MakTel third-quarter revenues down 12%; main shareholder to invest EUR180m

11 Nov 2011

Macedonia’s incumbent PTO Makedonski Telekomunikacii (MakTel), which is 51%-owned by Hungary’s Magyar Telekom, booked a 12.4% annual fall in turnover to HUF18.2 billion (USD79.5 million) for the three months to 30 September 2011, while EBITDA slipped by 13.4%. The telco’s majority shareholder attributed the drop in sales in part, to the negative effect on revenue contribution caused by the strengthening Hungarian forint against the local currency, the Macedonian denar, in the third quarter of 2011, as compared to 2010. Meanwhile, the fall in EBITDA was the result of intense competition in the local mobile market, which impacted on pricing strategies and a rise in handset subsidies, which MakTel failed to offset despite reducing other operating expenses.

MakTel reported a 9.4% fall in fixed line turnover in 3Q11, stemming from lower voice (retail), internet and data revenue. However, strong demand for triple-play options boosted TV revenue, it said. As at 30 September 2011 MakTel counted 318,039 main lines in service (down 8.5% y-o-y), 157,000 xDSL connections (up 8.5%) and 35,409 IPTV subscribers (+51%). Mobile sales revenue declined by 14.6% y-o-y and ARPU was down 8.1%. T-Mobile Macedonia had 1.294 million mobile subscribers at the end of the third quarter, a 0.9% fall over a year and a market share of around 50%. In the wake of the publication of MakTel’s latest financial results, Magyar Telekom confirmed it plans to invest an additional EUR180 million in Macedonia in the next few years.

North Macedonia, Makedonski Telekom (Telekom)