Magyar Telekom results for the third quarter 2013
Budapest, November 7, 2013 00:00
Magyar Telekom 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:
Revenues increased by 5.4% in the third quarter of 2013 compared to the same period of 2012, from HUF 150.1 billion to HUF 158.3 billion. This growth reflects the significant increase in revenues both from energy and SI/IT services as well as higher equipment sales revenues.
EBITDA declined by 8.2%, from HUF 56.6 billion to HUF 51.9 billion,owing to the HUF 6.2 billion decrease in other operating income reflecting the HUF 3.7 billion gain realized on the real estate transaction in Macedonia and the HUF 1.6 billion gain relating to the sale of Pro-M, both recorded in the third quarter last year. Impacts of these were partially mitigated by lower operating taxes.
Employee-related expenses increased by HUF 1.4 billionin the third quarter compared to the same period last year primarily driven by the HUF 1.3 billion severance expense in Macedonia related to the 10% headcount reduction completed by the end of September. At the same time, the impact of the average 4% wage increase at Magyar Telekom Plc. effective from April this year was mostly offset by the lower headcount.
Depreciation and amortization expenses rose from HUF 26.5 billion to HUF 27.4 billion due to increased amortization of licenses.
Net financial expenses increased from HUF 5.2 billion to HUF 9.2 billion primarily due to higher net FX losses asduring Q3 2013, HUF weakened by 1.1% against the EUR resulting in FX loss while during Q3 2012, HUF strengthened by 1.6% leading to FX gain.
Income tax expense decreased from HUF 5.9 billion in Q3 2012 to HUF 4.4 billion in Q3 2013 in line with the lower profit before tax resulting from lower EBITDA and higher depreciation and amortization and financial expenses. At the same time, other income taxes (including the local business tax and the innovation fee) remained stable at HUF 2.0 billion as the basis for their calculation is the statutory gross margin, not profit before tax. Consequently, the effective tax rate for Q3 2013 stood at 28.9%.
Profit attributable to the owners of the parent company (net income) decreased from HUF 14.8 billion to HUF 9.3 billion primarily due to the lower profit before tax.
Net cash generated from operating activities decreased by HUF 30.2 billion year-on-year, from HUF 105.4 billion in the first nine months of 2012 to HUF 75.3 billion in the first nine months of 2013. The deterioration is driven by the HUF 17.1 billion lower EBITDA year-on-year coupled with unfavorable movements in working capital. Although working capital last year was negatively impacted by the HUF 20.7 billion settlement charge in connection with the SEC and DOJ investigations, this impact was counterbalanced by items adversely impacting working capital this year such as the deferred payment options offered for equipment contracts and a higher level of inventories. In addition, the positive one-off effect of the sale of PRO-M last year distorts comparison.
Investment in tangible and intangible assets (CAPEX) increased by HUF 46.6 billion in the first nine months of 2013 compared to the same period last year, from HUF 70.9 billion to HUF 117.4 billion. The significant increase is primarily attributable to the extension of frequency licenses in Hungary in Q3 2013, amounting to HUF 38 billion, and the acquisition of the 4G license in Macedonia for HUF 3.1 billion. These were coupled with the capitalization of the present value of the future annual frequency fees - related to the recent relevant agreements and changes in the related regulations - amounting to HUF 17.3 billion. Excluding these, as well as the 900 MHz spectrum license fee booked in Q1 2012 that came to HUF 10.9 billion, CAPEX decreased slightly, from HUF 60.0 billion in the previous period to HUF 59.1 billion for the first nine months of 2013. The impact of the HUF 10.7 billion non-cash CAPEX accounted for in Q3 2012 in relation to the Macedonian real estate exchange transaction was mostly offset by higher investments in relation to the development of the integrated CRM and billing system, as well as the change in accounting for rented IPTV set-top box contracts from an operational to a financial lease basis. At the same time, CAPEX relating to the financial lease contracts was offset by an equivalent improvement in adjustments to cash purchases, resulting in an overall neutral impact to the free cash flow; while the spectrum license extension fees will only be paid in Q4 2013 and consequently, did not impact on the free cash flow in the first nine months of 2013.
In the first nine months of 2013, Telekom Hungary accounted for HUF 103.4 billion of total CAPEX while T-Systems Hungary accounted for HUF 2.2 billion. In Macedonia and Montenegro, CAPEX was HUF 10.0 billion and HUF 2.0 billion, respectively.
Free cash flow (operating cash flow and investing cash flow adjusted for proceeds from / payments for other financial assets) deteriorated by HUF 35.9 billion in the first nine months of 2013 compared to the same period last year, from HUF 44.8 billion down to HUF 8.9 billion. This was due to the lower operating cash flow and the proceeds from the sale of PRO-M improving last year's performance.
Net debt rose fromHUF 296.8 billion at the end of September 2012 to HUF 365.3 billion at the end of September 2013. The net debt ratio (net debt to total capital) rose to 42.7% during the quarter, partly reflecting the increased financial liabilities recognized for the future annual frequency fees.
Christopher Mattheisen, CEO commented
In the third quarter of 2013, Magyar Telekom saw further positive developments which give ground
Most recent headlines
06/10/2025
France T l visions, France's leading broadcaster, has received the 2025 EBU ...
04/09/2025
Monumental Sports & Entertainment (MSE), in collaboration with Dalet, has been a...
30/08/2025
WASHINGTON The Federal Communications Commission has adopted its FY 2025 Regulatory Fees Order that establishes the regulatory fee rates for the broadcast stati...
29/08/2025
Australian Red Cross and SBS launch training to help workplaces in the fight aga...
29/08/2025
The National Film and Video Foundation (NFVF), an agency of the Department of Sp...
29/08/2025
L3Harris Technologies has concentrated decades of expertise across the entire enterprise to develop affordable and reliable best-of-breed solutions to rapidly c...
29/08/2025
BURBANK, Calif. The CW Network and the Pac-12 Conference have announced a new media rights deal that will extend their broadcast partnership beginning with the ...
29/08/2025
NEW YORK Gracenote has released a new analysis of its global video dataset showing that the number of FAST channels grew nearly 14% from Q1 2025 and 76% since 2...
29/08/2025
SAN JOSE, Calif. Harmonic has announced a series of improvements to its live sports streaming solution that the company said will improve fan engagement, protec...
29/08/2025
NEW YORK and LOS ANGELES Fox Corp. and YouTube TV last night announced a renewal of the full portfolio of Fox networks, including Fox News Channel, Fox Business...
29/08/2025
Budapest, Hungary, August 2025 - The integration of Microsoft Teams Rooms (MTR) with Lightware's Taurus universal matrix switchers delivers a new level of f...
29/08/2025
Frequency, the engine behind many of the world's best-known streaming television channels, today announced it will launch Studio Live, a next-generation uni...
29/08/2025
In an era when AI and cyber resilience are essential, Scality will mark the 10th anniversary of Scality Day on October 16, 2025 in Paris. This flagship global e...
29/08/2025
Disguise's In-House Creative and Technical Teams Pre-Visualised, Programmed and Delivered Content for the Experience, All Powered by EX 3+
Technology solu...
29/08/2025
Disguise will be demonstrating the latest workflows for TV, film and live events on a number of partner booths at the show
Disguise, the industry-leading tech...
29/08/2025
STOCKHOLM, Sweden Accedo will showcase Accedo Compose, its AI agent-powered modular orchestration layer that assists streaming providers in transitioning client...
29/08/2025
LOS ANGELES Cineverse has announced that it is working with Xperi to bring four of its streaming channels to automobiles for the first time as part of the DTS A...
29/08/2025
DALLAS & ATLANTA Gray Media has announced an agreement with the sports streaming service Victory+ to simulcast 17 Dallas Stars NHL games in 15 television market...
29/08/2025
NEW YORK AND CULVER CITY Comcast NBCUniversal and Amazon have announced new and extended distribution agreements that will expand the content available on their...
29/08/2025
FOOTHILL RANCH, Calif. RED Digital Cinema will feature its Cine-Broadcast Module supporting live broadcast workflows during IBC2025, Sept. 12-15, at the RAI Ams...
29/08/2025
29 Aug 2025
Kyivstar Rings Opening Bell at Nasdaq Marking Landmark Listing and ...
29/08/2025
More than half of all NFL games live on Sky for the first timeFriday 29 August 2025
Sky Sports has announced a new three-year deal with the NFL, extending its ...
29/08/2025
Back to All News
RIV4LRIES: The Trailer of the New Series With Samuele Carrino ...
29/08/2025
Get ready for an inspiring and emotional insight into the world of competitive Irish dancing with My Story: Tomi Champion of the World airing on RT 2 this monda...
29/08/2025
RT has today announced that David McCullagh is to be the new presenter of RT Radio 1's flagship Today programme, which airs every weekday at 10am, replaci...
28/08/2025
By Kristin Feeley, Director, Documentary Film & Artist Programs
If you want to tell untold stories, if you want to give voice to the voiceless, you've got ...
28/08/2025
Directed by Steven Bognar and Julia Reichert, Sundance Institute-supported Amer...
28/08/2025
Corridos have been a cornerstone of M sica Mexicana for generations, telling stories rooted in everyday life. Now, a new chapter is taking shape: motivational c...
28/08/2025
Los corridos han sido un pilar de la M sica Mexicana durante generaciones, contando historias enraizadas en la vida cotidiana. Ahora, un nuevo cap tulo est tom...
28/08/2025
Earlier this month, we promised our Verano Forever party would bring the heat, a...
28/08/2025
L3Harris will provide the Polish F-16V fleet with the Viper Shield electronic warfare system as part of an upgrade program....
28/08/2025
Bilbao, August 26, 2025 - AgileTV, an international television and video technol...
28/08/2025
Ken Wilkinson is an Emmy Awards nominated New York audio engineer who specialises in production sound mixing for film, commercial, episodic and documentary work...
28/08/2025
NEW YORK FuboTV today announced that it will launch Fubo Sports, a skinny bundle that focuses on sports with a subscription price of $56 monthly....
28/08/2025
NEVADA City, Calif. At IBC2025, Sept. 12-15 at the RAI Amsterdam, Telestream will debut its new Global Ingest strategy, introducing a next-generation ingest arc...
28/08/2025
Dr. Rhoda Bernard Releases Groundbreaking Debut Book on Accessible Arts Educatio...
28/08/2025
TAG Video Systems, the leader in software-based IP end-to-end workflow monitoring, deep probing, and real-time visualization, has named Oliver Gappa as Sales Di...
28/08/2025
AI-based voice enhancement will be among a series of innovations making their IBC 2025 debut on the DHD stand B46 in Hall 8 at the RAI Amsterdam Convention Cent...
28/08/2025
Telef nica Servicios Audiovisuales (TSA), the leading system integrator and service provider in the media sector in Spain, with the support of Appear, the globa...
28/08/2025
To fully immerse sailing fans in the world's biggest offshore yacht race, production company, Optical Media turned to LiveU's On-site Production solutio...
28/08/2025
Working with Calrec on its most recent overhaul, radio and television broadcaster, WNED has migrated to a fully IP infrastructure with multiple Type R consoles,...
28/08/2025
Cleeng, the Subscriber Retention Management (SRM ) inventor, has unveiled Cleeng Pro, the first-ever direct-to-consumer (D2C) subscription management platform t...
28/08/2025
Zixi, the industry leader in live broadcast-quality video over IP, today announced that French media distribution platform OKAST has selected Zixi to enable rel...
28/08/2025
Solution offers a streamlined, speaker-free architecture to optimize integration with premium external loudspeakers and advanced loudness metering
Nixer Pro Au...
28/08/2025
Cinegy, the premier provider of software-defined television technology, has announced a strategic partnership with Vision One Touch Film Production Services L.L...
28/08/2025
Telestream, a global leader in media workflow technologies, will debut its new Global Ingest strategy at IBC2025, introducing a next-generation ingest architect...
28/08/2025
Tier 1 operator selects Broadpeak to power high-performance, unified CDN solution across Norway, Sweden and Finland
Broadpeak, a leader in streaming and moneti...
28/08/2025
Leading video software provider, Synamedia, today announced that 24 Frames Digital, one of India's leading live event streaming service providers, has chose...
28/08/2025
Meet VisualOn at IBC2025: See What's Next in AI-Powered Video Streaming Join VisualOn at IBC2025 and discover how our AI-driven Optimizer and advanced media...
Magyar Telekom results for the third quarter 2013 
