Welcome!

Microsoft Cloud Authors: Stackify Blog, Liz McMillan, David H Deans, Automic Blog, Pat Romanski

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
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
Cybersecurity is a critical component of software development in many industries including medical devices. However, code is not always written to be robust or secure from the unknown or the unexpected. This gap can make medical devices susceptible to cybersecurity attacks ranging from compromised personal health information to life-sustaining treatment. In his session at @ThingsExpo, Clark Fortney, Software Engineer at Battelle, will discuss how programming oversight using key methods can incre...
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search an...
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
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.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...