Magyar Telekom's Macedonian Fixed-line, Mobile Units Q3 Combined Revenue Rises 12%, EBITDA up 4.5% Y/Y

“However, excluding the strong FX impact (the forint weakened on average by 14.0% to the denar in the third quarter against the same period last year), revenues were down by 1.8%, and EBITDA declined by 8.3%, mainly driven by increased mobile equipment sales in relation to retention campaigns,” the Hungarian company said in a statement posted on its website.

EBITDA margin declined from 58.3% to 54.5% in the third quarter reflecting the intensifying competition in all segments, it said in the statement.

FIXED-LINE REVENUE UNDER PRESSURE

Magyar Telekom fixed line revenues in Macedonia declined by 10.6% in local currency terms, driven by increasing competition from alternative and mobile operators. 

The intense competitive pressure coupled with the unfavourable economic environment resulted in an elevated annual churn rate and a further decline in outgoing traffic volumes.

The voice revenue decline was partly offset by growing internet and IPTV revenues driven by the expanding customer base, Magyar Telekom said.

MOBILE REVENUE UP ON CUSTOMER BASE GROWTH

Magyar Telekom's third-quarter mobile revenues in Macedonia were up by 5.6% in local currency terms thanks to the growing customer base and improving customer mix.

Whilst usage also increased, it could not counterbalance competition driven tariff reductions that led to a decline in ARPU levels.

Non-voice revenues also increased and should gain further impetus from the 3G services launched in June this year, the statement said. 

The competition on Macedonia's fixed-line voice market intensified in 2008 as Internet service provider On.net and wireless operator Cosmofon AD, both owned by Telekom Slovenije, as well as several cable operators all launched wireline services.

T-Mobile Macedonia competes with Cosmofon and Vip Operator, the local wireless unit of Mobilkom Austria.

Magyar Telekom is the majority shareholder of Makedonski Telekom and T-Mobile Macedonia. Magyar Telekom, in turn, is a unit of Germany's Deutsche Telekom.

Makedonski Telekom shares were traded at 430.94 denars ($10.4/7.0 euro) by 1420 GMT on Thursday on the Skopje bourse, down 0.9% from the Wednesday close.

(1 euro=61.5997 Macedonian denars)