Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q3 2016 Earnings Presentation
18 slides from Magyar Telekom Telecommunications's earnings presentation, Nov 9, 2016
Slide 1: Magyar Telekom Group Q3 2016 Results Presentation
MAGYAR TELEKOM GROUP Q3 2016 RESULTS PRESENTATION NOVEMBER 9, 2016
Slide 2: Q3 2016 Strategic Highlights: Hungarian Segment Continues to Drive Group Performance
Q3 2016 STRATEGIC HIGHLIGHTS: HUNGARIAN SEGMENT CONTINUES TO DRIVE GROUP PERFORMANCE Decline due to partial exit from energy business and lower SI/IT revenues; excl. energy REVENUE and SI/IT, revenues up by 1.2% driven by growth in mobile revenues EBITDA up by 10.0% as lower employee related and
Slide 3: 9M 2016 Financial Highlights and Revised Targets for 2016
9M 2016 FINANCIAL HIGHLIGHTS AND REVISED TARGETS FOR 2016 9M 2016 RESULTS vs. 9M 2015 2016 NEW TARGETS 2017 TARGETS REVENUE HUF 443.8 bn (-6.3%) around HUF 595 bn* HUF 585 – 595 bn Decline due to partial exit from energy business and lower SI/IT revenues Excluding energy and SI/IT, revenues up b
Slide 4: Q3 2016 Group Segmental Revenue and EBITDA
Q3 2016 GROUP SEGMENTAL REVENUE AND EBITDA Group segmental revenues Group segmental EBITDA HUF bn HUF bn +10.0% 160 -4.7% 55 5.1 0.1 -0.1 -0.2 158.0 -6.3 53.8 158 54 53 156 52 154 51 152 -0.4 -0.7 50 0.0 150.6 48.9 150 49 0 0 3Q 2015 Hungary Macedonia Montenegro Elimination 3Q 2016 3Q 2015 Hungary M
Slide 5: Hungary
HUNGARY Revenue* EBITDA HUF bn HUF bn +12.8% 140 -4.7% 46 4.3 -0.9 5.5 0.0 45.1 0.0 0.4 -0.5 138 -0.6 -8.0 44 136 135.3 -1.6 0.6 42 134 40.0 -0.8 132 40 0.4 130 129.0 38 128 0 0 3Q Mobile Mobile Mobile Fixed Fixed TV Fixed SI/IT Energy 3Q 3Q 2015 Gross Special tax Employee Other op. 3Q 2016 2015 voi
Slide 6: Hungary – Mobile
HUNGARY – MOBILE Mobile SIMs Mobile ARPU (HUF) „000 HUF -3.3% 6,000 5,482 5,504 5,372 5,344 5,301 Prepaid 3Q 2015 3,324 Postpaid Blended +0.9% 3Q 2016 3,354 4,500 44.0% 43.6% 42.3% 41.8% 41.1% 1,206 3,000 Prepaid -0.8% 1,197 1,500 56.0% 56.4% 57.7% 58.2% 58.9% 4,993 Postpaid -2.2% 4,882 0 3Q 2015 4Q
Slide 7: Hungary – Fixed Broadband and TV
HUNGARY – FIXED BROADBAND AND TV Fixed BB customer number Pay TV customer number „000 „000 2.9% 3.5% 952 962 964 971 979 1,200 1,000 984 996 1,009 1,009 1,019 <10Mbps Sat 1,000 7% 6% 6% 5% 5% 10Mbps -30Mbps 800 32% 32% 32% 31% 31% Cable 800 >30Mbps IPTV 600 16% 15% 15% 14% 65% 64% 62% 17% 600 68% 66
Slide 8: Hungary – Fixed Voice and Energy
HUNGARY – FIXED VOICE AND ENERGY Fixed voice customer number Fixed voice ARPU „000 -2.0% HUF 1,467 1,461 1,448 1,441 1,437 PSTN 1,500 16% 10% IP based* 2,750 32% 27% 23% Blended -7.9% 2,533 1,000 84% 90% 3Q 2015 500 68% 73% 77% 3Q 2016 0 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 Energy revenues Highli
Slide 9: Hungary – Multiplay
HUNGARY – MULTIPLAY Fixed line multiplay residential subs. development Fixed line multiplay residential ARPU development „000 1Play HUF 2Play 5,702 3Q 2015 1,500 1,409 1,406 1,395 1,391 1,382 3Play Blended +2.5% 3Q 2016 5,844 36% 35% 34% 33% 32% 2,969 1,000 1Play +3.4% 3,071 30% 30% 30% 30% 29% 5,83
Slide 10: Hungary – SI/IT
HUNGARY – SI/IT Total Hungarian IT services market development* Market share** HUF bn % +4.6% Telekom 300 274 262 IT Infrastructure 14% HP 249 250 223 233 NISZ 219 services 40% 40% 7% 200 41% System Integration / Microsoft 42% 42% 41% 4% IT Application services IBM 150 3% 2% 2% MVMI 100 63% 2% 2% 59
Slide 11: Macedonia
MACEDONIA Financials Mobile KPIs Revenues (HUF bn) EBITDA (HUF bn) Subscribers One (T. Slovenia)* -3.0% 2,500,000 -0.5% VIP (T. Austria) +1.9% One.Vip 15.0 6.0 26.1% 0.3 -0.5 2,000,000 25.0% 0.0 5.9 50.4% Telekom 0.1 14.4 1,500,000 27.0% 14.5 -0.3 28.4% 5.9 1,000,000 14.0 5.8 49.6% 14.0 500,000 46.9
Slide 12: Montenegro
MONTENEGRO Financials Mobile KPIs Revenues (HUF bn) EBITDA (HUF bn) Subscribers +0.5% 1,200,000 -8.2% -3.8% 1,000,000 Telenor 8.6 8.4 -0.1 2.9 38.2% 39.3% 38.3% -0.5 2.8 -0.2 800,000 m:tel (T. Serbia) 8.4 2.8 T-Mobile 8.2 0.1 2.7 600,000 28.9% 28.5% 29.0% 8.0 -0.1 2.7 400,000 7.8 7.7 200,000 33.0% 3
Slide 13: Appendix
APPENDIX
Slide 14: Market Position in Hungary
MARKET POSITION IN HUNGARY Total mobile market* Fixed voice market** Subscribers Subscribers -1.0% Vodafone Other 12,000,000 3,500,000 +1.2% Telenor Invitel 22.9% 24.3% 24.7% MT 3,000,000 3.9% 3.1% 3.2% DIGI 12.9% 13.0% 13.1% 9,000,000 2,500,000 UPC 10.0% 10.8% 11.5% 30.0% 27.9% 28.1% MT 2,000,000 1
Slide 15: Magyar Telekom – Consolidated Income Statement
MAGYAR TELEKOM – CONSOLIDATED INCOME STATEMENT HUF million Q3 2015 Q3 2016 Change Mobile revenues 79,105 82,659 4.5% Fixed line revenues 52,702 50,752 -3.7% System Integration/Information Technology revenues 16,781 15,736 -6.2% Revenue from energy services 9,418 1,459 -84.5% Revenues 158,006 150,606
Slide 16: Magyar Telekom – Consolidated Balance Sheet
MAGYAR TELEKOM – CONSOLIDATED BALANCE SHEET HUF million December 31, 2016 Sept 30, 2016 Change Current assets 210,178 182,064 -13.4% Cash and cash equivalents 17,558 8,410 -52.1% Other current financial assets 11,052 3,663 -66.9% Non current assets 996,846 966,968 -3.0% Property, plant and equipment
Slide 17: Magyar Telekom – Consolidated Cash Flow Statement
MAGYAR TELEKOM – CONSOLIDATED CASH FLOW STATEMENT HUF million 1-9 months 2015 1-9 months 2016 Change Net cash generated from operating activities 106,993 104,473 -2.4% Investments in tangible and intangible assets (59,929) (67,804) -13.1% Adjustments to cash purchases (3,754) (13,070) 248.2% Purchas
Slide 18: For further questions please contact the IR department
For further questions please contact the IR department: Investor Relations Márton Lennert Phone: +36 1 458-0424 Head of Investor Relations Fax : +36 1 458-0443 Phone: +36 1 457-6084 e-mail: investor.relations@telekom.hu e-mail: lennert.marton@telekom.hu Linda László Gerda Gáti Investor Relations Con