Hungarian Telephone and Cable Corp (HTCC) reported net income on USD2.9 million in the year to 31 December 2005, compared with USD16.2 million in 2004. The results included the financial performance of PanTel for ten months, which has now been consolidated. Full-year net telephone service revenues reached USD110.2 million, up 83% year-on-year and sales of services such as leased lines, ADSL, VPN services and other internet and data services increased by 491% to USD48.5 million. Pro-forma net income and adjusted EBITDA were USD7.6 million and USD50.6 million, respectively, compared with USD15.7 million and USD31.2 million a year earlier. Cash from operations was USD42.6 million, while capital expenditure was USD22.1 million.
HTCC offers services through its 99.9% owned subsidiary Hungarotel, which was originally a holding company for four local telecoms operators, including Hungarotel itself. The units were merged in early 2003, retaining the Hungarotel brand name, and in 2005 HTCC acquired another operator, PanTel. Today the company offers a full range of telecoms services for more than 200,000 subscribers in 263 locations. Its value added services include leased line (Flex Net), internet access (GloboNet), VoIP (Globofon) and ADSL products offered over a network comprising four Siemens and two Ericsson digital switches with 122 remote subscriber units, 1,200km of fibre-optic cable, Siemens and Nokia digital transmission technology and a Nokia-supplied leased line network.
At the end of 2005 Hungarotel had a total of 158,300 main lines in service, of which 129,800 were residential and 28,500 business lines. It also had 1,337 pay phones in operation. PanTel had approximately 34,000 telephone access lines in service in Hungary and other countries in central and eastern Europe, including other telecoms service providers, CATV operators and ISPs for whom it transports voice, data and internet traffic in the wholesale market.