HTCC Q2 revenues up 60% on Invitel purchase

13 Aug 2008

Alternative fixed line operator Hungarian Telephone and Cable Corp (HTCC) has announced its financial results for the quarter ended 30 June 2008. The operator’s results reflect the acquisition of fixed line counterpart Invitel, effective from 27 April 2007. HTCC’s revenues climbed 60% year-on-year during the second quarter of 2008 to USD148.1 million, against USD92.8 million in the same period in 2007. Its gross margin rose 73% to USD88.5 million, up from USD51.1 million a year ago, while income from operations climbed 125% y-o-y from USD9.5 million to USD21.4 million. The telco said its quarterly net loss attributable to common stockholders was USD27.8 million in 2Q08, compared with a loss of USD16.2 million a year ago. The widening loss was attributed to a non-cash loss on derivative financial instruments of USD66.7 million, which was only partially offset by a FOREX gain of USD47.3 million.

The operator said Mass Market Voice revenues grew by 72% from USD25.4 million in the second quarter 2007 to USD43.7 million a year later, mainly as a result of the inclusion of Invitel and Tele2 Hungary (acquired in October 2007). HTCC’s Business sales increased 37% from USD28.6 million to USD39.1 million in the same period, again driven by Invitel’s contribution. The group’s Mass Market Internet unit continued to see strong demand for broadband DSL services, both inside and outside its historical concession areas. Mass Market Internet revenue rose to USD14.7 million in the second quarter 2008, up from USD8.4 million previously as HTCC increased its broadband DSL customer base from 109,000 subscribers to 131,000 in the year to end-June 2008. Wholesale revenue was up 66% y-o-y at USD50.6 million, primarily due to the Invitel and Memorex acquisitions.

Hungary,Invitel (a subsidiary of DIGI),

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