International Markets Drive A1 Group Growth

A1 Croatia ended the third quarter of 2026 among the markets contributing to service revenue growth, while A1 Group’s international operations once again drove consolidated performance. The quarterly disclosures, however, do not provide separate financial amounts for Croatia: there are no Croatian revenue, EBITDA, EBITDA after leases, or capital expenditure figures for either the quarter or the first nine months. Croatia’s performance can therefore be assessed through the operating trends identified in the report and through the aggregate international segment, but not through a standalone Croatian profit and loss account. This distinction matters when comparing A1 with other operators in the Croatian market.

All of A1’s Central and Eastern European markets contributed to service revenue growth in the third quarter. The group attributes international momentum to customers moving to higher-value plans, demand for high-speed broadband and a broader portfolio of ICT and connectivity solutions. Croatia is part of this business alongside Bulgaria, Belarus, Slovenia, Serbia and North Macedonia. The disclosure does not provide the individual countries’ growth rates, however, making it impossible to quantify Croatia’s contribution to the improvement.

One operating indicator is explicitly relevant to Croatia. The number of customers using mobile Wi-Fi routers, often sold as a home internet alternative to fixed connections, increased across the group’s markets except Croatia. The report does not quantify the Croatian decline, and the finding must not be interpreted as a decline in the entire broadband customer base. It refers specifically to mobile routers. A comprehensive assessment would also require separate data on fixed broadband, fibre connections and mobile subscriptions.

The group is also extending its consumer offering beyond connectivity. A1 Select, a platform for additional digital subscriptions, has been launched in Austria, while similar services are offered in selected international markets including Croatia and Serbia. It links telecom subscriptions to partner services such as entertainment, education or fitness. The commercial rationale is to deepen customer relationships and increase the range of services associated with an existing account. Neither the number of Croatian subscribers nor revenue generated by this proposition is disclosed.

The international segment, comprising the six countries and A1 Digital, increased third-quarter revenue by 8.0 percent and service revenue by 8.3 percent. For the first nine months, international revenue rose 9.2 percent and service revenue 9.7 percent. International EBITDA increased by 5.6 percent in the quarter and 7.1 percent over nine months. The difference between revenue and EBITDA growth shows that not all additional sales translated into operating earnings, even as the international business substantially outperformed Austria.

A1 Group reported €1.465 billion in third-quarter revenue, compared with €1.401 billion a year earlier, an increase of 4.6 percent. Service revenue reached €1.205 billion, up 3.9 percent, while equipment revenue increased by 11.5 percent to €238 million. The mix matters: recurring services expanded at a more moderate pace, while handset and equipment sales grew faster. Such sales support reported revenue but can also raise procurement costs and put pressure on the equipment margin.

Revenue for the first nine months totalled €4.260 billion, 4.3 percent above the corresponding period of 2025. Service revenue rose 3.5 percent to €3.533 billion, while equipment revenue increased 9.9 percent to €662 million. Third-quarter mobile business revenue grew 6.3 percent to €877 million and fixed-line revenue increased 3.2 percent to €566 million. Over nine months, mobile revenue reached €2.522 billion and fixed-line revenue €1.673 billion. Growth therefore extended beyond core mobile connectivity to fixed infrastructure and enterprise services.

EBITDA excluding restructuring reached €595 million in the third quarter, up 1.9 percent, while the corresponding margin declined from 41.7 to 40.6 percent. Over nine months, adjusted EBITDA increased 3.4 percent to €1.692 billion, and the margin eased from 40.1 to 39.7 percent. Reported EBITDA, which includes restructuring charges, amounted to €574 million for the quarter and €1.618 billion for the nine months. A growing absolute earnings figure alongside a contracting margin is a clear sign that operating costs have been rising faster than revenue.

EBITDA after leases, or EBITDAaL, amounted to €464 million in the quarter, up 2.1 percent. Across nine months, it advanced 4.0 percent to €1.290 billion. The metric is particularly relevant to telecom comparisons because lease-related costs are a material part of network operations. Operating profit, or EBIT, was broadly unchanged at €265 million for the quarter and increased 5.4 percent to €702 million over nine months. Net profit stood at €195 million and €514 million, respectively, representing growth of 1.9 and 9.9 percent.

Austrian revenue rose 0.8 percent in the third quarter but declined 1.0 percent over the first nine months. Service revenue excluding international business decreased 0.7 percent in the quarter, compared with declines of 2.5 percent in the second quarter and 4.3 percent in the first. The downturn is becoming less severe but has not ended. EBITDA excluding restructuring declined 2.0 percent in Austria during the quarter and 0.7 percent over nine months.

Bulgaria was among the largest contributors to nine-month service revenue growth alongside Belarus and Serbia. Demand for broadband and ICT solutions remained important, although year-on-year equipment comparisons in Bulgaria were affected by sizeable ICT contracts in the previous year. Belarus also contributed to growth, with exchange-rate movements providing some support. Positive currency effects added approximately €3 million to group revenue in the third quarter and €13 million over nine months. The Belarusian operation also faces regulatory uncertainty associated with litigation over changes to customer tariffs.

Serbia was one of the strongest contributors to quarterly EBITDA growth together with Belarus. Slovenia and North Macedonia also participated in service revenue growth, although individual quarterly financial amounts and growth rates are not available in the disclosed segment tables. In fixed broadband, Slovenia joined Austria among the markets without an increase in connections. Positive financial performance at the country level therefore should not be equated with growth in every product category.