A1 Telekom Austria Group TKA.VI
What does A1 Telekom Austria Group do?
A1 Telekom Austria Group is a telecommunications group headquartered in Vienna. The company offers mobile, fixed-line, broadband internet, television and IPTV services, as well as smart home services. It also provides data and ICT solutions, cloud, security and IoT offerings, and mobile payment services. Its customers include private individuals, business customers, public institutions and other network operators that purchase wholesale services such as interconnection and international traffic.
Besides its home market of Austria, the group operates in several countries in Central and Southeastern Europe, including Bulgaria, Croatia, Slovenia, Serbia and North Macedonia, as well as in Belarus. Revenue comes mainly from contract fees, usage charges and the sale of end-user devices. In most markets, A1 is one of only a few providers with its own mobile and fixed-line infrastructure and competes with other network operators and discount brands. The largest shareholder is the Mexican telecommunications group América Móvil, which controls the company. The free float is correspondingly limited.
Score profile
Rank vs. Telecom Services (17 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, A1 Telekom Austria Group ranks in the middle in the group Telecom Services (5.9/10). On growth, the company ranks in the middle in the group Telecom Services (5.9/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Telecom Services (5.5/10). On financial strength, A1 Telekom Austria Group ranks above average in the group Telecom Services (7.0/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 8.1x | 8.7x | better than 65 % |
| Trailing P/E | 8.9x | 11.8x | better than 71 % |
| PEG ratio | 2.3x | 1.6x | better than 23 % |
| EV/EBITDA | 4.4x | 7.7x | better than 91 % |
| Price/sales | 1.0x | 1.0x | better than 38 % |
| Price/book | 1.0x | 1.4x | better than 61 % |
| Revenue growth | 5.0% | 3.7% | better than 62 % |
| Earnings growth | 1.6% | 0.0% | better than 56 % |
| Gross margin | 56.1% | 56.9% | better than 44 % |
| Operating margin | 19.6% | 12.9% | better than 62 % |
| Net margin | 11.7% | 8.8% | better than 68 % |
| Return on equity | 12.3% | 11.6% | better than 62 % |
| Debt/equity | 45.3% | 91.3% | better than 74 % |
| Current ratio | 0.9x | 0.9x | better than 68 % |
| Free cash flow yield | 14.1% | 8.3% | better than 70 % |
| Dividend yield | 4.8% | 3.9% | – |
| Payout ratio | 42.4% | 46.2% | – |
| Beta | 0.46 | 0.62 | – |
Valuation: what is A1 Telekom Austria Group worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give A1 Telekom Austria Group a model range of 9.48 EUR to 17.20 EUR per share.
6 analysts, average rating “—”, average price target 10.58 EUR (+20.8%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Stable, recurring income from mobile and fixed-line contracts forms the basis for revenue and operating profit.
- Demand for data volume and high-speed broadband connections supports higher-value tariffs and bundled offers combining mobile, internet and TV.
- A broad regional presence spreads the business across several countries with differing competitive and growth conditions.
Risks
- Intense price competition and regulatory intervention can put lasting pressure on margins and tariffs in individual markets.
- Network expansion and spectrum licenses require continuously high investment, which can weigh on free cash flow.
- Political, economic and currency risks in Eastern and Southeastern Europe, particularly in Belarus, can affect earnings and reporting.
What to look for with A1 Telekom Austria Group
Operating cash flow after capital expenditure is particularly informative, because telecom companies are capital-intensive and their dividend capacity and debt levels depend on it.