4iG Books Loss on Acquisition-related Costs
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.
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