ADVERTISEMENT

Higher revenue, divestment lift MTel earnings

Telco

Magyar Telekom (MTel) booked net income of HUF 18.5 billion in the first quarter, more than double the HUF 8.9 bln in the base period, as revenue climbed faster than operating costs, and a divestment lifted the bottom line, an earnings report released after the closing bell on Wednesday shows, state news wire MTI reports.

Revenue increased 8.4% to HUF 175.9 bln. Direct costs of sales climbed at the same pace, reaching HUF 75 bln, but total operating costs rose just 3.5% to HUF 153.2 bln, supported by the impact of reduced headcount on payroll costs.

MTel said it booked a HUF 3.3 bln one-off gain on the sale of its IT unit Pan-Inform in Q1.

Operating profit jumped 77.7% to HUF 26.8 bln.

Earnings per share came to HUF 18.5 for the period.

MTel had net debt of HUF 476.4 bln at the end of March.

CEO Tibor Rékasi said MTel is sticking to its earlier guidance for 2022, while taking into account the "increased level of uncertainty" in the company's external environment.

MTel targets 1-3% revenue growth over the HUF 700.1 bln in 2021. It sees adjusted EBITDA rising 3-5% from HUF 216.3 bln last year.

The company said its management continuously monitors the local economic environment and current market conditions, taking into consideration the termination of the repayment moratorium, the potential economic consequences of the war in Ukraine and the sanctions related to the war, and assesses their impact on group-level operations.
 

    "Altogether, management has not identified any events which would jeopardize the going concern of the Group's operations, furthermore, based on management's assessment of future cashflows, no major adverse changes are expected in the long term," it added.

ADVERTISEMENT

EBRD puts Hungary GDP growth at 3.5% in 2022 Analysis

EBRD puts Hungary GDP growth at 3.5% in 2022

Parl't elects Orbán prime minister Parliament

Parl't elects Orbán prime minister

New managing director at LG Electronics Hungary Appointments

New managing director at LG Electronics Hungary

Hungary Grande Partenza 'exceeded all expectations' - gov't ... City

Hungary Grande Partenza 'exceeded all expectations' - gov't ...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.