Press News

Budapest, February 21, 2005

For the first time in its history, Axelero Internet reported profits for 2004: its profit before tax reached HUF 655 million - CEO György Simó announced today. The long-sought success is a result of increased revenues (a 65% increase compared to the previous year) as well as stringent cost-containment. Increased sales were driven by broadband internet, mainly ADSL, which generated more than 2.5 times more revenues than in 2003.

Compared to the HUF 12 billion revenue in 2003, Axelero Internet in 2004 reached HUF 19.8 billion in 2004, with a 65% increase. As a result of increased sales and stringent cost-cutting, pre-tax earnings (EBITDA) increased from a loss of HUF 0.8 billion in 2003 to HUF 1.8 billion in 2004, while profit before tax increased from a loss of HUF 2.1 billion to HUF 655 million, according to International Accounting Standards.
In 2004, the number of subscribers to its internet service reached 251,000, an increase of 26.3%. Axelero's share on the broadband internet market reached 39%, while in the dial-up segment that figure is 43%, making the company a clear market leader.
Increased sales were boosted by promoting broadband internet access: the number of ADSL subscribers doubled from 59,000 in 2003 to 118,000 in 2004, surpassing even targets raised continuously during the year. This generated revenues of HUF 10.4 billion, an increase of 147%. Sales from content services rose significantly (by 128%), reaching HUF 1.6 billion.