Significant rise in operating result

On the basis of the influencing factors and developments described above, the operating result increased by 53.0 % from € 527.0 million to € 806.5 million.

Financial result negatively impacted by one-off effects in the result from participating interests

The financial result dropped slightly from -€ 19.5 million to -€ 20.1 million.

The financing result improved significantly from -€ 73.7 million to -€ 60.9 million as a result of the lower bond and bank interest rates as well as the positive foreign currency effects. Compared to fiscal 2005, the valuation-related and realized foreign currency effects of financing transactions in Swiss Francs and Japanese Yen had a positive impact in the amount of € 12.5 million. Following an adjustment for foreign currency effects, the financing result only improved slightly. The interest rate adjustment for the provision for impending losses at VERBUND-Austrian Thermal Power GmbH & Co KG (ATP) had a negative impact.

The clear 34.0 % drop in the result from participating interests to € 31.0 million was mainly due to the interest in KELAG-Kärntner Elektrizitäts-Aktiengesellschaft which is accounted for using the equity method. In addition to the slight decline in profits for the period and the omission in 2006 of the income shown in the previous year due to the change in the corporate tax rate (conversion of deferred taxes), sub-group financial statements in accordance with IFRS were drawn up for this interest for the first time. The decline in profits at STEWEAG-STEG GmbH, which is attributable to a package that aims at securing the future of the company, was almost compensated by a positive effect in the form of a settlement between the company master-talk and the Republic of Austria in connection with the Adonis project. The result of the Italian joint venture Sorgenia developed positively and increased to € 10.2 million.

The result from long-term investments improved by € 2.6 million on account of higher income from securities investments and fund distributions.

The effective tax rate was 22.6 % compared to 20.8 % the previous year. The deviation in the tax rate from the corporate tax rate of 25 % is mainly due to tax-exempt investment income.

Minority interests in profit increased by € 18.4 million to € 60.4 million due to jump in earnings at VERBUND-Austrian Hydro Power AG (AHP). The item »Profit attributable to capital shares repayable on demand« shows the shares external shareholders hold in VERBUND-Austrian Thermal Power GmbH & Co KG (ATP). This rose by € 36.4 million to € 47.3 million.

Best group result in company history +43.5 %

The group result in accordance with International Financial Reporting Standards (IFRS) (earnings for the period, attributable to shareholders of the parent company) improved by 43.5 % to € 501.1 million. The earnings per share increased to € 1.63.