Bloomberg News

Magyar Telekom Posts Fourth-Quarter Loss on Subsidiary, Taxes

February 24, 2012

Feb. 23 (Bloomberg) -- Magyar Telekom Nyrt., the Hungarian unit of Deutsche Telekom AG, posted a fourth-quarter net loss that exceeded forecasts on a writedown at its Macedonian unit, higher tax payments and a loss on financial operations.

The former phone monopoly’s loss totaled 38.7 billion forint ($178 million), compared with a profit of 9.7 billion forint a year earlier, according to a statement on the Budapest Stock Exchange’s website today. The median estimate by 10 analysts was for a loss of 1.9 billion forint.

Magyar Telekom recognized a 31.4 billion-forint impairment loss from the goodwill on its Macedonian unit after lowering its 10-year growth plans as much as 25 percent. That more than doubled depreciation and amortization to 60.9 billion forint. It booked a financial loss of 11.8 billion forint, compared with a loss of 6.6 billion a year earlier, and saw income tax expenses surge to 15 billion forint on tax regulation changes.

“A deteriorating economic environment” in 2012 will affect the company’s results, said Christopher Mattheisen, chairman and chief executive officer in the statement.

Revenue will probably range between zero growth to a 2 percent annual drop. Underlying earnings before interest taxes, depreciation and amortization is expected to “deteriorate” this year by 4 percent to 6 percent.

Still, Ebitda jumped to 46.7 billion forint from 26 billion forint a year earlier after the company booked a special telecommunications tax introduced in 2010 in the last quarter of that year.

Magyar Telekom shares gained 11.8 percent this year while the benchmark BUX index rose 12.3 percent in the same period.

The company sees capital expenditures, excluding spectrum acquisitions, remaining in line with 2011, Mattheisen said.

--Editors: James M. Gomez, Chris Peterson

To contact the reporter on this story: Edith Balazs in Budapest at ebalazs1@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus