Hungary’s telecommunications group expanded quarterly revenue and operating profit, with service sales supported by demand for data and broadband and a July fee adjustment. Free cash flow over the first nine months declined as investment and tax payments increased. Net debt was higher at September’s close than at the previous year-end. Profit attributable to owners also increased from a year earlier.
Magyar Telekom reported growth in its third-quarter business in the results announced on November 4.[1], [2]
The Hungarian telecommunications group increased revenue by 7.4 per cent to 260,984 million forints. Operating profit rose 7.6 per cent to 78,705 million forints. Profit attributable to the parent company’s owners reached 59,495 million forints, up 7.5 per cent from a year earlier. The consolidated quarterly figures are unaudited.[1]
Quarterly service revenue grew 5.2 per cent. Magyar Telekom pointed to demand for mobile data and broadband and the inflation-linked fee adjustment introduced on July 1. Information technology and equipment sales also contributed to revenue movements. Capital expenditure after leases increased 5.2 per cent to 35,008 million forints during the quarter.[1]
Over the first nine months, revenue increased 2.3 per cent to 742,353 million forints. Free cash flow fell 19 per cent to 145,707 million forints from 179,845 million forints. The company cited working-capital movements, higher investment and income-tax payments and the absence of earlier subsidiary-sale proceeds. September-end net debt stood at 307,031 million forints, compared with 248,112 million forints at the preceding December close.[1]
