The Telekom Austria Group saw its revenues fall by 4.9 percent to €2.1 billion in the first six months of 2012, compared with the same period of last year.

Strong pricing competition in the two main operating markets of Austria and Bulgaria, which account for 50 percent of its total subscriber base, and a highly competitive market in Croatia, one of its other operating areas, accounted for the decline, the company said.

However, this damage was offset by the acquisition of cable operator B.net, as well as revenues increasing in Slovenia, Serbia and Macedonia, it added.

EBITDA - excluding restructuring and impairment charges - fell by 6.6 percent to €726 million compared with €777 million in the first half of 2011.

Net profit hit €80.9 million - up from a net loss of €59.2 million in the same period of last year.

The group's CEO, Hannes Ametsreiter, said: "In the first half of 2012, we were able to exceed capital market expectations, although the overall weak economic environment and considerably fiercer price competition in Austria, Bulgaria and Croatia will impact our margins for the full year."