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Telenor Hungary first-quarter revenue falls 4.3%

Sales revenue and EBITDA of Telenor Hungary, the Hungarian unit of Norway-based telecommunications group Telenor, fell in Q1 mainly due to the reduction in interconnect revenue and the crisis tax levied on the telecom sector, Telenor Hungary CEO Christopher Laska said in a statement Wednesday morning.

The company – one of Hungary's three mobile operators – generated sales revenue of HUF 37.6 billion in the first quarter of 2011, down HUF 1.7 billion or 4.3% yr/yr.

Telenor Hungary had EBIDTA of 13.2 billion before deduction of one-off items in the first quarter of 2011, down HUF 3.4 billion or 20.5% yr/yr.

EBITDA dropped primarily due to the payment of HUF 2.3 billion in the extra telecommunication tax classified as cost of sales.

A decline in interconnect revenue resulted from a termination fee reduction in December 2010. A slight rise in non-voice revenues only partly compensated the decreasing trend on retail voice revenues, the statement added.

Telenor Hungary had 3.55 million subscribers at the end of the first quarter of 2011, down 34,000 yr/yr. The company's subscriber-based share of Hungary's mobile-telephone market was 32.4% at the end of the first quarter of 2011, while the company's share of Hungary's mobile-internet market was 26.4% at the end of Q1.

Telenor Hungary subscribers spent an average of HUF 3,279 a month on the company's services in the first quarter of 2011, compared to an average of HUF 3,470 in Q1 of 2010.

The company spent HUF 2.09 billion on investments, primarily network developments, in the first quarter of 2011, compared to HUF 1.74 billion in Q1 of 2010.