"In tandem with either Vodafone or Pannon, Hungary's leading alternative telecommunications company Invitel is planning to launch its own mobile service before Christmas, the company said in an interview.The telecommunications market is expected to take a positive turn in Q2 2010 the soonest, Invitel Group CEO Martin Lea told Hungarian daily Világgazdaság. In Q1 2009, the company saw a 2% drop in revenues yr/yr while EBITDA fell 7%, figures suggesting that there is no need for efficiency-boosting measures, he added.
“We were quick to take action early in the year with a hiring freeze and adjusting marketing costs to the market in each line of business - most importantly in the household segment. Supplier contracts were also streamlined and adapted to match the recession environment, Lea said in the interview.
Despite the failure of the state mobile telephony tender, Invitel is still seeking to secure a presence in the market through cooperation with one of the 3 existing providers. Vodafone and Pannon are the most likely partners as neither of these mobile service companies have a fixed-line business.
Lea expressed a view that such a partnership may become a business success without state involvement, adding that Invitel is hoping to launch the first services in cooperation with one of these potential partners by Christmas.
The existing mobile providers are also open to partnership as they will jump at every opportunity to secure an additional stream of revenue in the current difficult situation, Lea added."
Source: Portfolio Online Financial Journal
15.09.2009