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Pannon posts falling revenue, profits in Q3

Mobile phone service provider Pannon posted falling revenue and profits in forint terms for the third quarter of this year compared to the same period of last year, partly due to the forint weakening, the company said in a press release.

Pannon CEO Anders Jensen said in Budapest that solvent demand has declined due to the crisis.

Sales revenue fell 7.9% yr/yr, totalling HUF 44.88 billion in the third quarter of 2009, with operating profit amounting to HUF 14.98 billion, 5.7% down from one year earlier. In a positive development, however, average monthly revenue per user (ARPU monthly) increased from the second quarter of this year while it was still off from Q3 last year.

The number of subscriptions decreased by 35,000 during the quarter, as an increase in the number of contract subscriptions was offset by churn in prepaid. The subscription market share decreased slightly to 33%, Pannon's owner, Telenor of Norway said earlier in its Q3 interim report.

ARPU at Pannon decreased by 11%% yr/yr mainly due to lower interconnect rates from 1 January 2009 and a 5% reduction in average usage (AMPU).

Total revenues at Pannon decreased as the lower ARPU and reduced handset sales were only partly offset by increased revenues from subscription fixed fees and mobile broadband. Despite the decline in revenues, gross profit remained stable due to reduced interconnect rates and handset costs, Telenor said.

EBITDA at Pannon decreased slightly mainly due to increasing bad debt, rental fees and operation and maintenance expenses not being fully compensated by reduced personnel and marketing costs. (MTI – Econews)