Summary: Telekom Austria AG

Leading telecommunications operator in Austria, with about 37% mobile and 56% fixed-line broadband (subscriber) market shares. More than 90% domestic coverage with 4G mobile and about half of the total spectrum holdings available in Austria. No. 1 or No. 2 positions in five of six Central and Eastern European (CEE) mobile markets, complemented by an expanding fixed-line offering. Continued fierce competition in the domestic mobile business by Hutchison Drei, T-Mobile, and mobile virtual network operators (MVNOs), as well as in several CEE markets. Partly inflexible cost structure in Austria due to a high proportion of civil servants in the workforce (20% in 2017 at the group level), and high annual restructuring-related cash outflows of about €90 million-€110 million historically and

...Business Risk: Satisfactory Financial Risk: Intermediate + Leading telecommunications operator in Austria, with about 37% mobile and 56% fixed-line broadband (subscriber) market shares. + More than 90% domestic coverage with 4G mobile and about half of the total spectrum holdings available in Austria. + No. 1 or No. 2 positions in five of six Central and Eastern European (CEE) mobile markets, complemented by an expanding fixed-line offering. + Continued fierce competition in the domestic mobile business by Hutchison Drei, T-Mobile, and mobile virtual network operators (MVNOs), as well as in several CEE markets. + Partly inflexible cost structure in Austria due to a high proportion of civil servants in the workforce (20% in 2017 at the group level), and high annual restructuring-related cash outflows of about 90 million-110 million historically and in our forecast for 2018¡2019. + Exposure to very high country risks in Belarus. + S&P Global Ratings-adjusted debt to EBITDA of about 2.4x-2.7x...

Summary