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Telenor's revenue in Hungary drops on slow recovery, termination fees cuts and crisis tax

Telenor Magyarország, the Hungarian unit of Norway-based telecommunications group Telenor, generated revenue of HUF 42.08 billion in the fourth quarter of 2010, down 5.2% from Q4 of 2009 as a result of the lingering effects of the economic crisis, last year's termination fee cuts and the extra tax levied on the telecom sector, Telenor Magyarország reported.

Telenor Magyarország had revenue of HUF 165.2 billion for all of 2010, down 6.7% yr/yr, Econews calculated based on earlier figures.

The company had 3.58 million scribers at the end of 2010, down slightly from 3.61 million at the end of 2009, though up 36,000 from the end of the third quarter of last year.

Telenor's share of the mobile broadband market dropped to 26.62% at the end of the fourth quarter of 2010 from 28.46% at the end of Q3 of last year.

Nominal EBITDA was HUF 5.33 billion in the fourth quarter of 2010, down sharply from nominal EBITDA of HUF 15.72 billion in Q4 of 2009 as Telenor booked the payment of HUF 9.9 billion in government telecommunications sector crisis taxes as cost of sales and also with lower outgoing airtime revenue.

Capital expenditures dropped to HUF 2.55 billion in the fourth quarter of 2010 from HUF 3.67 billion in Q4 of the previous year.

Average Revenue per user (ARPU) decreased to HUF 3.61 billion in the fourth quarter of 2010 from HUF 3.94 billion in Q4 of 2009.

For the full year of 2010, Telenor Magyarország had EBITDA of HUF 60.3 billion, the EBITDA margin came to 36.5% and EBIT totalled HUF 9.78 billion. Capital expenditure totaled HUF 8.91 billion last year.

Telenor Magyaroszág is one of three mobile phone companies operating in Hungary along with Magyar Telekom and Vodafone Magyarország, the Hungarian unit of London-based Vodafone. (MTI – Econews)