HTCC 1H revenues rise 53% following Invitel acquisition

Alternative telco Hungarian Telephone and Cable Corp (HTCC) has posted its financial results for the first half of 2007, reporting a 53% rise in revenues to USD142 million, compared with USD92.7 million for the corresponding period of 2006. HTCC said its gross margin increased by 64% to USD75.1 million in the six-month period, compared to USD45.9 million a year ago. Income from operations, affected by post-Invitel acquisition restructuring and integration charges, increased by 7% for the six months ended 30 June 2007 to USD16.1 million up from USD15.1 million previously. Non-cash losses on ‘derivative financial instruments’ and ‘fair value changes of warrants’, coupled with one-time charges relating to the post-Invitel acquisition integration and restructuring of the operating companies, pushed the group’s net loss attributable to common stockholders for the six months ended June to USD70.8 million, or USD4.87 per common share, compared to USD638,000, or USD0.05 per share for the second quarter 2006. The operator’s pro-forma adjusted EBITDA, which does not include synergies relating to the Invitel purchase, rose 11% to USD89.3 million, from USD80.3 million a year ago. HTCC’s ‘cash and cash equivalents’ as of 30 June 2007 was USD46 million. Net third party debt was USD739.5 million.