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TvNetWork joins BÉT wannabe club

Telecommunications company TvNetWork Rt has been presented as a new member of the Club of Quotables, a group of companies with definite plans to list at the Budapest Stock Exchange (BÉT), today. ?We want to be the first to go public after FreeSoft,? general deputy CEO Tamás Kabay declared at the press conference, adding that this will probably take place in Q2 or Q3 2005. As the first step, TvNetWork will be transformed into a public shareholding company, with an IPO to follow to attract Ft 400 million new capital to cover this year?s expansion and acquisition plans. The management is expecting interest primarily from the subscibers of the company and private investors, but venture capital firms are also welcome. ?The IPO price will be lower than the real value of the stocks to give trading a jump start. The beginning is important and we want this to be a success story,? TvNetWork President Attila Nemes said. ?After this year?s IPO and acquisitions, we are planning on further acquisitions in 2006 and preparing to buy up several networks,? he added.
Established in October 2000, TvNetWork is active in the broadband Internet and telecommunications market. The registered capital of the company is currently Ft 1.5 billion, while its book value is over Ft 2.5 billion, Kabay said. The company is 100% Hungarian-owned and it employs more than 100. The year 2003, when the business first broke even with Ft 6.6 million profit, marked a turning point in the history of TvNetWork. Last year, net income jumped to Ft 120 million, and EBIDTA totaled Ft 290 million. In 2004, the company also added VoIP services to its service portfolio.
As a result of the bourse?s endeavors to recruit new members to the Club of Quotables, several Hungarian companies have joined the club since it was launched a few years ago, CEO Zsolt Horváth said. He said the management of the stock exchange is expecting 4-5 new listings on the virtual trading floor of BÉT this year.