April 28, 2020 / 5:39 PM / 4 months ago

A1 Telekom Austria's Q1 profit up, sees negative coronavirus effects in Q2

VIENNA, April 28 (Reuters) - A1 Telekom Austria said its networks coped well with a strong growth in data and voice traffic arising from increased home office work in the wake of the spread of the coronavirus in the first quarter, helping its profit rise 4%.

However, the group expects negative effects on residential and business customers in coming weeks and increased its provisions for bad debt due to a gloomy macroeconomic outlook, it said on Tuesday.

“Due to the uncertain duration of the crisis, the further effects are not yet foreseeable and are quite diverse,” said Chief Executive Thomas Arnoldner.

While an increased demand for bandwidth, home office solutions or digitization projects was positive, international travel restrictions had a negative impact on roaming revenues.

“We have to suspend our outlook for the full year 2020 due to the currently unforeseeable COVID-19 effects,” the CEO said.

Net profit increased to 89 million euros ($96 million) on revenues of 1.13 billion euros in the three months through March, the group said.

$1 = 0.9236 euros Reporting by Kirsti Knolle; Editing by Ken Ferris

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