Telekom Austria: roaming regs no problem

Telekom Austria updated its forecast for EBITDA growth out to 2010 on Monday, including the predicted impact of EU roaming price caps. The key point is that the impact is not going to be particularly significant, despite the widespread predictions of disaster.

TA estimates that its earnings before interest, tax, depreciation, and amortisation will rise by between 1.7 and 2.2 per cent a year between 2007 and 2010. The cost of the roaming cap is put at some EUR20 million, which TA expects to cover by various cost savings and marketing changes.

This represents a 0.2 per cent upgrade across the board vis-a-vis the past forecast. Net profits are expected to rise more than 10 per cent. Boris Nemsic, CEO of the Telekom Austria Group, said: “The recently introduced regulation represents a burden for the Telekom Austria Group. However, we are confident to be able to limit its impact through marketing initiatives stimulating usage, strict cost control and additional contributions from our international mobile operations.”