MTEL will release 2Q09 results before the open on Thursday, the 6th. We expect a 27.2% y/y decline in earnings on steep revenu decline and margin contraction. Revenues will suffer from higher base comparison given the HUF 8.5bn one-off revenue from the reversal of F2M traffic provision in 2Q08. Therefore, we expect a 13% decline in fixed-line revenues to HUF 79.3bn , as a 10% growth in IT services offset a 16% decline in fixed voice and data. We estimate a 3% y/y decline in mobile revenues as tariffs remain under pressure both from competition and termination reductions. We believe that the effects of ongoing cost containment is still not enough to offset the revenue declines, and we see EBITDA declining 15% y/y to HUF 64.0bn as margins contract 334 bps to 40.2%. Overall, we expect weak results and confirmation of negative trends. With the shareprice having been strong recently, we expect the stock to return some of the recent gains after the results