MTel reports a drop of 26.6% in Q2 net profit (Hungary)

www.WirelessFederation.com/news: MTel has posted a drop of 26.6% year-on-year in second-quarter net profit and trims its revenue and profit guidance for the full year amid  economic recession. The net income reported to be HUF23.13 billion (USD124.9 million) for the period under review, compared with HUF31.50 billion in the three months ended 30 June 2008.

Group revenues plunged by 6.9% to HUF161.09 billion with the government of Hungary predicting the wider economy will contract by a full 6.7% in 2009. EBITDA in Q2 dropped by 11.8% year-on-year, slightly better than market expectations, as cost cutting initiatives offset some of the impact of lower turnover, MTel said.

‘Based on the first half results and taking into account the unfavourable economic environment foreseen for the second half of the year, Magyar Telekom now expects a revenue decline of approximately 2% and an underlying EBITDA decline of up to 5% for the full year compared to a 2008 level,’ the company said.