Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from [Fred Kuji]
[Fred Kuji]
Three questions please, on the IPTV do you have any target for EBITDA break even, can you give us an idea as to how that’s going to perform coming out of the block the first couple of quarters on the EBITDA line? The second question is on the amortization schedule it doesn’t seem too on risk but on the other hand is there any, do you see that being an obstacle to your normal course of business? The third thing is on your derivatives you’ve got five billion forint is there anything that you can do with this?
Martin Lea
I’ll address the first question which related to IPTV. As far as EBITDA is concerned we expect it broadly to be EBITDA mutual in 2008 and then positively additive in terms of EBITDA from 2009 going forward.
Robert Bowker
The second question would see no obstacles in our debt to amortization but bear in mind we have EUR 30 million on hand as well. Third question, around the derivatives I wasn’t quite clear on that, are you referring to the derivative liability?
[Fred Kuji]
I guess I’m mixing things up. I guess I just wanted to understand exactly where you are on your currency hedge and if you’re going to potentially make a gain on that given the possibly unexpected strength of the forint so far this year.
Robert Bowker
We made a large gain in the first quarter because the currency weakened but obviously the currency is now strengthened. As it stands now we would have made a loss. Conversely we would have made a gain on the translation of our Euro denominated debt. It just moves in the opposite direction.
Operator
Your next question comes from Camille McLeod-Salmon – Fortis Investment.
Camille McLeod-Salmon – Fortis Investment
I have three questions. My first question it relates to line item about deferred income on the balance sheet and I just wanted to know if this is from IIU?
Robert Bowker
Yes it is.
Camille McLeod-Salmon – Fortis Investment
Over what period will revenue be recognized?
Robert Bowker
Over the period of the contract, number of contracts, varying lengths.
Camille McLeod-Salmon – Fortis Investment
Is this an indication of the kind of length we’re looking at 20 years or so?
Robert Bowker
Sometime five, sometimes 20 and anywhere in between.
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