Magyar Telekom talks strategy

October 1, 2013 06.36 Europe/London By Chris Dziadul

Magyar Telekom HQMagyar Telekom aims to increase the ratio of homes that subscribe to at least two telecom services from its 2012 level of 57% to 74% by 2017.

Furthermore, amongst those, it plans to raise the so-called 5play ratio, namely fixed and mobile voice and internet coupled with a TV package, from 6% to 32% over the same time period.

In the residential sector as a whole, the company expects to reach an average of 3.1 services per household in 2017, compared to the current 2.4.

The projections were given by the company’s management at an investor day held in Budapest on September 30 in which it outlined a number of strategic and financial targets for 2017.

They envisage a complete financial performance turnaround, with EBITDA in 2017 surpassing that for this year thanks to higher revenues and a reduction in indirect costs.

Capital expenditures (CAPEX) is meanwhile projected to fall from HUF87 billion (€291.6 million) in 2014 to HUF80 billion in 2017.