April 24, 2018 / 5:32 PM / 2 years ago

Rebranding costs wipe out Telekom Austria net profit

VIENNA, April 24 (Reuters) - First-quarter net profit at Telekom Austria, a unit of Mexican tycoon Carlos Slim’s America Movil, shrank by three quarters because of the amortisation of the costs of a rebranding effort, the company said on Tuesday.

Beyond its home market, Telekom Austria operates in four countries in the former Yugoslavia, plus Bulgaria and Belarus.

It is changing its name to A1 in various countries, which prompted brand value amortisation of 101.1 million euros ($124 million) in the first three months of the year.

That amortisation, which was driven by Bulgaria, meant net profit in the three months through March fell 75 percent to 24.5 million euros compared with the same period a year earlier.

Without the amortisation, net profit for the period would have increased by 30 percent, it added. ($1 = 0.8172 euros) (Reporting by Francois Murphy Editing by Alexander Smith)

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