Magyar Telekomʼs second-quarter consolidated group net income amounted to HUF 14.5 billion, according to international accounting standards, up 40.6% from the corresponding period a year earlier, an earnings report published late Wednesday shows.
Revenues at MTel were up 9.2% at HUF 167.71 bln, while EBITDA increased by 6.6% to HUF 51.01 bln. According to IFRS accounting standards, profit for the period was up 34.7% at HUF 14.71 bln and EBITDA was up 4.9% at HUF 50.20 bln.
Depreciation and amortization costs were up 5.3% to HUF 29.03 bln, and net financial losses improved to HUF 2.99 bln, compared to a net loss of HUF 5.48 bln a year earlier, state news agency MTI reported.
In a breakdown of revenue, MTel said mobile turnover grew 4.7% to HUF 83.36 bln, while fixed-line revenue was up 6.0% at HUF 51.06 bln. Revenue from system integration and IT jumped 36.2% to HUF 33.24 bln.
Direct costs of sales were up 19.9% at HUF 75.14 bln. Personnel costs were marginally up by 0.3% at HUF 20.20 bln, while the telecom tax represented a HUF 6.6 bln burden, 4.0% more than a year before. Operating income amounted to HUF 21.17 bln, up 4.9%.
Pre-tax profit soared 22.2% to HUF 18.08 bln, and diluted earnings per share were up 34.0% to HUF 13.26.
MTel had total assets of HUF 1,127.8 bln at the end of the second quarter, up 1.6% from the equivalent date a year earlier. Total equity was up 2.5% at HUF 594.4 bln. Total liabilities stood at HUF 533.41 bln at the end of June, while net debt was up 4.6% at HUF 324.02 bln. Employee numbers fell by 0.7% to 9,163.
MTel CEO Tibor Rékasi said growth achieved in system integration, and IT revenue and equipment sales, played a particularly important role in increasing revenue in Q2. In system integration and IT revenue, growth was primarily achieved by delivering a high volume of hardware and software contracts with a lower profit margin.
In related news, Magyar Telekom is planning to pay a HUF 25 per-share dividend for the 2018 financial year, similar to the amount paid in 2017, CFO János Szabó was cited as saying by MTI on Thursday.
Szabó said the companyʼs dividend policy is stable and changes could happen only after the close of the next financial year. The CFO noted that MTel performed above average on the Hungarian market in the first half, with growth stable in all segments, subscriber numbers up in the mobile, broadband and TV segments, and the company achieving the expected numbers even amidst market changes.
Every provider is integrating technologies, and the market is being driven by mobile data usage even as broadband data usage is also rising, said Szabó. Roaming services are becoming more popular with roaming data usage growing at the fastest pace, he added.
The CFO said that MTelʼs capital expenditure could reach HUF 90 bln this year, up from HUF 86 bln last year.
Because of higher than expected Q2 revenue growth, Szabó said that full-year revenues could reach HUF 630 bln, compared to the earlier guidance of HUF 600 bln. MTel still expects annual EBITDA to be around HUF 190 bln, he added.