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Ex-Matáv Q1 net profit up 27.6%

Magyar Telekom Rt (MT) posted a 27.6% leap in its first-quarter net profit over a year ago despite a 1.7% drop in total revenues, the company announced today. The significantly higher profitability was achieved as Hungary?s leading telco managed to cut back amortization costs. Having recently changed its name from Matáv Rt, Magyar Telekom saw its Q1 net profit rise from Ft 14.08 billion a year earlier to Ft 17.956 billion with depreciation and amortisation costs dropping from 36.6 billion to Ft 27.3 billion. The company?s operating profit jumped 19.6% to Ft 31.8 billion, while its earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 6.4% to Ft 59.1 billion, with an EBITDA margin still 1.2% above its long-term target of 40%. With its fixed-line market steadily shrinking, Magyar Telekom said it would step up its broadband Internet program to reach 600,000 customers by the end of 2006.