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Externet profits improve, revenue falls in H1 2011

Hungarian internet- and telecommunications-service provider Externet had consolidated revenue of HUF 527 million in H1 2011, down 39% from the same period of 2010, the company said on The Budapest Stock Exchange website.

Externet closed the first half of this year with EBITDA of HUF 152m, up 82% from H1 2010, as a result of a sale and purchase agreement with Magyar Telekom affecting ADSL clients concluded in December 2010. The transaction is expected to be closed by the end of 2011.

Excluding that transaction, which generated revenue of HUF 108 million for H1, first-quarter EBITDA would have come to HUF 44 million.

The company had after-tax losses of HUF 3 million, an improvement of HUF 94 million, mainly resulting from the above transaction.

The results include extraordinary impairment of HUF 22 million related to the VIVANET acquisition under other expenditures, and the results include the impact of the telecom tax adopted by parliament in October 2010. This amounted to around HUF 6 million in the first half of 2011.

The Externet group reduced the stock of its bank loans in the first half of this year.

Externet shares are traded in the B-category of the Budapest Stock Exchange and have been listed at the Frankfurt stock exchange since April 2011.