Magyar Telekom Unexpectedly Posts 4th Quarter Loss on Tax

Magyar Telekom Nyrt., the Hungarian phone unit of Deutsche Telekom AG (DTE), unexpectedly posted a fourth- quarter loss as a new telephone tax wiped out profit and as management forecast declining sales for this year.

The loss attributable to owners of the parent was 1.6 billion forint ($7.1 million) in October-December, compared with a 40.3 billion forint loss a year earlier, the company said in a statement to the Budapest bourse today. The mean estimate of six analysts surveyed by Bloomberg was a profit of 505 million forint.

Earnings before interest, taxes, depreciation and amortization, an indicator closely watched by analysts and investors, may decline by 4 percent to 7 percent this year while sales revenue may decline as much as 3 percent, Chief Executive Officer Christopher Mattheisen forecast in the report.

Ebitda in the fourth quarter declined 21 percent to 37 billion forint as a new phone-call tax cost the company an extra 4.4 billion forint compared with the year-ago period. Ebitda fell 9.1 percent to 52.5 billion forint when excluding investigation-related costs and provisions, severance expenses and extraordinary taxes.

To contact the editor responsible for this story: Zoltan Simon at zsimon@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.