MTel decides business diversification (Hungary)

www.WirelessFederation.com/news: In a bid to gear up the business, Magyar Telekom (MTel) of Hungary has decided to diversify its business into the utilities services sector. The decision is also aimed at retaining existing customers amid the country’s steepest economic dip for more than a decade.

Natural gas and electricity of the Deutsche Telekom-backed telco will be resold to its residential and business users under the scheme and hopefully by next month. According to MTel, it is anticipated that participation in the retail electricity and gas market will enable Magyar Telekom to retain existing, and win new telecommunication customers with attractive energy offers.

On the other hand, 19% year-on-year loss in fourth-quarter net income was reported by the telco on a drop in revenue and rising staff costs. MTel’s net profit for 4Q09 contracted to HUF10.2 billion (USD51.7 million) in the period under review, down from HUF12.6 billion a year ago following the worst recession in the country in nearly 20 years.