MTel 3Q net income climbs 10.8%

8 Nov 2012

Hungarian operator Magyar Telekom (MTel) has reported a 10.8% year-on-year rise in net profit to HUF14.77 billion (USD67 million), beating market forecasts of income of HUF11.73 billion by local financial news portal, The group’s results were aided by one-time gains from real estate transactions and lower operating costs, which helped to offset a fall in revenue. Turnover for the three months under review fell 1.3% to HUF150 billion, broadly in line with expectations. However, the Deutsche Telekom-backed unit added that revenue for January-September 2012 rose 0.9% on an annualised basis to HUF442 billion, while underlying earnings before interest, taxes, depreciation and amortisation (EBITDA), taking into account special cost provisions, declined by 2.9% to HUF182 billion. Nevertheless, MTel has reaffirmed its guidance of a 0%-2% drop in revenue for FY2012 and a 4%-6% dip in EBITDA.

Commenting on the group’s performance, MTel chairman and CEO Christopher Mattheisen said: ‘In Macedonia, we completed an efficiency review of our real estate assets, selling four of our existing buildings and purchasing a single modern one, and the sale of our Pro-M subsidiary also contributed to better EBITDA performance.’ That transaction resulted in a one-time gain of HUF3.7 billion which, when coupled with the benefits of the group’s cost-cutting initiatives, helped to minimise the impact of a new government-imposed tax on voice calls and SMS, launched in July.

Hungary, Magyar Telekom