4iG profits boosted by Vodafone Hungary
September 1, 2023
4iG has reported that its acquisition of Vodafone Hungary, completed in the first quarter of this year, has enabled it to “achieve the necessary scale of operations in the domestic and regional telecommunications sector”, allowing it to “maximise synergies between its strategic sectors, operating as a convergent service provider from IT to telecommunications”.
The Group is Hungary’s second largest telecoms operator and an IT systems integrator, alongside 4iG’s Montenegrin and Albanian telecoms subsidiaries, which are also leading players in their respective national markets. Within the Group, the results of the telecom subsidiaries and the increasing weight of recurring revenues, as well as operational synergies and strict cost management within the Group, have had a significant impact.
The 4iG group says is on its proper growth path, as confirmed by the periodic reviews of the group’s activities by analysts and independent rating agencies.
The consolidated net sales revenue of 4iG according to IFRS amounted to HUF 266.2 billion (€0.69bn) in the first half of 2023, which was 118.5 per cent higher than in the same period of the previous year, the capital market company announced in its first half-year report of 2023 on the Budapest Stock Exchange. EBITDA (earnings before interest, tax, depreciation, and amortisation) increased to HUF 95.3 billion (up by 190 per cent). With the positive EBITDA figures, profit after tax rose to HUF 7.8 billion, following an adjusted loss of HUF 2.75 billion last year.
Some 87 per cent of the Group’s net sales revenue were generated by telecommunications services and 13 per cent by IT services.