Magyar Telekom 3Q19 revenues up 0.6%; fixed broadband users rise 7.3%

Hungarian full-service operator Magyar Telekom’s consolidated revenues increased 0.6% year-on-year to HUF164.6 billion (USD550 million) in Q3 2019, driven by continued positive trends in fixed and mobile service revenues in Hungary and at its North Macedonia subsidiary, offsetting declines in System Integration and IT revenues (particularly due to lower income from public sector projects compared to the same period of last year). EBITDA increased by 12.4% y-o-y to HUF59.6 billion in the three months ended 30 September 2019, although if excluding the impact of IFRS 16 accounting adoption, the EBITDA rise would have been limited to 3.6%. Net profit for the third quarter declined by 10.1% to HUF13.0 billion, affected by a HUF2.7 billion impact from IFRS 16 adoption which offset improvements in operating results. Telekom’s number of mobile customers in Hungary grew 0.4% y-o-y to 5.323 million at the end of 3Q19 while the retail fixed broadband customer base increased by 7.3% to 1.209 million.