Vodafone Magyarország Acquisition Lifts 4iG Earnings in H1
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Listed ICT company 4iG had an H1 after-tax profit of HUF 7.8 billion, improving from a HUF 2.8 bln loss in the base period, supported by its acquisition of a controlling stake in Vodafone Magyarország, an earnings report published after the closing bell on Thursday shows.
Vodafone closed the acquisition of a 51% stake in Vodafone Magyarorszag on January 31, 2023. It raised its stake in the telco to 70.5% through a share swap on March 20.
The report shows net sales revenue climbed 119% to HUF 266.2 bln. EBITDA jumped 190% to HUF 95.3 bln.
4iG noted that Vodafone Magyarország contributed HUF 42.5 bln to group-level EBITDA, in spite of booking a HUF 51 bln standalone loss due mainly to interest payments on an intercompany loan from the U.K.'s Vodafone group that was dissolved after the sale of the Hungarian business was closed.
4iG said its telecommunications activities generated 87% of net sales revenue and the IT business accounted for 13%. Geographically, 86pc of net sales were generated in Hungary, 10% in Albania, and 4% in Montenegro.
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