Hungarian Telephone and Cable Corp (HTCC), a leading alternative telecoms service provider in Hungary with a presence in other countries in central and eastern Europe, reported net telephone service revenues of USD27.4 million in the three months to 31 March 2006, up 34% year-on-year, but said net measured service and subscription revenues fell by 5% to USD12.4 million. Operating revenues from the provision of leased lines, ADSL access, VPN services, internet access and other services rose 110% to USD14.1 million, compared with 1Q05, and net wholesale voice revenues jumped 133% to USD700,000, from USD300,000 previously. Pro-forma net profit and adjusted EBITDA were USD4 million and USD13.6 million respectively, from USD3.8 million and USD9.9 million a year ago.
HTCC’s income from operations and net loss attributable to common stockholders, determined in accordance GAAP principles, were USD7.3 million and USD900,000, respectively, compared with USD5.5 million and USD700,000 last year. Cash flow from operations for the quarter ended 31 March was USD15.6 million, while capital expenditure was USD3.7 million for the period. HTCC had cash of USD37.3 million at 31 March 2006.
Commenting on the results, the company’s president and CEO Torben V Holm said: The Company has doubled in size since last year as a result of the acquisition of Pantel, and results have improved. Both adjusted EBITDA and pro-forma net income are up. On the other hand, our reported results have been negatively affected by the weakening of the Hungarian forint against the euro during the period. Given all of the competitive and regulatory pressures we face in the business today, we are quite pleased with the performance.’
HTCC provides telecoms services in Hungary through its three operating subsidiaries, Hungarotel, PanTel, and PanTel Technocom. At the end of March 2006 Hungarotel had approximately 150,000 access lines in service, while PanTel accounted for a further 36,000 access lines, serviced through its country-wide fibre-optic backbone network. In addition, Hungarotel provided carrier selection and carrier pre-selection calling services to 54,000 customers (of which 14,000 were active) outside its franchise areas.