PRESS RELEASE
4iG published its Q3 report
Group-level operations have significantly increased its efficiency
- In the first three quarters of the year, 4iG’s revenue amounted to HUF 196.7 billion, EBITDA exceeded HUF 55.1 billion, and EBITDA margin was 28 percent.
- The ongoing integration of the Group’s Hungarian IT and telecommunications companies will further strengthen cooperation between the divisions, enhancing short-term operational results.
- The merger of ALBtelecom and One Telecommunications could position 4iG as one of the leading players in the Western Balkan infocommunications market.
In 4iG Plc’s (4iG) Q3 report, the
capital market company announced on the Budapest Stock Exchange that it
continued its expansion strategy and significantly improved its balance sheet.
The infocommunication group’s operational efficiency was enhanced by structural
changes in the third quarter. On 1 September, 4iG introduced a new corporate
governance structure, aligning the central management of the Group with its
large corporate operations. The restructuring has created centralised
operational functions in key areas. 4iG remains Hungary’s leading IT systems
integrator and a key player in the domestic and the Western Balkan
telecommunications sector.
The integration of the telecommunications companies in
Hungary and the Western Balkans continued during the third quarter of 2022, improving
the Group’s operating results in the short term. ALBtelecom’s strong fixed
services and One Telecommunications’ mobile market portfolio will position the
4iG group as the most dynamically growing operator in the Albanian telecoms
market after the merger. The merger of the two companies will create a
convergent telecommunications operator. The Montenegrin One Crna Gora
significantly increased its results compared to a year ago thanks to a strong
tourist season. The company launched its residential 5G service, the first next
generation system in 4iG Group. In November, 4iG joined O-RAN Alliance (Open
Radio Access Network), an international telecom industry organisation founded
by the world's leading telco companies, which enabled the Group to join the branch
of global IT and telecommunications providers.
4iG, with the preliminary approval of the Israeli
Ministry of Communications, has acquired a 9.5 percent stake in Spacecom through
public share issue, the company operates and develops Amos satellite systems. 4iG
has an option to increase its stake to 20 percent in the coming months, which
could rise to 51 percent over the next 3 years, subject to further approval by
the authorities. The acquisition of Spacecom will enable 4iG to become a major
player in global satellite services.
In November, 4iG acquired the media platform operator
Honeycomb Group, which will carry on its services as Brisk Digital Group in
Hungary and the Western Balkans region. The strategic partnership between 4iG
and Rheinmetall reached an important milestone with the establishment of
Rheinmetall 4iG Digital Services Kft. (R4 Kft.) in November. The joint venture,
majority-owned by 4iG (51%), will play a progressively growing role in
Rheinmetall’s Hungarian and global IT support and will also offer IT services
to independent market entities worldwide.
Edison Group’s August analysis of the expected results
of the acquisition of Vodafone Hungary highlighted that with the successful
completion of the acquisition and the 5 million customers of the combined companies,
4iG would become the second largest convergent telecommunications group in the
Hungarian market. Scope Ratings annual review of 4iG affirmed that the current
B+ issuer and B+ debt ratings will remain open until the closing of the
previously announced Vodafone Hungary transaction, as the completion of the
acquisition could notably improve the Group’s credit metrics and business risk
profile, which could lead to a rating upgrade of up to two notches by Scope.
4iG Plc had consolidated net sales revenue of HUF
196.7 billion in the first nine months of 2022, the Group’s IFRS EBITDA
exceeded HUF 55.1 billion, with an EBITDA margin of 28 percent. The Group’s M9
negative profit (loss) after tax (- HUF 7.7 bn) was due to acquisitions and
related increased costs in the period under review, with the result expected to
improve significantly in later periods as synergies are exploited. Recurring
non-cash outflows in future periods had a significant impact on the result, in
particular, depreciation and interest expense on newly acquired assets and
liabilities due to IFRS compliance, and increased depreciation due to the
harmonisation of accounting policies.
- end -
Budapest, 30th November 2022
Notes for the editors:
4iG Plc
The
Budapest-based 4iG Plc is Hungary’s leading IT systems integrator with
significant interests in the domestic and regional info-communications markets.
The company has been present in the market for innovative industry-independent
IT technologies for more than 27 years. The company is continuously expanding
its services and portfolio to meet the changing needs and demands of the ICT
market. The Group employs nearly 6,000 people. 4iG is a broad-spectrum
solutions provider with significant interests in IT, telecommunications,
satellite telecommunications and telecommunications infrastructure development.
Listed on the Budapest Stock Exchange, the company aims to build a dominant
market position in a wide range of info-communications services in Hungary, Central
Eastern Europe, and the Western Balkans. www.4ig.hu/home
More
information:
Péter Elkán
Group
Head of Corporate Affairs and
Communications
peter.elkan
(@) 4ig.hu