Magyar Telekom Earnings Up on Improved Margins, Tax Rollback

Third-quarter net income of Magyar Telekom rose 24% year-on-year to HUF 55.3 billion, supported by a wider margin and the rollback of a supplementary telecommunications tax, as shown by an earnings report released on Wednesday and summarized by MTI.

Revenue edged down 1% to HUF 242.9 billion.

Direct costs fell 6% to HUF 89.0 billion, lifting gross profit 1% to HUF 153.9 billion.

Indirect costs fell 18% to HUF 45.5 billion as the supplementary telco tax was phased out and payroll costs declined.

Operating profit increased 18% to HUF 73.1 billion.

CAPEX after leases increased 42% to HUF 33.3 billion.

Magyar Telekom affirmed full-year guidance for 1-3% revenue growth and adjusted net income of "at least HUF 200 billion."