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Hungary's Magyar Telekom sees profits drop

Hungary's top telecommunications firm Magyar Telekom on Thursday said that net income in the Q1 of 2007 was Ft 15.9 billion ($87.16 million), 16.1% down on last year's figure.

However, revenues grew by 6.1% to Ft 161.1 billion and earnings before interest, taxes, depreciation and amortization fell by only 1.7% to Ft 63 billion. The phone company is battling lower revenue from its fixed-line business and eroding profitability on mobile phones because of competition from operators like Vodafone Group Plc. The company blamed higher taxation brought in by a government austerity package for the drop in the net income, but said that overall performance was solid. Magyar Telekom Nyrt. Hungary's former phone monopoly now controlled by Deutsche Telekom AG. (monstersandcritics.com)