Energy and IT services, lower tax lift Magyar Telekom profit

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After-tax profit of Magyar Telekom jumped 78.4% to HUF 13.1 billion in Q2 from the same period a year earlier as energy and IT services segment boosted revenue and taxes fell, the company's consolidated IFRS report for the period published Thursday shows.

Net income rose to HUF 4.4 billion from HUF 10.7 billion in the base period. Profit was practically level with the estimate by analysts polled by Portfolio.hu. Earnings per share climbed to HUF 10.3 from HUF 4.2. Revenue edged up 1.3% to HUF 145.5 billion. 

Mobile revenue fell 1.3% to HUF 74.8 billion and fixed line revenue was down 5.0% at HUF 55.2 billion, but turnover from systems integration and IT services rose 33.7% to HUF 12.4 billion and revenue from energy services, which Magyar Telekom launched in Q2 2010, came to HUF 3.1 billion, almost eight times the amount in the base period.
Operating costs fell almost 1% to HUF 123.1 billion. Operating profit increased 14.4% to HUF 23.5 billion.
Magyar Telekom's income tax fell to HUF 3.1 billion from 5.2 billion. Magyar Telekom said CAPEX for the first half reached HUF 40.2 billion, 51% more than in the same period a year earlier.
"Group revenues in the second quarter of 2012 increased again, thanks to continued strong momentum in SI/IT and energy service revenues, supported by further growth in demand for mobile broadband and interactive TV services and strong smartphones sales. In our businesses, we have been able to maintain our market shares, and in some cases even grow them," chairman-CEO Christopher Mattheisen said in a comment in the report.
"We believe this paves the way for further growth once the economic environment improves. However, increasingly negative trends in the Hungarian economic environment and regulatory impacts continued to adversely affect our traditional voice revenues," he added.
Mattheisen said that the company was maintaining its target for a 4-6% decline in EBITDA, excluding one-off effects, for the full year. But eh noted that first-half revenue was up 2%, "comfortably exceeding" guidance for a 0-2% decline for the full year.
Magyar Telekom had total assets of HUF 1,034.3 billion on June 30, down 5.8% from the end of 2011. Net assets dropped 9.8% to HUF 501.7 billion.
The company's gearing ratio was 39.3% at the end of the period.

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