By Nicole Lundeen

VIENNA--Telekom Austria AG (TKA.VI) Wednesday released first-quarter earnings that showed net profit soared due to cost-cutting and a one-off effect from its Slovenian business.

"We are currently optimizing our operating business, we think twice about every cent we spend and we are streamlining the Telekom Austria Group to bring it back to its growth path," the company's Chief Executive Hannes Ametsreiter said.

In the first three months of the year, the Austrian telecommunications company's net profit more than doubled to 92.7 million euros ($99.4 million) from EUR40.8 million a year earlier, while revenue decreased 2% to EUR956 million from EUR975.9 million. This beat analyst expectations for net profit. In a poll conducted by The Wall Street Journal, analysts had seen Telekom Austria posting a net profit of EUR46 million and revenue of EUR970 million.

Telekom Austria confirmed its guidance for 2015, which foresees revenue growth of 2% and capital expenditure of between EUR700 million and EUR750 million. It confirmed that management will suggest a dividend payout of EUR0.05 a share at its next general assembly on May 27.

The company's earnings were boosted by a one-off EUR20.0 million settlement in Slovenia with Telekom Slovenije d.d. Its home market of Austria also turned in a strong performance, with earnings before interest and taxes increasing by 51% to EUR87.4 million, Telekom Austria said. Its Bulgarian market continued to be highly competitive, but the company said its reform program has started to show results with increased sales in mobile services and fixed-line broadband.

Although revenue in Belarus increased by 17% when denominated in Belarusian rubles, currency fluctuations mean that euro-denominated revenue fell 4.7% to EUR77.2 million. Telekom Austria said it cut costs by 1.6% or EUR10.9 million.

Telekom Austria is majority owned by Mexican telecommunications giant America Movil SAB de CV, which last year raised its stake in the company to just under 60% of all of the shares. America Movil has a shareholder agreement with the Austrian government's holding company Oesterreichische Bundes und Industriebeteiligungen GmbH, or OeBIB, which holds just over 28% of Telekom Austria's shares.

Write to Nicole Lundeen at nicole.lundeen@wsj.com

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