Mobile subscriptions numbered 11.7 million at the end of Q2 in Hungary, the lowest in three years, 161,000 or 1.6% less y/y, according to the Central Statistics Office (KSH). The y/y decline was 1.0% in Q1. The number of fixed line calls grew 1%, and their duration increased by 2% y/y, while the number of fixed line subscriptions declined by 1.0% to 2.885 million. Their number decreased by 0.7% y/y in Q1. Internet subscriptions grew by 5.1% to more than 3.634 million y/y in Q2 after adding 3.5% y/y in Q1, and internet providers numbered 410, 7 more than a year ago.
The negative trend in mobile subscriptions could be attributed to the weak macro environment weighing on consumer spending. MTEL’s has been able to increase its market share in the mobile market to 44.5% in 2Q11 up from 43.2% a year ago and 43.8% in 1Q11 at the expense of lower ARPUs in its post paid mobile segment. We regard the news slightly negative as ARPU’s (and thus margins) can suffer for companies that would like to keep or increase their market share in an increasingly competitive market.