* Quarterly net profit hit by new tax, energy price cuts
* New costs dent stronger-than-expected rise in revenues
* Lifts full-year revenue guidance, maintains profit outlook
BUDAPEST, May 8 Magyar Telekom said on
Wednesday its first-quarter net profit fell sharply compared to
a year ago as a new tax and government-backed energy price cuts
in Hungary offset a stronger-than-expected increase in revenues.
The Deutsche Telekom unit said net profit for the
first three months fell to 1.7 billion forints ($7.53 million)
from 13 billion a year earlier as it booked the full annual
amount, 7.3 billion forints, of a new utility tax.
Analysts polled by financial news website portfolio.hu had
expected quarterly profit of 4.4 billion forints on revenues
worth 152.25 billion in a recent survey.
Magyar Telekom's bottom line sank even though quarterly
revenues rose by 6.8 percent to 156.6 billion forints, above
expectations, as government-backed price cuts in household
energy turned one of its fastest-growing segments loss-making.
"Thanks to the outstanding revenue generation in the first
quarter and based on my current expectations ... I now expect
the full year revenues to be approximately flat compared to our
previous guidance of flat to -3 percent," Chairman and Chief
Executive Christopher Mattheisen said in the earnings report.
Magyar Telekom's profitability was also hit as the bulk of
the revenue increase came from lower-margin business segments.
The company kept its profit guidance for reported earnings
before interest, taxes, depreciation and amortisation (EBITDA)
to fall by 4-7 percent from last year.
In the first quarter EBITDA fell 24.3 percent due to the tax
charge and the energy price cuts. The company said it was in
talks on potential changes that may allow it to maintain its
services in this business segment.
Magyar Telekom shares closed at 361 forints on the Budapest
Stock Exchange on Tuesday.
($1 = 225.85 Hungarian forints)
(Reporting by Gergely Szakacs; Editing by Jeremy Laurence)