Magyar Telekom - Despite Windfall Tax Q2 EBIT Is Flat y-o-y
- MTEL posted extremely strong Q2 figures, all of the lines came above the consensus. EBITDA and Profit arrived at HUF 58 bn (-2% y-o-y) (vs. cons HUF 53bn) and HUF 10.6 bn (-22% y-o-y) (vs. cons HUF 9 bn) respectively. Excluding windfall tax charge (HUF 12.4bn), profit would have arrived ta HUF 22bn (EPS HUF 22).
MTEL’s 12M rolling profit reached HUF 65.5 bn, (cleaned from windfall profit would be HUF 76.5bn).If we subtract the remaining HUF 12.4bn extra tax from 12m rolling profit, which could be a good proxy for FY annual profit should arrive to HUF 52 bn above our FY profit forecast of 44bn (+18%); (6m profit was 29bn). This would imply a shareholder remuneration of 31 – 42 per share implying a yield of 10% – 13.4% and a premium yield of (above 10yr HU gov. bond) 2%– 5.4% (vs. historical avg. of 2.4%).
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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