4iG Books Loss on Acquisition-related Costs

Deals

Image: Facebook

Listed IT company 4iG booked a Q1-Q3 loss of HUF 7.7 billion as acquisitions and related costs weighed, an earnings report released after the closing bell on Wednesday shows, state news wire MTI writes.

Revenue jumped 310% to HUF 218.8 bln during the period, as 4iG consolidated telecommunications acquisitions. The company noted that its telco business generated 74% of net turnover during the period.

Operating profit climbed 271% to HUF 7.2 bln, but HUF 31.9 bln in financial costs - up from just HUF 0.6 bln in the base period - put 4iG in the red.

In addition to the acquisitions and related costs, 4iG said recurring non-cash items, including depreciation and interest expenses recognized on newly acquired assets and liabilities as a result of IFRS compliance and increased depreciation due to the harmonization of accounting policies, had a "significant impact" on the bottom line.

In the future, 4iG expects to realize "significant benefits" from synergies, it added.

ADVERTISEMENT

Loan Officers Survey Indicates Increased Caution Banking

Loan Officers Survey Indicates Increased Caution

Gov't Guarantees on Liabilities Climb Over 9% of GDP in 2021 Government

Gov't Guarantees on Liabilities Climb Over 9% of GDP in 2021

Corvex Winds up Virtual Bank Card Project Fintech

Corvex Winds up Virtual Bank Card Project

European Capital of Culture Program Set to Boost Economy - N... Art

European Capital of Culture Program Set to Boost Economy - N...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.