Magyar Telekom revenue, earnings edge higher in 2020
Net income of Magyar Telekom rose 3% to HUF 42.4 billion in 2020 on a modest increase in revenue, an earnings report released after the closing bell on Thursday shows, according to a report by state news wire MTI.
Revenue inched up 1% to HUF 673 bln. Mobile revenue increased 3% to HUF 364.6 bln and fixed-line revenue rose 3% to HUF 219 bln, but system integration and IT revenue fell 10% to HUF 89.5 bln.
Direct cost of sales increased 2% to HUF 297.5 bln.
Earnings per share came to just over HUF 41.
In guidance for 2021, MTel projected a 1-2% increase in revenue and in EBITDA. It said CAPEX, which came to HUF 106 bln in 2020, would be "broadly stable", excluding spectrum license fees.
MTel's net debt reached HUF 417.4 bln at the end of 2020, giving it a gearing ratio of 38.8%.
In a separate disclosure released on Thursday, Magyar Telekom said its board would propose to an annual general meeting of shareholders payment of a HUF 15.3 bln dividend on last year's earnings - equivalent to HUF 15 per share - as well as launch a HUF 10.2 bln share buyback program.
Chairman Robert Hauber acknowledged that the proposed level of shareholder remuneration, equivalent to HUF 25 per share, is "significantly higher than the free cash flow generation of the company in 2020 thus further increasing indebtedness", but said that "dedicated improvement and development efforts" had put MTel "on solid foundations with further growth potential ahead", adding that the company aims to "put shareholder remuneration on a progressive trajectory moving forward".
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.