MTEL posted strong 3Q07 results with net income coming at HUF 25.2bn, +8.0% y/y, 5.0% above the high-end of the HUF 22.4-24.2bn consensus range. The key issue in the result is that management is finally delivering on margin expansion. Cost-cutting measures are finally coming through and headcount reduction will contribute to improvement in 2008 onwards.