Mobile telco Pannon GSM report drop in revenues

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Mobile-service provider Pannon GSM posted revenue of Ft 91.1 billion in H1 of 2008, down 2.8% year-on-year (yr/yr), the company reported.

Q2 revenue fell 2.2% to Ft 46.2 billion during the second quarter of 2008, down 2.2% yr/yr.

Pannon GSM said that declining termination and roaming fees had decreased the company's revenue by Ft 1 billion in H1.

Pannon GSM had EBITDA of Ft 38.1 billion in the first half of 2008, up 1.5% yr/yr. Q2 EBITDA was Ft 19.132 billion, up 3.5% yr/yr. Excluding one-off items, EBITDA little changed, the company noted.

Pannon GSM had 3.414 million subscribers at the end of the June 2008, an increase of 13,000 from the end of March. Pannon GSM commanded 33.27% of Hungary's active mobile-card market at the end of the second quarter, down 0.27 percentage points from the end of the previous quarter, the company said. Pannon GSM's ratio of billed-subscribers rose to 41.3% at the end of June 2008, compared to 40.5% three months earlier.

Pannon GSM said that the company's blended ARPU index of monthly mobile-telephone revenue per subscriber had fallen by 6% yr/yr in forint terms in H1 this year. The company noted that this decline had counterbalanced the rise in the number of subscribers and an increase in revenue from broadband-internet services. However, lower direct sales expenses offset the decline in overall revenue to produce an increase in gross profit.

The company reported that it had made Ft 8.3 billion in investments during the first half of 2008.

Pannon GSM posted revenue of Ft 192.5 billion and EBITDA of Ft 77 billion in 2007. (MTI – Econews)

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