A recent report has uncovered that the second-quarter core earnings of Telecom Austria (TELA. VI) have plunged by some 10%. The fall realized has come out to be a bit sharper than expected.

It is after more spending on subsidizing smartphones by the company so as to keep spendthrift customers that the fall has been experienced.

On Monday, it was restated by the company that some 4.1 billion euros ($5.5 billion) were expected by it as this year's revenues. The same was less than the last year's revenues, which were at 4.33 billion euros.

But, its investment plans had been cut by it. Almost 24% in the company is owned by America Movil (AMXL. MX) of Carlos Slim.

It has been found that a plummet of around 15% in average revenue a user has been experienced by the company to 16.2 euros per month. The same is after the amalgamation of budget brand Yesss.

As per the findings, Telecom Austria had taken over the same as a side deal to the Hutchison Whampoa's (0013. HK) conquest of Orange Austria at the year's start.

"Based on our convergent product portfolio and on higher subsidies for top smartphones in the premium customer segment, we are succeeding in securing our business", said Chief Executive Hannes Ametsreiter.