MTel posts surprise fourth-quarter loss as taxes bite deep

Hungarian telecoms operator Magyar Telekom (MTel), part of the Deutsche Telekom (DT) group, has reported an unexpected net loss in the three months ended 31 December 2012, as the effects of new state-levied telephone taxes bit deep into its bottom line. In the three months under review, MTel booked a net loss of HUF1.6 billion (USD7.1 million), compared to a loss of HUF40.3 billion in the fourth quarter of 2011, the operator confirmed in a filing with the Budapest stock exchange. The performance fared badly against a Bloomberg poll of six analysts who forecast net profit for the group of HUF505 million. Earnings before interest, taxes, depreciation and amortisation (EBITDA) slumped 21% to HUF37 billion in 4Q12, as the aforementioned telecoms tax added HUF4.4 billion compared with the year-ago period. For fiscal 2013, MTel chief executive officer Christopher Mattheisen says that it expects EBITDA to fall by between 4% and 7%, while turnover is likely to decline by up to 3%.