Pannon’s 1Q09 EBITDA falls on lower termination fees, revenues

7 May 2009

Hungarian mobile operator Pannon reported first-quarter earnings before interest, taxes, depreciation, and amortisation (EBITDA) of HUF18.3 billion (USD85.65 million), down HUF725 million on the corresponding year earlier period, as lower termination fees, reduced handset sales and falling demand for voice services combined to drive revenues down. In the three months ended 31 March 2009 Pannon posted revenue of HUF43.3 billion, compared with HUF44.9 billion in the same period a year earlier, the company said. Group EBIT fell HUF600 million to HUF13 billion and quarterly CAPEX, mainly allocated for its 3G expansion programme, fell 11% to HUF2.8 billion.

As at 31 March Pannon had 3.594 million subscribers, 200,000 more than at the same period of 2008, but 137,000 fewer than it recorded at 31 December 2008. The cellco said the loss was primarily in pre-paid users, noting that the proportion of monthly contract subscribers reached 43.5% at the end of March. Monthly blended average revenue per user (ARPU) dropped HUF386 year-on-year to HUF3,771.

Hungary, Telenor Hungary