Click here to close now.

Welcome!

Wireless Authors: Jon McNeill, Elizabeth White, Dana Gardner, Liz McMillan, Pat Romanski

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
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
Every innovation or invention was originally a daydream. You like to imagine a “what-if” scenario. And with all the attention being paid to the so-called Internet of Things (IoT) you don’t have to stretch the imagination too much to see how this may impact commercial and homeowners insurance. We’re beyond the point of accepting this as a leap of faith. The groundwork is laid. Now it’s just a matter of time. We can thank the inventors of smart thermostats for developing a practical business application that everyone can relate to. Gone are the salad days of smart home apps, the early chalkb...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, representing a model of how to analyze rea...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed expressly to run Docker. He will also discuss Rancher, an orchestration and service discovery platf...
SYS-CON Events announced today that Vitria Technology, Inc. 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. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, 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. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
CommVault has announced that top industry technology visionaries have joined its leadership team. The addition of leaders from companies such as Oracle, SAP, Microsoft, Cisco, PwC and EMC signals the continuation of CommVault Next, the company's business transformation for sales, go-to-market strategies, pricing and packaging and technology innovation. The company also announced that it had realigned its structure to create business units to more directly match how customers evaluate, deploy, operate, and purchase technology.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along with a steady stream of well-publicized data breaches, only add to the uncertainty
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add scalable realtime functionality with minimal effort and cost.”
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness, and in-car entertainment and this excitement will bleed into other areas. On the commercial side, m...
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
In the consumer IoT, everything is new, and the IT world of bits and bytes holds sway. But industrial and commercial realms encompass operational technology (OT) that has been around for 25 or 50 years. This grittier, pre-IP, more hands-on world has much to gain from Industrial IoT (IIoT) applications and principles. But adding sensors and wireless connectivity won’t work in environments that demand unwavering reliability and performance. In his session at @ThingsExpo, Ron Sege, CEO of Echelon, will discuss how as enterprise IT embraces other IoT-related technology trends, enterprises with i...
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data they generate about customer usage and product performance to deliver extremely compelling and reliabl...