VIENNA, July 18 (Reuters) - Telekom Austria, a unit of Mexican tycoon Carlos Slim’s America Movil, reported a 7.8 percent rise in second-quarter core profit, helped by strong demand in its home market and in Belarus.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 359.3 million euros ($415.3 million) on revenue of 1.08 billion euros, the group said on Tuesday.
While the hit from the abolition of retail roaming charges in the European Union came in slightly lower than expected in the second quarter, the expected losses for the second half of the year remained the same, the group said, without providing more detail.
Last year’s EBITDA included a negative effect of 38 million euros from falling roaming income, and Telekom Austria said in January it expected a similar impact this year.
Second quarter earnings growth in its home market, which contributes around 60 percent to group revenue, benefited from lower staff costs and the release of provisions.
In Belarus, an appreciation of the local currency versus the euro - which provided a 3.9 million euros boost - and strong demand helped increase EBITDA by 45 percent.
Telekom Austria, which Carlos Slim aims to use for further expansion into central and eastern Europe, will release full second-quarter results on July 25.
$1 = 0.8652 euros Reporting by Kirsti Knolle; Editing by Mark Potter