Telekom Austria sees chance to stabilize profits at home

Reuters News
Posted: Nov 20, 2013 1:14 PM
Telekom Austria sees chance to stabilize profits at home

BARCELONA, Spain (Reuters) - Telekom Austria may be able to stabilize core earnings in its fiercely competitive domestic market next year through cost cuts and lower handset subsidies, its finance chief said.

Hans Tschuden said an end to price wars between Austria's three mobile operators was in sight following an unexpectedly expensive frequency auction that hurt all three, and that Telekom Austria might stop subsidizing phones so heavily.

"With measures of cost-cutting, reviews of subsidy policy, we should be able - maybe, if everything turns out fine - to see a stabilization of EBITDA (earnings before interest, tax, depreciation and amortization) in Austria," Tschuden said.

"There is now a more rational approach to the market than there was before," he told an industry conference in Barcelona on Wednesday. Austria accounted for 59 percent of its core earnings in the first nine months of 2013, down 14 percent on the year-ago period.

(Reporting by Leila Abboud; Writing by Georgina Prodhan. Editing by Jane Merriman)