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Telenor Q2 revenue slips 7% in Hungary

Revenue of the Hungarian unit of Norwegian telco Telenor fell 7% because of a cut in regulated prices and the economic downturn.

Revenue of the Hungarian unit of Norwegian telco Telenor fell 7% to HUF 41.4 billion in the second quarter from the same period a year earlier because of a cut in regulated prices and the economic downturn.

Telenor Magyarország blamed a reduction in call termination fees by the National Communications Authority (NHH) at the start of the year for much of the decline in revenue. Short-term financial figures also still show the effects of the recession, in spite of every effort to introduce new products and services, the company said. Higher mobile broadband internet sales partly offset a fall in non-voice turnover from premium services and text messages, it added.

Second-quarter EBITDA fell 6% to HUF 17.4 billion because of drop in average revenue per user (ARPU). Monthly ARPU fell 6.5% to HUF 3,683.

Operating costs fell in the first half of the year as the result of restructuring and cost cuts, the company said.

Telenor Magyarország's subscriber numbers fell by 28,000 to 3,554,000 at the end of March from the end of December. The biggest drop was among pre-paid subscribers. Market share fell slightly during the period to 32.9%. Telenor Magyarország had a 27% share of the mobile internet market at the end of June.

Capital expenditures, mostly on mobile broadband internet technology, came to HUF 3 billion in Q2, down 17% from the same period a year earlier.

By adopting its parent company's name, Telenor Magyarország – previously called Pannon – took another step toward making the company Hungary's “favorite mobile service provider”, the company says. (MTI – Econews)