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Budapest, November 7, 2013 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 third quarter and first nine months of 2013, in accordance with
International Financial Reporting Standards (IFRS).
Highlights:
Christopher Mattheisen, CEO commented:
“In the third quarter of 2013, Magyar Telekom
saw further positive developments which give grounds for optimism. In the
Hungarian residential segment, we were able to reduce further the level of
fixed voice churn and limit ARPU erosion, thanks to the favorably positioned
bundled offers which not only include the traditional core telecommunication
services but also equipment, such as television sets, along with gas and
electricity services. I am also extremely pleased that following the changes in
the relevant legislations (as previously announced) we are able to pursue our
strategy regarding the energy offerings under the current conditions. We now
expect annual revenues from our energy service provided to the universal and
competitive segment to total around HUF 46 billion this year. At the same time,
within the Hungarian residential mobile market, we have reached a very
important milestone with the launch of full flat rate portfolios which will
undoubtedly elevate competitive pressures. Notwithstanding this, it is currently
our view that on account of our outstanding value proposition, including having
Hungary’s most extensive LTE network, we will be able to contain effectively
the risks that will stem from these pressures.
In addition to the above, our
quarterly financial performance that saw revenues increase by 5%, was also a
reflection of our strong growth in IT revenues, among others, due to the
successful tendering for projects such as the data center migration of Allianz.
We were able to stabilize the direct
profit, while the 8% decline in reported EBITDA is largely a reflection of the
non-recurrence of one-off items that positively impacted performance last year.
Looking ahead to the remainder of the
year, we maintain our increasing revenue guidance and EBITDA target of a 9%-12%
decline; however, we now expect this decline in EBITDA to be towards the better
end of this range. We are also reiterating our CAPEX guidance of around a 5%
decline, excluding both the cost of spectrum acquisitions and the capitalization of the
present value of the future annual frequency fees.”
This investor news contains 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 financial statements
for the year ended December 31, 2012, available on our website at https://www.telekom.huwhich have been prepared in accordance
with International Financial
Reporting Standards (“IFRS”) as issued by the International Accounting
Standards Board (“IASB”) and adopted by the European Union.
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.