Telekom Austria AG (TA1.F) Q3 FY2025 Earnings Call Transcript & Summary

Welcome to the summary of A1 results for the third quarter and the first 9 months of the financial year 2025. We delivered overall growth for the group in a mixed environment. A strong international performance more than offset the weakness in Austria, where conditions remain challenging. Group revenues and EBITDA grew by 3% year-on-year in the third quarter. This was driven by the international market. The Austrian market is very tough at the moment, both revenues and EBITDA declined. We continue to use our financial flexibility to invest in the market and to grow our subscriber base even in this highly competitive and macroeconomic pressure environment. Our customer base continues to expand. Mobile postpaid subscribers grew by 12%, Internet at home by 5% and TV customers by 8%. Demand for high-speed broadband and B2B digital services remains strong. We continue to see strong momentum in ICT and digital services, including our cloud portfolio. We are proud to advance with Exoscale. Our European sovereign cloud solution that provides secure and compliant solutions for businesses and public institutions across the region. At the same time, we are progressing with our internal transformation. Our competence delivery center consolidates noncustomer-facing functions across all our markets, creating synergies and driving automation. We now operate 19 of those delivery centers. In addition, we are now focusing on creating a service delivery center for our digital and IT services. Free cash flow generation remains strong at EUR 529 million in the first 9 months, which underlines our ability to fund growth and transformation initiatives. And our focus remains stay relevant for customers, anticipate evolving consumer technology trends and work together as one A1 team. Looking ahead, we remain focused on driving growth through digital innovation, operational excellence and staying relevant for customers. We confirm our full year guidance for total revenue growth of 2% to 3%, while we lower our CapEx before spectrum to be EUR 800.