Telekom Austria (AO) | Hold | Solid Q2 with Austria improving in a challenging market

研报英文原文证据摘录

Telekom Austria (AO) | Hold | Solid Q2 with Austria improving in a challenging market

Telekom Austria Hold | Target Price: EUR10.60

Company description Management

Telekom Austria is the leading telecommunications company in Austria, Alejandro Plater, CEO

providing mobile, fixed, TV and ICT services to both residential and corporates. Thomas Arnoldner, deputy CEO

The company also holds subsidiaries in Bulgaria, Croatia, Belarus, Serbia, Sonja Wallner, CFO

Macedonia, and Slovenia. In CEE markets Telekom Austria holds number two or Key shareholders

three position, and over time has been moving from mobile-only to convergent Free float 10.98%

services and is also growing on ICT services. The company is co-controled by ÖBAG 28.42%

America Movil and the Austrian State América Móvil 60.60%

Investment case Valuation methodology

We expect the company to grow in line with peers. The CEE has We use an SOP with an implied EV/EBITDA FY 2026 target of 4.0x.

some growth upside from convergence, solid macroeconomics We only add 70% of the fair value of Belarus given the dividend

and A1 may continue to develop B2B digital servicesbut Austria ban. The company warrants a discount to peers to reflect its CEE

remains very competitive with macro headwinds. exposure, forex volatility, low liquidity, and M&A risks.

The new commercial approach was set to provide the company Risk to capex (FTTH) and high expected spectrum cost also

with a competitive edge in a still highly competitive domestic weigh on our valuation.

broadband market (high market share). However, the company Exposure to Belarus weighs negatively on ESG criteria.

has de-emphasised the FTTH rollout due to the high cost, the Risks to our rating

low take-up and enough progress on the regulatory front.