Magyar Telekom - Solid Results In Q3, FY Guidance Reiterated
Magyar Telekom has reported strong results for the third quarter and slightly beatmarket consensus at the bottom line. Even with the lack of inflation-based fee
adjustment, MTEL was able increase its profitability partially driven by strong cost
control as well as the elimination of suppl. telecom tax. Adjusted net profit reached
HUF 55.2bn in the third quarter and increased to HUF 165.6bn in the first nine
month. Management reiterated its full year guidance, expecting ca. 15% EBITDAaL
growth over the year, at least HUF 200bn adjusted net profit and HUF 200bn free
cashflow. We remain convinced that FY adj. net profit will reach around HUF
204.7bn and MTEL will distribute ca. HUF 185 per share amongst shareholders, incl.
share buyback. Therefore, we reiterate our BUY recommendation with an
unchanged TP of HUF 2,043.
Magyar Telekom is engaged in the providing fixed line and mobile telecommunication services for public and business customers. Co. provides voice and non-voice (SMS, MMS, internet, data and content provision) within mobile services; voice, data, internet and TV services within fixed line services. In addition, Co. sells equipment needed for using fixed line and mobile services (telephones, tablets, notebooks, TV sets etc.).
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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