Interim report
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Report for the first half and second quarter 2026 Highlights ✓ Revenues: +4.2% versus Q2 2025, driven by service and equipment revenues ✓ Service revenues: +3.5% in Q2; strong growth in CEE overcompensates decline in Austria ✓ Core OPEX: Strong savings in Austria fully mitigate cost increases in CEE in Q2 2026 ✓ EBITDA: +4.3% in Q2 excluding restructuring, growth in all markets except Croatia ✓ Austria: Positive core OPEX development versus PY mitigates top-line challenges ✓ Net result: 15.4% higher in H1 2026 due to solid operative performance ✓ CAPEX: 3.6% lower yoy in H1 2026, inreases in Q2 2026 ✓ Free Cashflow: Stable in H1 2026 as better operational result offsets frequency payment ✓ Dividend: EUR 0.42/share (in total EUR 279 mn) paid to shareholders in July 2026 ✓ Rating: In June 2026, Fitch confirmed its credit rating for Telekom Austria AG with 'A-' ✓ Outlook confirmed: Total revenue growth of 2-3%, CAPEX ex. spectrum of around EUR 750 mn In this report, rounding differences may occur in the summing of rounded amounts due to the use of automatic calculation tools. 'International' comprises the segments Bulgaria, Croatia, Belarus, Slovenia, Serbia and North Macedonia and since Q1 2025 also includes A1 Digital. 1 RESUL TS FOR Q2 AND H1 2026
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Content Key Financial Data 3 Summary for Q2 2026 4 Mobile Subscribers and Fixed-line RGUs 4 Outlook for the Financial Year 2026 4 Group Results for Q2 and First Half 2026 5 Condensed Consolidated Interim Financial Statements of A1 Group 9 Condensed Consolidated Statement of Comprehensive Income 9 Condensed Consolidated Statement of Financial Position 10 Condensed Consolidated Statement of Cash Flows 11 Condensed Consolidated Statement of Changes in Stockholders’ Equity 12 Condensed Operating Segments 12 Selected Explanatory Notes to the Consolidated Interim Financial Statements 13 Statement of Legal Representatives 20 Financial Calendar 21 Risks and Uncertainties 21 Contacts for Investors, Disclaimer, Impressum 21 2 RESUL TS FOR Q2 AND H1 2026
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Key Financial Data in EUR million Q2 2026 Q2 2025 ∆ H1 2026 H1 2025 ∆ Total revenues 1,429 1,370 4.2% 2,795 2,685 4.1% Service revenues 1,185 1,145 3.5% 2,328 2,253 3.3% Equipment revenues 221 201 10.0% 424 389 9.0% Other operating income 23 25 -7.3% 43 43 -0.2% Wireless revenues 839 810 3.6% 1,645 1,587 3.7% Service revenues 657 642 2.3% 1,290 1,257 2.6% Equipment revenues 182 168 8.6% 355 330 7.6% Wireline revenues 566 536 5.7% 1,107 1,055 4.9% Service revenues 528 503 4.9% 1,038 996 4.2% Equipment revenues 39 33 17.4% 69 59 17.2% EBITDA1) excl. restructuring 562 539 4.3% 1,098 1,053 4.2% EBITDA excl. restructuring margin 39.3% 39.3% 0.0pp 39.3% 39.2% 0.1pp EBITDA1) 544 521 4.3% 1,044 999 4.4% EBITDA margin 38.1% 38.0% 0.0pp 37.3% 37.2% 0.1pp EBITDAaL 2) 434 414 4.9% 825 785 5.1% EBITDAaL margin 30.4% 30.2% 0.2pp 29.5% 29.2% 0.3pp Depreciation, amortization, impairments 305 304 0.2% 607 599 1.4% EBIT 3) 239 217 10.1% 436 401 8.9% EBIT margin 16.7% 15.8% 0.9pp 15.6% 14.9% 0.7pp Net result 176 151 16.0% 319 277 15.4% Net margin 12.3% 11.1% 1.2pp 11.4% 10.3% 1.1pp Capital expenditures 210 166 26.8% 374 387 -3.6% Free cash flow 100 179 -44.3% 335 333 0.7% Jun. 30, 2026 Dec. 31, 2025 ∆ Net debt / EBITDA (12 months) 0.7 0.9 -0.2x Net debt (excl. leases) / EBITDAaL (12 months) -0.2 0.0 -0.2x Customer indicators (thousand) Jun. 30, 2026 Jun. 30, 2025 ∆ Mobile subscribers 32,122 28,306 13.5% Postpaid 28,628 24,701 15.9% Prepaid 3,494 3,605 -3.1% RGUs 4) 6,540 6,395 2.3% Q2 2026 Q2 2025 ∆ H1 2026 H1 2025 ∆ ARPU (in EUR) 5) 6.9 7.6 -9.2% 6.9 7.6 -8.6% ARPL (in EUR) 6) 25.9 26.5 -2.2% 25.7 26.6 -3.3% Mobile churn 0.9% 1.0% -0.1pp 0.9% 1.1% -0.2pp Workforce Jun. 30, 2026 Jun. 30, 2025 ∆ Employees (full-time equivalent) 16,616 16,825 -1.2% 1) Earnings Before Interest, Tax, Depreciation and Amortization 2) EBITDA after Leases: EBITDA – depreciation of lease assets according to IFRS 16 – interest expenses pursuant to IFRS 16 3) Operating income according to IFRS 4) Revenue Generating Unit 5) Average Revenue Per User incl. M2M Subscriber 6) Average Revenue Per Line Notes: n.m. – not meaningful; used for changes >300% and for other changes that are not meaningful. n.a. – not applicable, e.g. for divisions by zero. 3 RESUL TS FOR Q2 AND H1 2026
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Summary for Q2 2026 In Q2 2026, total revenues increased on the back of higher service and equipment revenues. Service revenue growth was mainly driven by higher ICT revenues, upselling measures as well as growth in fixed-line RGUs in the international markets. All CEE mar - kets contributed both to total revenue and service revenue growth. In Austria, losses in service revenues were only partly miti - gated by higher equipment revenues. Effects impacting Q2 and H1 results: ✓ Positive FX effects of EUR 7 mn in total revenues and EUR 3 mn in EBITDA in Q2 2026. (EUR 10 mn and EUR 4 mn in H1 2026). ✓ Restructuring charges amounted to EUR 18 mn in both Q2 2026 and Q2 2025 (EUR 54 mn and EUR 53 mn in H1 2026 and H1 2025). ✓ There were no one-off effects recorded. Total OPEX increased to a large extent driven by higher equipment costs. Core OPEX 1) decreased slightly in Q2 2026 versus last year mainly due to lower costs for advertising, commissions and lower network maintenance costs. That compensated for higher electricity and product-related costs like content and licenses. Total workforce costs remained largely stable. The equipment margin affected the EBITDA negatively, especially in Austria and Bulgaria. EBITDA excluding restructuring increased by 4.3% with growth in all markets except for Croatia. CAPEX increased by 27% in Q2 2026 versus last year , partly due to the extension of frequencies in the 2.6 GHz band in Austria in April 2026 for approximately EUR 11 mn. The Annual General Meeting on June 24, 2026 approved a dividend of EUR 0.42 per share (+5% year-on-year). On July 1 2026, Telekom Austria AG paid a total dividend of EUR 279 mn to its shareholders. For more information please see https://a1.group/ investor-relations/shareholders-meetings/ In June 2026, Fitch confirmed its credit rating for Telekom Austria AG with 'A-' (stable). For more information please see https:// a1.group/investor-relations/debt/ ) Mobile Subscribers and Fixed-line RGUs In mobile communications, the number of subscribers rose by 13.5% to a total of around 32.1 mn. As in previous quarters, the growth was driven by the strong increase in the Machine-to-Machine (M2M) business. Excluding M2M customers, the number of subscribers increased by 1.8%. In the fixed-line business, the number of revenue generating units (RGUs) increased by 2.3% year-on-year to a total of over 6.5 mn. While the number of voice RGUs decreased, the number of broadband RGUs and TV RGUs increased. The RGU growth in international operations, especially in Bulgaria, Belarus and Serbia more than compensated for the decline in Austria. The internet@home 2) customer base increased by 6.1% to 4.2 mn in the Group, driven both by the increase in broadband RGUs and mobile WiFi routers. Broadband RGUs increased in all markets except for Austria and Slovenia, while the number of mobile WiFi routers rose in all markets except for Croatia and North Macedonia. Outlook for the Financial Year 2026 The management board confirms the guidance for the financial year 2026 (total revenues +2-3% year-on-year , CAPEX excluding frequencies and M&A of around EUR 750 mn). 1) Core OPEX is defined as total operating expense excluding cost of equipment, interconnection and roaming costs 2) Internet@home included fixed broadband and mobile WiFi-router (postpaid and prepaid) 4 RESUL TS FOR Q2 AND H1 2026
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Group Results for Q2 and the First Half 2026 Macroeconomic and Competitive Environment The Austrian economic environment continues to be characterised by subdued growth expectations and easing, albeit still elevated inflation. According to the European Commission, economic growth in Austria is expected to amount to around 0.6% in 20261), reflecting a modest recovery amid heightened geopolitical uncertainty and higher energy prices. Inflation has declined from the peaks observed in late 2025 but increased again in early 2026. The harmonised inflation rate stood at around 3.1% 2) year-on-year in June 2026, following 3.7% 3) in May 2026, reflecting easing pressure from energy prices. In this challenging envi - ronment, A1 Group continues to navigate macroeconomic headwinds through a customer-centric approach, targeted strategic market investments and stringent cost control. The telecommunications market in Austria remained highly competitive in the first half of 2026. In the mobile market, compet - itive intensity increased further in the low-value segment, where new providers entered the market with aggressive offerings in spring 2026. At the same time, the market dynamics in the high-value segment remained rather stable in Q2. Price increases for new mobile customers were implemented in Q1, alongside additional value-protecting measures (+2.9% linked to 2025 CPI) starting with April 2026. We responded to ongoing competitive pressure with selective strategic market investments and a focused multi-brand strategy. Price-sensitive segments were addressed through targeted initiatives under the brand “YESSS”, while high-value customers were approached via the A1 brand through loyalty programs, household bundles and subsidies. The latter , however , were lower compared to elevated levels in Q2 2025. As part of our portfolio simplification strategy, we integrated the no-frills brand “bob” and all its customers in Austria into the A1 brand as of mid-July 2026, enhancing customer access to services while reducing operational complexity. The fixed-line market continued to be characterized by high promotional activity and sustained market investments across all players. To defend our position in the Internet@home market, we maintained promotional activity, continued to pursue a tech - nology-agnostic approach and further advanced the fiber roll-out to support upselling. In contrast, CEE markets, including Bulgaria, Croatia, Belarus, Slovenia, Serbia, and North Macedonia, are experiencing a more favourable economic climate. Growth expectations across the region are generally positive. At the same time, the competitive environment remained largely unchanged in the major CEE markets. International markets, while diverse in dynamics, generally benefited from solid demand for high-speed broadband, ICT solutions, entertainment and security products, supporting reve - nue growth. Across the Group, differentiation was reinforced through additional B2C non-core services like value-added services, entertain - ment and security solutions. In Q2 2026, the Belarusian Ruble appreciated against the Euro by 5.0% year-on-year , with a period average exchange rate of 3.27 in Q2 2026 and 3.44 in Q2 2025. As reported in previous financial reports, the Federal Chamber of Labor (BAK) filed a class action lawsuit in January 2024 in con - nection with recurring charges, demanding that A1 no longer use certain clauses or rely on them; BAK has since withdrawn its claims for automatic reimbursement. The first-instance judgment in favor of BAK was appealed and the second instance decided partially in favor of A1 and partially in favor of BAK; this judgment is not yet legally binding. A1 continues to seek to convince the courts, up to the Supreme Court, of the legality of these clauses, especially as the telecommunications regulatory authority has regularly reviewed and accepted these clauses since 2011. In addition, there are specific legal provisions in the telecommuni - cations sector , including those arising from European law, which support the use of such clauses. Since February 2024, these clauses have no longer been agreed with customers. In this context, provisions have been booked. The key developments in the pending legal proceedings are disclosed in the notes to the condensed consolidated interim financial statements. 1) https://economy-finance.ec.europa.eu/economic-surveillance-eu-member-states/country-pages-including-country-reports/austria/economic-forecast-austria_en 2) https://tradingeconomics.com/austria/harmonised-inflation-rate-yoy 3) https://tradingeconomics.com/austria/harmonised-inflation-rate-yoy 5 RESUL TS FOR Q2 AND H1 2026
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Revenue Development Group total revenues increased by 4.2% in Q2 and 4.1% in H1, driven by both higher service and equipment revenues. Service revenues benefitted from growth in the ICT and the retail mobile business. Retail fixed revenues came in stable in the second quarter and declined in H1 versus last year. All markets contributed positively to service revenue growth in both Q2 and H1, with Austria being the only exception. Equipment revenues increased across all markets in both periods, except in Bulgaria, where Q2 2025 benefited from large ICT deals. The strongest positive contributions came from Austria and Belarus. Total revenues in Austria decreased by 1.1% in Q2 and by 2.0% in H1. The decline in service revenues eased (-2.5% in Q2 versus -3.4% in H1 yoy) thanks to higher growth in the ICT business, as well as slightly better results in the retail fixed-line business. In the retail mobile market, service revenues declined despite a higher subscriber base, impacted by promotional activities and lower incoming ARPU. In contrast, solutions and connectivity revenues grew, driven by IT services, security, and value-added services. A1 Group’s international operations continued to deliver a strong financial performance, with total revenues increasing by 9.1% in Q2 and 9.9% in H1. Again, in Q2, all markets contributed to service revenue growth supported by continued upselling, strong demand for high-speed broadband, and the expansion of ICT and connectivity services as well as our B2C non-core portfo - lio. Service revenues increased by 9.5% and 10.5% in Q2 and H1 respectively. The highest contributions came from Belarus, Bulgaria and Serbia. In Bulgaria, service revenue growth benefitted from up- and cross selling, subscriber growth in the mobile and the fixed-line business as well as entertainment solutions. As large ICT deals benefited Q2 2025 results, ICT service revenue growth slowed in Q2 2026 but remained strong in H1 2026 thanks to a beneficial development in Q1 2026. OPEX and EBITDA At Group level, total operating expenses (OPEX) increased in both Q2 and H1 2026, driven by higher equipment costs related to rising equipment revenues as well as higher cost of services. Core OPEX declined slightly in Q2 2026, while increasing margin - ally in H1 2026 compared to the prior year. In Q2 2026, as noted above, core OPEX benefited from stringent cost control and ongoing transformation measures. Lower advertising and maintenance costs as well as reduced commissions more than offset higher electricity and product-related costs, while total workforce costs remained stable. Restructuring charges remained stable compared to last year and amounted to EUR 54 mn in H1 2026 (EUR 53 mn in H1 2025) and to EUR 18 mn in Q2 both in 2026 and 2025. In Austria, total OPEX increased due to higher equipment costs related to higher equipment revenues. Core OPEX declined sig - nificantly in both Q2 and H1 2026. The decrease was primarily driven by lower workforce costs and, particularly in Q2, by a softer comparison base following intensified advertising and customer acquisition efforts in Q2 2025. Lower network maintenance costs and commissions also contributed to the reduction in core OPEX in both periods. The increase in total OPEX in international markets was driven by higher cost of services and higher cost of equipment. Core OPEX increased in both periods mainly due to higher total workforce costs as well as product-related costs like licenses and soft - ware for resale as well as content costs. Electricity costs also rose. Group EBITDA excluding restructuring grew by 4.3% in Q2 2026 and 4.2% in H1 2026. In Q2, EBITDA grew in all markets except Croatia, which was negative due to higher core OPEX. In H1, all CEE markets posted growth. In Austria, EBITDA excluding restructuring increased by 2.0% in Q2 2026 and remained stable in H1 2026. In Q2 2026, the increase resulted from lower core OPEX compared to Q2 2025 which was characterized by intensified commercial activities. That overcompensated the decline in service revenues and the lower equipment margin. In international markets, EBITDA increased by 6.3% and 7.9% in Q2 and H1 2026, thanks to service revenue increase in all CEE markets. EBITDA also profited from positive FX effects as explained above. 6 RESUL TS FOR Q2 AND H1 2026
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EBIT and Net Result Depreciation and amortization increased only slightly in H1 and was stable in the second quarter compared to the previous year. In Q2, EBIT rose by 10.1% in Q2 and by 8.9% in the first half of 2026. The financial result improved due to lower interest expense on financial liabilities. Income taxes increased due to the higher taxable income. Consequently, the net result rose by 16.0% in Q2 and 15.4% in H1 2026. Capital Expenditures A1 Group focused on expanding its fiber roll-out and 5G networks both in Austria and internationally. In Q2 2026 capital expenditures ('CAPEX') increased by 26.8%. Nevertheless, in H1 2026, CAPEX decreased by 3.6% to EUR 374 mn. The decrease in the first half of 2026 was mostly attributable to lower CAPEX in Austria. CAPEX for spectrum were rather stable: In Austria, around EUR 11 mn were invested in frequencies in H1 2026 compared to EUR 10 mn in Bulgaria in Q1 2025. CAPEX excluding spectrum decreased by 4.1% to EUR 362 mn in H1 2026. Free Cashflow In the first half of 2026, free cash flow remained stable versus the same period last year (EUR 335 mn versus EUR 333 mn in H1 2025). The better operational performance, lower social plan funding, net interest improvement and lower CAPEX compensated for the less favorable development in working capital and other changes, higher payments for income taxes and leases. Working capital and other changes were mainly impacted by the EUR 50 mn payment of the second tranche for the 5G spectrum acquired in December 2025 in Serbia. in EUR million Q2 2026 Q2 2025 ∆ H1 2026 H1 2025 ∆ EBITDA 544 521 4.3% 1,044 999 4.4% Restructuring charges and cost of labor obligations 18 18 -0.1% 55 55 -0.4% Lease paid (principal, interest and prepayments) -105 -101 4.4% -214 -205 4.5% Income taxes paid -42 -33 27.7% -61 -50 23.4% Net interest paid 15 4 n.m. 23 9 144.9% Change working capital and other changes -121 -41 192.2% -126 -51 147.9% Capital expenditures -210 -166 26.8% -374 -387 -3.6% Social plans new funded 0 -24 n.a. -12 -39 -69.4% FCF after social plans new 100 179 -44.3% 335 333 0.7% Balance Sheet and Net Debt As of June 30, 2026, total assets amounted to EUR 10,610 mn, up 3.7% compared to year-end 2025. Total current assets increased, mainly driven by higher cash and cash equivalents, while non-current assets declined slightly as depreciation and amortization exceeded CAPEX, primarily related to right-of-use assets. The increase in current liabilities was mainly attributable to the dividend of EUR 279 mn, which had been declared but not yet paid as of the reporting date and was subsequently paid in July 2026. Non-current liabilities declined, primarily due to lower lease liabilities. Total stockholders' equity increased slightly, as net income generation more than offset the declared dividend. During the first half of 2026, higher cash and cash equivalents contributed to a reduction in net debt. Together with higher EBITDAaL, this resulted in a leverage ratio of -0.2x (excl. leases). In addition, long-term lease liabilities decreased, leading to a reduction in the net debt including leases-to-EBITDA ratio to 0.7x, compared to 0.9x per year-end 2025. 7 RESUL TS FOR Q2 AND H1 2026
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in EUR million Jun 30, 2026 Dec 31, 2025 ∆ Long-term debt 38 - n.a. Lease liability long-term 1,419 1,513 -6.2% Short-term debt 757 754 0.5% Lease liability short-term 365 342 6.7% Cash and cash equivalents -710 -362 96.3% Investments marketable -339 -318 6.4% Net debt (incl. leases) 1,530 1,928 -20.6% Net debt (incl. leases) / EBITDA 0.7 0.9 -0.2x Net debt (excl. leasing) -254 74 n.m. Net debt excl leasing / EBITDAaL -0.2 0.0 -0.2x The definition of net debt was revised in 2025 and includes both short-term and long-term marketable financial investments. Underlying Performance – Group in EUR million Q2 2026 Q2 2025 ∆ H1 2026 H1 2025 ∆ Total revenues 1,429 1,370 4.2% 2,795 2,685 4.1% Service revenues 1,185 1,145 3.5% 2,328 2,253 3.3% Equipment revenues 221 201 10.0% 424 389 9.0% Other operating income 23 25 -7.3% 43 43 -0.2% EBITDA 544 521 4.3% 1,044 999 4.4% Restructuring 18 18 3.0% 54 53 1.0% EBITDA excl. restructuring 562 539 4.3% 1,098 1,053 4.2% One-off effects and restructuring: A positive value in the table means a negative impact and vice versa Underlying Performance – Austria in EUR million Q2 2026 Q2 2025 ∆ H1 2026 H1 2025 ∆ Total revenues 678 685 -1.1% 1,335 1,362 -2.0% Service revenues 591 607 -2.5% 1,169 1,210 -3.4% Equipment revenues 72 64 14.0% 138 124 11.4% Other operating income 14 15 -5.1% 28 28 1.2% EBITDA 254 249 2.0% 476 476 -0.1% Restructuring 18 18 3.0% 54 53 1.0% EBITDA excl. restructuring 272 266 2.0% 530 530 0.1% Underlying Performance – 'International' in EUR million Q2 2026 Q2 2025 ∆ H1 2026 H1 2025 ∆ Total revenues 765 702 9.1% 1,488 1,354 9.9% Service revenues 607 554 9.5% 1,184 1,071 10.5% Equipment revenues 148 137 8.3% 285 264 7.9% Other operating income 11 11 -5.1% 19 19 1.2% EBITDA 297 279 6.3% 580 538 7.9% 8 RESUL TS FOR Q2 AND H1 2026
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Condensed Consolidated Interim Financial Statements Condensed Consolidated Statement of Comprehensive Income Q2 2026 Q2 2025 H1 2026 H1 2025 in EUR million, except per share information unaudited unaudited unaudited unaudited Service revenues 1,185 1,145 2,328 2,253 Equipment revenues 221 201 424 389 Other operating income 23 25 43 43 Total revenues (incl. other operating income) 1,429 1,370 2,795 2,685 Cost of service -379 -363 -756 -717 Cost of equipment -226 -198 -430 -391 Selling, general & administrative expenses -275 -283 -559 -572 Other expenses -5 -4 -7 -6 Total cost and expenses -885 -849 -1,751 -1,685 Earnings before interest, tax, depreciation and amortization – EBITDA 544 521 1,044 999 Depreciation and amortization -212 -216 -424 -422 Depreciation of right-of-use assets -93 -89 -183 -177 Operating income – EBIT 239 217 436 401 Interest income 10 9 19 16 Interest expense -22 -26 -44 -50 Interest on employee benefits and restructuring and other financial items, net -4 -5 -6 -9 Foreign currency exchange differences, net -1 2 -1 2 Equity interest in net income of associated companies 0 1 1 1 Financial result -15 -20 -30 -40 Earnings before income tax – EBT 224 197 406 361 Income tax -48 -46 -87 -84 Net result 176 151 319 277 Attributable to: Equity holders of the parent 176 151 319 276 Non-controlling interests 0 0 0 0 Earnings per share attributable to equity holders of the parent in euro* 0.26 0.23 0.48 0.42 Other comprehensive income items: Items that may be reclassified to profit or loss: Effect of translation of foreign entities 10 -11 13 10 Unrealized result on debt instruments at fair value, net of tax 0 0 -1 0 Realized result on debt instruments at fair value, net of tax 0 0 0 -0 Items that will not be reclassified to profit or loss: Remeasurement of defined benefit obligations, net of tax -0 -1 -0 -2 Total other comprehensive income (loss) 10 -11 12 9 Total comprehensive income (loss) 186 140 331 286 Attributable to: Equity holders of the parent 186 140 331 286 Non-controlling interests 0 0 0 0 * Basic and diluted, weighted-average number of ordinary shares outstanding was constantly 664,084,841 9 RESUL TS FOR Q2 AND H1 2026
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Condensed Consolidated Statement of Financial Position Jun. 30, 2026 Dec. 31, 2025 in EUR million unaudited audited Current assets Cash and cash equivalents 710 362 Short-term investments 388 398 Accounts receivable: Subscribers, distributors and other , net 1,102 1,021 Receivables due from related parties 30 11 Inventories, net 165 119 Income tax receivable 0 2 Other current assets, net 317 276 Contract assets 87 93 Total current assets 2,799 2,283 Non-current assets Property, plant and equipment, net 3,239 3,213 Right-of-use assets, net 1,724 1,820 Intangibles, net 1,435 1,509 Goodwill 1,098 1,092 Investments in associated companies 5 3 Long-term investments 211 215 Deferred income tax assets 65 62 Other non-current assets, net 34 31 Total non-current assets 7,811 7,945 TOTAL ASSETS 10,610 10,228 Current liabilities Short-term debt 757 754 Lease liabilities short-term 365 342 Accounts payable 1,136 1,023 Accrued liabilities and current provisions 253 274 Income tax payable 103 73 Payables due to related parties 291 46 Contract liabilities 257 255 Total current liabilities 3,161 2,766 Non-current liabilities Long-term debt 38 0 Lease liabilities long-term 1,419 1,513 Deferred income tax liabilities 62 66 Other non-current liabilities 10 10 Asset retirement obligation and restructuring 360 366 Employee benefits 154 155 Total non-current liabilities 2,044 2,109 TOTAL LIABILITIES 5,205 4,875 STOCKHOLDERS’ EQUITY Common stock 1,449 1,449 Treasury shares -8 -8 Additional paid-in capital 1,100 1,100 Retained earnings 3,592 3,552 Other comprehensive income (loss) items -731 -743 Equity attributable to equity holders of the parent 5,403 5,351 Non-controlling interests 3 3 TOTAL STOCKHOLDERS’ EQUITY 5,405 5,353 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 10,610 10,228 10 RESUL TS FOR Q2 AND H1 2026
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Condensed Consolidated Statement of Cash Flows Q2 2026 Q2 2025 H1 2026 H1 2025 in EUR million unaudited unaudited unaudited unaudited Earnings before income tax – EBT 224 197 406 361 Depreciation 142 141 283 278 Amortization of intangible assets 71 75 141 144 Depreciation of right-of-use assets 93 89 183 177 Equity interest in net income of associated companies -0 -1 -1 -1 Result on sale/measurement of investments -0 1 -2 0 Result on sale of property, plant and equipment 0 -1 1 -0 Net period cost of labor obligations and restructuring 22 22 61 62 Foreign currency exchange differences, net 1 -2 1 -2 Interest income -10 -9 -19 -16 Interest expense 22 27 45 52 Other adjustments -0 -1 -1 -1 Non-cash and other reconciliation items 339 341 692 693 Accounts receivable: Subscribers, distributors and other , net -72 -2 -77 12 Prepaid expenses 2 8 -3 4 Due from related parties -1 -0 -0 0 Inventories -21 8 -45 -34 Other assets -4 -23 -21 -25 Contract assets 5 -8 7 -6 Accounts payable and accrued liabilities 31 31 95 25 Due to related parties -3 -0 -4 -0 Contract liabilities -4 -10 2 9 Working capital changes -67 2 -47 -15 Employee benefits and restructuring paid -31 -39 -62 -74 Interest received 16 7 24 15 Income taxes paid -42 -33 -61 -50 Net cash flow from operating activities 438 476 953 930 Capital expenditures paid -261 -200 -448 -410 Proceeds from sale of property, plant and equipment 1 2 2 4 Purchase of investments -91 -329 -202 -364 Proceeds from sale of investments 91 47 218 79 Acquisition of businesses, net of cash acquired -5 -4 -5 -8 Net cash flow from investing activities -265 -485 -435 -699 Long-term debt obtained 45 0 45 0 Interest paid -18 -22 -36 -43 Repayments of short-term debt 0 0 -4 0 Issuance of short-term debt -6 230 0 230 Dividends paid -0 -266 -0 -266 Lease principal paid -87 -81 -177 -165 Net cash flow from financing activities -66 -139 -173 -244 Adjustment to cash flows due to exchange rate fluctuations, net 2 -2 3 1 Net change in cash and cash equivalents 110 -150 348 -12 Cash and cash equivalents beginning of period 600 505 362 367 Cash and cash equivalents end of period 710 355 710 355 11 RESUL TS FOR Q2 AND H1 2026
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Condensed Consolidated Statement of Changes in Stockholders’ Equity in EUR million (unaudited) Common stock Treasury shares Additional paid-in capital Retained earnings Other comprehen- sive items Total Non-controlling interests Total stock- holders' equity At January 1, 2026 1,449 -8 1,100 3,552 -743 5,351 3 5,353 Net Result 0 0 0 319 0 319 0 319 Other comprehensive income (loss) 0 0 0 0 12 12 0 12 Total comprehensive income (loss) 0 0 0 319 12 331 0 331 Distribution of dividends 0 0 0 -279 0 -279 -0 -279 At June 30, 2026 1,449 -8 1,100 3,592 -731 5,403 3 5,405 At January 1, 2025 1,449 -8 1,100 3,208 -763 4,986 2 4,989 Net Result 0 0 0 276 0 276 0 277 Other comprehensive income (loss) 0 0 0 0 9 9 0 9 Total comprehensive income (loss) 0 0 0 276 9 286 0 286 Distribution of dividends 0 0 0 -266 0 -266 -0 -266 At June 30, 2025 1,449 -8 1,100 3,219 -754 5,006 2 5,009 Condensed Operating Segments H1 2026 in EUR million (unaudited) Austria Bulgaria Croatia Belarus Slovenia Serbia North Macedonia Other* Consoli- dated Total revenues (incl. other operating income) 1,335 438 297 286 119 224 90 6 2,795 Earnings before interest, tax, depreciation and amortization – EBITDA 476 195 122 120 29 82 32 -12 1,044 Earnings before income tax – EBT 98 114 58 104 -6 28 15 -5 406 Capital expenditures 215 51 42 16 10 21 11 7 374 H1 2025 in EUR million (unaudited) Austria Bulgaria Croatia Belarus Slovenia Serbia North Macedonia Other* Consoli- dated Total revenues (incl. other operating income) 1,362 404 286 245 114 200 85 -11 2,685 Earnings before interest, tax, depreciation and amortization – EBITDA 476 178 120 110 23 77 31 -15 999 Earnings before income tax – EBT 98 101 53 85 -13 31 13 -7 361 Capital expenditures 230 60 40 16 7 21 7 7 387 * Other includes: Corporate, Other & Eliminations 12 RESUL TS FOR Q2 AND H1 2026
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Selected Explanatory Notes to the Consolidated Interim Financial Statements Basis of Presentation The consolidated interim financial statements as of June 30, 2026 and for the first six months of 2026 (“H1 2026”) include, in the opinion of Management, all adjustments necessary for a fair presentation of the financial position and performance and are not audited or reviewed and should be read in connection with the audited A1 Group’s annual consolidated financial statements according to IFRS for the year ended December 31, 2025. The consolidated results for the interim periods are not necessarily indicative of results for the full year. The use of automated calculation systems may give rise to rounding differences. Values of 0/-0 shown in tables may result from amounts lower than EUR 0.5/-0.5 million. The preparation of the interim financial statements in conformity with IAS 34 “Interim Financial Reporting” requires making esti - mates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The significant judgments and the key sources of estimation uncertainty are the same as those described in the latest annual financial state - ments. Actual results could differ from these estimates. Compared to other economic sectors, the telecommunications industry is in general less cyclical. Within the telecommunication sector , the seasonality of the A1 Group’s segments shows the same pattern as other European incumbents, having lower mar - gins in the year-end quarter due to Christmas promotions and increases in sales commissions. Changes in Accounting Policies New currently effective accounting standards The A1 Group has applied the same accounting policies and methods of computation in the interim financial statements as in the annual financial statements as of and for the year ended December 31, 2025, except the following amendments to stane- dards which are effective from January 1, 2026: IFRS 7 and 9 Amendments: Contracts Referencing Nature-dependent Electricity IFRS 7 and 9 Amendments: Classification and Measurement of Financial Instruments IFRS 1; 7; 9; 10 and IAS 7 Annual Improvements - Volume 11 The amendments to the standards do not have a material impact on the condensed consolidated interim financial statements. Accounting standards issued but not yet effective In April 2024, the IASB published IFRS 18, “Presentation and Disclosure of Financial Statements,” which was endorsed by the EU in February 2026. IFRS 18 amends several other standards and replaces IAS 1, “Presentation of Financial Statements.” The new standard retains most of the existing requirements and introduces new ones to enhance the transparency and comparabil - ity of financial statements. Among others, IFRS 18 requires the income statement to be structured into the three newly defined categories operating, investing, and financing as well as mandates the subtotals “operating profit” and “profit before financing and income taxes.” IFRS 18 also introduces expanded rules on aggregation and disaggregation, requiring in particular a stricter , materiality-based breakdown of items in the income statement, statement of financial position and the notes. The standard clarifies that goodwill must be reported separately in the statement of financial position. In addition, expanded disclosures for company-specific key performance measures are provided for. IFRS 18 is effective for annual periods beginning on or after Janu - ary 1, 2027. The A1 Group does not early adopt the standard and is currently implementing IFRS 18. In this context, the Group is also analyzing the effects of IFRS 18. 13 RESUL TS FOR Q2 AND H1 2026
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Primary financial statements A detailed review is currently conducted regarding the new categories and the new subtotals in the income statement to ensure that items are properly classified and that the subtotals comply with the requirements of IFRS 18. Analyses have already shown that the A1 Group does not have any specified main business activities within the meaning of IFRS 18. In the statement of cash flows, the A1 Group expects adjustments due to the changed method of deriving cash flow from oper - ating activities. Going forward, operating income will be the starting point for calculating operating cash flow using the indirect method. In addition, there are specific requirements for the presentation of interest received and paid, as well as dividends received. Notes to the primary financial statements Regarding the new requirements of IFRS 18 for reporting on so-called “management-defined performance indicators” (MPMs), the A1 Group currently assumes that, to date, only a few key performance indicators that meet the definition of an MPM have been reported. Information on the composition of these indicators has already been provided in other sections of the corporate reporting; this information must be expanded in accordance with the disclosure requirements of IFRS 18. The analysis of the performance indicators has not yet been completed. In addition, IFRS 18 requires extended disclosure in the notes when applying the cost of sales method. This applies in particular to the reporting of certain cost types by functional area, which imposes new requirements for data collection. Data collection will already be adjusted for the comparative period 2026. Estimated impact The implementation of IFRS 18 will not result in any changes to the previous accounting and measurement methods and will have no impact on net assets, financial position and result of operations. The A1 Group estimates that the major impact of the adop - tion of IFRS 18 will be a reclassification from the financial result according to IAS 1 into the new IFRS 18 categories investing and financing. Related Party Transactions The following lease payments were made to the EuroTeleSites (“ETS”) Group: in EUR million (unaudited) H1 2026 H1 2025 Lease principal paid 102 93 Lease interest paid 24 28 Lease paid to ETS Group total 126 121 Bonds held by the A1 Group that were issued by the ETS Group as a private placement: • bond with a face value of EUR 180 million , a term until July 2028 and a variable interest rate based on the 3 months' EURIu - BOR plus a margin of 1.05 percentage points, acquired in July 2024 and reported in long-term investments • bond with a face value of EUR 255 million , a term until November 2026 and a fixed interest rate of 3. 029%, acquired in April 2025 and reported in short-term investments In H1 2026, the A1 Group recognized interest income of EUR 7 million (H1 2025: EUR 5 million ) relating to these bonds. The payables due to related parties include a dividend payable of EUR 250 million , see also Stockholders' Equity. 14 RESUL TS FOR Q2 AND H1 2026
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Revenues The following table shows the revenues per segment: in EUR million (unaudited) Austria Bulgaria Croatia Belarus Slovenia Serbia North Macedonia Other* Consoli- dated H1 2026 Service revenues 1,169 358 247 207 94 173 72 9 2,328 Equipment revenues 138 74 47 72 25 50 18 0 424 Other operating income 28 5 3 8 1 1 0 -3 43 Total revenues (incl. other operating income) 1,335 438 297 286 119 224 90 6 2,795 H1 2025 Service revenues 1,210 321 238 178 88 157 69 -9 2,253 Equipment revenues 124 77 44 60 24 43 16 1 389 Other operating income 28 6 3 7 1 1 1 -3 43 Total revenues (incl. other operating income) 1,362 404 286 245 114 200 85 -11 2,685 * Other includes: Corporate, Other & Eliminations Cost and Expenses The cost of equipment corresponds to material expense. Inventory valuation and employee expenses are shown in the following table: in EUR million (unaudited) H1 2026 H1 2025 Write-down/ reversals of write-down of inventories -4 -0 Employee expenses, including benefits and taxes -536 -532 Cash and Cash Equivalents and Investments In Q2 2024, the Belarusian government imposed temporary restrictions on payment of dividends to foreign investors residing in the European Union and other countries considered “unfriendly”. As of June 30, 2026, cash and cash equivalents of the Belar r- usian subsidiaries amount to EUR 154 million (December 31 , 2025: EUR 92 million ). Furthermore, short-term investments in Belarus amounting to EUR 84 million are subject to these restrictions at June 30, 2026 (December 31, 2025: EUR 64 million ). Intangibles and Property, Plant and Equipment In Q2 2026, A1 Austria acquired 2 x 25 MHz in the frequency band 2600 MHz FDD for a total of EUR 11 million in an auction, valid from 2027 to 2046. In Q2 2026, A1 Serbia paid the second installment amounting to EUR 50 million for the frequencies acquired in Serbia in Q4 2025. In Q1 2025, A1 Bulgaria acquired concessions for cellular network licenses in the 900 MHz and 2100 MHz range for a total of EUR 10 million and a period of 10 years. 15 RESUL TS FOR Q2 AND H1 2026
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Provisions and Accrued Liabilities Restructuring The provision for restructuring (employees who will no longer provide services) and social plans as well as for civil servants who voluntarily changed to the Austrian government to take on administrative tasks and the discount rates applied are disclosed in the following table: Jun. 30, 2026 Dec. 31, 2025 in EUR million unaudited audited Restructuring and social plans 314 315 Civil servants transferred to the government 3 3 Total restructuring 317 318 Discount rate Employees permanently leaving the service process 3.25% 3.00% Social plans 3.00% 2.75% Civil servants transferred to the government 3.25% 3.00% In H1 2026, the usage of the provision for restructuring was essentially offset by additions due to new social plans. The change in discount rates at June 30, 2026 resulted in a decrease of the provision of EUR 3 million which was mostly offset by accretion expense and releases. Employee benefit obligations The following table discloses the discount rates applied to measure employee benefit obligations: Jun. 30, 2026 Dec. 31, 2025 Discount rate unaudited audited Service awards 3.00% 2.75% Severance 3.75% 3.75% Pensions 3.50% 3.50% Asset retirement obligation In H1 2026, the parameters used for calculating the asset retirement obligation were adjusted to current market expectations in each operative segment and are summarized in the following table: Jun. 30, 2026 Dec. 31, 2025 unaudited audited Discount rate 3.1%–24.3% 3.5%-25.0% Inflation rate 2.2%–5.6% 2.1%-6.1% The change in the specified parameters as well as the change in the estimated outflow of resources resulted in a decrease in the obligation with no impact on income due to an adjustment in the carrying amount of the related item of property, plant and equipment of EUR 3 million (H1 2025: decrease of EUR 3 million ). Legal The Federal Chamber of Labor ("BAK") filed a class action lawsuit in January 2024 in connection with recurring charges, demand - ing that A1 no longer use certain clauses or rely on them; BAK has since withdrawn its claims for automatic reimbursement. The first-instance judgment in favor of BAK was appealed and the second instance decided partially in favor of A1 and partially in favor of BAK; this judgment is not yet legally binding. A1 continues to seek to convince the courts, up to the Supreme Court, of the legality of these clauses, especially as the telecommunications regulatory authority has regularly reviewed and accepted these clauses since 2011. In addition, there are specific legal provisions in the telecommunications sector , including those aris - ing from European law, which support the use of such clauses. Since February 2024, these clauses have no longer been agreed with customers. In this context, provisions have been booked. 16 RESUL TS FOR Q2 AND H1 2026
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Income Taxes H1 2026 H1 2025 unaudited unaudited Effective income tax rate 21.4% 23.3% When determining the effective income tax rate, the global minimum top-up tax related to Bulgaria and North Macedonia, where the statutory tax rates are 10% each, was taken into account. The effective tax rate applied during the year is based on full year planning assumptions. The change is primarily due to shifts in the relative weighting of segment results that are subject to differ - ent tax rates. Stockholders’ Equity The following dividends were declared by the shareholders at the Annual General Meeting and distributed by Telekom Austria AG: H1 2026 H1 2025 Date of Annual General Meeting Jun. 24, 2026 Jun. 3, 2025 Dividend per share in euro 0.42 0.40 Total dividend paid in EUR million 279 266 Date of payment Jul. 1, 2026 Jun. 11, 2025 The declared dividend payable to the main shareholders América Móvil and Österreichische Beteiligungs AG amounts to EUR 250 million and at June 30, 2026, it is reported in payables due to related parties. The remaining dividend of EUR 29 million due to the owners of the free floated shares is reported in accounts payable. Other comprehensive income (loss) items in the Condensed Consolidated Statements of Changes in Stockholders’ Equity include the remeasurement of defined benefit obligations (IAS 19 reserve), the remeasurement of investments at fair value through other comprehensive income (FVOCI reserve) and the translation reserve. In H1 2026, EUR 14 million of the effect of translation of foreign entities in other comprehensive income relate to the appreciation of the Belarusian ruble (H1 2025: appre - ciation of EUR 12 million ). Share-based Compensation On June 1, 2026, the 17th tranche of the long-term incentive program (L TI 2026) was granted. L TI 2026 has a performance period from January 1, 2026 to December 31, 2028 and a corridor for target achievement from 0% to 200%. The target values for the key indicators were determined by the Supervisory Board and are the following: • EBITDA growth, weighted at 40% • Growth and simplification improvement in A1 Austria, weighted at 15% • Revenue market share growth, weighted at 15% • Two Environmental, Social & Corporate Governance (“ESG”) goals: reduction of gender pay gap and reduction of carbon footprint, each weighted at 15% 17 RESUL TS FOR Q2 AND H1 2026
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Financial Instruments The following tables show the classification as well as the carrying amounts and fair values of financial assets and financial liabil - ities (debt). Fair values are not disclosed in case the carrying amount is a reasonable approximation of the fair value. Jun. 30, 2026 Dec. 31, 2025 Carrying amount Fair value Carrying amount Fair value in EUR million unaudited unaudited audited audited Cash and cash equivalents 710 n.a. 362 n.a. Accounts receivable: Subscribers, distributors and other 1,102 n.a. 1,021 n.a. Receivables due from related parties 30 n.a. 11 n.a. Other current financial assets 40 n.a. 44 n.a. Other non-current financial assets 6 n.a. 5 n.a. Investments at amortized cost 567 570 565 568 Financial assets at amortized cost 2,455 n.a. 2,009 n.a. Equity instruments at fair value through profit or loss* 3 3 3 3 Debt instruments at fair value through other comprehensive income* 28 28 41 41 Debt instruments at fair value through profit or loss* 1 1 4 4 Financial assets at fair value 32 32 48 48 * mandatory n.a. - Not applicable as the practical expedient of IFRS 7.29 (a) was applied. The investments at amortized cost include fixed term deposits and bonds. The fair values of the bonds equal the face value multi - plied by the price quotations at the reporting date and are basically classified as level 1 of the fair value hierarchy. Bonds without an active market have to be classified as level 2. At June 30, 2026 and at December 31, 2025, this applies to the bonds issued by ETS Group and bonds held in Belarus. For fixed deposits, the carrying amount approximates the fair value. Jun. 30, 2026 Dec. 31, 2025 Carrying amount Fair value Carrying amount Fair value in EUR million unaudited unaudited audited audited Short-term bank debt 0 0 4 4 Bonds 750 746 749 744 Long-term bank debt 45 46 0 0 Payables due to related parties 291 n.a. 46 n.a. Current financial liabilities 1,041 n.a. 950 n.a. Other non-current financial liabilities 10 10 9 9 Financial liabilities at amortized cost 2,136 n.a. 1,759 n.a. Lease liabilities 1,784 n.a. 1,854 n.a. n.a. - Not applicable as the practical expedients of IFRS 7.29 (a) respectively IFRS 7.29 (d) for lease obligations were applied. The fair value of the quoted bond equals the face value multiplied by the price quotation at the reporting date and is thus clas - sified as level 1 of the fair value hierarchy. The fair values of the bank debt are measured at the present values of the cash flows associated with the debt, based on the applicable yield curve. The fair values of the other non-current financial liabilities are measured at the present values of the cash flows, discounted based on current interest rates, and are thus classified as level 2 of the fair value hierarchy. The long-term bank debt relates to the financing of frequencies acquired in Serbia in Q4 2025. For the increase in payables due to related parties in connection with the dividend distribution, see also Stockholders' Equity. 18 RESUL TS FOR Q2 AND H1 2026
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Contingent Liabilities The tax proceedings relating to the reference date for salary increments of Austrian civil servants, disclosed in Note 35 to the 2025 Consolidated Financial Statements, were concluded in favor of A1 Group during H1 2026. Consequently, no additional tax payment became due. The lawsuit filed in 2024 by the Association for Consumer Information (VKI) against the indexation clause used by A1 Austria is now pending at the Supreme Court. Regarding the lawsuit filed by the Federal Chamber of Labor (BAK) against clauses related primarily to one-time charges, the Austrian Supreme Court (OGH) dismissed one of the claims and referred the matter of the activation fee to the Court of Justice of the European Union (CJEU). Other Events To further strengthen the A1 Group's information and communication technology ("ICT") strategy, DEX d.o.o., a provider of ICT services, was acquired in Serbia in H1 2026. In May 2026, the previously announced transaction for the sale of A1 Bank AG was discontinued. The A1 Group is currently evalr - uating strategic options for the A1 Bank AG. Vienna, July 21, 2026 The Management Board Alejandro Plater m.p. Thomas Arnoldner m.p. CEO Deputy CEO 19 RESUL TS FOR Q2 AND H1 2026
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Statement of Legal Representatives Declaration of the Management Board according to §125 Para 1 Stock Exchange Act We confirm to the best of our knowledge that the condensed interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group as required by the International Financial Reporting Standards (IFRS) and that the group management report gives a true and fair view of important events that have occurred during the first six months of the financial year and their impact on the condensed interim financial statements and of the principal risks and uncer - tainties for the remaining six months of the financial year and of the major related party transactions to be disclosed. Vienna, July 21, 2026 The Management Board of Telekom Austria AG Alejandro Plater m.p. Thomas Arnoldner m.p. CEO Deputy CEO 20 RESUL TS FOR Q2 AND H1 2026
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Financial Calendar Oct 20, 2026 Results Q3 / Q1-Q3 2026 Risks and Uncertainties A1 Group faces various risks and uncertainties that could affect its results. For further details about these risks and uncertain - ties, please refer to the latest A1 Group Annual Financial Report. Contact Information for Investors Susanne Aglas-Reindl Head of Investor Relations Tel.: +43 (0) 50 664 47500 E-Mail: Investor.relations@a1.group Disclaimer This document contains forward-looking statements. These forward-looking statements are usually accompanied by words such as ›believe‹, ›intend‹, ›anticipate‹, ›plan‹, ›expect‹ and similar expressions or by ›outlook‹. Actual events may differ materially from those anticipated in these forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any for - ward-looking statement. Neither the A1 Group nor any other person assumes any liability for any such forward-looking state - ments. The A1 Group will not update these forward-looking statements, whether due to changed factual circumstances, changes in assumptions or expectations. This document has been carefully prepared and all information has been carefully checked. Nevertheless, the possibility of layout and printing errors cannot be excluded. The use of automated calculation systems may result in rounding differences. The English version of this document is for convenience only; the German version is binding. This report contains quarterly and year-to-date results that have not been audited or reviewed by a certified public accountant This document does not constitute a recommendation or invitation to buy or sell any A1 Group security. Imprint Media owner & publisher: Telekom Austria AG; Lassallestraße 9, 1020 Vienna, Austria; Commercial register no: 144477t, Registered at: Commercial Court Vienna; Phone: +43 50 664 0, Website: www.a1.group | Place of publishing: Vienna | Austria Editorial deadline: July 21, 2026 21 RESUL TS FOR Q2 AND H1 2026