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Budapest, May 10, 2012 00:00
Magyar Telekom (Reuters: MTEL.BU and Bloomberg: MTELEKOM HB), the leading Hungarian telecommunications service provider, today reported its consolidated financial results for the first quarter of 2012, in accordance with International Financial Reporting Standards (IFRS).
Christopher Mattheisen, Chairman and CEO commented:
“The first quarter
results show promising trends in the retail market in terms of our customer
numbers and market share data. Our fixed line churn rate has halved over the
past year, thanks to our very popular Hoppá package, bundled offers and energy
resale services. The number of energy resale delivery points is growing rapidly
as more customers benefit from the discounts we offer on energy bills. There
has been a steady growth in both fixed broadband and TV customer numbers as
well, mainly as a result of bundled offers. By now more than half of our fixed
customers are subscribing to a double or triple-play package. There have
also been positive trends in the mobile market, as both our customer numbers
and market share have increased year-on-year. Thanks to the positive trends in
customer numbers, the price increase at the start of the year, and the energy
resale service, T-Hungary revenues increased by 3% in the first quarter. The
T-Systems segment was helped once again by increasing SI/IT revenues, and international
operations benefitted from a weaker forint. Our changing revenue mix has,
however, put pressure on margins which can only be partially offset by
continuous cost management. As a result of this, and real estate gains
accounted for last year, underlying EBITDA was down by almost 6% despite growth
in Group revenues of 3%.”
This investor news may contain forward-looking statements. Statements that are not historical facts, including statements
about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates
and projections, and therefore should not have undue reliance placed upon them. Forward-looking statements speak only as of
the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future
events.
Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors are described in, among other things, our Annual Reports for the year ended December 31, 2011 available on our website at https://www.telekom.hu.
In addition to
figures prepared in accordance with IFRS, Magyar Telekom also presents non-GAAP
financial performance measures, including, among others, EBITDA, EBITDA margin,
underlying EBITDA, underlying EBITDA margin and net debt. These non-GAAP
measures should be considered in addition to, but not as a substitute for, the
information prepared in accordance with IFRS. Non-GAAP financial performance
measures are not subject to IFRS or any other generally accepted accounting
principles. Other companies may define these terms in different ways. For
further information relevant to the interpretation of these terms, please refer
to the chapter “Reconciliation of pro forma figures”, which is posted on Magyar
Telekom’s Investor Relations webpage at www.telekom.hu/investor_relations.