MTel to slightly cut back on investments in 2017
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Magyar Telekom will slightly cut back on the amount of money it invests this year into network developments to compensate for an expected drop in revenues and EBITDA, Magyar Telekom CFO János Szabó said on Thursday after the company published its earnings report late Wednesday, according to Hungarian news agency MTI.
Szabó said MTel expects its revenues to fall by 2% and EBITDA by 3.2% in 2017. In its earnings report, MTel changed its guidance for 2017 revenues from HUF 560-570 bln to "around HUF 560 bln," and for EBITDA from HUF 181-185 bln to "around 182 bln."
The CFO said predicted earnings and revenues were lower as this year would present several challenges to the company.
Magyar Telekom on Wednesday said its board will propose to shareholders payment of a HUF 25 per-share dividend on 2016 earnings, lower than the HUF 32 per-share dividend expected by analysts.
MTel net debt ratio has been several times above 30-40% in the past, and stood at 39.3% at the end of last year, but the company wants to reach the middle range of the band and also raise its reserves, Szabó said, concerning the reasons behind the lower than expected dividend.
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