Poland-based Stream Communications Network & Media has announced that Stream Poland, controlled by Stream Communications and Penta Investments, has closed the acquisition of internet provider Homenet Technologies with a network located in Gdansk, Poland, for PLN9 million.
According to Stream Communications, as of June 30, 2008, Homenet had 5,850 revenue generating units (RGUs), that include internet, VoIP, and AV (Analog Video) subscribers. The number of Homenet RGUs will be verified by the end of November 2008, and the transaction price could be adjusted accordingly.
Jan Rynkiewicz, president and CEO of Stream Communications, said: The acquisition of Homenet increases Stream Poland’s subscriber base and strengthens its market position in Northern Poland, where on June 12, 2008 we announced that Stream Poland had secured an acquisition of a cable and internet service provider of approximately 19,000 RGUs.
In the recent declaration, the company’s revenues for 2007 rose 14.0% to $7,376,978 from $6,472,905 in 2006, after adjusting for foreign exchange from Polish Zloty to Canadian dollars. The company increased its customer rates for services because programming and lease costs also increased during the period.
According to the company report, overall expenses for the period increased 15% year over year, to $10,795,063, although the level of expenses as a percentage of revenue in 2007, 146%, remained stable when compared to 148% for the year-ago period. As of December 31, 2007, the company had a working capital deficit of $9,586,908, compared to a working capital deficit of $1,787,498 at December 31, 2006.