BUDAPEST, June 5 (Reuters) - Magyar Telekom said on Sunday it would report a fall in core profit in 2022 compared with last year's levels after the Hungarian government imposed windfall taxes on some businesses to rein in the budget deficit.
The company now expects earnings before interest, taxes, depreciation, and amortisation and to show a "moderate decline" this year compared with 3% to 5% growth projected previously.
Magyar Telekom said the new tax, which Prime Minister Viktor Orban's government plans to keep in place for two years, would cost it about 25 billion forints ($68.41 million) this year.
Orban's government announced windfall taxes worth 800 billion forints ($2.19 billion) on "extra profits" earned by banks, energy companies and other firms last month, hitting Budapest stocks and rattling investors.
The measures are needed to rein in the budget deficit partly due to costly tax rebates and other measures that helped Orban to get re-elected in April.
Shares in Magyar Telekom, a unit of Deutsche Telekom , have lost some 8% of their value since the windfall taxes were announced, trading at their lowest since the beginning of last year.
Other parts of the company's 2022 guidance remained unchanged. ($1 = 365.43 forints) (Reporting by Gergely Szakacs. Editing by Jane Merriman)