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Magyar Telekom sees revenue drop, seeks takeovers

Hungary's Magyar Telekom expects revenue and its core profit to drop in 2009, and continues to look for acquisition targets both in Hungary and abroad, Chief Executive Christopher Mattheisen said.

The company will feel the impact of Hungary's recession and sees revenues down by up to 1% while earnings before interest, taxes, depreciation and amortization, or EBITDA, could fall by as much as 2%, Mattheisen told business daily Világgazdaság on Tuesday.

He added that the slide in the forint, which hit an all-time-low of 317.45 to the euro last week, would also have a negative impact on the firm.

However, Mattheisen said that Magyar Telekom, a subsidiary of Deutsche Telekom remains in the market for acquisitions, particularly in Hungary where it would seek targets in cable television and information technology.

He also said that the company has tailored its dividend policy to provide financial room for international acquisitions but targets were scarce.

Magyar Telekom could not immediately be reached for comment. (Reuters)