Magyar Telekom’s profit on rise


Widening margins caused Magyar Telekom’s (MT) profits to swell in the first quarter, the company’s consolidated IFRS report published Thursday shows. MT’s net income rose to HUF 4.8 billion in Q1 from HUF 1.7 billion in the same period a year earlier.

According to estimations of analysts net income was over the HUF 3.0 billion. Earnings per share came to HUF 4.6 for the period. Revenue fell 3.0% to HUF 151.9 billion, but direct costs dropped at triple that rate, declining 9.5% to HUF 53.9 billion. Operating profit was up 13.0% at HUF 16.1 billion. Financial losses narrowed by HUF 1.7 billion to HUF 6.0 billion.

In a breakdown of revenue, MT said turnover from its mobile business edged up 0.2% to HUF 73.4 billion. Fixed line revenue dropped 4.1% to HUF 51.8 billion. Turnover from the system integration and IT segment dropped 5.9% to HUF 13.2 billion and revenue from MT’s non-core energy services business was down 11.9% at HUF 13.5 billion because of lower gas consumption due to the mild winter, the company said.

Magyar Telekom left its guidance for the full year unchanged from February. It projects revenue will fall 0-3% and EBITDA will decline 3-6%. CAPEX, excluding spectrum acquisitions and frequency fees, is expected to reach HUF 87 billion. MT had total assets of HUF 1,096.6 billion at the end of March, up 0.5% from the end of 2013. Net assets rose 0.9% at HUF 494.1 billion. The company’s gearing ratio reached 43.6% at the end of Q1.

Speaking to journalists after the earnings report was published, CFO János Szabó said further energy price cuts and an expected frequency tender would impact the business this year. He noted that the government-mandated gas and electricity price cuts were set to take effect for households in April and September, and added that the government had signalled it wants to make energy cheaper for businesses, too.

These impacts can be assessed after the second quarter, he said, adding that guidance had not yet come up for re-evaluation.


Hungary Inflation Rate at 21.5% in May Figures

Hungary Inflation Rate at 21.5% in May

Parl't Approves Amendments to Legislation on Judiciary Parliament

Parl't Approves Amendments to Legislation on Judiciary

Industrial Production Declines in April Manufacturing

Industrial Production Declines in April

Landmark Budapest Dept Store to Reopen After HUF 8 bln Renov... History

Landmark Budapest Dept Store to Reopen After HUF 8 bln Renov...


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.