Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q1 2020 Earnings Presentation
19 slides from Magyar Telekom Telecommunications's earnings presentation, July 2020
Slide 1: Magyar Telekom Group Investor Presentation
Magyar telekom group investor presentation July 2020
Slide 2: Disclaimer
Disclaimer This investor presentation contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore should n
Slide 3: Strategy and market position
01 Strategy and market position 3
Slide 4: Overview – Magyar Telekom at a glance
Overview – Magyar Telekom at a glance Overview Pillars of transformation ▪ Integrated operations in Hungary and Macedonia GROW ▪ Leading telecommunications service provider in both countries Lead In Customer Lead in Lead in Business ▪ Leading SI/IT service provider in Hungary Experience Technology P
Slide 5: Strategy Highlights
STRATEGY HIGHLIGHTS Network Services Optimization North Macedonia ▪ Accelerated fiber rollout ▪ Continuous shift to higher bandwidth ▪ Continued agile transformation ▪ Sustained positive trends in customer fixed broadband subscriptions process developments ▪ Acquisition of 5G licenses and launch of
Slide 6: Measures in response to Covid-19
MEASURES IN RESPONSE TO COVID-19 Offers Operation Network ▪ Promotional mobile data offers ▪ Optimization of sales channels ▪ Monitoring capacity levels ▪ Zero rated educational content ▪ Increasing online sales and customer care ▪ Servicing to facilitate increased demand in the public and corporate
Slide 7: Hungarian telco market positions
Hungarian telco market positions Total mobile market1 Fixed voice market1 Subscribers (mn) Subscribers (mn) Others 4 Other 11.2 11.0 11.1 11.4 Vodafone INVITEL 12 3. 1 3. 1 3. 0 2. 9 0.3% 0.7% 0.7% 1.3% 3 3.2% 3.3% 26.0% 26.7% Telenor 13.1% 12.3% 3.5% 3.6% DIGI 25.6% 26.4% 23.8% Magyar Telekom 11.9%
Slide 8: Hungarian IT services market shares
Hungarian IT services MARKET shares IT Services market shares (by revenue)1 SYSTEM INTEGRATION IT INFRASTR. SI & Pack- age Custom app. IT Apps. OS & IT Infra. OS Infra. proj. IT 60 appl. 60 dev. 60 SI 60 60 Consult. Outsourc. 60 Hosting 60 & op. 60 service 60 Cloud 100% Other Magyar 50% 11% Telekom
Slide 9: Hungarian economic environment
Hungarian economic environment Growth structure Domestic demand 8% 6% 5.1% 4.9% ▪ Magyar Telekomleveraged positive trends of domestic demand 3.7% 4.0% 4% 3.4% ▪ Investment levels show volatility due to EU fund cycles 1.5% 2.0% 2% 0% -2% 2013 2014 2015 2016 2017 2018 2019 Consumption of HH-s Inflatio
Slide 10: Network developments in Hungary
network developments in Hungary Mobile Revenuenetwork 1 coverage (population based) EBITDA Fixed network 1 (access points) ‘000 % 4 500 100 97% 98% 99% 97% 99% 97% 99% 4 014 4 090 4 144 3 925 3 964 86% 87% 4 000 83% 13% 3 500 17% 20% 25% 80 3 000 47% 60 2 500 2 000 40 84% 87% 89% 85% 89% 85% 89% 87%
Slide 11: Hungarian mobile spectrum
Hungarian mobile spectrum Current spectrum allocation (MHz) 700 10 10 5 25 800 10 10 10 30 900 2 10 1 10 10 2 35 1800 15 5 10 15 3 15 12 75 2100 15 15 15 5 10 60 2600 30 20 20 70 1500 40 2600 5 25 15 5 50 3500 10 60 20 50 60 200 3700 60 140 200 Magyar Telekom Vodafone Telenor Digi not allocated 11
Slide 12: Results and public targets
03 results and public targets 12
Slide 13: Public targets for 2020-2021
PUBLIC TARGETS FOR 2020-2021 2019 RESULTS 2020 TARGETS*** 2021 TARGETS*** REVENUE HUF 666.7 bn BROADLY STABLE EBITDA AFTER LEASE HUF 197.6 bn INCREASING AT A 1% - 2% PER ANNUM CAPEX* HUF 89.6 bn BROADLY STABLE FREE CASHFLOW** HUF 65.1 bn INCREASING CA. 5% BROADLY STABLE * EXCLUDING SPECTRUM LICENSE
Slide 14: Q1 2020 results and financial targets
Q1 2020 RESULTS AND FINANCIAL TARGETS 3M 2020 Results Target 2020 (change y-o-y) Continued growth in telecommunication service revenues HUF 159.3 bn REVENUE SI/IT revenue contraction reflects further decline in public sector demand (+0.2%) Broadly stable Marginal negative effect of Covid-19
Slide 15: Hungarian financial developments
HUNGARIAN FINANCIAL DEVELOPMENTS REVENUES EBITDA AL ▪ Telecommunication service revenue growth continues ▪ Gross profit decline as a result of: ▪ Decline in equipment sales revenues due to initial impacts of Covid-19 –Lower SI/IT contribution ▪ SI/IT revenue decline driven by lower level of project
Slide 16: Hungary – customer developments
Hungary – customer developments Mobile SIMs Fixed line multiplay residential subscribers ‘000 ‘000 +1.7% +3.2% 5, 569 5, 665 M2M 1, 398 1, 443 1Play 4.7% 5.1% Prepaid 25% 21% 2Play 35.1% 33.7% Postpaid 3Play 30% 33% 60.2% 61.2% 45% 46% Q1 2019 Q1 2020 Q1 2019 Q1 2020 Mobile data SIMs Fixed voice cus
Slide 17: Hungary – average usage & ARPU developments
Hungary – average usage & arpu developments Mobile ARPU Fixed Voice, BB and TV ARPU HUF HUF Q1 2019 Q1 2019 3,447 2,252 Blended +2.7% Q1 2020 Fixed voice -4.4% Q1 2020 3,540 2,152 1,015 3,485 Prepaid -8.1% Fixed BB +2.0% 933 3,556 4,964 Postpaid +0.1% 3,312 4,971 Pay TV -1.1% 3,274 661 M2M -6.8% 616
Slide 18: North Macedonia
North Macedonia Revenues EBITDA AL (MKD mn) (MKD mn) +3.7% 68 2,636 -1.5% 25 1,037 8 2 1,021 16 2,541 11 -50 Q1 2019 Mobile Fixed SI/IT Q1 2020 Q1 2019 Gross profit Employee Other operating IFRS 16 impacts Q1 2020 related exp. exp (net) KPIs (mobile/fixed voice/fixed BB/TV) ▪ Telecommunication servi
Slide 19: For further questions please contact the IR department
For further questions please contact the IR department: Melinda Modok Rita Walfisch Head of Investor Relations Investor Relations Manager Phone: +36 1 481-7676 Phone: +36 1 457-6084 e-mail: modok.melinda@telekom.hu e-mail: walfisch.rita@telekom.hu ? 19