Telekom Austria (TKA) Q1 2026 earnings summary

Executive summary

• Q1 2026 total revenues rose 3.9% year-over-year to EUR 1,366 million, with EBITDA up 4.6% to EUR 500 million and net result increasing 14.7% to EUR 144 million, driven by strong international performance, especially in Bulgaria, Croatia, and Belarus.

• Free cash flow surged 53.5% year-over-year to EUR 235 million, supported by improved operational results and lower CAPEX.

• Growth in Central and Eastern Europe (CEE) accelerated, with service revenue up 11.5% in international markets.

• Business operations expanded in Dubai, launching an equipment sourcing hub and international business platform.

• Mobile subscribers increased by 12.5% year-over-year, mainly from M2M business expansion.

Financial highlights

• Service revenues reached EUR 1,143 million, up 3.2% year-over-year, led by ICT, mobile, broadband, and TV segments; equipment revenues were EUR 203 million, up 7.9% year-over-year.

• EBITDA margin improved to 36.6%, with EBITDA excluding restructuring and one-offs up 4.2%.

• Net margin increased to 10.5% from 9.5% in Q1 2025; EBIT margin reached 14.5%.

• CAPEX for the quarter was EUR 164 million, with guidance for full-year CAPEX (excluding spectrum and M&A) at approximately EUR 750 million.

• Net debt/EBITDA improved to 0.8x from 0.9x year-over-year.

Outlook and guidance

• 2026 guidance targets total revenue growth of 2–3% year-over-year, driven by CEE markets and service revenues.

• Continued expansion of fiber and 5G networks in Austria and CEE is planned.