IT company econet.hu reports 2005 losses of Ft 166.69m

IT company econet.hu had 2005 losses of Ft 166.69m (€663,430), compared to a profit of Ft 29.19m in 2004, according to the firm's Monday consolidated, unaudited report prepared in accordance with International Financial Reporting Standards (IFRS).

The company reported a four-fold increase in material-related expenditures to Ft 968.8m and a nearly six-fold rise in personnel-related costs to Ft 86.2m in 2005. Revenue from sales was Ft 947.58m in 2005, compared to Ft 408.83m in 2004. The report attributed this rise in revenue to an increase in Internet-access proceeds and on-line advertising. The econet.hu registered operating losses of Ft 210.35m last year, compared to a 2004 operating profit of Ft 68.27m. The report ascribed three-quarters of the losses to depreciation write-offs and the remaining one quarter to losses stemming from some of the firm’s operations. The IT company’s net assets increased 65.4pc in 2005 to Ft 2.952bn. Over the past year, the value of econet.hu’s B-category stock has fluctuated between Ft 50 and Ft 103 on the Budapest Stock Exchange. Shareholders with a stake in excess of 5% were BALCO Holding BV, holding 15.01% and Budai Hazak, holding 11.68%.

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