Welcome!

Microsoft Cloud Authors: Srinivasan Sundara Rajan, Pat Romanski, Glenn Rossman, Janakiram MSV, Steven Mandel

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
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
SYS-CON Events announced today that Pulzze Systems 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. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
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.
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
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...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
SYS-CON Events announced today that China Unicom 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. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...