Welcome!

Mobile IoT Authors: Pat Romanski, Derek Weeks, Mark Herring, Elizabeth White, Liz McMillan

News Feed Item

Magyar Telecom B.V. Announces the Financial Results for the Period Ended September 30, 2012 and Investor Call

Magyar Telecom B.V. (“Matel B.V.”) announced today its financial results for the nine months ended September 30, 2012.

RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012

The results for the nine months ended September 30, 2012 reflect the consolidated financial results of Matel B.V. and its subsidiaries (collectively, the “Company”) in accordance with International Financial Reporting Standards (“IFRS”).

The reporting currency of the Company is euro (“EUR”), however the functional currency of continued operations is the Hungarian forint (“HUF”), being the currency of the primary economic environment in which the Company operates.

When comparing the financial results for the nine months ended September 30, 2012 to the financial results for the nine months ended September 30, 2011, the reported results in euro have been affected by the difference between the average HUF/EUR exchange rates during these periods. The Hungarian forint depreciated against the euro by 7% with an average HUF/EUR exchange rate of 291.36 during the nine months ended September 30, 2012 compared to the average HUF/EUR exchange rate of 271.28 during the nine months ended September 30, 2011. This change in exchange rates had an impact on Hungarian forint denominated earnings when converted into euro.

The Company’s revenue was EUR 127.4 million for the nine months ended September 30, 2012 which represents a 14% decrease compared to the nine months ended September 30, 2011. Segment gross margin decreased by 14% from EUR 122.0 million for the nine months ended September 30, 2011 to EUR 105.4 million for the nine months ended September 30, 2012. General operating expense decreased by 1% from EUR 61.1 million for the nine months ended September 30, 2011 to EUR 60.2 million for the nine months ended September 30, 2012. Income from operations decreased to EUR 2.5 million for the nine months ended September 30, 2012 from EUR 12.6 million for the nine months ended September 30, 2011, mainly as a result of the decrease in segment gross margin. Net result for the nine months ended September 30, 2012 was a net loss of EUR 34.5 million compared to a net income of EUR 16.0 million for the nine months ended September 30, 2011, which includes the gain of EUR 28.5 million accounted for in relation to the acquisition of Fibernet.

Residential Voice – Residential Voice segment gross margin was EUR 25.1 million for the nine months ended September 30, 2012, representing a decrease of 27% compared to the nine months ended September 30, 2011. The decrease was mainly due to the decrease in our Residential Voice revenue as a result of the decrease in the number of customers mainly outside our historical concession areas, the decrease in traffic both in and outside of our historical concession areas as customers optimize their usage and the 7% depreciation of the HUF against the EUR during the nine months ended September 30, 2012 compared to the prior year.

Residential Internet – Residential Internet segment gross margin was EUR 19.4 million for the nine months ended September 30, 2012, representing a decrease of 10% compared to the nine months ended September 30, 2011. This decrease was mainly due to the lower broadband internet revenues as a result of decreasing ARPU and the 7% depreciation of the HUF against the EUR during the nine months ended September 30, 2012 compared to the prior year.

Cable Cable segment gross margin was EUR 9.4 million for the nine months ended September 30, 2012, representing an increase of 12% compared to the nine months ended September 30, 2011. The Cable segment was introduced as of March 1, 2011 and relates to the revenue generated by the ex-Fibernet business.

Corporate – Corporate segment gross margin was EUR 35.2 million for the nine months ended September 30, 2012, representing a decrease of 9% compared to the nine months ended September 30, 2011. The decrease was mainly due to the decrease in Corporate voice revenue as a result of price erosion due to competition and the 7% depreciation of the HUF against the EUR during the nine months ended September 30, 2012 compared to the prior year.

Wholesale – Wholesale segment gross margin was EUR 16.3 million for the nine months ended September 30, 2012, representing a decrease of 15% compared to the nine months ended September 30, 2011, which is mainly due to the decrease in small bandwidth wholesale leased line revenue and the 7% devaluation of the HUF against the EUR compared to the prior year.

Segment gross margin is a non-IFRS financial measure, which is used by management in evaluating the performance of the business segments. The following table represents the reconciliation of segment gross margin to income from operations as per the Consolidated Statement of Comprehensive Income / (Loss) of the Company:

    Nine months ended September 30,
(euro in millions) 2012         2011
 
Residential Voice 25.1 34.2
Residential Internet 19.4 21.5
Cable 9.4 8.4
Corporate 35.2 38.7
Wholesale 16.3   19.2  
Segment Gross Margin 105.4 122.0
Network operating expenses (15.2 ) (15.8 )
Direct personnel expenses (8.2 ) (9.2 )
Selling, general and administrative expenses (36.8 ) (36.1 )
Depreciation and amortization (40.2 ) (43.7 )
Cost of restructuring (2.5 ) (4.6 )
Income from operations 2.5 12.6
 

Net cash provided by operations, which includes interest paid but excludes capital expenditure and debt repayments, was EUR 24.4 million for the nine months ended September 30, 2012.

COMMENTS FROM DAVID McGOWAN

Commenting on the financial results, David McGowan, Chief Executive Officer of Invitel, said, “Poor general economic conditions in Hungary continue to affect demand for our services in both our Residential and Corporate segments, especially for our voice product, which continues to decline as customers have increasingly optimized usage. In spite of these trends and the heightened number of company liquidations in Hungary during the period, our Corporate business continues to grow its customer base and market share through an increased use of bundled ICT services, and our Residential business is having success in settlements where we have been able to upgrade our network capacities. The introduction of new sector taxes has also had an impact during the period, and we are improving our efficiency and maintaining tight control of operating expenses.”

CONFERENCE CALL

On November 21, 2012 (at 15:00 UK time, 16:00 CET, 10:00 AM ET), Matel B.V. will host a conference call to discuss financial results for the period ended September 30, 2012.

You can participate in the conference call by dialing 800-4626-6666 (UK toll free), +1-201-689-8049 (International) or +1-877-407-9210 (U.S. toll free) and referencing “Matel B.V.”

A webcast of the call and the presentation materials will be available on Invitel’s website at http://english.invitel.hu/ under “Press/Investor Relations.” The webcast will be available for replay until February 15, 2013. In addition, a replay of the call will be available until December 5, 2012 at 11:59 PM ET. To access the replay of the call, please dial +1-877-660-6853 (U.S. toll free) or internationally dial +1-201-612-7415 and enter account (286) followed by the replay access code (401194).

Magyar Telecom B.V.
Financial Highlights

(in millions of euro)

 
Statements of Operations
 
    Nine months ended         Nine months ended
September 30, September 30,
2012 2011
 
Residential Voice 27.9 38.8
Residential Internet 23.9 26.3
Cable 12.6 10.9
Corporate 43.0 49.1
Wholesale 20.0   23.4  
Total Revenue 127.4 148.5
 
Segment Cost of Sales 22.0 26.5
 
Income (Loss) from Operations 2.5 12.6
 
Interest Expense 29.8 29.3
 
Foreign Exchange Gains (Losses), net (1.4 ) (1.7 )
 
Gains (Losses) on Derivative Financial Instruments (0.6 ) 3.2
 
Net income (loss) for the Period (34.5 ) 16.0
 
 
Magyar Telecom B.V.
Financial Highlights

(in millions of euro)

 
Balance Sheet
           
September 30, December 31,
2012 2011
 
 
Current Assets 57.1 67.9
Property, Plant and Equipment, net 277.8 257.2
Total Assets 369.3 357.5
 
Total Current Liabilities 52.1 44.4
Long Term Debt 316.5 313.5
Total Shareholders’ Equity (13.1 ) (14.4 )
Total Liabilities and Shareholders’ Equity 369.3 357.5
 

ABOUT MAGYAR TELECOM B.V.

Magyar Telecom B.V., through its subsidiary, Invitel, is one of Hungary’s leading telecommunications and info-communications service providers. It provides 20 thousand satisfied business clients with a broad portfolio of media, telecommunication, and info-communication services; on the other hand Invitel has 750 thousand residential and SOHO subscriptions on the digital TV, internet and voice services market. The number of its wholesale partners exceeds 250. In its customer service offices, called “Telepoints,” Invitel is directly available to residential customers at 27 different sites throughout Hungary, while the work of business partners is supported by skilled account managers through continuous personal communication. The Company is headquartered in Budaörs.

Forward-Looking Statements

The information above includes forward-looking statements about Magyar Telecom B.V. and its subsidiaries (“Matel B.V.”). These and all forward-looking statements are only predictions of current plans that are constantly under review by Matel B.V. Such statements are qualified by important factors that may cause actual results to differ from those contemplated, including those risk factors detailed in Matel B.V.’s Annual Reports, which may not be exhaustive. For a discussion of such risk factors, see Matel B.V.’s Annual Reports. Matel B.V. operates in a continually changing business environment and new risk factors emerge from time to time. Matel B.V. cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on its business or events described in any forward-looking statements. Matel B.V. has no obligation to publicly update or revise any forward-looking statements to reflect the occurrence of future events or circumstances. In addition, Matel B.V. is no longer subject to certain reporting obligations with the SEC, and no longer intends to file or furnish any updates with the SEC.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
DevOps at Cloud Expo – being held June 5-7, 2018, at the Javits Center in New York, NY – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Among the proven benefits,...
@DevOpsSummit at Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, is co-located with 22nd Cloud Expo | 1st DXWorld Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
SYS-CON Events announced today that T-Mobile exhibited at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on qua...
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness. For more information, please visit https://www.cedexis.com.
SYS-CON Events announced today that Google Cloud has been named “Keynote Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Companies come to Google Cloud to transform their businesses. Google Cloud’s comprehensive portfolio – from infrastructure to apps to devices – helps enterprises innovate faster, scale smarter, stay secure, and do more with data than ever before.
SYS-CON Events announced today that Vivint to exhibit at SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California. As a leading smart home technology provider, Vivint offers home security, energy management, home automation, local cloud storage, and high-speed Internet solutions to more than one million customers throughout the United States and Canada. The end result is a smart home solution that sav...
SYS-CON Events announced today that Opsani will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Opsani is the leading provider of deployment automation systems for running and scaling traditional enterprise applications on container infrastructure.
SYS-CON Events announced today that Nirmata will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nirmata provides a comprehensive platform, for deploying, operating, and optimizing containerized applications across clouds, powered by Kubernetes. Nirmata empowers enterprise DevOps teams by fully automating the complex operations and management of application containers and its underlying ...
SYS-CON Events announced today that Opsani to exhibit at SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California. Opsani is creating the next generation of automated continuous deployment tools designed specifically for containers. How is continuous deployment different from continuous integration and continuous delivery? CI/CD tools provide build and test. Continuous Deployment is the means by which...