Magyar Telecom B.V. Announces Financial Results for the Period Ended June 30, 2013 and Investor Call
Magyar Telecom B.V. Announces Financial Results for the Period Ended June 30, 2013 and Investor Call
LONDON--(BUSINESS WIRE)-- Magyar Telecom B.V. ("Matel B.V.") announced today that on August 6, 2013 (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 period ended June 30, 2013.
RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2013
The results for the six months ended June 30, 2013 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.
When comparing the financial results for the six months ended June 30, 2013 to the financial results for the six months ended June 30, 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 0.2% with an average HUF/EUR exchange rate of 296.09 during the six months ended June 30, 2013 compared to the average HUF/EUR exchange rate of 295.64 during the six months ended June 30, 2012.
The Company's revenue was EUR 79.4 million for the six months ended June 30, 2013 which represents a 6% decrease compared to the six months ended June 30, 2012. Segment gross margin decreased by 9% from EUR 69.5 million for the six months ended June 30, 2012 to EUR 63.1 million for the six months ended June 30, 2013. General operating expense increased by 14% from EUR 39.2 million for the six months ended June 30, 2012 to EUR 44.6 million for the six months ended June 30, 2013, mainly as a result of new taxes introduced by the government. Income from operations decreased to a loss of EUR 6.1 million for the six months ended June 30, 2013 from an income of EUR 3.5 million for the six months ended June 30, 2012. Net result for the six months ended June 30, 2013 was a loss of EUR 24.7 million compared to a loss of EUR 23.7 million for the six months ended June 30, 2012.
Residential Voice - Residential Voice segment gross margin was EUR 14.6 million for the six months ended June 30, 2013, representing a decrease of 14% compared to the six months ended June 30, 2012. The decrease was mainly due to the decrease in the number of Residential Voice customers.
Residential Internet & TV - Residential Internet & TV segment gross margin was EUR 11.7 million for the six months ended June 30, 2013, representing a decrease of 9% compared to the six months ended June 30, 2012. This decrease was mainly due to decrease in Residential Internet gross margin due to lower ADSL revenue, which is partly offset by a slight increase in Residential TV gross margin mainly as a result of the increase in IPTV customers.
Cable - Cable segment gross margin was EUR 6.2 million both for the six months ended June 30, 2013 and 2012, indicating successful stabilization of this business.
Corporate - Corporate segment gross margin was EUR 21.7 million for the six months ended June 30, 2013, representing a decrease of 4% compared to the six months ended June 30, 2012. 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 8.9 million for the six months ended June 30, 2013, representing a decrease of 19% compared to the six months ended June 30, 2012, which is primarily attributable to the decrease of revenue of the sub 2M lines and decreasing prices of wholesale voice transit services.
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 Comprehensive Income / (Loss) in the interim consolidated financial statements of the Company:
Six months ended June 30,
(euro in millions) 2013 2012
Residential Voice 14.6 16.9
Residential Internet & TV 11.7 12.9
Cable 6.2 6.2
Corporate 21.7 22.5
Wholesale 8.9 11.0
Segment gross margin 63.1 69.5
Network operating expenses (9.5 ) (9.9 )
Direct personnel expenses (5.3 ) (5.4 )
Selling, general and administrative expenses (29.8 ) (23.9 )
Depreciation and amortization (23.7 ) (26.1 )
Cost of restructuring (0.9 ) (0.7 )
Income (loss) from operations (6.1 ) 3.5
Net cash provided by operations, which includes interest paid but excludes capital expenditure and debt repayments, was EUR 28.9 million for the six months ended June 30, 2013.
CONFERENCE CALL
On August 6, 2013 (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 six month period ended June 30, 2013.
You can participate in the conference call by dialing 800-2246-2666 (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 November 6, 2013. In addition, a replay of the call will be available until August 20, 2013 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 (418267).
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
June 30,
2013 Six months ended
June 30,
2012
Residential Voice 16.0 18.8
Residential Internet & TV 15.9 15.8
Cable 8.6 8.3
Corporate 28.0 28.2
Wholesale 10.9 13.7
Total Revenue 79.4 84.8
Segment Cost of Sales 16.3 15.3
Income (Loss) from Operations (6.1 ) 3.5
Interest Expense 18.4 20.6
Foreign Exchange Gains (Losses), net (0.2 ) (1.6 )
Gains (Losses) on Derivative Financial Instruments 0.4 (0.2 )
Net Income (Loss) for the Period (24.7 ) (23.7 )
Magyar Telecom B.V.
Financial Highlights
(in millions of euro)
Balance Sheet
June 30, December 31,
2013 2012
Current Assets 51.2 48.7
Property, Plant and Equipment, net 222.8 235.9
Total Assets 301.7 314.0
Total Current Liabilities 64.5 48.7
Long Term Debt 326.9 326.6
Total Shareholders' Equity (93.5 ) (65.1 )
Total Liabilities and Shareholders' Equity 301.7 314.0
For Magyar Telecom B.V.
Andrea Rába
Financial Reporting Senior Manager of Invitel
Hungary: +36 1-801-1651
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