Are you sure?

Magyar Telekom deputy CEO says company has maintained 2010 financial targets

Magyar Telekom Chief Financial Officer Thilo Kusch said that Magyar Telekom has maintained its 2010 financial targets of a 5%-7% decline in revenue and EBITDA.

Magyar Telekom reported that the company had generated somewhat lower-than-expected first-quarter net profit of HUF 16.4 billion, down 23.6% yr/yr.

Kusch said that Magyar Telekom expects Hungary's telecommunications market to begin showing signs of improvement in the second quarter before rebounding in the second half of the year, noting that the retail telecommunications-segment responds to economic developments only six months after they occur.

The Magyar Telekom CFO remarked that the company intends to implement further cost-cutting measures, specifically with regard to supply, billing and customer-relations expenses.

Kusch said that Magyar Telekom would decide within the next few months if the company will relinquish its full Wall Street listing as parent company Deutsche Telekom has done.

The Magyar Telekom CFO noted that the company had improved its share in almost all segments of the telecommunications market in the first quarter, suggesting that Magyar Telekom's slightly disappointing Q1 financial numbers were a result of the economic crisis, not poor company performance.

Kusch commented that Magyar Telekom will focus its future investments on development of high-speed internet and the company's cable-television and optical networks.

The Magyar Telekom CFO asserted that the company has not abandoned its acquisition plans, adding that Magyar Telekom would examine the possibility of purchasing a company in southeastern Europe.

Magyar Telekom based its 2010 financial targets on a forint rate of around 270 to the euro, Kusch noted. (MTI – Econews)