HTCC to review strategic alternatives

1 Jul 2008

Hungarian alternative telecoms operator Hungarian Telephone and Cable Corp, which trades under the Invitel brand, says it has retained the services of investment banking firm BNP Paribas Corporate Finance to assist its evaluation of the strategic alternatives for the company. HTCC says it does not expect make public any disclosures or provide additional information regarding the status of its review of strategic alternatives until the review is completed. In a statement the firm said it could make no assurances that any particular course of action would be pursued or provide accurate timings or terms of any such strategic alternative. Following the announcment, the company’s stock rose 9% in the morning trading session.

In May this year, HTCC reported revenue of USD131.5 million for its first quarter ended 31 March 2008, up 168% compared to revenue of USD49.1 million for the first quarter 2007. HTCC said its gross margin increased by 216% to USD75.8 million, from USD24 million in Q1 2007, while income from operations rose 236% from USD6.7 million to USD22.5 million. HTCC’s net income attributable to common stockholders for the first quarter 2008 was USD4 million, compared with a net loss of USD54.7 million in the first quarter 2007.

Hungary, Invitel (a subsidiary of DIGI)