MTel trims profit guidance in wake of tax hike

Hungary’s largest telecoms group by subscribers and revenue, Magyar Telekom (MTel), has cut its profit guidance for fiscal 2013 in the wake of the government’s decision to adopt new budgetary adjustments, which include another controversial tax increase affecting the nation’s telecoms industry. Reuters notes the carrier as saying that as a consequence of the state’s decision, it now expects FY 2013 earnings before interest, taxes, depreciation and amortisation (EBITDA), to fall between 9% and 12% from 2012 – a significant decline when compared to its previous guidance of a fall in EBITDA of between 4% and 7%. This year, MTel expects its telecoms tax-related bill to be in the region of HUF25 billion (USD109.6 million), rising to HUF28 billion in fiscal 2014.