Magyar Telekom expects windfall tax to cost it HUF 25 bln

Telco

Magyar Telekom on Sunday said it expects a "supplementary" telecommunications sector tax to cost it about HUF 25 billion in 2022, according to a report by state news wire MTI.

The tax, on net sales, is expected to be accounted as an operating cost. As a consequence, Magyar Telekom revised its 2022 guidance for adjusted EBITDA to a "moderate decline".

Earlier, MTel had expected adjusted EBITDA to rise 3-5% from HUF 216.3 bln in 2021.

Hungary's government levied windfall taxes on a number of sectors in 2022 and 2023 in a decree published on Saturday.

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