Welcome!

Mobile IoT Authors: Pat Romanski, Liz McMillan, Elizabeth White, Ed Featherston, Rostyslav Demush

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
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution. In his session at @ThingsExpo, Akvelon expert and IoT industry leader Sergey Grebnov provided an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abilit...
In his session at Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to maximize project result...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
DXWorldEXPO LLC announced today that the upcoming DXWorldEXPO | CloudEXPO New York event will feature 10 companies from Poland to participate at the "Poland Digital Transformation Pavilion" on November 12-13, 2018.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...