Magyar Telekom reported a first-half net profit rise of 57% to HUF 53.7 billion (EUR 227.93 million) last Thursday, mainly due to the telco freeing up provisions related to landline and mobile traffic revenues worth HUF 8.5 billion (EUR 36.08 million) during the period.

However, discounting the freeing of provisions, second-quarter revenues were down by 1.6% yr-on-yr, as growth in mobile and internet revenue failed to compensate for a 7.4% drop in revenue from landlines, to HUF 81.22 billion (EUR 348.75 million). Magyar Telekom revealed that it had released provisions after the telco watchdog NHH decided it had compensated its customers enough for an earlier breach of regulations on tariffs from landlines to mobiles.

Mobile revenues rose by 3.2% to HUF 82.21 billion (EUR 348.96 million) while internet revenues climbed 4.4%, to HUF 15.2 billion (EUR 64.51 million).

Meanwhile payroll costs fell 9% to HUF 48.5 billion (EUR 20.57 million), due to the company laying off 14% of its staff. Analysts said cost-cutting would be a shrewd policy for Magyar Telekom from now on.

Regarding foreign ventures, the landline revenue of Magyar Telekom’s Macedonian unit Maktel was flat at HUF 20 billion (EUR 84.78 million), while EBITDA dropped 19%, to HUF 8.1 billion (EUR 34.33 million). Meanwhile the revenue from landlines at T-Com CG, Magyar Telekom’s Montenegrin arm, was down 7% to HUF 9.3 billion (EUR 39.46 million), but EBITDA rose 25% to HUF 3.2 billion (EUR 13.58 million).

Magyar Telekom’s total assets stood at HUF 1.116 trillion (EUR 4.74 billion) at the end of June, almost unchanged from twelve months earlier. Net assets fell 2% to HUF 548.00 billion (EUR 2.33 billion).

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