Magyar Telekom sees rise in EBITDA earnings by 2017
BUDAPEST, Sept 30
BUDAPEST, Sept 30 (Reuters) - Hungary's Magyar Telekom expects core earnings to fall next year before exceeding 2013 levels by 2017, the company said on Monday.
"Although Group EBITDA (earnings before interest, taxes, depreciation and amortisation) is still expected to decline in 2014, equivalent to a compound annual decline rate of 6 percent to 8 percent compared with 2012, by 2017 the 2013 EBITDA level will be surpassed," the company said in a statement after it presented its four-year outlook to investors.
The group expects revenue to grow at annual rate of around 2 percent by 2017, while indirect costs would also drop at an average annual rate of 2 percent.
The company expects capital expenditures worth 87 billion forints for 2014, and plans to reduce the annual amount to about 80 billion forints by 2017. Free cash flow could start to improve from 2015 and exceed last year's level by 2017.
It also said that it planned to maintain its current dividend policy, targeting a net debt to total capital ratio between 30 percent and 40 percent. (Reporting by Sandor Peto; Editing by david Cowell)
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