Magyar Telekom net profit down 23% in Q2

Hungary’s dominant telecoms operator Magyar Telekom (MT) reported revenues of HUF162.9 billion (USD778.4 million) in the three months to June 2006, up 4.2% year-on-year, but its profits underperformed, falling nearly 10% below analysts’ consensus forecasts. MT booked net profits of HUF17.98 billion in the period under review, down 23.2% year-on-year, while EBITDA stood at HUF62.7 billion, nearly HUF1 billion less than the markets expected. Analysts say that MT’s recent acquisitions and expansion plans have thus far failed to achieve the required results and will not please its investors. What is more worrisome, however, is that the company has still not approved its 2005 figures.