Magyar Telekom’s Q1-Q3 net income fell 16.1% to HUF 67.4 billion from the same period a year earlier as both fixed line and mobile revenue dropped because of the recessionary environment, the company said in its consolidated IFRS report published early Thursday.
Third-quarter net income came to HUF 22.7 billion, Econews calculated based on H1 profits of HUF 44.7 billion. The Q3 figure was practically level with the HUF 23.2 billion estimate by analysts in a poll by portfolio.hu.
Q1-Q3 earnings per share came to HUF 65, down from HUF 77 in the same period a year earlier.
CEO Christopher Mattheisen said the management was maintaining its full-year targets for a 2% decline in revenue and a 5% drop in EBITDA.
Q1-Q3 revenue declined 4.4% to HUF 480.6 billion from the same period a year earlier. Fixed line revenue dropped 8.9% to HUF 207.1 billion and mobile revenue inched down 0.9% to HUF 243.1 billion, but IT and system integration revenue rose 1.2% to HUF 30.4 billion.
Operating costs fell 3.7% to HUF 354.7 billion, slightly under the drop in revenue. Payroll costs slipped 4.4% to HUF 69.0 billion.
Mattheisen said the company had reached an agreement with unions on wages and layoffs that would reduce payroll costs by HUF 6.5 billion in 2010 compared to 2008 levels.
Magyar Telekom said it spent HUF 5.1 billion on an ongoing investigation of suspicious contracts at its foreign units in Q1-Q3, up from HUF 3.9 billion in the same period a year earlier.
Capital expenditures rose 23.5% to HUF 71.5 billion, boosted by the growing number of satellite TV subscriptions and a fibre network rollout.
EBITDA was down 5.4% at HUF 202.3 billion. EBITDA margin reached 42.1%.
Operating profit fell 6.5% to HUF 125.9 billion, but pre-tax profit dropped a stepper 12.7% to HUF 100.1 billion as net financial costs rose 24.0% to HUF 25.7 billion.
Magyar Telekom had total assets of HUF 1,174.1 billion on September 30, 2009, up 0.4% from twelve months earlier. Net assets dropped 0.7% to HUF 596.0 billion.
Net debt rose 4.8% to HUF 284.3 billion, bringing the company’s debt-to-equity ratio to 32.3%. (MTI-Econews)