MTEL will be releasing 4Q05 results on Monday the 13th. We expect FY05 revenues to have grown 2.8% y/y from HUF 601bn to HUF 618bn, on a 4.2% y/y growth in mobile, and as fixed line decline decelerate to -1.6%. We expect FY05 EBITDA to have expanded by 10% y/y to HUF 245.7bn as margins expand by 270bp.
During the presentation, we believe focus will be on indications regarding dividends, which should be formally announced in March, after the AGM. We would watch out for details of the merger benefits and potential M&A transactions. We maintain our Buy rating on MTEL as the stock is attractively valued at 5.1x 2006 EV/EBITDA, and offers a 19.7% upside to our HUF 1,150 fair value estimate.