Vienna  - Austria's formerly state-run telecommunications provider Telekom Austria on Wednesday reported a 11.9 per cent profit drop to 129.7 million euros (200 million euros) amid speculation over a possible split of the former monopolist.

Earnings before interest, taxes, amortization and depreciation (EBITDA) for the first three months of 2008 were up 4.7 per cent to 498.6 million euros, boosted by the strong performance of its mobile phone division Mobilkom Austria, the company said.

Sales revenues increased by 9.9 per cent to 1.26 billion euros, strengthened by the takeover of Belarus mobile phone provider MDC, which, however, negatively affected profits.

According to Austrian news reports, Telekom Austria may plan to split off its money-spinning subdivision Mobilkom and list it separately on the country's stock market.

Spain's Telefonica, Vodafone and Russian oligarch Vladimir Evtushenkov, founder of Sistema, a Russian conglomerate, have already shown interest, Austria's Wirtschaftsblatt newspaper said.

While Telekom Austria said it stemmed the exodus of fixed line customers, operative profits in its fixed line division were down 45.5 per cent to 30.3 million euros.

The company's share of the mobile phone subscriber base increased by 50.2 per cent to 15.9 million. Broadband subscription by 13.3 per cent to 817,600.

Telekom Austria confirmed its 2008 prognosis to maintain stable operating profits. Net profits are expected to drop by 12 per cent. (dpa)