Outlook for the full year 2023

A1 Group expects to achieve revenue growth of around 4% in the 2023 financial year. The main growth drivers are price increases due to higher inflation, upselling in the retail business, and a strong development of the solutions and connectivity business. A further decline in voice business and international wholesale business in Austria as well as lower interconnection revenues due to regulatory cuts of termination rates will have a dampening effect on growth. Management also expects roaming revenues to grow at a significantly lower rate than in the strong financial year 2022. While the Belarusian ruble appreciated on average in 2022, supporting revenue growth, the currency is expected to depreciate against the euro in 2023.

At the same time, electricity costs are forecasted to increase strongly, and management assumes that workforce costs will increase by around 5% at the Group level. To counter cost increases, A1 Group will implement efficiency projects and transformational initiatives.

Management expects CAPEX before investments in spectrum to be around EUR 950 mn. A1 Group will continue its commitment to fiber roll-out in Austria as well as to further expansion of its 5G networks both in Austria and internationally. In terms of spectrum, tenders are expected in Croatia (renewal of spectrum: 800 MHz, 900 MHz, 1.8 GHz, 2.1 GHz, and 2.6 GHz), Bulgaria (700 MHz, 800 MHz) and Serbia (700 MHz, 3.6 GHz). This list of tenders neither claims to be exhaustive nor does it allow any conclusions to be drawn regarding the actual implementation of these auctions or A1’s intention to participate in the tenders listed. A1 Group does not comment on this matter.

The Management Board plans to propose a dividend of EUR 0.32 (2021: EUR 0.28) per share to the Annual General Meeting, subject to the approval of the Supervisory Board.