Magyar Telekom Nyrt announced on Thursday it would be unable to schedule its annual shareholders' meeting by the end April, the latest date required under law, because of an unfinished internal audit at one of the company's units.
Magyar Telekom said it will publish the date of the AGM and the board's dividend proposal after the audit was closed and the necessary board decisions were taken. The company said it “is currently inquiring into certain contracts, totaling approximately Ft 700 million, entered into by one of its subsidiaries, to determine whether they have been entered into in violation of company policy or applicable law or regulation.” The company said the results of the inquiry are necessary for the audit of its 2005 figures to be completed.
Magyar Telekom noted it would be unable to convene the AGM in time to submit its approved audited report to Hungary's financial market regulator PSzÁF and to the stock exchange within 120 days from the end of its business year as required by law, but it would seek to hold an AGM and have its annual results approved as promptly as reasonably practicable.
Magyar Telekom reported pre-tax profits of Ft 104.21 billion and after-tax profits of Ft 90.47 billion in 2005, up 102.7% and 108.8%, respectively in its unaudited consolidated IFRS 2005 report published in February. Revenue increased 3.2% to Ft 620.697 billion in 2005.