Welcome!

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.

Latest Stories
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
StackIQ has announced the release of Stacki 3.2. Stacki is an easy-to-use Linux server provisioning tool. Stacki 3.2 delivers new capabilities that simplify the automation and integration of site-specific requirements. StackIQ is the commercial entity behind this open source bare metal provisioning tool. Since the release of Stacki in June of 2015, the Stacki core team has been focused on making the Community Edition meet the needs of members of the community, adding features and value, while ...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...