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Invitel publishes 9M11 financial results

23 Nov 2011

Invitel, which claims to be the number one alternative and the second largest fixed line telecoms provider and broadband ISP in Hungary, has announced the financial results of its Magyar Telecom unit (not to be confused with the country’s incumbent operator Magyar Telekom, or MTel) and its subsidiaries, for the nine months ended 30 September 2011. Invitel notes that the company’s results in the period under review have been affected by the difference between the average EUR/HUF exchange rates. The Hungarian forint appreciated against the euro by 1% with an average EUR/HUF exchange rate of 271.28 during the nine months ended 30 September 2011, compared to the average EUR/HUF exchange rate of 275.25 during 9M10.

Magyar Telecom, which delivers voice, data and internet services to residential and business customers, said revenue from continued operations increased by 2% year-on-year to EUR148.5 million (USD200.6 million) for the nine months ended 30 September 2011, up from EUR145.3 million in the year-earlier period. The operator’s segment gross margin was EUR122.0 million for the nine months under review, unchanged year-on-year, although operating expenses increased by 33% from EUR27.1 million to EUR36.1 million. Income from continued operations decreased by 61% to EUR12.6 million in 9M11, from EUR31.9 million in the corresponding period of 2010, while net income from continued operations reached EUR15.9 million for January-September 2011, reversing a loss of EUR13.1 million for the same period a year ago.

Commenting on the financial results, Invitel president and CEO Martin Lea said: ‘We have clearly still not seen any material improvement in the economic or general trading conditions with GDP growth slowing in Q2 and Q3 relative to the first quarter. Having said that, the third quarter did provide some encouragement with the year on year segment gross margin performance in both the residential and corporate segments showing improvement relative to earlier quarters. In residential we saw continued growth in Internet, and a slightly lower rate of decline in the in-concession voice business. In corporate we saw stronger growth in data and a reduced level of decline in corporate voice. In addition to that our Wholesale business, which by its nature can be rather spiky, continues to perform well.’

Hungary, Invitel (part of DIGI)

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