Operating expenses

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in EUR million

2014

2013

Change
in %

Comparative period 2013 was adjusted in accordance with IAS 8 (please refer to Note (1) of the Consolidated Financial Statements).

Material expenses

497.3

547.3

−9.1

Employee costs

876.4

845.9

3.6

Other operating expenses

1,477.1

1,590.5

−7.1

Restructuring charges

89.6

45.2

98.2

Impairment charges

345.7

59.4

n.m.

Depreciation and amortisation

853.8

864.6

−1.2

The Telekom Austria Group continued to focus on the ongoing optimisation of operating efficiency and strict cost management in 2014. In addition to the reduction in interconnection expenses due to lower mobile termination rates, the 9.1% reduction in material expenses to EUR 497.3 mn and lower marketing and sales expenses were the main factors in the 4.5% reduction in operating expenses to EUR 2,850.9 mn. Employee costs increased by 3.6% to EUR 876.4 mn, largely as a result of a one-off provision for potential back-payments for civil servants in the amount of EUR 30.1 mn. This provision was the result of a European Court of Justice decision from 11 November 2014, which ruled that the legal framework for the years of service and consequently the term to promotion for Austrian civil servants was not in line with Union law.

Other operating income rose by 36.7% to EUR 119.0 mn in 2014 due to a one-off effect in the amount of EUR 26.8 mn relating to the merger of mobilkom liechtenstein and Telecom Liechtenstein, which was closed on 27 August 2014.

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