Press Releases

Budapest, April 1, 2005 15:00

Matáv has paid the EUR 114 million purchase price of Telekom Montenegro's (TCG) 51.12% share to the Government of Montenegro. At the same time, Matáv has acquired an additional 21.92% of TCG's shares from minority shareholders for EUR 2.2 per share, resulting in a purchase price of EUR 22.9 million. With the financial closing of the acquisition, a total stake of 73.04% of TCG is owned by Matáv.

TCG's balance sheet will be consolidated in Matáv's accounts as at March 31, 2005, while the results of TCG will be included in the consolidated income statement from the second quarter of 2005. The transaction has an impact on Matáv's first quarter 2005 cash flow.

In addition to the acquired stake of 73.04%, Matáv will make a public offer to acquire the remaining shares of TCG for EUR 2.2 per share.

The IFRS financial statements of TCG Group for the year ended December 31, 2004 have recently been completed. According to these, the consolidated revenues of TCG Group grew to EUR 97.7 million in 2004, EBITDA reached EUR 33.6 million resulting in an EBITDA margin of 34.4%. TCG Group's net debt ratio (net debt to net debt + equity + minorities) stood at 6.1% at the end of 2004. Gross additions to tangible and intangible assets amounted to EUR 23 million in 2004. TCG Group had 1,389 employees at the end of 2004.

With a 31.4% fixed line penetration at the end of 2004, Telekom CG, the Group’s fixed line division, had around 195,000 access lines and operated with a lines/employee ratio of 167. The fixed line division produced revenues of EUR 66.6 million and a 22.0% EBITDA margin in 2004 (EBITDA: EUR 14.7 million). Monet, TCG's mobile subsidiary is Montenegro's second largest mobile player with 179,000 revenue producing customers, giving it a 42% share in a market with an estimated penetration of 68%. Mobile revenues increased to EUR 37.3 million, with an EBITDA margin of 48.2% in 2004 (EBITDA: EUR 17.9 million). Internet CG is the country's dominant ISP, in a market with 8% penetration. The EBITDA margin of the Internet division reached 34.9%, while revenues amounted to EUR 3.5 million (EBITDA: EUR 1.2 million) in 2004. Internet CG's results have been consolidated from February 2004. All penetration data are based on an estimated population of 620,000.