Magyar Telekom Sat TV up 35k and IPTV up 14k in 4Q09

Thursday, February 25th, 2010 
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BUDAPEST — Magyar Telekom, part of Deutsche Telekom (Frankfurt: DTE)(NYSE:DT), today reported its consolidated financial results for 2009, in accordance with International Financial Reporting Standards (IFRS).

Consumer Services Business Unit (CBU) – T-Home

Fixed line revenues declined by 2.7% in Q4 2009 compared to the same period in 2008, reflecting the high level of customer erosion driven by the economic recession and migration to IP- and cable-based voice solutions and leading to declining subscription and traffic revenues. In addition, although the number of broadband customers continued to increase, reaching over 595,000, internet revenues decreased by 6.5%, due to declining prices and the increasing migration towards lower priced packages. These negative impacts were partially offset by the 32.8% growth in fourth quarter TV-related revenues, resulting from growth in the customer base. The total number of TV customers by the end of 2009 was 630,000.

The satellite TV customer base has been increased to 156,142 by the end of December 2009 from 5,338 a year earlier and the number of IPTV customers increased by 136.6% by December 31, 2009.

Macedonia (Makedonski Telekom)

Fixed line revenues declined by 13.2% in local currency terms, driven by intense competition from alternative operators and mobile substitution. These, coupled with the unfavourable economic environment, resulted in an elevated annual churn rate and a further decline in outgoing traffic volumes. The voice revenue decline was partly offset by growing internet and IPTV revenues driven by the expanding customer base.

Montenegro (Crnogorski Telekom)

Fixed line revenues declined by 2.0% in local currency terms in Q4 2009 driven by lower voice revenues, partly offset by increasing internet and TV revenues. The decrease in voice revenues was driven by an increasing rate of mobile substitution caused primarily by considerably lower mobile tariffs brought about principally by the entrance of a third mobile operator, which intensified further the competitive environment. On the other hand, both internet and TV revenues grew thanks to an increasing number of ADSL and IPTV customers.

TV customers:

                                                2008                                    2009
              --------------------------------------  --------------------------------------
              March 31   June 30   Sept 30    Dec 31  March 31   June 30   Sept 30    Dec 31
              --------  --------  --------  --------  --------  --------  --------  --------
Cable TV       420,408   418,102   417,329   422,936   420,825   414,002   409,197   406,841
Satellite            0         0         0     5,338    47,144    87,748   121,563   156,142
IPTV            12,883    15,569    18,580    28,496    37,530    44,031    53,176    67,430
  Macedonia          0         0         0     1,952     4,120     5,449     8,301    14,150
  Montenegro     9,023    11,087    12,521    17,531    19,309    22,013    24,581    29,612
              --------  --------  --------  --------  --------  --------  --------  --------
Total          433,291   433,671   435,909   456,770   505,499   545,781   583,936   630,413

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