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MTel revenues steady, costs controlled in Q3

Third-quarter after-tax profit of Magyar Telekom (MTel) fell 10% year-on-year to HUF 13.0 billion as accounting changes offset a small rise in revenues and a modest drop in costs, an earnings report released after market closing on Wednesday shows. 

Revenues rose a little more than half a percent to HUF 164.6 bln, while direct costs dropped slightly more than 1% to HUF 69.3 bln, state news agency MTI reported.

EBITDA was up 12% at HUF 59.6 bln, supported by declines in payroll and other operating costs.

MTelʼs bottom line was hit by a net financial loss of HUF 8.9 bln, 67% more than the loss in the base period, as well as a 13% rise in depreciation and amortization to HUF 33.8 bln. MTel noted in the report that the increases in both items were driven by the adoption of IFRS 16 reporting standards.

CEO Tibor Rékasi said Q1-Q3 revenues remained "broadly stable" at HUF 484.3 bln, while EBITDA rose 1.9%, excluding the impact of IFRS 16 adoption.

MTel confirmed earlier guidance for a "slight decline" in revenues for the full year. EBITDA is seen "increasing at 1-2%." CAPEX, excluding spectrum license fees, is set to remain "broadly stable," while free cash flow is expected to increase by "about 5%."

The dividend on this yearʼs earnings could be HUF 27 per share, according to the guidance.