Welcome!

Mobile IoT Authors: Elizabeth White, Liz McMillan, Jeev Trika, Philippe Abdoulaye, Jayaram Krishnaswamy

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
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...