Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.
Magyar Telecom subsidiary Invitel reports financial results for Q2 and six months ended June 30
August 29, 2006
4 Min Read
BUDAORS, Hungary -- Magyar Telecom B.V., parent company of Invitel Rt. ("Invitel") today reported its financial results for the second quarter ended 30 June 2006.
Financial and Operational Highlights
Total revenue in HUF terms was stable at HUF 22.9 billion for the six months ended 30 June 2006 compared to the same period of last year. In Euro, total revenue for the period decreased by EUR 4.6 million, or 5%, compared to the previous year.
Gross margin percentage remained strong at 72% down only 1% compared to the prior year despite increased competition. Total gross margin for the six month period was HUF 16.5 billion compared to HUF 16.6 billion in the prior year. In Euro, gross margin for the six months ended 30 June 2006 decreased by 6% to EUR 63.1 million.
Recurring EBITDA was HUF 10.1 billion for the period ended 30 June 2006 compared to HUF 10.2 billion in 2005. In Euro, recurring EBITDA for the period ended 30 June 2006 decreased to EUR 38.6 million from EUR 41.2 million for the same period in 2005.
The average exchange rate for the six months ended 30 June 2006 was 260.78 HUF/EUR; while the average exchange rate for the six months ended 30 June 2005 was 247.88 HUF/EUR.
On 23 May the acquisition of Euroweb Hungary and Euroweb Romania was completed. The Euroweb results were consolidated for one month.
The number of Mass Market broadband Internet customers increased by 21 967 to 62 812 as of 30 June 2006, representing a year on year increase of 54%.
Mass Market out of concession voice customer contracts increased from 31 251 as of 30 June 2005 to 121 666 as of 30 June 2006.
Growth in the out of concession business segment is accelerating. The number of business voice customers grew to a total of 2 233, representing an 85% year on year increase.
Free cash flow before debt service, excluding the purchase of the Euroweb subsidiaries, was EUR 27.5 million for the six months ended 30 June 2006 compared to EUR 26.4 million for the same period last year.
Cash and cash equivalents after the acquisition were EUR 13.2 million at 30 June 2006.
Capex to revenue ratio for the last twelve-month period ended 30 June 2006 was 13.0%, being driven by growth in new customer acquisitions.
Mass Market Voice revenues for the six months ended 30 June 2006 amounted to HUF 10.4 billion (EUR 39.8 million) compared to HUF 11.4 billion (EUR 46.0 million) for the six months ended 30 June 2005. This decrease is attributable to competition in our historical concession areas and mobile substitution, partially offset by the increase in out of concession revenue arising from continuously increasing number of customers.
Mass Market Internet revenues were HUF 3.1 billion (EUR 11.7 million) for the six months ended 30 June 2006 compared to HUF 2.4 billion (EUR 9.6 million) for the six months ended 30 June 2005, an increase of 26% year on year. This performance was due to the increase in the number of DSL contracts in line with the continued expansion of the Hungarian broadband Internet market.
Business revenues for the six months ended 30 June 2006 were HUF 6.0 billion (EUR 23.0 million) compared to HUF 5.7 billion (EUR 22.9 million) for the six months ended 30 June 2005. This increase is due to the decrease in churn to mobile and the inclusion of the results of Euroweb for the month of June.
Wholesale revenues for the six months ended 30 June 2006 increased to HUF 3.5 billion (EUR 13.2 million) from HUF 3.4 billion (EUR 13.7 million) for the six months ended 30 June 2005.
Martin Lea, CEO of Invitel, commented, "Overall the results for the six months ended 30 June 2006 were positive. We maintained our revenues at the prior year level in spite of continually increasing competition. We are seeing stabilization of in concession revenues and growing out of concession both in the Mass Market and Business segments. We are especially pleased with the contribution of Euroweb, which contributed to improved revenues particularly in our Business segment. In the second quarter we are happy to report year on year growth in recurring EBITDA even before the consolidation of the Euroweb results."
Invitel Zrt.
You May Also Like
Latest News
Popular whitepapers in 5G
May 21 - May 23, 2024
May 21 - May 23, 2024
Join us for an immersive experience where the future of North American telecom industry unfolds in 2024.
LEARN MORE
