Welcome!

Mobile IoT Authors: Jason Bloomberg, Sanjay Uppal, Anders Påls, Peter Silva, Elizabeth White

News Feed Item

Magyar Telecom B.V. Announces Financial Results for the Year Ended December 31, 2013 and the Quarter Ended March 31, 2014 and Investor Call

Magyar Telecom B.V. (“Matel B.V.”) announced today that on May 16, 2014 (at 14:00 UK time, 15:00 CET, 9:00 AM ET), Matel B.V. will host a conference call to discuss financial results for the year ended December 31, 2013 and the quarter ended March 31, 2014.

The results for the year ended December 31, 2013 and the quarter ended March 31, 2014 reflect the consolidated financial results of Magyar Telecom B.V. and its subsidiaries (collectively, the “Company”) in accordance with International Financial Reporting Standards, as adopted by the E.U. (“IFRS”).

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

RESULTS FOR THE YEAR ENDED DECEMBER 31, 2013

When comparing the financial results for the year ended December 31, 2013 to the financial results for the year ended December 31, 2012, the reported results in euro have been affected by the difference between the average HUF/EUR exchange rates. The Hungarian forint depreciated against the euro by 3% with an average HUF/EUR exchange rate of 296.92 during the year ended December 31, 2013 compared to the average HUF/EUR exchange rate of 289.42 during the year ended December 31, 2012.

The Company’s revenue was EUR 163.8 million for the year ended December 31, 2013 which represents a 6% decrease compared to the year ended December 31, 2012. Segment gross margin decreased by 10% from EUR 141.2 million for the year ended December 31, 2012 to EUR 126.6 million for the year ended December 31, 2013. General operating expense decreased by 6% from EUR 81.5 million for the year ended December 31, 2012 to EUR 77.0 million for the year ended December 31, 2013, mainly as a result of cost control. Income from operations changed to a loss of EUR 0.3 million for the year ended December 31, 2013 from a loss of EUR 27.4 million for the year ended December 31, 2012 mainly as a result of impairment loss of EUR 31.6 million recorded in 2012. Net result for the year ended December 31, 2013 was an income of EUR 54.0 million compared to a loss of EUR 74.9 million for the year ended December 31, 2012. The 2013 net result includes a gain of EUR 81.1 million on extinguishment of debt relating to the restructuring of the Company’s notes.

Residential Voice – Residential Voice segment gross margin was EUR 28.1 million for the year ended December 31, 2013, representing a decrease of 14% compared to the year ended December 31, 2012. The decrease was mainly due to lower acquisition ARPU of new customers.

Residential Internet & TV – Residential Internet & TV segment gross margin was EUR 23.6 million for the year ended December 31, 2013, representing a decrease of 8% compared to the year ended December 31, 2012. This decrease was mainly due to decrease in Residential Internet gross margin due to lower ADSL revenue, which is partly offset by an increase in Residential TV gross margin mainly as a result of the increase in IPTV customers.

Cable - Cable segment gross margin was EUR 12.8 million for the year ended December 31, 2013 representing an increase of 1% compared to the year ended December 31, 2012, indicating successful stabilization of this business (in HUF terms, Cable segment gross margin has increased by 4%).

Corporate – Corporate segment gross margin was EUR 43.5 million for the year ended December 31, 2013, representing a decrease of 6% compared to the year ended December 31, 2012. This decrease was mainly due to the decrease in Corporate voice and data revenue as a result of price erosion on contract renewals due to competition, partly offset by higher hosting and IT services revenue.

Wholesale – Wholesale segment gross margin was EUR 18.6 million for the year ended December 31, 2013, representing a decrease of 23% compared to the year ended December 31, 2012, which is primarily attributable to the decrease of revenue of the sub 2M lines and decreasing data revenue.

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

    Year ended December 31,
(euro in millions) 2013  

2012
Restated

 
Residential Voice 28.1 32.8
Residential Internet & TV 23.6 25.7
Cable 12.8 12.6
Corporate 43.5 46.1
Wholesale 18.6 24.0
Segment gross margin 126.6 141.2
Network operating expenses (18.6) (20.2)
Direct personnel expenses (9.7) (11.3)
Selling, general and administrative expenses (48.7) (50.0)
Depreciation and amortization (48.6) (83.9)
Cost of restructuring (1.3) (3.2)
Income (loss) from operations (0.3) (27.4)
 

Net cash provided by operations, which includes interest paid but excludes capital expenditure and debt repayments, was EUR 41.8 million for the year ended December 31, 2013.

RESULTS FOR THE QUARTER ENDED MARCH 31, 2014

When comparing the financial results for the quarter ended March 31, 2014 to the financial results for the quarter ended March 31, 2013, the reported results in euro have been affected by the difference between the average HUF/EUR exchange rates. The Hungarian forint depreciated against the euro by 4% with an average HUF/EUR exchange rate of 307.90 during the quarter ended March 31, 2014 compared to the average HUF/EUR exchange rate of 296.42 during the quarter ended March 31, 2013.

The Company’s revenue was EUR 36.9 million for the quarter ended March 31, 2014 which represents a 7% decrease compared to the quarter ended March 31, 2013. Segment gross margin decreased by 7% from EUR 31.5 million for the quarter ended March 31, 2013 to EUR 29.3 million for the quarter ended March 31, 2014. General operating expense decreased by 13% from EUR 26.3 million for the quarter ended March 31, 2013 to EUR 23.0 million for the quarter ended March 31, 2014, mainly as a result of cost control initiatives. Income from operations changed to a loss of EUR 4.5 million for the quarter ended March 31, 2014 from a loss of EUR 6.7 million for the quarter ended March 31, 2013. Net result for the quarter ended March 31, 2014 was a loss of EUR 9.1 million compared to a loss of EUR 16.2 million for the quarter ended March 31, 2013.

Residential Voice – Residential Voice segment gross margin was EUR 6.1 million for the quarter ended March 31, 2014, representing a decrease of 18% compared to the quarter ended March 31, 2013. The decrease was mainly due to lower acquisition ARPU of new customers.

Residential Internet & TV – Residential Internet & TV segment gross margin was EUR 5.7 million for the quarter ended March 31, 2014, representing a decrease of 1% compared to the quarter ended March 31, 2013. This decrease was mainly due to decrease in Residential Internet gross margin due to lower ADSL revenue, which is partly offset by an increase in Residential TV gross margin mainly as a result of the increase in customer base.

Cable - Cable segment gross margin was EUR 3.2 million for the quarter ended March 31, 2014, representing an increase of 7% compared to the quarter ended March 31, 2013, mainly due to the increase in the number of customers.

Corporate – Corporate segment gross margin was EUR 10.6 million for the quarter ended March 31, 2014, representing a decrease of 3% compared to the quarter ended March 31, 2013. This decrease was mainly due to the decrease in Corporate voice revenue as a result of a decrease in traffic and price erosion on contract renewals due to competition.

Wholesale – Wholesale segment gross margin was EUR 3.7 million for the quarter ended March 31, 2014, representing a decrease of 15% compared to the quarter ended March 31, 2013, which is primarily attributable to the decrease of revenue of the sub 2M lines and decreasing data revenues.

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

    Three months ended March 31,
(euro in millions) 2014   2013
 
Residential Voice 6.1 7.4
Residential Internet & TV 5.7 5.8
Cable 3.2 3.0
Corporate 10.6 10.9
Wholesale 3.7 4.4
Segment gross margin 29.3 31.5
Network operating expenses (4.1) (4.8)
Direct personnel expenses (2.6) (2.8)
Selling, general and administrative expenses (16.4) (18.7)
Depreciation and amortization (10.6) (11.7)
Cost of restructuring (0.1) (0.2)
Income (loss) from operations (4.5) (6.7)
 

Net cash provided by operations, which includes interest paid but excludes capital expenditure and debt repayments, was EUR 5.9 million for the quarter ended March 31, 2014.

Commenting on the results, David McGowan, Chief Executive Officer of Invitel, the Company’s operating subsidiary, noted: “With last year’s successful financial restructuring now behind us, the Company has been focusing on delivering on its bundling strategies. The 2013 and 2014 Q1 results released today demonstrate the continued progress made in TV-led bundling in the Residential segment and IT Services bundling in Corporate, as well as operational improvements in the other parts of the business.”

CONFERENCE CALL

On May 16, 2014 (at 14:00 UK time, 15:00 CET, 9:00 AM ET), Matel B.V. will host a conference call to discuss financial results for the year ended December 31, 2013 and the first quarter ended March 31, 2014.

You can participate in the conference call by dialing 0800-756-3429 (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://invitel.hu/english under “Investor Relations”. The webcast will be available for replay until August 18, 2014. In addition, a replay of the call will be available until May 29, 2014 at 11:59 PM ET. To access the replay of the call, please dial +1-877-407-7177 (U.S. toll free) or internationally dial +1-201-689-8016 and enter the conference ID (13581263).

ABOUT MAGYAR TELECOM B.V.

Magyar Telecom B.V., through its subsidiary, Invitel is one of the leading service providers in the Hungarian telecommunications market, offering a broad portfolio of services for residential and business customers. Residential products include a variety of multimedia and entertainment services such as interactive, digital and High Definition television, fast internet offerings and telephony services. Business solutions include the most up-to-date ICT and cloud-based IT solutions, in addition to voice and data services, all using Invitel's nationwide fiber-optic backbone network. Invitel is headquartered in Budaörs, with customer touch points throughout Hungary.

  Magyar Telecom B.V.
Financial Highlights

(in millions of euro)

 
Statement of Operations
   

Year ended
December 31,
2013

Year ended
December 31,
2012
Restated*

 
Residential Voice 30.8 36.5
Residential Internet & TV 32.0 32.1
Cable 17.6 16.9
Corporate 60.4 58.7
Wholesale 23.0   29.3  
Total Revenue 163.8 173.5
 
Segment Cost of Sales 37.2 32.3
 
Income (Loss) from Operations (0.3 ) (27.4 )
 
Interest Expense 26.0 38.7
 
Foreign Exchange Gains (Losses), net 0.4 (1.8 )
 
Gains (Losses) on Derivative Financial Instruments 0.6 (1.1 )
 
Gain on Extinguishment of Debt 81.1 0.0
 
Income (Loss) for the Year 54.0 (74.9 )
 

*: From January 1, 2013 the Group has changed its accounting policy with respect to sales commissions relating to the Corporate segment that are managed on portfolio basis. The comparative figures have been restated accordingly for the year ended December 31, 2012.

  Magyar Telecom B.V.
Financial Highlights

(in millions of euro)

 
Statement of Operations
   

Three months
ended
March 31,
2014

Three months
ended
March 31,
2013

 
Residential Voice 6.6 8.2
Residential Internet & TV 7.7 8.0
Cable 4.5 4.2
Corporate 13.6 13.9
Wholesale 4.5   5.4  
Total Revenue 36.9 39.7
 
Segment Cost of Sales 7.7 8.2
 
Income (Loss) from Operations (4.5 ) (6.7 )
 
Interest Expense 3.6 9.2
 
Foreign Exchange Gains (Losses), net (0.4 ) 0.0
 
Gains (Losses) on Derivative Financial Instruments (0.1 ) (0.3 )
 
Income (Loss) for the Period (9.1 ) (16.2 )
 
  Magyar Telecom B.V.
Financial Highlights

(in millions of euro)

 
Balance Sheet
   
March 31, December 31,
2014 2013
 
 
Current Assets 43.2 48.8
Property, Plant and Equipment, net 203.6 215.3
Total Assets 271.8 290.5
 
Total Current Liabilities 42.7 44.1
Long Term Debt 151.6 151.6
Total Shareholders’ Equity 67.1 83.7
Total Liabilities and Shareholders’ Equity 271.8 290.5

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
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, will discuss how the ability to access and analyze the massive volume of streaming data from mil...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
WebSocket is effectively a persistent and fat pipe that is compatible with a standard web infrastructure; a "TCP for the Web." If you think of WebSocket in this light, there are other more hugely interesting applications of WebSocket than just simply sending data to a browser. In his session at 18th Cloud Expo, Frank Greco, Director of Technology for Kaazing Corporation, will compare other modern web connectivity methods such as HTTP/2, HTTP Streaming, Server-Sent Events and new W3C event APIs ...
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...