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 9, 2007

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-F 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-             

		IR contacts:		Szabolcs Czenthe		+36-1-458-0437
				Krisztina Förhécz		+36-1-457-6029
				Rita Walfisch		+36-1-457-6036
				investor.relations@telekom.hu

 

2007 interim results: acquisition-driven top line growth with solid
underlying profitability and healthy operating cash flow

Budapest — August 9, 2007 — 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 2007, in accordance with International Financial Reporting Standards (IFRS).

Highlights:

·                     Revenues grew by 5.0% from HUF 312.8 bn to HUF 328.4 bn (EUR 1,311.7 m) in H1 2007 over the same period last year. Growth in mobile, internet and SI/IT revenues compensated for the lower fixed line voice revenues. The consolidation of KFKI Group, T-Systems Hungary and Dataplex contributed HUF 11.5 bn to Group revenues in H1 2007.

·                     EBITDA was broadly stable at HUF 128.7 bn, with an EBITDA margin of 39.2%. Group EBITDA excluding investigation-related costs (HUF 1.9 bn) and headcount reduction-related severance payments and accruals (HUF 7.3 bn) was HUF 137.9 bn with an EBITDA margin of 42.0%.

·                     Gross additions to tangible and intangible assets were HUF 28.3 bn, of which HUF 12.2 bn related to the T-Com segment, HUF 14.3 bn to T-Mobile (within this, HUF 4.1 bn was spent on mobile broadband investment in Hungary), HUF 0.8 bn to T-Systems and HUF 1.0 bn to Headquarters and Shared Services.

·                     Profit attributable to equity holders of the company (net income) decreased by 7.5%, from HUF 36.9 bn (EUR 141.8 m) to HUF 34.2 bn (EUR 136.4 m) as taxes on income increased due to the introduction of the solidarity tax and higher deferred taxes.

·                     Net cash from operating activities grew strongly from HUF 93.8 bn to HUF 121.7 bn. This was the combined result of broadly stable EBITDA, significantly lower working capital requirements (driven mainly by a change in trade receivables) and reduced tax payment thanks to the utilization of tax benefits. Net cash used in investing activities fell from HUF 67.1 bn to HUF 21.5 bn, mainly driven by lower gross additions to tangible and intangible assets (capex) and lower spending on purchase of subsidiaries and business units. Capex decreased as a result of project delays and the HUF 6.5 bn TETRA investment accounted in H1 2006. Cash used for purchase of subsidiaries decreased from HUF 25.0 bn (acquisition of Dataplex, Orbitel, iWIW and 10% treasury share purchased by MakTel) to HUF 0.7 bn (acquisition of Mobilpress and gaining majority ownership in T-Systems Hungary). Net cash used in financing activities significantly increased, reflecting the dividends paid to shareholders in January and May 2007 for 2005 and 2006 financials, respectively.

·                     Net debt increased to HUF 301.4 bn, reflecting the increase in loans for financing dividend payments and the acquisition of KFKI in H2 2006. The net debt ratio (net debt to net debt plus total equity) was 35.1% at end-June 2007.

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Christopher Mattheisen, Chairman and CEO commented: “I am pleased to report close to 4% top-line growth and 1.6% EBITDA growth in the second quarter of this year compared to the same period of last year. Despite the difficult macroeconomic environment we are on track to achieve our targets for this year. In the T-Com segment we face higher churn levels and further tariff erosion in Hungary, although these were mainly offset by expanding broadband revenues and good performance of the Montenegrin operations. In the mobile business, the stable Hungarian operations, while impacted by the reduced mobile termination rates, were supported by growing contributions from the international subsidiaries and TETRA services. The consolidation of SI/IT companies ensured revenue growth in the T-Systems segment and stabilised EBITDA levels.

As communicated earlier, we are continuously working to improve the operational cost structure and headcount productivity within the Group as well as leveraging new, integrated revenue opportunities. As part of these efforts, we have already initiated some integration steps. According to the decision of the Extraordinary General Meeting held in June, Emitel and the access business of T-Online will be merged into the parent company. Within the T-Systems segment we started to simplify the organisational structure by reducing the number of subsidiaries. Restructuring and headcount reductions at the network division have also started; the majority of the severance-related expenses accounted in the second quarter in the T-Com segment relates to this. Furthermore, we are going to announce our detailed and broader restructuring plans in the autumn.”

T-Com

Revenues before elimination fell by 1.6% to HUF 77.1 bn in Q2 2007 over the same period in 2006 and EBITDA margin decreased to 38.1%.

·                  T-Com Hungary reported a revenue decline of 1.2% to HUF 61.7 bn driven by mobile substitution and traffic loss to alternative and cable competitors. Internet revenues grew by 22.0% to HUF 13.3 bn thanks to the continuous increase in the number of ADSL and cable broadband customers. The total number of broadband connections was close to 653,000 at end-June 2007, while strong mobile substitution and competition from cable operators resulted in a decline in the total number of fixed lines (down 4.8% at end-June 2007 compared to a year ago). Headcount reduction-related expenses amounted to HUF 2.7 bn in the second quarter, mainly relating to the restructuring at the network division. As a result, EBITDA was down by 10.3% to HUF 22.5 bn and EBITDA margin was 36.5%.

·                  In Macedonia, fixed line revenues decreased by 11.4% to HUF 9.9 bn, reflecting lower voice traffic due to strong mobile substitution and the emerging fixed line competition, as well as unfavourable FX movements. This decrease was partly offset by increasing internet-related revenues. EBITDA increased by 2.3% and EBITDA margin was up to 48.9% in Q2 2007.

·                  Revenues of T-Com Crna Gora increased by 15.6% to HUF 5.6 bn in the second quarter of 2007. Decreasing domestic voice traffic was more than offset by increasing international traffic revenues, mainly reflecting the classification of Serbian traffic as international following the independence of Montenegro since June 2006. EBITDA increased by 30.8% to HUF 2.0 bn and EBITDA margin was up to 35.8%.

2

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T-Mobile

Revenues before elimination grew by 4.5% to HUF 85.0 bn; EBITDA margin was 44.1%.

·                  T-Mobile Hungary showed a revenue increase of 1.3% to HUF 69.0 bn as the healthy growth in the customer base and expanding value added service revenues were offset by a decrease in wholesale voice revenues, driven by the cut in mobile termination fees in February 2007. Although the increase in value added service revenues and usage continues, ARPU showed a 4.4% decrease due to the declining tariffs and the 15% cut in termination rates. Average acquisition cost per new customer increased by 9%, reflecting the higher subsidies for postpaid customers and 3G/HSDPA enabled devices. As a result of the efforts made here, the customer mix improved further reaching a postpaid ratio of 36.6% at the end of the second quarter. EBITDA was HUF 29.7 bn with an EBITDA margin of 43.0%.

·                  T-Mobile Macedonia reported a revenue growth of 8.8% to HUF 10.3 bn in a growing market characterised by strong tariff competition. The continuously decreasing tariff level was offset by the improving customer mix and the strong, 25.8% increase in usage, resulting in a slight growth in ARPU levels. EBITDA margin reached a strong 55.6%.

·                  Mobile revenues of T-Mobile Crna Gora increased by 39.9% to HUF 4.5 bn in Q2 2007, driven by expanding tourism, higher international traffic revenues and increased mobile termination rates. Market penetration increased to 141% at end of June, mainly reflecting the extended availability of SIM cards since October 2006. EBITDA margin was 36.0% in Q2 2007.

·                  Pro-M, the TETRA service company, reported HUF 1.6 bn mobile service revenues and HUF 0.5 bn EBITDA in Q2 2007.

T-Systems

Revenues before elimination increased by 14.4% as the consolidation effect of the new subsidiaries offset the declining traditional voice revenues. KFKI Group and T-Systems Hungary contributed HUF 5.8 bn revenues and HUF 0.9 bn EBITDA in Q2 2007. Excluding the new subsidiaries, revenues decreased by 20.7%, driven by the continuous pressure on voice tariffs and increasing mobile substitution. The segment’s EBITDA decreased by 3.1% and EBITDA margin was 20.7% in Q2 2007.

Headquarters and Shared services

Revenues before elimination were down by 9.0% driven by lower marketing and real estate services, partly compensated by higher security service revenues. EBITDA decreased by 3.7% to HUF -5.1 bn.

3

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As previously disclosed, in the course of conducting their audit of our 2005 financial statements, PricewaterhouseCoopers Könyvvizsgáló és Gazdasági Tanácsadó Kft. identified two contracts the nature and business purposes of which were not readily apparent. In February 2006, our Audit Committee initiated an independent investigation into this matter. In the course of the investigation, two further contracts entered into by Magyar Telekom Plc. were potentially raising concerns. To date, the independent investigators have been unable to find sufficient evidence to show that any of the four contracts under investigation resulted in the provision of services to us or to our subsidiaries under those contracts of a value commensurate with the payments we made under those contracts. The independent investigators have been unable to determine definitively the purpose of the contracts, and it is possible that the purpose may have been improper. The independent investigators further identified several contracts at our Macedonian subsidiary that could warrant further review. In February 2007, our Board of Directors determined that those contracts should be reviewed and expanded the scope of the independent investigation to cover these additional contracts and related transactions. We have approved and are currently implementing certain remedial measures designed to enhance our internal controls to ensure compliance with Hungarian and U.S. legal requirements and NYSE listing requirements.

As previously reported, the investigation delayed the finalization of our 2005 financial statements, and as a result we and some of our subsidiaries have failed and may fail to meet certain deadlines prescribed by U.S., Hungarian and other applicable laws and regulations for preparing and filing audited annual results and holding annual general meetings. We have to date been fined HUF 13 million as a consequence of these delays.

We have notified the Hungarian Financial Supervisory Authority, the U.S. Securities and Exchange Commission and the U.S. Department of Justice of the investigation, are in regular contact with these authorities regarding the investigation and are responding to inquiries raised by and the investigations being conducted by these authorities. The U.S. Department of Justice has recently expanded the scope of its investigation to include the actions taken by the Company in response to the findings of and issues raised by the Company’s internal investigation and a related subpoena and further informal document requests have been issued.

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, value-added, IT and system integration services. Magyar Telekom owns the majority of the shares of MakTel, the sole fixed line operator and its subsidiary T-Mobile Macedonia, the leading mobile operator in Macedonia. Magyar Telekom has a majority stake in Crnogorski Telekom. This Group provides fixed, mobile and Internet services in Montenegro. Key shareholders of Magyar Telekom as of June 30, 2007 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, 2006 filed with the U.S. Securities and Exchange Commission.

For detailed information on Magyar Telekom’s H1 2007 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
(HUF million)

 

		Jun 30, 2006		Jun 30, 2007		% change
		(Unaudited)		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents		41,710		95,937		130.0	%
Other financial assets		15,200		5,489		(63.9	)%
Trade receivables		80,668		94,866		17.6	%
Inventories		11,440		12,177		6.4	%
Current recoverable income taxes		2,916		116		(96.0	)%
Other assets		23,591		14,995		(36.4	)%
Total current assets		175,525		223,580		27.4	%
Non-current assets
Intangible assets		327,896		328,617		0.2	%
Property, plant and equipment		577,588		526,993		(8.8	)%
Investments in associates		5,306		4,520		(14.8	)%
Other financial assets		5,826		24,823		326.1	%
Deferred tax assets		14,602		3,928		(73.1	)%
Total non-current assets		931,218		888,881		(4.5	)%
Total assets		1,106,743		1,112,461		0.5	%
LIABILITIES AND EQUITY
Current liabilities
Loans from related parties		54,000		40,000		(25.9	)%
Other financial liabilities		45,972		38,486		(16.3	)%
Accrued interest		3,879		5,425		39.9	%
Trade payables		55,996		68,360		22.1	%
Other liabilities		50,475		42,411		(16.0	)%
Provisions		5,357		9,751		82.0	%
Income tax liabilities		622		2,346		277.2	%
Total current liabilities		216,301		206,779		(4.4	)%
Non-current liabilities
Loans from related parties		205,432		254,432		23.9	%
Other financial liabilities		24,751		69,899		182.4	%
Other liabilities		5,404		6,776		25.4	%
Provisions		2,927		10,349		253.6	%
Deferred tax liabilities		3,544		6,740		90.2	%
Total non-current liabilities		242,058		348,196		43.8	%
Total liabilities		458,359		554,975		21.1	%
EQUITY
Issued capital		104,277		104,277		0.0	%
Additional paid in capital		27,380		27,380		0.0	%
Treasury shares		(1,926	)	(1,179	)	(38.8	)%
Retained earnings		437,051		358,700		(17.9	)%
Cumulative translation adjustment		13,358		(4,701)		n.m.
Shareholders’ equity		580,140		484,477		(16.5	)%
Minority interests		68,244		73,009		7.0	%
Total equity		648,384		557,486		(14.0	)%
Total liabilities and equity		1,106,743		1,112,461		0.5	%

 

5

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MAGYAR TELEKOM
Consolidated

Income Statements - IFRS

(HUF million)

		6 months ended June 30,				%
		2006		2007		Change
		(Unaudited)		(Unaudited)
Revenues
Subscriptions		46,718		45,774		(2.0	)%
Domestic outgoing traffic		36,650		26,812		(26.8	)%
International outgoing traffic		5,141		5,238		1.9	%
Value added and other services		4,347		3,780		(13.0	)%
Voice - retail revenues		92,856		81,604		(12.1	)%
Domestic incoming traffic		3,959		4,621		16.7	%
International incoming traffic		9,304		9,939		6.8	%
Voice - wholesale revenues		13,263		14,560		9.8	%
Internet		23,724		28,435		19.9	%
Data		13,654		13,568		(0.6	)%
Multimedia		8,719		9,133		4.7	%
Equipment sales		2,266		2,229		(1.6	)%
Other revenues		4,327		4,849		12.1	%
Fixed line revenues		158,809		154,378		(2.8	)%
Voice - retail		91,275		94,985		4.1	%
Voice - wholesale		22,044		22,397		1.6	%
Visitor		1,924		2,644		37.4	%
Non-voice		18,448		21,221		15.0	%
Equipment sales and activation		10,163		9,829		(3.3	)%
Other revenues		1,418		4,231		198.4	%
Mobile revenues		145,272		155,307		6.9	%
System Integration/Information Technology revenues		8,767		18,756		113.9	%
Total revenues		312,848		328,441		5.0	%
Voice-, data- and Internet-related payments		(43,707	)	(40,659	)	(7.0	)%
Cost of equipment		(18,195	)	(18,310	)	0.6	%
Payments to agents and other subcontractors		(13,707	)	(24,028	)	75.3	%
Total revenue-related payments		(75,609	)	(82,997	)	9.8	%
Employee-related expenses		(43,823	)	(53,503	)	22.1	%
Depreciation and amortization		(60,734	)	(57,168	)	(5.9	)%
Other operating expenses - net		(64,608	)	(63,195	)	(2.2	)%
Total operating expenses		(244,774	)	(256,863	)	4.9	%
Operating profit		68,074		71,578		5.1	%
Net financial expenses		(16,249	)	(14,833	)	(8.7	)%
Share of associates’ profits		443		521		17.6	%
Profit before income tax		52,268		57,266		9.6	%
Income tax		(9,816	)	(16,831	)	71.5	%
Profit for the period		42,452		40,435		(4.8	)%
Attributable to:
Equity holders of the Company (Net income)		36,926		34,165		(7.5	)%
Minority interests		5,526		6,270		13.5	%
		42,452		40,435		(4.8	)%

 

6

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MAGYAR TELEKOM
Consolidated
Cashflow Statements - IFRS
(HUF million)

 

		6 months ended Jun 30,				%
		2006		2007		change
		(Unaudited)		(Unaudited)
Profit for the year		42,452		40,435		(4.8	)%
Depreciation and amortization		60,734		57,168		(5.9	)%
Income tax expense		9,816		16,831		71.5	%
Net financial expenses		16,249		14,833		(8.7	)%
Share of associates’ profits		(443	)	(521	)	17.6	%
Change in working capital		(7,135	)	11,505		n.m.
Tax paid		(10,575	)	(3,472	)	(67.2	)%
Dividend received		157		72		(54.1	)%
Interest paid		(16,104	)	(16,782	)	4.2	%
Interest received		1,246		2,506		101.1	%
Other cashflows from operations		(2,624	)	(829	)	(68.4	)%
Net cash generated from operating activities		93,773		121,746		29.8	%
Cashflows from investing activities
Additions to tangible and intangible assets		(44,922	)	(28,268	)	(37.1	)%
Change in payables relating to capital expenditures		(10,027	)	(12,467	)	24.3	%
Purchase of subsidiaries and business units		(25,043	)	(662	)	(97.4	)%
Cash acquired through business combinations		29		485		1,572.4	%
Proceeds from / (Payments for) other financial assets - net		8,751		16,446		87.9	%
Proceeds from disposal of non current assets		4,111		2,917		(29.0	)%
Net cash used in investing activities		(67,101	)	(21,549	)	(67.9	)%
Cashflows from financing activities
Dividends paid to shareholders and minority interest		(58	)	(148,807	)	n.m.
Net proceeds of loans and other borrowings		(14,556	)	85,703		n.m.
Other		(26	)	386		n.m.
Net cash used in financing activities		(14,640	)	(62,718	)	328.4	%
Exchange gains / (losses) on cash		5,368		(1,749	)	n.m.
Change in cash and cash equivalents		17,400		35,730		105.3	%
Cash and cash equivalents, beginning of period		24,310		60,207		147.7	%
Cash and cash equivalents, end of period		41,710		95,937		130.0	%
Change in cash and cash equivalents		17,400		35,730		105.3	%

 

7

Summary of key operating statistics

 

GROUP		June 30, 2006		June 30, 2007		% change
EBITDA margin		41.2	%	39.2	%	n.a.
Operating margin		21.8	%	21.8	%	n.a.
Net income margin		11.8	%	10.4	%	n.a.
CAPEX to Sales		14.4	%	8.6	%	n.a.
ROA		6.7	%	6.1	%	n.a.
Net debt		273,245		301,391		10.3	%
Net debt / net debt + total capital		29.6	%	35.1	%	n.a.
Number of employees (closing full equivalent)		11,967		12,262		2.5	%

 

T-COM SEGMENT		June 30, 2006		June 30, 2007		% change
Hungarian fixed line operations
Fixed line penetration (1)		31.4	%	29.9	%	n.a.
Number of closing lines (1)
Residential		1,943,265		1,851,603		(4.7	)%
Business		176,350		167,387		(5.1	)%
Payphone		21,829		20,353		(6.8	)%
ISDN channels		326,608		310,928		(4.8	)%
Total lines		2,468,052		2,350,271		(4.8	)%
Traffic in minutes (thousands) (1)
Local		1,471,239		1,385,404		(5.8	)%
Long distance		496,551		465,391		(6.3	)%
Fixed to mobile		242,414		187,880		(22.5	)%
Domestic outgoing traffic		2,210,204		2,038,675		(7.8	)%
International outgoing traffic		34,126		29,273		(14.2	)%
Internet		602,995		259,201		(57.0	)%
Total outgoing traffic		2,847,325		2,327,149		(18.3	)%
Data products
ADSL connections		407,682		569,656		39.7	%
Number of Internet subscribers
Dial-up		52,133		20,658		(60.4	)%
Leased line		718		662		(7.8	)%
DSL		263,837		372,400		41.1	%
W-LAN		1,368		868		(36.5	)%
CATV		36,173		72,923		101.6	%
Total Internet subscribers		354,229		467,511		32.0	%
Market share in the dial-up market (estimated)		37	%	40	%	n.a.
Cable television customers		408,299		411,521		0.8	%
Total broadband Internet access		445,941		652,989		46.4	%
Macedonian fixed line operations
Macedonian fixed line penetration		24.9	%	23.1	%	n.a.
Number of closing lines
Residential		450,243		417,457		(7.3	)%
Business		44,506		42,546		(4.4	)%
Payphone		2,316		2,050		(11.5	)%
ISDN channels		41,124		43,906		6.8	%
Total Macedonian lines		538,189		505,959		(6.0	)%
Macedonian traffic in minutes (thousands)
Local		619,309		573,517		(7.4	)%
Long distance		89,909		83,803		(6.8	)%
Fixed to mobile		62,394		53,431		(14.4	)%
Domestic outgoing traffic		771,612		710,751		(7.9	)%
International outgoing traffic		13,960		12,291		(12.0	)%
Internet		101,534		62,472		(38.5	)%
Total outgoing Macedonian traffic		887,106		785,514		(11.5	)%
Data products (Macedonia)
ADSL connections		11,304		18,853		66.8	%
Number of Internet subscribers
Dial-up		95,116		123,150		29.5	%
Leased line		138		147		6.5	%
DSL		11,304		18,853		66.8	%
Total Internet subscribers		106,558		142,150		33.4	%
Market share in the dial-up market (estimated)		91	%	95	%	n.a.

 

8

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Montenegrin fixed line operations
Montenegrin fixed line penetration		31.2	%	30.7	%	n.a.
Number of closing lines
PSTN lines		174,986		168,910		(3.5	)%
ISDN channels		20,754		21,486		3.5	%
Total Montenegrin lines		195,740		190,396		(2.7	)%
Montenegrin traffic in minutes (thousands)
Local		162,111		154,057		(5.0	)%
Long distance		63,010		34,214		(45.7	)%
Fixed to mobile		19,102		15,419		(19.3	)%
Domestic outgoing traffic		244,223		203,690		(16.6	)%
International outgoing traffic		6,091		34,728		470.2	%
Internet		192,253		170,644		(11.2	)%
Total outgoing Montenegrin traffic		442,567		409,062		(7.6	)%
Data products (Montenegro)
ADSL connections		3,143		9,932		216.0	%
Number of Internet subscribers
Dial-up		26,107		29,774		14.0	%
Leased line		113		127		12.4	%
DSL		3,143		9,932		216.0	%
Total Internet subscribers		29,363		39,833		35.7%
Market share in the dial-up market (estimated)		98	%	98	%	n.a.

 

T-MOBILE SEGMENT		June 30, 2006		June 30, 2007		% change
Hungarian mobile operations
Mobile penetration		93.8	%	101.7	%	n.a.
Market share of T-Mobile Hungary		45.3	%	44.2	%	n.a.
Number of customers (RPC)		4,279,123		4,517,349		5.6	%
Postpaid share in the RPC base		33.1	%	36.6	%	n.a.
MOU		136		145		6.6	%
ARPU		4,714		4,508		(4.4	)%
Postpaid		10,016		8,702		(13.1	)%
Prepaid		2,192		2,178		(0.6	)%
Overall churn rate		16.4	%	15.6	%	n.a.
Postpaid		9.8	%	9.8	%	n.a.
Prepaid		19.6	%	18.9	%	n.a.
Enhanced services within ARPU		624		658		5.4	%
Average acquisition cost (SAC) per customer		6,504		7,088		9.0	%
Macedonian mobile operations
Macedonian mobile penetration		63.5	%	73.1	%	n.a.
Market share of T-Mobile Macedonia		67.7	%	65.8	%	n.a.
Number of customers (RPC)		890,953		1,001,970		12.5	%
Postpaid share in the RPC base		17.3	%	23.2	%	n.a.
MOU		66		83		25.8	%
ARPU		2,992		3,018		0.9	%
Montenegrin mobile operations
Montenegrin mobile penetration		90.2	%	140.7	%	n.a.
Market share of T-Mobile Crna Gora		40.9	%	40.3	%	n.a.
Number of customers (RPC) (2)		228,546		351,406		53.8	%
Postpaid share in the RPC base		17.2	%	16.1	%	n.a.
MOU		135		108		(20.0	)%
ARPU		4,037		3,311		(18.0	)%

 

T-SYSTMS SEGMENT		June 30, 2006		June 30, 2007		% change
Number of closing lines
Business		66,466		61,669		(7.2	)%
Managed leased lines (Flex-Com connections)		9,852		8,339		(15.4	)%
ISDN channels		168,082		165,386		(1.6	)%
Total lines		244,400		235,394		(3.7	)%
Traffic in minutes (thousands)
Local		227,496		170,831		(24.9	)%
Long distance		94,485		74,606		(21.0	)%
Fixed to mobile		70,393		48,639		(30.9	)%
Domestic outgoing traffic		392,374		294,076		(25.1	)%
International outgoing traffic		16,831		15,132		(10.1	)%
Internet		30,121		15,422		(48.8	)%
Total outgoing traffic		439,326		324,630		(26.1	)%

(1)             MT Plc. T-COM + Emitel (100% owned by Magyar Telekom Plc.)

(2)             In October 2006, prepaid voucher lifecycle was extended from 3 to 11 months in Montenegro, resulting in increase in the number of prepaid RPC.

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