Magyar Telekom result for the first quarter of 2019
08/05/2019
Budapest, May 8, 2019 18:00
Magyar Telekom today reported its consolidated financial results for the first quarter of 2019, in accordance with International Financial Reporting Standards (IFRS).
Total revenues increased by 5.5% year-on-year to HUF 158.9 billion in Q1 2019, primarily driven by a strong increase in equipment sales and mobile data usage.
Mobile revenues increased by 8.4% year-on-year to HUF 84.9 billion in Q1 2019 , as growth in equipment sales, along with a continued increase in mobile data revenues, more than offset the moderate decline in voice revenue.
Fixed line revenues rose by 2.1% year-on-year to HUF 52.7 billion in Q1 2019, attributable to a further increase in equipment sales, as well as higher broadband retail service revenues.
System Integration (SI) and IT revenues grew by 3.1% year-on-year to HUF 21.4 billion in Q1 2019, as revenues in Hungary continued to increase , primarily driven by public sector hardware and software delivery projects. SI/IT revenues declined in North Macedonia, reflecting a temporary reduction in project volumes.
Direct costs increased by 12.3% year-on-year, to HUF 66.8 billion in Q1 2019, primarily driven by higher equipment costs, in line with the growth in related revenue lines.
Interconnect costs increased by 3.6% year-on-year to HUF 4.8 billion in Q1 2019 , reflecting increased off-network mobile voice and SMS traffic in both countries, which led to higher payments to domestic mobile operators.
SI/IT service related costs increased by 7.1% year-on-year to HUF 15.0 billion in Q1 2019 , driven by a higher volume of lower margin delivery projects in the sales mix.
Bad debt expenses increased by HUF 0.7 billion year-on-year to HUF 2.1 billion in Q1 2019. This was primarily driven by higher bad debt expense in Hungary, resulting from the strong growth in revenues and the absence of the positive one-off impact recorded in Q1 2018 relating to improvements in the aging structure of our receivables, in addition to temporarily favourable results related to factored trade receivables. In North Macedonia, bad debt expenses also increased due to higher equipment sales revenues.
Telecom tax remained broadly stable year-on-year at HUF 6.2 billion in Q1 2019 , as lower fixed voice usage mostly outweighed the increase in mobile traffic in Hungary.
Other direct costs increased by 16.4% year-on-year to HUF 38.6 billion in Q1 2019, primarily due to an increase in the cost of equipment sales in line with higher sales, and an increase in TV content outpayments.
Gross profit increased by 1.1% year-on-year to HUF 92.2 billion in Q1 2019, thanks to a strong increase in revenues, but partly offset by the impact of the increasing weight of lower margin services in the sales mix.
Indirect costs improved by 5.7% year-on-year to HUF 45.8 billion in Q1 2019. Excluding the impact of IFRS 16 implementation, indirect costs were 4.7% higher at HUF 50.9 billion. The increase in costs was driven by growth in severance expenses booked in relation to the Hungarian headcount reduction programme, though this was partially offset by savings in other operating expenses.
Employee-related expenses rose by 15.7% year-on-year to HUF 22.6 billion in Q1 2019, reflecting the HUF 3.0 billion in severance expenses in relation to the Hungarian headcount reduction programme, combined with increased expenses related to the restructuring of the remuneration system, driven by regulation changes in Hungary. Employee related expenses remained stable in North Macedonia.
Hungarian utility tax remained broadly stable at HUF 7.2 billion in Q1 2019, reflecting an increase in the length of the taxable network, due to the refinement of the cable network records. This offset the positive effects of Magyar Telekom's tax credit relating to its new network investments and upgrades that enable internet access of at least 100 Mbps.
Other operating expenses were HUF 6.1 billion lower year-on-year in Q1 2019, with IFRS 16 adoption accounting for HUF 5.1 billion of the decline. The underlying improvement of 4.4% was driven by lower IT maintenance and energy costs and temporary savings in marketing expenses. which more than offset increased rental fees in Hungary. Other operating expenses in North Macedonia remained broadly unchanged.
Other operating income was HUF 0.1 billion lower year-on-year at HUF 0.9 billion in Q1 2019, reflecting the absence of one-off accrual reversals (related to lapsed unbilled liabilities in Q1 2018).
EBITDA increased by 9.0% year-on-year to HUF 46.4 billion in Q1 2019 . Excluding the impact of IFRS 16 adoption, EBITDA was 2.9% lower year-on-year. This decline reflects higher severance expenses in Hungary, which more than offset increases in gross profit in both countries, and improvements in other operating expenses at the Hungarian operation.
Depreciation and amortization (D&A) expenses rose by HUF 7.0 billion year-on-year to HUF 33.8 billion in Q1 2019, with IFRS 16 adoption accounting for HUF 4.5 billion of that increase. The underlying increase of HUF 2.4 billion or 9.0% year-on-year was due to the shortened useful lives of customer connection related network elements.
Profit for the period declined by 58.1% year-on-year to HUF 4.0 billion in Q1 2019, as a combined result of higher severance expenses, an increase in tax expense, and the HUF 0.9 billion impact resulting from the adoption of IFRS 16.
Net financial expenses increased by HUF 1.3 billion year-on-year to HUF 5.6 billion in Q1 2019, driven by the adoption of IFRS 16 (with an impact of HUF 1.4 billion). Excluding this impact, financial expenses declined 2.3% year-on-year thanks to lower interest expenses resulting from the lower debt level.
Income tax expenses increased from HUF 2.3 billion in Q1 2018 to HU
LINK: | https://www.telekom.hu/about_us/press_room/press_releases/2019/may_08... |
See more stories from telekom |
Most recent headlines
04/08/2024
Dalet Appoints Santiago Solanas as CEO to Lead Next Era of Growth and Innovation
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives
Dalet, a leading technology and service provider for media-rich organizations, a...
30/04/2024
Gray Television Using NextGen TV to Roll Out Advanced Features Like HDR
LOUISVILLE, Ky. In another sign that broadcasters are finally using NextGen TV broadcasts to offer viewers new features instead of simply simulcasting existing ...
30/04/2024
Oklahoma Journalism Hall of Fame To Honor Blaise Labbe
OKLAHOMA CITY The Oklahoma Journalism Hall of Fame will induct Blaise Labbe, a group news director for Sinclair Broadcast Group, May 2 at the 54th Anniversary I...
30/04/2024
Cox Media Group, Dish Ink New Multi-Year Agreement
ATLANTA and ENGLEWOOD, Colo. Cox Media Group and Dish have ended a dispute over retransmission fees that lasted nearly a year and a half with a new multi-year ...
30/04/2024
TelevisaUnivision Taps LTN for IP-Based Distribution
Video transport solution provider LTN has announced that it is working with TelevisaUnivision to help the Spanish-language media giant migrate to IP-based video...
30/04/2024
NBC KXAS and Telemundo KXTX Used Clear-Com Solutions for Eclipse Coverage
ALAMEDA, Calif. Clear-Com has released details about how it played a pivotal role in the seamless coverage of the recent solar eclipse on April 8, 2024 by NBC K...
30/04/2024
Scripps Appoints Seth Walters To Steer CTV Sales Strategy
CINCINNATI The E.W. Scripps Company is adding Seth Walters to its sales leadership team as head of CTV sales, effective April 29....
30/04/2024
Durham Bulls Saturday Game, First Sellout of 2024 Season
The force was strong at the Durham Bulls Athletic Park on Saturday night, April 27, 2024, as the night netted the ballpark's first official sellout crowd of...
30/04/2024
NewFront Life Is a Cabaret for LGBTQ+ Network Revry
Revry, a network celebrating queer culture. said its second annual NewFront presentation will be a cabaret-type spectacle showcasing the spirit of the LGBTQ+ co...
30/04/2024
FETV Viewers Say Howdy' as Wyatt Earp' Joins Lineup
Family Entertainment Television (FETV) said that the Western series The Life and Legend of Wyatt Earp will be joining the network's afternoon lineup startin...
30/04/2024
Bob Bakish Departing Paramount, According to Reports
Bob Bakish, president and CEO of Paramount Global, will depart the company as Paramount explores a merger, according to numerous published reports. The reports ...
30/04/2024
Thales reports its order intake and sales for the first quarter of 2024
Facebook Twitter LinkedIn Order intake: 5.0 billion, up 47% ( 46% on an organic basis1 ) Sales: 4.4 billion, up 9.8% ( 7.9% on an organic basis) All f...
29/04/2024
Filming begins and further cast confirmed in Mark Gatiss drama Bookish for Alibi
(L-R) Mark Gatiss and Polly Walker on set Monday 29 April 2024 Further casting is now confirmed for Bookish (6x70), a brand-new drama created by Emmy Award-wi...
29/04/2024
She Speaks Sudan': Thomson launches programme to empower women journalists and civil society actors in exile
A groundbreaking initiative offering training and mentoring to 30 women journali...
29/04/2024
Meet the 2024 Sundance Institute Directors, Screenwriters, and Native Lab Fellows
Even though we've been doing this for over 40 years, a spark of excitement r...
29/04/2024
The AN/PRC-158: A Resilient Communications Bridge Between Air and Ground
L3Harris is delivering manpack radios to U.S. Army CH-47 Chinooks as part of the Air-to-Ground Networking Radio program, providing seamless, resilient communica...
29/04/2024
CS President Sam Mehta: Resilient Communications are Critical to Realizing JADC2
He writes in Defense One: Despite the near-universal acknowledgement throughout the U.S. government and defense industrial base of the criticality of resilient ...
29/04/2024
Clear-Com Enhances The Kennedy Center with Seamless Communication Solutions
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
29/04/2024
Optimising audio loudness & normalisation across the Media Supply Chain
Codemill aims to revolutionize media workflow efficiency at this years NAB Show by introducing Just-In-Time (JIT) playback technology in Accurate.Video Validate...
29/04/2024
TF1 Chooses Broadpeak to Power Targeted Advertising for New Video Streaming Service
April 29, 2024 -- TF1 Chooses Broadpeak to Power Targeted Advertising for New...
29/04/2024
LG Adds Allen Media Group's Local Now FAST Channel in 223 Markets
LOS ANGELES Allen Media Group (AMG) has partnered with LG Electronics to bring 223 Local Now FAST channels to LG's free streaming service, LG Channels, avai...
29/04/2024
Ross Video Unveils Raiden Weather Graphics System
OTTAWA Ross Video has announced the introduction of Raiden, a data-driven weather graphics software that combines data gathering, processing, and visualization ...
29/04/2024
Melanie Georgieva Joins Panalux as Long Form Sales Direct...
Panalux, a leading rental provider of lighting and power solutions for the motion-picture industry and part of Panavision's end-to-end service offerings for...
29/04/2024
Cobalt Iron Earns Patent on Analytics-Based Dynamic Autho...
Cobalt Iron Inc., a leading provider of SaaS-based enterprise data protection, today announced that it has received a patent on its technology for dynamic autho...
29/04/2024
SDVI Rally Access Workstation Earns Two Top Awards at 202...
SDVI, the leading platform provider for cloud-native media supply chains, today announced that Rally Access Workstation, a fully managed solution for editing in...
29/04/2024
Premier Sports selects QuickLink Remote Commentary soluti...
Premier Sports, a premium sports broadcaster, has selected QuickLink's Remote Commentary solution for introducing professional, high-quality remote commenta...
29/04/2024
Glookast picks Jigsaw24 Media as exclusive UK channel par...
Glookast has chosen Jigsaw24 Media as the only UK channel partner to represent their portfolio of ingest and workflow optimisation products. The agreement, sign...
29/04/2024
Clear-Coms Eclipse HX and Agent-IC Technology Illuminate...
Clear-Com played a pivotal role in the seamless coverage of the recent solar eclipse on April 8, 2024. Leveraging its cutting-edge Eclipse HX Digital Matrix i...
29/04/2024
PlayBox Neo to Promote Latest Smart Media Playout Innovat...
PlayBox Neo will promote its complete range of television channel management, graphic branding and playout solutions to EMEA region media content owners and bro...
29/04/2024
RuPaul Game Show Lingo' Returns to CBS May 24
Lingo, RuPaul's word-twisting game show, returns for season two on CBS Friday, May 24. Two episodes air that night, and stream on Paramount Plus, too....
29/04/2024
ESPN, Amazon Prime Video Reportedly Close To New Deals With the NBA
ESPN and Amazon Prime Video are reportedly close to scoring television rights to the National Basketball Association, according to published reports....
29/04/2024
Judge Judy,' Hot Bench' Renewed for 2 More Years
Judge Judy and Hot Bench, CBS Media Ventures' genre-leading court shows, have been renewed through the 2025-26 TV season in more than 95% of the country, Gr...
29/04/2024
Irish Sports Broadcaster Premier Sports Taps QuickLink for Remote Commentary
Premier Sports, an Irish-based premium sports broadcaster, has selected QuickLink's Remote Commentary solution for introducing professional, high-quality re...
29/04/2024
BAFTA Television Craft Awards winners announced
The awards celebrate the craft of behind-the-scenes TV talent and the best programmes of 2023 By Matthew Corrigan Published: April 29, 2024 The awards cel...
29/04/2024
Watch: How Milk VFX helped create 259 shots for Netflix's Scoop
The team at Milk had to create and deliver the VFX and environment work for the royal residences featured in the drama from scratch By Jenny Priestley Publis...
29/04/2024
What's going on at Paramount Global?
CEO Bob Bakish is expected to leave the company as early as today, with a new leadership committee likely to run the company on an interim basis By Jenny Pries...
29/04/2024
Meet the director of media and entertainment and strategic products
Albena Ivanova, director, media and entertainment and strategic products at CHAOS talks to TVBEurope about her route into the industry By TVBEurope Staff Pub...
29/04/2024
Anna Valley brand name acquired by AV company Grand Technix
The acquisition gives Grand Technix the opportunity to expand its footprint in the audio visual and broadcast technology sectors By Jenny Priestley Published...
29/04/2024
Screen Australia announces James J. Robinson's debut feature First Light
29 04 2024 - Media release Screen Australia announces James J. Robinson's debut feature First Light First Light Principal Photography is underway on Firs...
29/04/2024
Capitol Broadcasting Becomes First Company Inducted into NC Media and Journalism Hall of Fame
Capitol Broadcasting recently became the inaugural company honored with inductio...
29/04/2024
Tonight on House of Zwide: Zanele tells a surprised Zola that Faith fully supports her dropping charges against him
Tonight on House of Zwide: Zanele tells a surprised Zola that Faith fully suppor...
29/04/2024
Tonight on Scandal: Nhlamulo's request has Mdala reeling
Tonight on Scandal: A line is crossed and a mother starts to lose focusDon't miss Friday, 26 April's riveting episode of South African soapie Scandal! o...
29/04/2024
Tonight on Skeem Saam: Evelyn puts measures in place to protect her son
Tonight on Skeem Saam: Evelyn puts measures in place to protect her sonDon't miss Monday, 29 April's riveting episode of South African soapie Skeem Saam...
29/04/2024
Uninterrupted and Tribeca Enterprises Partner for Second-Annual Uninterrupted Film Festival Powered by Tribeca Festival July 9-10 in Los Angeles
April 29th, 2024 UNINTERRUPTED AND TRIBECA ENTERPRISES PARTNER FOR SECOND-ANNUA...
29/04/2024
Rebrand and Refresh: SailGP Talks Bringing its Graphics Operations Inhouse for a Bright New Look to Keep Viewers Illuminated
Rebrand and refresh: SailGP talks bringing its graphics operations inhouse for a...
29/04/2024
Reflecting on a Storied Career: Sean McManus Looks Back While Keeping an Eye on the Future
Reflecting on a Storied Career: Sean McManus Looks Back While Keeping an Eye on ...
29/04/2024
Drones Take Flight Inside MSG: How Sky Candy Studios is Upping the Excitement for Knicks, Rangers Playoff Series
Drones Take Flight Inside MSG: How Sky Candy Studios is Upping the Excitement fo...
29/04/2024
Netflix Announces a Diverse Lineup of Polish Titles to Debut in 2024 With Established Creators Returning With New Series and Films
Back to All News Netflix Announces a Diverse Lineup of Polish Titles to Debut i...