Click here to close now.

Welcome!

.NET Authors: Carmen Gonzalez, VictorOps Blog, Elizabeth White, Liz McMillan, Greg O'Connor

News Feed Item

Magyar Telecom B.V. Announces Financial Results for the Year Ended December 31, 2013 and the Quarter Ended March 31, 2014 and Investor Call

Magyar Telecom B.V. (“Matel B.V.”) announced today that on May 16, 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 year ended December 31, 2013 and the quarter ended March 31, 2014.

The results for the year ended December 31, 2013 and the quarter ended March 31, 2014 reflect the consolidated financial results of Magyar Telecom 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 YEAR ENDED DECEMBER 31, 2013

When comparing the financial results for the year ended December 31, 2013 to the financial results for the year ended December 31, 2012, 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 3% with an average HUF/EUR exchange rate of 296.92 during the year ended December 31, 2013 compared to the average HUF/EUR exchange rate of 289.42 during the year ended December 31, 2012.

The Company’s revenue was EUR 163.8 million for the year ended December 31, 2013 which represents a 6% decrease compared to the year ended December 31, 2012. Segment gross margin decreased by 10% from EUR 141.2 million for the year ended December 31, 2012 to EUR 126.6 million for the year ended December 31, 2013. General operating expense decreased by 6% from EUR 81.5 million for the year ended December 31, 2012 to EUR 77.0 million for the year ended December 31, 2013, mainly as a result of cost control. Income from operations changed to a loss of EUR 0.3 million for the year ended December 31, 2013 from a loss of EUR 27.4 million for the year ended December 31, 2012 mainly as a result of impairment loss of EUR 31.6 million recorded in 2012. Net result for the year ended December 31, 2013 was an income of EUR 54.0 million compared to a loss of EUR 74.9 million for the year ended December 31, 2012. The 2013 net result includes a gain of EUR 81.1 million on extinguishment of debt relating to the restructuring of the Company’s notes.

Residential Voice – Residential Voice segment gross margin was EUR 28.1 million for the year ended December 31, 2013, representing a decrease of 14% compared to the year ended December 31, 2012. The decrease was mainly due to lower acquisition ARPU of new customers.

Residential Internet & TV – Residential Internet & TV segment gross margin was EUR 23.6 million for the year ended December 31, 2013, representing a decrease of 8% compared to the year ended December 31, 2012. This decrease was mainly due to decrease in Residential Internet gross margin due to lower ADSL revenue, which is partly offset by an increase in Residential TV gross margin mainly as a result of the increase in IPTV customers.

Cable - Cable segment gross margin was EUR 12.8 million for the year ended December 31, 2013 representing an increase of 1% compared to the year ended December 31, 2012, indicating successful stabilization of this business (in HUF terms, Cable segment gross margin has increased by 4%).

Corporate – Corporate segment gross margin was EUR 43.5 million for the year ended December 31, 2013, representing a decrease of 6% compared to the year ended December 31, 2012. This decrease was mainly due to the decrease in Corporate voice and data revenue as a result of price erosion on contract renewals due to competition, partly offset by higher hosting and IT services revenue.

Wholesale – Wholesale segment gross margin was EUR 18.6 million for the year ended December 31, 2013, representing a decrease of 23% compared to the year ended December 31, 2012, which is primarily attributable to the decrease of revenue of the sub 2M lines and decreasing data revenue.

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 Consolidated Statement of Profit and Loss and Other Comprehensive Income / (Loss) in the consolidated financial statements the Company:

    Year ended December 31,
(euro in millions) 2013  

2012
Restated

 
Residential Voice 28.1 32.8
Residential Internet & TV 23.6 25.7
Cable 12.8 12.6
Corporate 43.5 46.1
Wholesale 18.6 24.0
Segment gross margin 126.6 141.2
Network operating expenses (18.6) (20.2)
Direct personnel expenses (9.7) (11.3)
Selling, general and administrative expenses (48.7) (50.0)
Depreciation and amortization (48.6) (83.9)
Cost of restructuring (1.3) (3.2)
Income (loss) from operations (0.3) (27.4)
 

Net cash provided by operations, which includes interest paid but excludes capital expenditure and debt repayments, was EUR 41.8 million for the year ended December 31, 2013.

RESULTS FOR THE QUARTER ENDED MARCH 31, 2014

When comparing the financial results for the quarter ended March 31, 2014 to the financial results for the quarter ended March 31, 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 307.90 during the quarter ended March 31, 2014 compared to the average HUF/EUR exchange rate of 296.42 during the quarter ended March 31, 2013.

The Company’s revenue was EUR 36.9 million for the quarter ended March 31, 2014 which represents a 7% decrease compared to the quarter ended March 31, 2013. Segment gross margin decreased by 7% from EUR 31.5 million for the quarter ended March 31, 2013 to EUR 29.3 million for the quarter ended March 31, 2014. General operating expense decreased by 13% from EUR 26.3 million for the quarter ended March 31, 2013 to EUR 23.0 million for the quarter ended March 31, 2014, mainly as a result of cost control initiatives. Income from operations changed to a loss of EUR 4.5 million for the quarter ended March 31, 2014 from a loss of EUR 6.7 million for the quarter ended March 31, 2013. Net result for the quarter ended March 31, 2014 was a loss of EUR 9.1 million compared to a loss of EUR 16.2 million for the quarter ended March 31, 2013.

Residential Voice – Residential Voice segment gross margin was EUR 6.1 million for the quarter ended March 31, 2014, representing a decrease of 18% compared to the quarter ended March 31, 2013. The decrease was mainly due to lower acquisition ARPU of new customers.

Residential Internet & TV – Residential Internet & TV segment gross margin was EUR 5.7 million for the quarter ended March 31, 2014, representing a decrease of 1% compared to the quarter ended March 31, 2013. This decrease was mainly due to decrease in Residential Internet gross margin due to lower ADSL revenue, which is partly offset by an increase in Residential TV gross margin mainly as a result of the increase in customer base.

Cable - Cable segment gross margin was EUR 3.2 million for the quarter ended March 31, 2014, representing an increase of 7% compared to the quarter ended March 31, 2013, mainly due to the increase in the number of customers.

Corporate – Corporate segment gross margin was EUR 10.6 million for the quarter ended March 31, 2014, representing a decrease of 3% compared to the quarter ended March 31, 2013. This decrease was mainly due to the decrease in Corporate voice revenue as a result of a decrease in traffic and price erosion on contract renewals due to competition.

Wholesale – Wholesale segment gross margin was EUR 3.7 million for the quarter ended March 31, 2014, representing a decrease of 15% compared to the quarter ended March 31, 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 / (Loss) in the interim consolidated financial statements the Company:

    Three months ended March 31,
(euro in millions) 2014   2013
 
Residential Voice 6.1 7.4
Residential Internet & TV 5.7 5.8
Cable 3.2 3.0
Corporate 10.6 10.9
Wholesale 3.7 4.4
Segment gross margin 29.3 31.5
Network operating expenses (4.1) (4.8)
Direct personnel expenses (2.6) (2.8)
Selling, general and administrative expenses (16.4) (18.7)
Depreciation and amortization (10.6) (11.7)
Cost of restructuring (0.1) (0.2)
Income (loss) from operations (4.5) (6.7)
 

Net cash provided by operations, which includes interest paid but excludes capital expenditure and debt repayments, was EUR 5.9 million for the quarter ended March 31, 2014.

Commenting on the results, David McGowan, Chief Executive Officer of Invitel, the Company’s operating subsidiary, noted: “With last year’s successful financial restructuring now behind us, the Company has been focusing on delivering on its bundling strategies. The 2013 and 2014 Q1 results released today demonstrate the continued progress made in TV-led bundling in the Residential segment and IT Services bundling in Corporate, as well as operational improvements in the other parts of the business.”

CONFERENCE CALL

On May 16, 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 year ended December 31, 2013 and the first quarter ended March 31, 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 August 18, 2014. In addition, a replay of the call will be available until May 29, 2014 at 11:59 PM ET. To access the replay of the call, please dial +1-877-407-7177 (U.S. toll free) or internationally dial +1-201-689-8016 and enter the conference ID (13581263).

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
   

Year ended
December 31,
2013

Year ended
December 31,
2012
Restated*

 
Residential Voice 30.8 36.5
Residential Internet & TV 32.0 32.1
Cable 17.6 16.9
Corporate 60.4 58.7
Wholesale 23.0   29.3  
Total Revenue 163.8 173.5
 
Segment Cost of Sales 37.2 32.3
 
Income (Loss) from Operations (0.3 ) (27.4 )
 
Interest Expense 26.0 38.7
 
Foreign Exchange Gains (Losses), net 0.4 (1.8 )
 
Gains (Losses) on Derivative Financial Instruments 0.6 (1.1 )
 
Gain on Extinguishment of Debt 81.1 0.0
 
Income (Loss) for the Year 54.0 (74.9 )
 

*: From January 1, 2013 the Group has changed its accounting policy with respect to sales commissions relating to the Corporate segment that are managed on portfolio basis. The comparative figures have been restated accordingly for the year ended December 31, 2012.

  Magyar Telecom B.V.
Financial Highlights

(in millions of euro)

 
Statement of Operations
   

Three months
ended
March 31,
2014

Three months
ended
March 31,
2013

 
Residential Voice 6.6 8.2
Residential Internet & TV 7.7 8.0
Cable 4.5 4.2
Corporate 13.6 13.9
Wholesale 4.5   5.4  
Total Revenue 36.9 39.7
 
Segment Cost of Sales 7.7 8.2
 
Income (Loss) from Operations (4.5 ) (6.7 )
 
Interest Expense 3.6 9.2
 
Foreign Exchange Gains (Losses), net (0.4 ) 0.0
 
Gains (Losses) on Derivative Financial Instruments (0.1 ) (0.3 )
 
Income (Loss) for the Period (9.1 ) (16.2 )
 
  Magyar Telecom B.V.
Financial Highlights

(in millions of euro)

 
Balance Sheet
   
March 31, December 31,
2014 2013
 
 
Current Assets 43.2 48.8
Property, Plant and Equipment, net 203.6 215.3
Total Assets 271.8 290.5
 
Total Current Liabilities 42.7 44.1
Long Term Debt 151.6 151.6
Total Shareholders’ Equity 67.1 83.7
Total Liabilities and Shareholders’ Equity 271.8 290.5

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
In this session we look at creating interactive communications via the web by adding messaging, file transfer, and group communication (group chat and audio/video conferencing) into the web experience. We will also discuss potential applications of this technology in areas including B2B, B2C, P2P, and gaming. Peter is Technical Director at Acision. He graduated from The University of Edinburgh in 2000 with a BSc (Hons) in Computer Science. After graduation Peter worked on a PSTN switch developing signalling stacks for SS7, ISDN and similar protocols and creating advanced routing and serv...
SYS-CON Events announced today that Ciqada 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. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
GENBAND introduced its Real Time Communications (RTC) Client for Lync* to seamlessly combine real-time communications with Lync Instant Messaging (IM) and Presence. “We’re shaking up the economics of delivering Unified Communications (UC) and offering a compelling way to integrate previously bespoke communications technologies,” said Carl Baptiste, GENBAND’s Senior Vice President, Enterprise Solutions. “We’re offering enterprises the best of both worlds by combining our own high availability voice, video and collaboration with Lync’s IM and Presence; creating a single, web centric, client. O...
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT.
SYS-CON Events announced today that SoftLayer, an IBM company, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015 at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place November 3–5, 2015 at the Santa Clara Convention Center in Santa Clara, CA. SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from ...
SYS-CON Events announced today that BroadSoft, the leading global provider of Unified Communications and Collaboration (UCC) services to operators worldwide, has been named “Gold Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company’s core communications platform enables the delivery of a range of enterprise and consumer calling...
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of 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. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make smarter decisions, faster.
Recent technology advances in miniaturization has positioned the wearables as the pinnacle of technology convergence with the human body. We inquire if wearables are mere standard miniaturized devices extended with the connectivity and present our views on considerations like design, applications, performance, efficiency, interoperability, usage scenarios, human device interaction and consequent trade-offs enabling wearables to impart optimal value.
Participants will reach the final if their IoT solution is liked. A community vote will determine the best solutions submitted in each country, after which an expert jury will select the national winners and the best international IoT solution. Each country's best solution can win a national marketing campaign worth up to €30,000 and become a partner in Deutsche Telekom's participating markets. The winning international solution can become partner of Deutsche Telekom Group across all eight countries and reach out to a potential of 10,8 million business customers. Deutsche Telekom Group has a...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, 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., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool f...
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.
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
SYS-CON Events announced today that On the Avenue Marketing Group, a sales and marketing firm that utilizes events to market and sell products to consumers, 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. On the Avenue Marketing Group (OTA) is a sales and marketing firm that utilizes events to market and sell products to consumers. On behalf of our clients, we attend thousands of fairs, festivals, expos, concerts, conferences, and sporting events annually, helping them reach millions of individuals ...
SYS-CON Events announced today that ActiveState, the leading independent Cloud Foundry and Docker-based PaaS provider, has been named “Silver Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. ActiveState believes that enterprises gain a competitive advantage when they are able to quickly create, deploy and efficiently manage software solutions that immediately create business value, but they face many challenges that prevent them from doing so. The Company is uniquely positioned to help address these challenges thro...
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.