Capital expenditures

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in EUR million

2014

2013

Change
in %

*

Excluding capital expenditure arising from asset retirement obligations

Tangible Austria

288.4

306.3

−5.9

Tangible Bulgaria

45.3

37.6

20.5

Tangible Croatia

57.7

51.5

12.1

Tangible Belarus

42.2

28.8

46.6

Tangible Additional Markets

55.0

62.7

−12.4

Total tangible

488.6

487.0

0.3

Intangible Austria

110.3

1,203.5

−90.8

Intangible Bulgaria

57.6

22.5

155.2

Intangible Croatia

12.2

30.9

−60.4

Intangible Belarus

6.2

5.2

20.3

Intangible Additional Markets

82.5

30.0

174.5

Total intangible

268.8

1,292.1

−79.2

Total capital expenditure*

757.4

1,779.1

−57.4

Capital expenditure declined significantly to EUR 757.4 mn in the year under review (2013: EUR 1,779.1 mn). This was primarily due to the high costs in connection with the Austrian multiband auction and the acquisition of intellectual property rights, frequencies and collocation rights for base stations from Orange Austria in 2013.

Tangible capital expenditure remained stable at EUR 488.6 mn, as reductions in Austria and the Republic of Serbia could not compensate stable or higher investments in the other markets and in Belarus in particular. In Austria, tangible capital expenditure declined due to the completion of the project introducing All-IP in the fixed-line business and due to reduced expenses for customer handsets and infrastructure. In Belarus, tangible capital expenditure increased mainly on the back of higher investment in the network and IT infrastructure. Tangible capital expenditure in the Republic of Serbia declined by EUR 14.8 mn largely as a result of a change in the revenue recognition for handsets; this was partially offset by increased network investments.

The reduction in intangible capital expenditure to EUR 268.8 mn (2013: EUR 1,292.1 mn) is largely due to the acquisition of mobile frequencies in the Austrian multi-band auction and intellectual property rights, frequencies and collocation rights for base stations from Orange Austria in the previous year. In Bulgaria intangible capital expenditure increased year-on-year following the prolongation of 900 MHz and 1800 MHz frequency bands for EUR 30.6 mn in April 2014. By contrast, intangible capital expenditure in Croatia declined due to the EUR 23.1 mn acquisition of mobile frequencies in 2013. In Slovenia the acquisition of mobile spectrum for EUR 63.9 mn in the year under review led to a further significant increase in intangible assets, while the lower intangible capital expenditure in the Republic of Macedonia was attributable to the acquisition of the LTE spectrum in 2013 for EUR 10.3 mn.

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