MTel: 4Q profits beat expectations, but economy to have impact on 2009 outlook

Hungary’s dominant telecoms group Magyar Telekom (MTel), backed by Germany’s Deutsche Telekom, posted net profits of HUF12.6 billion (USD53.97 million) in the three months ended 31 December 2008 beating expectations, but said that net income would fall in 2009 as a result of the economic slowdown. The group booked fourth-quarter revenue of HUF170.2 billion, down 1.6% year-on-year in line with expectations, as a 25.8% fall in sales of wholesale fixed line services offset a 2.9% rise in turnover at its mobile arm. For the full year, consolidated revenue dipped by half of one percent to HUF673.1 billion, while EBITDA rose by 10% to HUF268.4 billion. However, MTel Chairman and Chief Executive Christopher Mattheisen warned of a tough year ahead due to the economic downturn in its primary markets. ‘We are targeting for 2009 a revenue decline of 1% and an EBITDA decline of 1% to 2% compared to the 2008 results,’ he said in the company’s flash report.