MTEL Focuses On Network Developments To Retain Clients
- 14 May 2015 9:00 AM
Magyar Telekom will focus on network developments this year to boost customer satisfaction and reduce churn, the company’s chief financial officer, János Szabó said after the company published its first-quarter earnings. MTel will make developments in both its mobile and fixed line networks, Szabó said. MTel expects to spend about 105 billion forints on investments this year, according to guidance in the earnings report published late Tuesday. Last year, CAPEX came to 86.8 billion.
MTel’s net income fell by 48% to 2.5 billion forints in Q1 from the same period a year earlier, as higher financial losses, depreciation and amortisation weighed.
With the acceleration of nextgeneration network developments, MTel aims to raise the number of households with access to the highspeed fixed line network by 440,000 to 2.2 million, Szabó said.
Coverage of MTel’s 4G/LTE mobile network is set to rise from 84% to 97% this year, he added. He attributed MTel’s decision, also announced on Tuesday, to pull out of the retail gas market to “changed market environment” that no longer allows the company to sustain the price advantage it can offer customers.
Hungary’s government has mandated a number of utilities price cuts in recent years, and a stateowned utilities company entered the gas market in the spring.
Szabó said MTel was reviewing further possibilities on the electricity services market, but no decision has been made yet.
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