Hungarian utility billing firm Dijbeszedo plans Romanian
expansion, 60% revenue boost by 2011
Hungary Business Weekly , 2. november 2007
BUDAPEST. OCTOBER 18. INTERFAX CENTRAL EUROPE – Hungary's privately-owned Dijbeszedo Zrt, a provider of billing and factoring services for utility companies, is planning to boost revenues by 60% by 2011, thanks partly to the company's planned expansion into Romania, company officials said Thursday, according to news portal portfolio.hu.
Deputy CEO Adam Kiss said that Dijbeszedo expects to enter the Romanian market sometime within the next few months, offering debt collection services for local banks and telecom utilities.
By 2011, the last year of its current five-year strategy period, Dijbeszedo plans to achieve sales revenues of HUF 13 bln, a 60% increase over 2006 levels.
Within total revenues, Dijbeszedo expects the share of billing services to utility companies – until now the company's core business – to fall from 75% last year to just 58%, even as the company continues to roll out the service to utility companies in major cities outside the capital Budapest.
By contrast, the share of paper-based services, such as printing and mass-mailing, should rise from 20% to 23% of total revenues. Dijbeszedo also plans significant expansion in its factoring and debt-collection business, where it also plans to target companies outside the utility sector. In the process, the share of factoring revenues within the total should rise from last year's 5% to 19% by 2011, the company said.
Dijbeszedo issues 15 million bills to 750,000 households every year, collecting HUF 50 bln on behalf of its utility clients. The company was privatized in 1993, and is now owned by current and former management and employees.