MTel Q1 profits in line with forecasts

10 May 2012

Hungarian telecoms carrier Magyar Telekom (MTel) has posted a first-quarter net profit of HUF13.02 billion (USD57.96 million), broadly in line with market expectations. Analysts polled by online business journal portfolio.hu had forecast the group to book a quarterly profit of HUH13.15 billion. The telco’s 1Q12 results were fuelled by a 2.9% year-on-year rise in revenues to HUF147 billion – driven by strong growth at its energy resale business – which helped to more than offset declining sales from core fixed and mobile activities. The Deutsche Telekom-controlled operator had booked a net loss of HUF40.3 billion in the fourth quarter of 2011 and booked a profit of HUF15.17 billion in 1Q11. Quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 3.1% from 1Q11; for FY2012 the Hungarian firm is sticking with its earlier forecast of a 4%-6% decline in operating EBITDA, and CAPEX of HUF84 billion – a similar sum to that spent in FY2011.

MTel remained tight-lipped about the government’s proposed new traffic-based telecoms sector tax, which if implemented could generate between HUF50 billion and HUF60 billion for the state’s coffers. The new tax, which could be passed from 1 July, would augment Budapest’s controversial special tax on the telecoms sector. Budapest’s special telecoms tax is already subject to a European Commission investigation, with the matter having been referred to the European Court of Justice earlier this year.

Hungary,Magyar Telekom,

Subscribe



Feedback

Have feedback, corrections, or story ideas? Send them to editors@commsupdate.com.

Browse Past Issues

Filter

Filter CommsUpdate by the following categories or use the search.

Search

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

Advertise

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.

Share