Magyar Telekom Q2 profit rises 7.5%
Magyar Telekomʼs second-quarter after-tax profit rose 7.5% to HUF 13.53 bln from a year ago due to a significant improvement in EBITDA and net financial results, partly offset by a rise in depreciation and amortization, the companyʼs consolidated, unaudited earnings report shows, according to IFSR, news agency MTI reported.
The result compares to market consensus compiled previously by Magyar Telekom that penciled in a drop to HUF 10.8 bln.
Revenue was up 4.4% to HUF 158.5 bln instead of analystsʼ projection of HUF 154.8 bln, and despite a 76% cut in mobile termination rates effective from April 1, the report published late Wednesday said.
Total direct costs increased 11.6% to HUF 56.1 bln, but EBITDA margin still improved to 32.9% from 32.7%, just shy of 33% in analystsʼ consensus.
EBITDA was up 5.2% to HUF 52.18 bln compared to a consensus of HUF 51.1 bln, but depreciation and amortization expenses went up by 8.9% to HUF 26.7 bln, driven by the amortization of telecom licenses related to the new frequency usage rights acquired in October of last year and the activation of the new billing system related software.
Operating profit climbed 1.5% to HUF 25.47 bln instead of the expected drop of HUF 23.5 bln.
Financial loss narrowed 12.2% to HUF 6.82 bln, which also helped the bottom line.
Net debt stood at HUF 447.21 bln at the end of June, up 19.4% from a year ago.
Investments in tangible and intangible assets (CAPEX) increased by HUF 1.8 bln to HUF 35.1 bln in the first half of 2015.
The company confirmed its earlier guidance on roughly stable revenue, a 0 to 3% EBITDA decline, and HUF 105 bln CAPEX for this year.
The largest telco in Hungary by market share, Magyar Telekomʼs first-quarter after-tax profit was HUF 3.3 bln, down 33% from a year earlier, as higher financial losses, depreciation and amortization weighed.
Last year, the company increased after-tax profit by 30.3% to HUF 32.02 bln.
Magyar Telekom is a 59.21% subsidiary of Deutsche Telekom, with domestic institutions and domestic individuals owning 5.5% and nearly 6% of it, respectively.
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