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Externet revenue and after-tax losses decline in 2010

Hungarian internet- and telecommunications-service provider Externet sustained after-tax losses of HUF 387,150 on revenue of HUF 1.71 million in 2010, down from after-tax losses of HUF 415,722 on revenue of HUF 2.29 million in 2009, the Budapest Stock Exchange-listed company said in its consolidated, audited 2010 IFRS report published on the BSE website.

Externet attributed the company's decline in turnover last year to a drop in revenue from broadband-internet services stemming from growing market competition and the continued effects of the global economic-crisis.

Externet noted that its payment of HUF 48 million in the government's extraordinary communications-sector tax last year contributed to the company's 2010 losses.

Externet said that in the future it would sell retail ADSL services in cooperation with major retail providers rather than under the company's own brand name and also increase its focus on business communications services. Externet noted that it has signed an agreement with Magyar Telekom to sell the company's ADSL services, an activity whose financial effects will appear in Externet's 2011 results.

Externet, which trades in the B-category at the Budapest Stock Exchange, has generated HUF 28,560 in turnover so far this year.