Click here to close now.

Welcome!

Wireless Authors: Carmen Gonzalez, Liz McMillan, Kevin Benedict, Jayaram Krishnaswamy, Elizabeth White

News Feed Item

Magyar Telecom B.V. Announces Financial Results for the Quarter Ended June 30, 2014 and Investor Call

Magyar Telecom B.V. (“Matel B.V.”) announced today that on July 30, 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 quarter ended June 30, 2014.

The results for the quarter ended June 30, 2014 reflect the consolidated financial results of Matel 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 SIX MONTHS ENDED JUNE 30, 2014

When comparing the financial results for the six months ended June 30, 2014 to the financial results for the six months ended June 30, 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 306.94 during the six months ended June 30, 2014 compared to the average HUF/EUR exchange rate of 296.09 during the six months ended June 30, 2013.

The Company’s revenue was EUR 75.0 million for the six months ended June 30, 2014 which represents a 6% decrease compared to the six months ended June 30, 2013. Segment gross margin decreased by 6% from EUR 63.1 million for the six months ended June 30, 2013 to EUR 59.1 million for the six months ended June 30, 2014. General operating expense decreased by 9% from EUR 44.6 million for the six months ended June 30, 2013 to EUR 40.6 million for the six months ended June 30, 2014, mainly as a result of general cost control of operating expenses and EUR 2.3 million of expense which was related to the Restructuring. Income / (loss) from operations changed to a loss of EUR 3.4 million for the six months ended June 30, 2014 from a loss of EUR 6.1 million for the six months ended June 30, 2013. Net result for the six months ended June 30, 2014 was a loss of EUR 12.3 million compared to a loss of EUR 24.7 million for the six months ended June 30, 2013.

Residential Voice – Residential Voice segment gross margin was EUR 12.2 million for the six months ended June 30, 2014, representing a decrease of 16% compared to the six months ended June 30, 2013. The decrease was mainly due to lower acquisition ARPU of new customers.

Residential Internet & TV – Residential Internet & TV segment gross margin was EUR 11.6 million for the six months ended June 30, 2014 compared to EUR 11.7 million for the six months ended June 30, 2013 representing a decrease of 1%. In functional currency terms, the gross margin of this segment has increased by 3%, mainly due to the increase in customer base, which was partially offset by a decrease in Residential Internet gross margin due to lower ADSL ARPU.

Cable Cable segment gross margin was EUR 6.6 million for the six months ended June 30, 2014, representing an increase of 6% compared to the six months ended June 30, 2013, mainly due to the increase in the number of customers.

Corporate – Corporate segment gross margin was EUR 21.1 million for the six months ended June 30, 2014, representing a decrease of 3% compared to the six months ended June 30, 2013. This decrease was mainly due to the decrease in Corporate voice and data revenue as a result of a decrease in traffic and price erosion on contract renewals, partially offset by the increase in revenue of Corporate Hosting & IT Services.

Wholesale – Wholesale segment gross margin was EUR 7.6 million for the six months ended June 30, 2014, representing a decrease of 15% compared to the six months ended June 30, 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 in the interim consolidated financial statements of the Company:

        Six months ended June 30,
(euro in millions) 2014         2013
 
Residential Voice 12.2 14.6
Residential Internet & TV 11.6 11.7
Cable 6.6 6.2
Corporate 21.1 21.7
Wholesale 7.6   8.9  
Segment gross margin 59.1 63.1
Network operating expenses (8.6 ) (9.5 )
Direct personnel expenses (3.8 ) (5.3 )
Selling, general and administrative expenses (28.2 ) (29.8 )
Depreciation and amortization (21.6 ) (23.7 )
Cost of restructuring (0.3 ) (0.9 )
Income (loss) from operations (3.4 ) (6.1 )
 

Net cash provided by operations, which includes interest paid but excludes capital expenditure and debt repayments, was EUR 14.1 million for the six months ended June 30, 2014.

Commenting on the results, David McGowan, Chief Executive Officer of Invitel, the Company’s operating subsidiary, noted: “We're pleased that our bundling strategy in both our residential and corporate businesses, combined with continued cost discipline, has delivered results during Q2 which are ahead of plan and which demonstrate increased stability across the company.”

CONFERENCE CALL

On July 30, 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 quarter ended June 30, 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 October 30, 2014. In addition, a replay of the call will be available until August 13, 2014 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 the conference ID (13585739).

MATEL HOLDINGS LIMITED

Matel Holdings Limited is the holder of the 49% equity stake of Matel B.V. and has its shares stapled to the Senior Secured PIK Toggle Notes due 2018 issued by Matel B.V. on December 12, 2013. The audited standalone financial statements of Matel Holdings Limited for the year ended December 31, 2013 is available on Invitel’s website at http://invitel.hu/english under “Investor Relations.”

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
 
        Six months ended         Six months ended
June 30, June 30,
2014 2013
 
Residential Voice 13.3 16.0
Residential Internet & TV 15.5 15.9
Cable 9.1 8.6
Corporate 27.7 28.0
Wholesale 9.4   10.9  
Total Revenue 75.0 79.4
 
Segment Cost of Sales 15.9 16.3
 
Income (Loss) from Operations (3.4 ) (6.1 )
 
Interest Expense 7.1 18.4
 
Foreign Exchange Gains (Losses), net (0.5 ) (0.2 )
 
Income (Loss) for the Period (12.3 ) (24.7 )
 
 
Magyar Telecom B.V.
Financial Highlights

(in millions of euro)

Balance Sheet

 

               
June 30, December 31,
2014 2013
 
 
Current Assets 42.8 48.8
Property, Plant and Equipment, net 196.2 215.3
Total Assets 263.0 290.5
 
Total Current Liabilities 37.9 44.1
Long Term Debt 153.1 151.6
Total Shareholders’ Equity 61.9 83.7
Total Liabilities and Shareholders’ Equity 263.0 290.5

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
So I guess we’ve officially entered a new era of lean and mean. I say this with the announcement of Ubuntu Snappy Core, “designed for lightweight cloud container hosts running Docker and for smart devices,” according to Canonical. “Snappy Ubuntu Core is the smallest Ubuntu available, designed for security and efficiency in devices or on the cloud.” This first version of Snappy Ubuntu Core features secure app containment and Docker 1.6 (1.5 in main release), is available on public clouds, and for ARM and x86 devices on several IoT boards. It’s a Trend! This announcement comes just as...
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable older adults to live independent lives while staying connected to loved ones. M2M will continue to gr...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provides a high level technical overview of many cloud services available to mobile app developers, includi...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements around Unified Networks, Cloud Computing strategies, Virtualization around Software defined Data Ce...
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) application providers dating back to 2004. Cybozu's kintone.com is a leading global BYOA (Build Your O...
SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to offer disruptive APIs to developers.
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps 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 business opportunity. Submit your speaking proposal today!
SYS-CON Events announced today that BroadSoft, the leading global provider of Unified Communications and Collaboration (UCC) services to operators worldwide, has been named “Gold Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company’s core communications platform enables the delivery of a range of enterprise and consumer calling...
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.