BUDAPEST: Magyar Telekomʼs second-quarter after-tax profit rose 7.5% to HUF 13.53 bln from a year ago due to a significant improvement in EBITDA and net financial results, partly offset by a rise in depreciation and amortization, the companyʼs consolidated, unaudited earnings report shows, according to IFSR, news agency MTI reported.
The result compares to market consensus compiled previously by Magyar Telekom that penciled in a drop to HUF 10.8 bln. Revenue was up 4.4% to HUF 158.5 bln instead of analystsʼ projection of HUF 154.8 bln, and despite a 76% cut in mobile termination rates effective from April 1, the report published late Wednesday said. Total direct costs increased 11.6% to HUF 56.1 bln, but EBITDA margin still improved to 32.9% from 32.7%, just shy of 33% in analystsʼ consensus.
EBITDA was up 5.2% to HUF 52.18 bln compared to a consensus of HUF 51.1 bln, but depreciation and amortization expenses went up by 8.9% to HUF 26.7 bln, driven by the amortization of telecom licenses related to the new frequency usage rights acquired in October of last year and the activation of the new billing system related software.
