MTel profits, revenue fall; telco cuts full-year targets

6 Aug 2010

Hungarian operator Magyar Telekom (MTel) said second-quarter net profits fell 31.1% year-on-year to HUF15.9 billion (USD74.8 million) on revenues that dipped 6.6% to HUF150.5 billion as a result of a fall in voice call volumes and a reduction in regulated termination fees. The Budapest Business Journal said the telco’s net income was below the HUF17.3 billion estimate by analysts in a poll by Operating profit dropped 9.4% year-on-year to HUF36.6 billion partly because of a drop in ‘other operating income’. On a segmental basis, turnover from fixed line services fell 10.6% to HUF61.6 billion in the second quarter and mobile revenue was down 4.4% to HUF78.3 billion. On a positive note, sales derived from system integration and IT services inched up 2.3% to HUF10.6 billion. Revenue at MTel’s Macedonian unit fell 8.7% to HUF19.6 billion in Q210 and turnover at its counterpart in Montenegro slipped 10.3% to HUF7.8 billion.

MTel CEO Christopher Mattheisen said his company has revised downwards its EBITDA and revenue targets for 2010 by HUF20 billion in the face of a government plan to cut spending on national asset management, including IT and telecoms services. MTel expects a potential negative impact of between HUF5-HUF7 billion on both revenue and EBITDA, and is forecasting a 6%-8% drop in revenue and a 7%-9% drop in EBITDA, it said. The operator is also cutting its 2010 CAPEX by 10%, when compared to 2009; it previously planned a 5% cut.

Hungary,Magyar Telekom,



Have feedback, corrections, or story ideas? Send them to

Browse Past Issues


Filter CommsUpdate by the following categories or use the search.


Visit our help page information on performing advanced searches, including how to restrict the results by country or company.


CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.