FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

Report on Form 6-K dated August 10, 2006

Magyar Telekom Plc.

(Translation of registrant’s name into English)

Budapest, 1013, Krisztina krt. 55, Hungary

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  x  Form 40 o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o   No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-       

Magyar Telekom

 

	Contacts:		Szabolcs Czenthe, Magyar Telekom IR
			+36-1-458-0437
			Gyula Fazekas, Magyar Telekom IR
			+36-1-457-6186
			Rita Walfisch, Magyar Telekom IR
			+36-1-457-6036
			investor.relations@telekom.hu

2006 interim results: on track to meet full year targets

Budapest — August 10, 2006 — Magyar Telekom (Reuters: NYSE: MTA.N, BSE: MTEL.BU and Bloomberg: NYSE: MTA US, BSE: MTELEKOM HB), the leading Hungarian telecommunications service provider, today reported its consolidated financial results for the first six months of 2006, in accordance with International Financial Reporting Standards (IFRS). From the second quarter of 2005, the consolidated income statement includes the results of Telekom Montenegro Group (“TCG”), while the company’s balance sheet has been consolidated in Magyar Telekom’s accounts as of March 31, 2005.

Highlights:

·                  Revenues grew by 5.4% to HUF 316.1 bn (EUR 1,214.0 m) in H1 2006 compared with the same period last year. The higher mobile, internet and system integration & IT-related revenues compensated for the lower outgoing traffic revenues.

·                  EBITDA grew slightly by 0.5% to HUF 124.7 bn, with an EBITDA margin of 39.5%. Group EBITDA excluding investigation-related costs was HUF 126.5 bn with an EBITDA margin of 40.0%.

·                  Gross additions to tangible and intangible assets were HUF 43.8 bn. The portion relating to the fixed line segment reached HUF 19.1 bn with mobile at HUF 24.7 bn. Within the mobile segment, HUF 6.7 bn was spent on UMTS-related investments and HUF 6.5 bn on the EDR project.

·                  Fixed line segment: external revenues (after elimination of inter-segment revenues) increased by 3.4% to HUF 168.1 bn, mainly as increased internet broadband and system integration & IT-related revenues offset the decline, primarily in outgoing traffic revenues. EBITDA amounted to HUF 59.6 bn and the EBITDA margin on external revenues was 35.5%.

·                  Mobile segment: external revenues increased by 7.8% to HUF 148.1 bn driven by voice revenues and enhanced services revenues. EBITDA amounted to HUF 65.1 bn with the EBITDA margin on external revenues reaching a strong 44.0%.

·                  Profit attributable to equity holders of the company (net income) fell by 10.8%, from HUF 41.4 bn (EUR 167.2 m) to HUF 36.9 bn (EUR 141.8 m). Despite the slight EBITDA growth, net income declined primarily driven by higher depreciation and amortization, as well as increased net financial expenses (mainly as a result of the higher foreign exchange loss due to the weakening of HUF on account payables and receivables).

·                  Net cash from operating activities was HUF 91.7 bn due to the combined impact of a broadly stable EBITDA and increased income tax paid, partly offset by other cash flows from operations reflecting a lower severance payment in H1 2006. Net cash utilized in investing activities fell to HUF 74.7 bn. The TCG acquisition in Q1 2005 offset the increased spending on tangible and intangible asset (capex) in H1 2006. The higher capex is mainly due to the EDR/TETRA project investment at the Hungarian mobile operations. Net cash flows from financing activities reflect the absence of a dividend payment in H1 2006.

1

---

·                  Net debt decreased by HUF 24.2 bn compared to the end of December 2005, driven by the loan repayment during the first half of 2006. The net debt ratio (net debt to net debt plus equity plus minority interests) fell to 29.6% at June-2006 (33.1% at end-2005).

Elek Straub, Chairman and CEO commented: “I am pleased to report an above 4% top line growth and a broadly stable EBITDA, excluding the one-time impact of the investigation-related expenses, in the second quarter of this year. These figures underline that we are on track to achieve our targets set for this year. In line with our strategy, we capitalized on inorganic growth opportunities in the second quarter through, for example, the purchase of Dataplex and KFKI (Hungarian IT companies). In the latter case, we are awaiting Competition Office approval for the acquisition. In the Hungarian fixed line business, the number of flat rate solutions continued to grow, increasing the access revenue stream. However, traffic erosion also continued. The successful ADSL sales campaign contributed to sustained growth in internet revenues. In the Hungarian mobile market, we preserved the strong leading position; underlying financial performance was stable. In the second quarter of this year, T-Mobile was the first in Hungary to launch a super-speed HSDPA mobile-internet service. By introducing broadband data transmission solutions in Hungary, T-Mobile once again demonstrated the Group’s clear leadership in the market. Regarding the EDR investment, the service started in Budapest in April 2006 and we accounted revenue for the service in the second quarter. Finally, international operations in Macedonia and Montenegro performed well, contributing to Group revenue and EBITDA in line with our expectations.”

Hungarian fixed line operations: growing IT and broadband revenues, continuous fall in traffic

Revenues before elimination grew by 2.5% to HUF 73.4 bn in Q2 2006 over the same period in 2005 with an EBITDA margin for the quarter at 31.6%. In Q2, excluding the HUF 1.5 bn cost of the investigation (accounted for within the Headquarter costs), EBITDA was HUF 24.6 bn with a 33.6% EBITDA margin. The segment EBITDA was negatively influenced by the retrospective application of the reduced interconnection fees (net HUF 1 bn) and positively influenced by a HUF 0.8 bn increase in receivables relating to reimbursements from the Universal Telecommunications Support Fund. Domestic and international traffic revenues combined declined by 22.4%, mainly due to mobile substitution and traffic loss to fixed line competitors. Fixed-to-mobile minutes fell but local traffic and domestic long distance traffic increased. Nevertheless, discounts and bundled minutes provided in our packages contributed to the revenue decline. At the same time, system integration & IT revenues grew from HUF 2.2 bn to HUF 6.1 bn. Internet revenues also increased, as a result of a significant increase in the number of installed ADSL lines. The total number of broadband connections (mainly ADSL and cable) reached almost 446 thousand at end-June 2006. Strong mobile substitution and number portability resulted in a continuous decline in the total number of fixed lines (down 4.6% at end-June 2006 compared to a year ago). Customised tariff packages at parent company represented around 80% of the total number of lines, with 1.9 million lines at the end of the second quarter of 2006.

International fixed line operations: top line growth and EBITDA expansion

Revenues before elimination grew by 12.1% to HUF 17.2 bn in Q2 2006, reflecting the FX rate impact and the strong contribution of Telekom Montenegro. EBITDA increased to HUF 6.2 bn with an EBITDA margin of 35.7%. Despite lower traffic revenues, MakTel’s fixed line revenues grew by 5.2%, reflecting a favourable foreign exchange movement (6.5%), and growing subscription, international wholesale and internet-related revenues. EBITDA fell by 5.7% to HUF 4.7 bn, primarily as a result of the increased other operating expense. EBITDA margin was 42.4%. Telekom Montenegro’s fixed line operations contributed HUF 4.8 bn to Group revenues in the second quarter of 2006 (HUF 4.2 bn in Q2

2

---

2005). The growth was fuelled by higher IC and internet revenues. EBITDA contribution increased to HUF 1.5 bn (against a negative of HUF 0.4 bn in Q2 2005) as the higher payment to other network operators was compensated by a fall in employee-related expenses due to a severance provision of HUF 1.3 bn booked in Q2 2005.

Hungarian mobile operations: strong market position coupled with sound underlying financial performance

Revenues before elimination grew by 2.3% to HUF 70.1 bn in Q2 2006 as a result of higher enhanced service revenues and, to a lesser extent, higher traffic and access revenues. EBITDA was HUF 26.7 bn with an EBITDA margin of 38.1%, reflecting higher other operating expenses, partly offset by lower employee-related expenses. A major driver of the higher other operating expense in Q2 2006 was a HUF 1.1 bn accrual re-created for payments to the Universal Telecommunications Support Fund following an unfavourable Court decision in 2006. At the same time, receivables from the Fund shown in the Hungarian fixed line operations increased by HUF 0.8 bn. Average acquisition cost per customer continued to fall reflecting reduced subsidies in both prepaid and postpaid segments. When calculating subscriber acquisition cost, we include the connection margin (SIM card cost less the connection fee) and the sales-related equipment subsidy and agent fee. Although the introduction of new packages generated higher usage and growth in value added services, the discounts and bundled free minutes offered, combined with the impact of regulatory changes and the extensive use of closed user group offers, resulted in a slight reduction in ARPU (monthly average revenue per user). MOU (monthly average minutes of use per subscriber) grew to 142 in the second quarter of 2006, indicative of the improved price elasticity.

International mobile operations: impressive growth in Montenegro, very high EBITDA margin in Macedonia

Revenues before elimination grew by 15.1% to HUF 12.7 bn in Q2 2006, driven by the FX rate effect and the strong performance of Monet, the mobile subsidiary of Telekom Montenegro. EBITDA was HUF 6.7 bn with a high EBITDA margin of 52.9%. MakTel’s mobile business reported 10.6% revenue growth in a growing market characterised by strong tariff competition. EBITDA at Mobimak was HUF 5.3 bn with an outstanding EBITDA margin of 56.4%. Finally, Monet was a further contributor to international mobile operations with revenues of HUF 3.2 bn (up 31.3%) and an EBITDA of HUF 1.4 bn in Q2 2006 (against HUF 1.0 bn in Q2 2005).

As disclosed in the full-year 2005 results announcement made on February 13, 2006, in the first quarter 2006 results announcement made on May 11, 2006 as well as in announcements made on March 30, 2006, on April 26, 2006, on July 3, 2006 and on July 27, 2006, the Company is still inquiring into certain contracts and certain actions taken subsequent to these contracts including potential interference with the investigation to determine whether they have been entered into in violation of Company policy or applicable law or regulation. This inquiry, which is being conducted by an independent law firm and supervised by the Audit Committee, is still ongoing and it is at this point still too early to determine its outcome. The Company also announced that due to the delay to the respective Annual General Meetings, the Company and some of its subsidiaries have failed and may fail to meet certain deadlines prescribed by the Hungarian and other applicable laws and regulations for preparing and filing audited annual results. The Company has notified the Hungarian Financial Supervisory Authority, the U.S. Securities and Exchange Commission and the U.S. Department of Justice of the investigation and is in contact with these authorities regarding the investigation. The Company is committed to complying fully with the requirements and requests of these and other authorities with jurisdiction over it. In its Resolution No J-III-B/86.332/2006, the Hungarian Financial Supervisory Authority ordered Magyar Telekom to prepare its annual report and to take all possible and necessary legal measures in order to comply with the statutory obligations. The Company is currently investigating the legal solutions to hold a GM and prepare the annual report as soon as possible. No assurance can be given that, as a result of the investigation, the audited financial statements for 2005 and financial statements for any other period will not vary from those published prior to the completion of the investigation.

About Magyar Telekom

Magyar Telekom is the principal provider of telecom services in Hungary. Magyar Telekom provides a broad range of services including traditional fixed line and mobile telephony, data transmission and value-added

3

---

services. Magyar Telekom owns 51% of the shares of MakTel, the sole fixed line operator and its subsidiary Mobimak, the leading mobile operator in Macedonia. Magyar Telekom has a majority stake in Telekom Montenegro. TCG Group provides fixed, mobile and Internet services in Montenegro. Key shareholders of Magyar Telekom as of June 30, 2006 include MagyarCom Holding GmbH (59.21%), owned by Deutsche Telekom AG. The remainder, 40.79% is publicly traded.

This investor news contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore should not have undue reliance placed upon them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors are described in, among other things, our Annual Report on Form 20-F for the year ended December 31, 2004 filed with the U.S. Securities and Exchange Commission.

For detailed information on Magyar Telekom’s H1 2006 results please visit our website:

(www.magyartelekom.hu/english/investorrelations/main.vm) or the website of the Budapest Stock Exchange (www.bse.hu).

4

 

MAGYAR TELEKOM
Consolidated
Balance Sheets - IFRS		June 30, 2005		June 30, 2006		% change
(HUF million)		(Unaudited)		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents		55,890		54,842		(1.9	)%
Other financial assets held for trading		227		2,068		811.0	%
Trade and other receivables		98,342		100,275		2.0	%
Current income tax receivable		2,268		2,916		28.6	%
Inventories		9,336		11,440		22.5	%
Assets held for disposal		2,945		3,984		35.3	%
Total current assets		169,008		175,525		3.9	%
Non current assets
Property, plant and equipment - net		582,535		577,588		(0.8	)%
Intangible assets - net		309,811		327,896		5.8	%
Associates		4,083		5,306		30.0	%
Deferred taxes		13,585		14,602		7.5	%
Other non current assets		7,731		5,826		(24.6	)%
Total non current assets		917,745		931,218		1.5	%
Total assets		1,086,753		1,106,743		1.8	%
LIABILITIES
Current liabilities
Loans from related parties		92,278		54,000		(41.5	)%
Loans and other borrowings - third party		54,264		45,080		(16.9	)%
Trade and other payables		123,387		109,786		(11.0	)%
Current income tax payable		358		622		73.7	%
Deferred revenue		1,471		564		(61.7	)%
Provisions for liabilities and charges		10,044		5,357		(46.7	)%
Short term derivatives		0		892		n.a.
Total current liabilities		281,802		216,301		(23.2	)%
Non current liabilities
Loans from related parties		212,000		205,432		(3.1	)%
Loans and other borrowings - third party		40,154		24,751		(38.4	)%
Deferred revenue		412		165		(60.0	)%
Deferred taxes		2,587		3,544		37.0	%
Provisions for liabilities and charges		2,021		2,927		44.8	%
Other non current liabilities		160		5,239		3,174.4	%
Total non current liabilities		257,334		242,058		(5.9	)%
Total liabilities		539,136		458,359		(15.0	)%
EQUITY
Shareholders' equity
Common stock		104,281		104,277		(0.0	)%
Additional paid in capital		27,382		27,380		(0.0	)%
Treasury stock		(3,842	)	(1,926	)	(49.9	)%
Cumulative translation adjustment		(3,032	)	13,358		n.m.
Retained earnings		360,124		437,051		21.4	%
Total shareholders' equity		484,913		580,140		19.6	%
Minority interests		62,704		68,244		8.8	%
Total equity		547,617		648,384		18.4	%
Total liabilities and equity		1,086,753		1,106,743		1.8	%

---

 

MAGYAR TELEKOM
Consolidated		6 months ended June 30,				%
Income Statements - IFRS		2005		2006		change
(HUF million)		(Unaudited)		(Unaudited)
Revenues
Subscriptions		45,187		46,718		3.4	%
Domestic outgoing traffic revenues		45,409		36,650		(19.3	)%
International outgoing traffic revenues		5,560		5,141		(7.5	)%
Value added, cable voice and other services		5,474		4,826		(11.8	)%
Voice - retail revenues		101,630		93,335		(8.2	)%
Domestic incoming traffic revenues		3,724		3,959		6.3	%
International incoming traffic revenues		7,227		9,304		28.7	%
Voice - wholesale revenues		10,951		13,263		21.1	%
Voice revenues total		112,581		106,598		(5.3	)%
Internet broadband		13,874		19,626		41.5	%
Internet narrowband, content and other		5,233		4,098		(21.7	)%
Internet revenues total		19,107		23,724		24.2	%
Data		13,060		13,654		4.5	%
System Integration/Information Technology		4,409		8,767		98.8	%
Multimedia		7,650		8,719		14.0	%
Equipment sales		2,190		2,266		3.5	%
Other revenues		3,532		4,327		22.5	%
Total fixed segment revenues		162,529		168,055		3.4	%
Network usage and access		108,046		116,701		8.0	%
Enhanced services		17,969		20,515		14.2	%
Equipment sales and activation fee		10,358		10,163		(1.9	)%
Other revenues		1,025		713		(30.4	)%
Total mobile segment revenues		137,398		148,092		7.8	%
Total revenues		299,927		316,147		5.4	%
Employee-related expenses		(45,215	)	(43,823	)	(3.1	)%
Depreciation and amortization		(56,026	)	(60,734	)	8.4	%
Payments to other network operators		(45,360	)	(44,984	)	(0.8	)%
Cost of telecommunications equipment sales		(15,782	)	(18,195	)	15.3	%
Other operating expenses - net		(69,464	)	(84,423	)	21.5	%
Total operating expenses		(231,847	)	(252,159	)	8.8	%
Operating profit		68,080		63,988		(6.0	)%
Net financial expenses		(15,099	)	(16,249	)	7.6	%
Share of associates’ profits/(losses) after tax		62		443		614.5	%
Profit before income tax		53,043		48,182		(9.2	)%
Income tax		(6,516	)	(5,730	)	(12.1	)%
Profit for the period		46,527		42,452		(8.8	)%
Attributable to:
Equity holders of the Company (Net income)		41,376		36,926		(10.8	)%
Minority interests		5,151		5,526		7.3	%
		46,527		42,452		(8.8	)%

 

---

 

MAGYAR TELEKOM
Consolidated		6 months ended June 30,				%
Cashflow Statements - IFRS		2005		2006		change
(HUF million)		(Unaudited)		(Unaudited)
Cashflows from operating activities
Operating profit		68,080		63,988		(6.0	)%
Depreciation and amortization of fixed assets		56,026		60,734		8.4	%
Change in working capital		(4,197	)	(3,688	)	(12.1	)%
Amortization of deferred income		(805	)	(456	)	(43.4	)%
Interest paid		(15,775	)	(16,104	)	2.1	%
Bank and other finance charges paid		(1,529	)	(1,642	)	7.4	%
Income tax paid		(3,481	)	(7,664	)	120.2	%
Other cashflows from operations		(5,548	)	(3,479	)	(37.3	)%
Net cashflows from operating activities		92,771		91,689		(1.2	)%
Cashflows from investing activities
Purchase of tangible and intangible assets		(46,350	)	(54,949	)	18.6	%
Purchase of subsidiaries and business units		(36,986	)	(25,043	)	(32.3	)%
Cash acquired through business combinations		1,866		29		(98.4	)%
Interest received		1,046		1,246		19.1	%
Dividends received		1,729		157		(90.9	)%
Proceeds from sale of trading investments - net		(72	)	(253	)	251.4	%
Proceeds from disposal of non current assets		408		4,111		907.6	%
Net cashflows from investing activities		(78,359	)	(74,702	)	(4.7	)%
Cashflows from financing activities
Dividends paid to shareholders and minority interest		(70,570	)	(58	)	(99.9	)%
Net proceeds of loans and other borrowings		74,798		(15,448	)	n.m.
Other		0		(18	)	n.a.
Net cashflows from financing activities		4,228		(15,524	)	n.m.
Effect of foreign exchange rate changes on cash
and cash equivalents		371		7,319		1,872.8	%
Change in cash and cash equivalents		19,011		8,782		(53.8	)%
Cash and cash equivalents, beginning of period		36,879		46,060		24.9	%
Cash and cash equivalents, end of period		55,890		54,842		(1.9	)%
Change in cash and cash equivalents		19,011		8,782		(53.8	)%

 

---

Summary of key operating statistics

GROUP		Jun 30, 2005		Jun 30, 2006		% change
EBITDA margin		41.4	%	39.5	%	n.a.
Operating margin		22.7	%	20.2	%	n.a.
Net income margin		13.8	%	11.7	%	n.a.
ROA		7.8	%	6.7	%	n.a.
Net debt		342,579		272,353		(20.5	)%
Net debt to total capital		38.5	%	29.6	%	n.a.
Number of employees (closing full equivalent)		13,683		11,967		(12.5	)%

 

FIXED LINE SEGMENT		Jun 30, 2005		Jun 30, 2006		% change
Hungarian fixed line operations
Fixed line penetration		36.7	%	35.0	%	n.a.
Digitalization of exchanges with ISDN		95.2	%	100.0	%	n.a.
Number of closing lines (1)
Residential		2,037,984		1,943,881		(4.6	)%
Business		255,075		242,198		(5.0	)%
Payphone		22,488		21,831		(2.9	)%
ISDN channels		516,976		494,690		(4.3	)%
Total lines		2,832,523		2,702,600		(4.6	)%
Traffic in minutes (thousands) (1)
Local		1,689,070		1,698,735		0.6	%
Long distance		545,208		591,036		8.4	%
Fixed to mobile		396,175		312,807		(21.0	)%
Domestic outgoing traffic		2,630,453		2,602,578		(1.1	)%
International outgoing traffic		58,958		50,957		(13.6	)%
Internet (2)		1,164,769		633,116		(45.6	)%
Total outgoing traffic		3,854,180		3,286,651		(14.7	)%
Data products
ADSL lines		250,368		407,682		62.8	%
Number of Internet subscribers
Dial-up		98,651		52,133		(47.2	)%
Leased line		777		718		(7.6	)%
DSL		167,477		263,837		57.5	%
W-LAN		1,320		1,368		3.6	%
CATV		18,338		36,173		97.3	%
Total Internet subscribers		286,563		354,229		23.6	%
Market share in the dial-up market (estimated)		43	%	37	%	n.a.
Managed leased lines (Flex-Com connections) (1)		10,715		9,852		(8.1	)%
Cable television customers		389,114		408,299		4.9	%
Total broadband Internet access (3)		270,803		445,941		64.7	%
International fixed line operations
Macedonian fixed line penetration		28.1	%	24.9	%	n.a.
Number of closing lines
Residential		509,224		450,243		(11.6	)%
Business		51,374		44,506		(13.4	)%
Payphone		2,645		2,316		(12.4	)%
ISDN channels		43,074		41,124		(4.5	)%
Total Macedonian lines		606,317		538,189		(11.2	)%
Macedonian traffic in minutes (thousands)
Local		730,843		619,309		(15.3	)%
Long distance		106,476		89,909		(15.6	)%
Fixed to mobile		70,708		62,394		(11.8	)%
Domestic outgoing traffic		908,027		771,612		(15.0	)%
International outgoing traffic		16,206		13,960		(13.9	)%
Internet		112,026		101,534		(9.4	)%
Total outgoing Macedonian traffic		1,036,259		887,106		(14.4	)%
Data products (Macedonia)
ADSL lines		5,530		11,304		104.4	%
Number of Internet subscribers
Dial-up		74,880		95,116		27.0	%
Leased line		151		138		(8.6	)%
DSL		5,530		11,304		104.4	%
Total Internet subscribers		80,561		106,558		32.3	%
Market share in the dial-up market (estimated)		81.0	%	91.5	%	n.a.

 

---

 

Montenegrin fixed line penetration		31.2	%	31.2	%	n.a.
Number of closing lines
PSTN lines		176,963		174,986		(1.1	)%
ISDN channels		17,046		20,754		21.8	%
Total Montenegrin lines		194,009		195,740		0.9	%
Montenegrin traffic in minutes (thousands)
Local		151,161		162,111		7.2	%
Long distance		59,775		63,010		5.4	%
Fixed to mobile		20,631		19,102		(7.4	)%
Domestic outgoing traffic		231,567		244,223		5.5	%
International outgoing traffic		5,740		6,091		6.1	%
Internet		188,812		192,253		1.8	%
Total outgoing Montenegrin traffic		426,119		442,567		3.9	%
Data products (Montenegro)
ADSL lines		243		3,143		1,193.4	%
Number of Internet subscribers
Prepaid		27,627		26,107		(5.5	)%
Leased line		99		113		14.1	%
DSL		243		3,143		1,193.4	%
Total Internet subscribers		27,969		29,363		5.0	%
Market share in the dial-up market (estimated)		98	%	98	%	n.a.

(1) Magyar Telekom Plc. + Emitel (100% owned by Magyar Telekom Plc.)

(2) Internet minutes include traffic both on analog lines (reported earlier as local traffic) and on ISDN lines (not reported earlier as traffic minutes)

(3) Includes ADSL lines operated by Magyar Telekom Plc. and Emitel plus T-Online Hungary’s broadband customers (other than the ADSL purchased from Magyar Telekom)

 

MOBILE SEGMENT		Jun 30, 2005		Jun 30, 2006		% change
Hungarian mobile operations
Mobile penetration		88.6	%	93.8	%	n.a.
Market share of T-Mobile Hungary		45.6	%	45.3	%	n.a.
Number of customers (RPC)		4,081,150		4,279,123		4.9	%
Postpaid share in the RPC base		30.1	%	33.1	%	n.a.
MOU		120		136		13.3	%
ARPU		4,847		4,816		(0.6	)%
Postpaid ARPU		11,067		10,206		(7.8	)%
Prepaid ARPU		2,251		2,252		0.0	%
Overall churn rate		16.1	%	16.4	%	n.a.
Postpaid		10.6	%	9.8	%	n.a.
Prepaid		18.4	%	19.6	%	n.a.
Enhanced services within ARPU		670		726		8.4	%
Average acquisition cost (SAC) per customer		7,187		6,504		(9.5	)%
International mobile operations
Macedonian mobile penetration		54.1	%	63.5	%	n.a.
Market share of Mobimak		71.7	%	67.7	%	n.a.
Number of customers (RPC)		799,763		890,953		11.4	%
Postpaid share in the RPC base		15.6	%	17.3	%	n.a.
MOU		61		66		8.2	%
ARPU		3,016		2,992		(0.8	)%
Montenegrin mobile penetration		75.7	%	90.2	%	n.a.
Market share of Monet		42.7	%	40.9	%	n.a.
Number of customers (RPC)		200,174		228,546		14.2	%
Postpaid share in the RPC base		13.4	%	17.2	%	n.a.
MOU		128		135		5.5	%
ARPU		3,861		4,037		4.6	%