Magyar Telekom's Macedonian Fixed-Line Unit Q3 Revenue Falls 7.2% Y/Y to 36.2 Mln Euro

“Both retail and wholesale voice revenues declined due to increasing mobile substitution and competition from alternative operators”, Magyar Telekom said in its third quarter financial report.

“In addition, the unfavourable impact of foreign exchange movements further decreased forint-denominated revenues and EBITDA (the forint on average strengthened by 5.6% to the Macedonian denar over the period). EBITDA (operating income before depreciation, amortisation and impairment charges) as a result, was flat at 4.6 billion forints and EBITDA margin was 48.8% in third quarter”, the statement added.

Makedonski Telekom’s fixed-line subscribers’ base fell by 5.2% on the year to 472,790. The fixed-line penetration was 21.6% at the end-September. However, the number of Internet subscribers almost doubled to 93,112 from 47,987 a year earlier.

Magyar Telekom said Makedonski Telekom’s DSL broadband market share was about 60% by the end of September.

Makedonski Telekom used to be the sole fixed-line operator in Macedonia until recently. Its first local competitor emerged in May, when Internet provider On.net launched fixed-line services through its subsdiary company Ontel. Macedonian wireless operator Cosmofon AD Skopje, owned by Greece's Cosmote, became the country's third fixed-line operator in June. Internet and cable TV operator CableTel DOOEL Skopje on Wednesday became the latest entrant in the segment.

Makedonski Telekom is majority-owned by Hungary's Magyar Telekom via its fully-owned subsidiary Stonebridge Communications. The Macedonian government owns a 34.8% stake in Makedonski Telekom.

Magyar Telekom is a subsidiary of Germany's Deutsche Telekom.

(1 euro= 262.1704 Hungarian forints)