Magyar Telekom Q4 profit more than doubles

Telco

Magyar Telekomʼs fourth-quarter net income jumped 117.7% to HUF 3.35 billion from the same period a year earlier, an earnings report published late yesterday shows, according to Hungarian news agency MTI.

Revenue was up 10.6% at HUF 182.8 bln and EBITDA increased by 4% to HUF 43.73 bln. 

Depreciation and amortization costs rose 19% to HUF 31.74 bln but financial losses were still down 29.5% at HUF 5.6 bln.

In a breakdown of revenue, MTel said mobile turnover fell 4% to HUF 81.1 bln and fixed line revenue rose 8% to HUF 56.03 bln. Revenue from system integration and IT almost doubled to HUF 33.1 bln and revenue from energy services was up 5% at HUF 12.63 bln. MTel exited the retail gas market in the middle of 2015, but kept its presence on the corporate energy market.

Direct costs of sales were up 20% at HUF 81.7 bln. Operating costs increased by 15% to HUF 138.1 bln.

Gross margin was HUF 101.1 bln, up 3.8%, and operating income was HUF 11.98 bln, down 21%.

Pre-tax profit slipped 11% to HUF 6.38 bln, diluted earnings per share rose 117.6% to HUF 3.22.

CEO Christopher Mattheisen said he was proud of the companyʼs results in 2015 as annual group revenue was HUF 656 bln, the highest since 2008. With revenues, gross margin and EBITDA previously improving and now with positive free cash flow the company can again pay a dividend.

MTelʼs board already officially announced yesterday morning a proposal to pay a HUF 15-per-share dividend on 2015.

Mattheisen said that the company is expecting around HUF 580-590 bln in revenue in 2016 and HUF 585 bln-595 bln in 2017. The EBITDA goal for this year is HUF 187 bln-191 bln and HUF 189 bln-193 bln for next year. Despite a continuing expansion of MTelʼs network, CAPEX should be down by 10% in both 2016 and 2017. CAPEX was HUF 109.8 bln in 2015.

MTel had total assets of HUF 1.207 trillion at the end of 2015, up 1.4% from the end of last year. 

Net assets were up 3.9% at HUF 544.9 bln. Net debt stood at HUF 409.3 bln, giving the company a gearing ratio of 42.9%.

The company paid HUF 6.1 bln in sectoral taxes in Q4 2015, down from HUF 6.7 bln in Q4 2014.

Employee numbers dropped by 4.8% in 2015 to 10,357.

ADVERTISEMENT

Pandemic has only moderate impact on big companies Analysis

Pandemic has only moderate impact on big companies

Parl't to vote on groundwork for commercial accommodation ra... Parliament

Parl't to vote on groundwork for commercial accommodation ra...

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest re-launches airport shuttle bus City

Budapest re-launches airport shuttle bus

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.