Welcome!

Microsoft Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Mihai Corbuleac, David Bermingham

News Feed Item

Magyar Telecom B.V. Announces the Financial Results for the Period Ended September 30, 2012 and Investor Call

Magyar Telecom B.V. (“Matel B.V.”) announced today its financial results for the nine months ended September 30, 2012.

RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012

The results for the nine months ended September 30, 2012 reflect the consolidated financial results of Matel B.V. and its subsidiaries (collectively, the “Company”) in accordance with International Financial Reporting Standards (“IFRS”).

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

When comparing the financial results for the nine months ended September 30, 2012 to the financial results for the nine months ended September 30, 2011, the reported results in euro have been affected by the difference between the average HUF/EUR exchange rates during these periods. The Hungarian forint depreciated against the euro by 7% with an average HUF/EUR exchange rate of 291.36 during the nine months ended September 30, 2012 compared to the average HUF/EUR exchange rate of 271.28 during the nine months ended September 30, 2011. This change in exchange rates had an impact on Hungarian forint denominated earnings when converted into euro.

The Company’s revenue was EUR 127.4 million for the nine months ended September 30, 2012 which represents a 14% decrease compared to the nine months ended September 30, 2011. Segment gross margin decreased by 14% from EUR 122.0 million for the nine months ended September 30, 2011 to EUR 105.4 million for the nine months ended September 30, 2012. General operating expense decreased by 1% from EUR 61.1 million for the nine months ended September 30, 2011 to EUR 60.2 million for the nine months ended September 30, 2012. Income from operations decreased to EUR 2.5 million for the nine months ended September 30, 2012 from EUR 12.6 million for the nine months ended September 30, 2011, mainly as a result of the decrease in segment gross margin. Net result for the nine months ended September 30, 2012 was a net loss of EUR 34.5 million compared to a net income of EUR 16.0 million for the nine months ended September 30, 2011, which includes the gain of EUR 28.5 million accounted for in relation to the acquisition of Fibernet.

Residential Voice – Residential Voice segment gross margin was EUR 25.1 million for the nine months ended September 30, 2012, representing a decrease of 27% compared to the nine months ended September 30, 2011. The decrease was mainly due to the decrease in our Residential Voice revenue as a result of the decrease in the number of customers mainly outside our historical concession areas, the decrease in traffic both in and outside of our historical concession areas as customers optimize their usage and the 7% depreciation of the HUF against the EUR during the nine months ended September 30, 2012 compared to the prior year.

Residential Internet – Residential Internet segment gross margin was EUR 19.4 million for the nine months ended September 30, 2012, representing a decrease of 10% compared to the nine months ended September 30, 2011. This decrease was mainly due to the lower broadband internet revenues as a result of decreasing ARPU and the 7% depreciation of the HUF against the EUR during the nine months ended September 30, 2012 compared to the prior year.

Cable Cable segment gross margin was EUR 9.4 million for the nine months ended September 30, 2012, representing an increase of 12% compared to the nine months ended September 30, 2011. The Cable segment was introduced as of March 1, 2011 and relates to the revenue generated by the ex-Fibernet business.

Corporate – Corporate segment gross margin was EUR 35.2 million for the nine months ended September 30, 2012, representing a decrease of 9% compared to the nine months ended September 30, 2011. The decrease was mainly due to the decrease in Corporate voice revenue as a result of price erosion due to competition and the 7% depreciation of the HUF against the EUR during the nine months ended September 30, 2012 compared to the prior year.

Wholesale – Wholesale segment gross margin was EUR 16.3 million for the nine months ended September 30, 2012, representing a decrease of 15% compared to the nine months ended September 30, 2011, which is mainly due to the decrease in small bandwidth wholesale leased line revenue and the 7% devaluation of the HUF against the EUR compared to the prior year.

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

    Nine months ended September 30,
(euro in millions) 2012         2011
 
Residential Voice 25.1 34.2
Residential Internet 19.4 21.5
Cable 9.4 8.4
Corporate 35.2 38.7
Wholesale 16.3   19.2  
Segment Gross Margin 105.4 122.0
Network operating expenses (15.2 ) (15.8 )
Direct personnel expenses (8.2 ) (9.2 )
Selling, general and administrative expenses (36.8 ) (36.1 )
Depreciation and amortization (40.2 ) (43.7 )
Cost of restructuring (2.5 ) (4.6 )
Income from operations 2.5 12.6
 

Net cash provided by operations, which includes interest paid but excludes capital expenditure and debt repayments, was EUR 24.4 million for the nine months ended September 30, 2012.

COMMENTS FROM DAVID McGOWAN

Commenting on the financial results, David McGowan, Chief Executive Officer of Invitel, said, “Poor general economic conditions in Hungary continue to affect demand for our services in both our Residential and Corporate segments, especially for our voice product, which continues to decline as customers have increasingly optimized usage. In spite of these trends and the heightened number of company liquidations in Hungary during the period, our Corporate business continues to grow its customer base and market share through an increased use of bundled ICT services, and our Residential business is having success in settlements where we have been able to upgrade our network capacities. The introduction of new sector taxes has also had an impact during the period, and we are improving our efficiency and maintaining tight control of operating expenses.”

CONFERENCE CALL

On November 21, 2012 (at 15:00 UK time, 16:00 CET, 10:00 AM ET), Matel B.V. will host a conference call to discuss financial results for the period ended September 30, 2012.

You can participate in the conference call by dialing 800-4626-6666 (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://english.invitel.hu/ under “Press/Investor Relations.” The webcast will be available for replay until February 15, 2013. In addition, a replay of the call will be available until December 5, 2012 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 account (286) followed by the replay access code (401194).

Magyar Telecom B.V.
Financial Highlights

(in millions of euro)

 
Statements of Operations
 
    Nine months ended         Nine months ended
September 30, September 30,
2012 2011
 
Residential Voice 27.9 38.8
Residential Internet 23.9 26.3
Cable 12.6 10.9
Corporate 43.0 49.1
Wholesale 20.0   23.4  
Total Revenue 127.4 148.5
 
Segment Cost of Sales 22.0 26.5
 
Income (Loss) from Operations 2.5 12.6
 
Interest Expense 29.8 29.3
 
Foreign Exchange Gains (Losses), net (1.4 ) (1.7 )
 
Gains (Losses) on Derivative Financial Instruments (0.6 ) 3.2
 
Net income (loss) for the Period (34.5 ) 16.0
 
 
Magyar Telecom B.V.
Financial Highlights

(in millions of euro)

 
Balance Sheet
           
September 30, December 31,
2012 2011
 
 
Current Assets 57.1 67.9
Property, Plant and Equipment, net 277.8 257.2
Total Assets 369.3 357.5
 
Total Current Liabilities 52.1 44.4
Long Term Debt 316.5 313.5
Total Shareholders’ Equity (13.1 ) (14.4 )
Total Liabilities and Shareholders’ Equity 369.3 357.5
 

ABOUT MAGYAR TELECOM B.V.

Magyar Telecom B.V., through its subsidiary, Invitel, is one of Hungary’s leading telecommunications and info-communications service providers. It provides 20 thousand satisfied business clients with a broad portfolio of media, telecommunication, and info-communication services; on the other hand Invitel has 750 thousand residential and SOHO subscriptions on the digital TV, internet and voice services market. The number of its wholesale partners exceeds 250. In its customer service offices, called “Telepoints,” Invitel is directly available to residential customers at 27 different sites throughout Hungary, while the work of business partners is supported by skilled account managers through continuous personal communication. The Company is headquartered in Budaörs.

Forward-Looking Statements

The information above includes forward-looking statements about Magyar Telecom B.V. and its subsidiaries (“Matel B.V.”). These and all forward-looking statements are only predictions of current plans that are constantly under review by Matel B.V. Such statements are qualified by important factors that may cause actual results to differ from those contemplated, including those risk factors detailed in Matel B.V.’s Annual Reports, which may not be exhaustive. For a discussion of such risk factors, see Matel B.V.’s Annual Reports. Matel B.V. operates in a continually changing business environment and new risk factors emerge from time to time. Matel B.V. cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on its business or events described in any forward-looking statements. Matel B.V. has no obligation to publicly update or revise any forward-looking statements to reflect the occurrence of future events or circumstances. In addition, Matel B.V. is no longer subject to certain reporting obligations with the SEC, and no longer intends to file or furnish any updates with the SEC.

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
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
The idea of comparing data in motion (at the sensor level) to data at rest (in a Big Data server warehouse) with predictive analytics in the cloud is very appealing to the industrial IoT sector. The problem Big Data vendors have, however, is access to that data in motion at the sensor location. In his session at @ThingsExpo, Scott Allen, CMO of FreeWave, discussed how as IoT is increasingly adopted by industrial markets, there is going to be an increased demand for sensor data from the outermos...
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
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...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
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, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profession...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2016' as Conference Chair The @DevOpsSummit at Cloud Expo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited t...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Apixio Inc. has raised $19.3 million in Series D venture capital funding led by SSM Partners with participation from First Analysis, Bain Capital Ventures and Apixio’s largest angel investor. Apixio will dedicate the proceeds toward advancing and scaling products powered by its cognitive computing platform, further enabling insights for optimal patient care. The Series D funding comes as Apixio experiences strong momentum and increasing demand for its HCC Profiler solution, which mines unstruc...
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 ...
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We work in the area of Big Data analytics and Big Data analytics is a very crowded space - you have Hadoop, ETL, warehousing, visualization and there's a lot of effort trying to get these tools to talk to each other," explained Mukund Deshpande, head of the Analytics practice at Accelerite, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
UAS, drones or unmanned aircraft, no matter what you call them — this was their week. Our news stream was flooded with updates on the newly announced rules and regulations for commercial UAS from the FAA. So, naturally we have dedicated this week’s top news round up to highlight some of our favorite UAS stories.
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...