AUSTRIA: TELEKOM AUSTRIA ON SAVINGS COURSE
Article Abstract:
Telekom Austria (TA) has announced that its ebitda rate for year 2000 will be 10% to 15% lower than expected. This is attributed to the high costs of restructuring, the loss of revenue due to the fall of market share, lower interconnection fees and the amortisation of debts. CA IB expects the TA group's accumulated ebitda rate (including Mobilkom) to amount to Sch 1.002bn. The restructuring programme aims at savings of more than EUR 350mn per year. By 2003 the number of staff is to be reduced by about 5,000 to 10,000. A part of TA properties are to be sold, and the number of logistics centres is to be reduced from 7 to 2. At the same time, TA is betting on new products, for instance in the field of internet. The comprehensive reform of call rates might be carried out as soon as in February 2001. It involves the reduction of local call rates. TA expects to retain a market share of about 50% in terms of call minutes in Austria in the medium term. It has seen its market share fall from 80% to 64%.
Publication Name: Presse
Subject: Business, international
ISSN:
Year: 2001
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AUSTRIA: TELEKOM AUSTRIA FIGHTS BACK
Article Abstract:
Heinz Sundt, new head of Telekom Austria, hopes that the new aggressive tariff structure, which is likely to be introduced in September 2000, will put an end to the loss of market share by the former monopoly in fixed-line telephony in Austria. The fall of TA's market share has already slowed down. In 1999 about 275,000 TA clients cancelled their subscriptions and moved to the company's competitors or became mobile phone users. TA still accounts for 85% of the market for call minutes in fixed-line networks in Austria. In 1999 Telekom Austria saw a 46.1% fall in earnings before interest and taxes to Sch 5.6bn. Profit on ordinary activities fell 58.8% to Sch 3.5bn. Turnover increased 9.9% to Sch 51.2bn. The fall of profits is explained with a steep increase in costs. Sundt criticises interconnection fees and the subsidising of mobile telephony. Telekom Austria has made provisions of Sch 1.2bn for personnel cuts. In the long term, the company is to reduce the number of staff by one-third.
Publication Name: Presse
Subject: Business, international
ISSN:
Year: 2000
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- Abstracts: AUSTRIA: DATAKOM TO FOCUS ON E-COMMERCE. AUSTRIA: A-TRUST FOR SAFE E-COMMERCE. AUSTRIA: CERTIFICATION OF ELECTRONIC SIGNATURES
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