TeleGeography Logo

Economic crisis drags Telenor Hungary down in Q4

9 Feb 2011

Telenor Magyarorszag, the Hungarian operating arm of Norwegian group Telenor, said its fourth-quarter sales were impacted by the ongoing economic crisis in the country, exacerbated by termination fees cuts and the effect of a ‘crisis tax’. Telenor Hungary booked revenue of HUF42.1 billion (USD213.7 million) in the last three months of 2010, down 5.2% from the corresponding period a year earlier. For the full year, sales reached HUF165.2 billion, a 6.7% year-on-year drop. Fourth-quarter EBITDA was HUF5.33 billion, down dramatically from the HUF15.72 billion it booked in Q4 2009, largely the result of a HUF9.9 billion payment to the government in the form of a telecoms sector crisis. Full year EBITDA reached HUF60.3 billion, an EBITDA margin of 36.5%, and EBIT was HUF9.78 billion. CAPEX dropped to HUF2.55 billion in the fourth quarter of 2010 from HUF3.67 billion a year earlier, boosting full-year capital expenditure to HUF8.91 billion.

Telenor Hungary closed out the year with 3.58 million mobile subscribers, down slightly from 3.61 million a year earlier, though a 36,000 improvement from 30 September 2010. Telenor said its share of the mobile broadband segment was 26.62% as at 31 December 2010, down from 28.46% three months earlier. Telenor competes with Magyar Telekom’s mobile arm and Vodafone Hungary in the local market.

Hungary, Yettel Hungary

GlobalComms Database

Want more? Peruse the GlobalComms Database—the most complete source of intel about mobile, fixed broadband, and fixed voice markets.

TeleGeography

TeleGeography is the definitive source for telecom news, numbers, and analysis. Explore the full research catalog.