MTEL's 3Q06 net profit came in 8.5% ahead of our and consensus estimate
at HUF 23.4bn (-1.0% y/y) on the back of an 11.8% y/y growth in revenues
to HUF 178.4bn, some 7.5% ahead of consensus.
Driven by more increasingly stable fixed revenues, which were up 3.8%
y/y to HUF 85.3bn as declines in voice revenues stabilise and
broadband (+38.8% y/y) and new IT and Systems Integration businesses
(+69.1% y/y) drive growth.
Mobile revenues were up 20.4% y/y to HUF 93.1bn, boosted by first
time inclusion of EDR revenues , which lifted sales by some 9.8bn.
Traditional mobile revenues were stable and came in-line with our
expectations as as ARPU remained stable y/y at HUF 4,897 on a 12% y/y
MoU increase. Mobile subscribers posted a modest 5.2% y/y growth to
4.3m, (we forecast 4.1m for end 2006) as market share remained
largely stable at 45%