Magyar Telekom cable subscribers down 7k, satellite up 41k and IPTV up 7k in 2Q09

BUDAPEST — 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 half of 2009, in accordance with International Financial Reporting Standards (IFRS).

Consumer Services Business Unit (CBU)

Demand for our TV products remained strong. The number of total TV customers was close to 546,000 by the end of June with growth mostly driven by the newly launched satellite TV service, while demand for IPTV also strengthened.

TV revenues amounted to HUF 11.1 bn in the first half of 2009 as compared to HUF 9.5 bn in the same period of 2008. The increase is mainly due to the growth in IPTV revenues as the IPTV subscriber base has been increasing both in Hungary and at our foreign subsidiaries. The number of IPTV customers increased by more than 180% by June 30, 2009 compared to a year earlier.

In Hungary, the satellite TV service (T-Home Sat TV) introduced in November 2008 also contributed to the increase in TV revenues and the number of satellite TV customers reached 87,748 at June 30, 2009.

TV customers:

              Jun 30   Jun 30       %    Mar 31
                2008     2009  change      2009
             -------  -------  ------   -------
Cable        418,102  414,002  (1.0%)   420,825
Satellite          0   87,748    n.a.    47,144
IPTV          15,569   44,031  182.8%    37,530
 Macedonia         0    5,449    n.a.     4,120
 Montenegro   11,087   22,013   98.5%    19,309
             -------  -------  ------   -------
 Total       433,671  545,781   25.9%   505,499

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