Magyar Telekom Telecommunications Plc · BET:MTELEKOM

Magyar Telekom Telecommunications — Magyar Telekom — Q2 2013 Earnings Presentation

16 slides from Magyar Telekom Telecommunications's earnings presentation, 2013

  1. Slide 1: Magyar Telekom Group Q2 2013 Results

    MAGYAR TELEKOM GROUP Q2 2013 RESULTS

  2. Slide 2: Highlights

    HIGHLIGHTS  Revenue growth maintained  Market position improved in all key segments of the Hungarian market  Telekom Hungary fixed voice customer erosion and mobile ARPU decline successfully mitigated with equipment and service bundles  System Integration/IT project volume increasing further alt

  3. Slide 3: Public Targets for 2013

    PUBLIC TARGETS FOR 2013 Revenue Increasing  Upward revision due to higher contribution from equipment sales that also supports customer retention and thus revenue generation in the core business  Higher generated volume in the SI/IT business  Strong contribution from energy services EBITDA 9-12%

  4. Slide 4: Q2 2013 Group Results – Revenues and EBITDA

    Q2 2013 GROUP RESULTS – REVENUES AND EBITDA Group revenues Group EBITDA HUF bn HUF bn 160 50 2.9 156.9 0.8 49.8 49.6 1.3 155 6.2 150 2.8 1.2 49 145.5 -2.4 4.8 145 -2.6 -0.8 0.6 0.5 140 48 135 0 0 Q2 Mobile Fixed Fixed M. non- Mobile SI/IT Energy Other Q2 Q2 2012 Direct margin Employee- Net other Tax

  5. Slide 5: Telekom Hungary – Financial Performance

    TELEKOM HUNGARY – FINANCIAL PERFORMANCE Revenues HUF million +10% 120,000 113,972 103,156 8% Telekom Hungary 3% 90,000 Fixed line revenues flat 54% 55%  higher revenues from equipment sales and 60,000 TV services compensating for voice revenue erosion 30,000 Energy 42% 38% Mobile Mobile revenues in

  6. Slide 6: Hungary – Fixed Voice Market

    HUNGARY – FIXED VOICE MARKET Telekom Hungary fixed voice subscribers Subscribers 2,000,000 -3% 1,569,246 1,521,179 1,500,000 Market trends 1,000,000  significant reduction in fixed voice churn due to the retention benefit of: VoCa 500,000 • Hoppá package VoIP PSTN • 2Play/3Play offers 0 June 2012 J

  7. Slide 7: Hungary – Energy Retail

    HUNGARY – ENERGY RETAIL Gas and electricity points of delivery (POD) PODs 200,000 Gas Electricity 168,147 174,939 160,000 147,845 Market trends 126,017 120,000 87,819 80,000  soft launch in 2010, nationwide from April 61,516 2012 40,000 35,262  customers receive discounts of 3-8% on 0 their energy

  8. Slide 8: Telekom Hungary -- Broadband and TV Market

    TELEKOM HUNGARY -- BROADBAND AND TV MARKET Fixed broadband subscriber breakdown Subscribers +3% 1,000,000 863,984 890,661 4.3% 5.3% 750,000 27.0% 29.2% Market trends 500,000  broadband market growth driven by cable and Fiber fiber 57.4% 56.6% 250,000 Cable BB  internet service portfolio restructur

  9. Slide 9: Telekom Hungary – Mobile Market

    TELEKOM HUNGARY – MOBILE MARKET Telekom smartphone penetration % of total handsets 40 % Market trends 37.1 % 31.3 %  improving customer mix: y-o-y increase in 30 % postpaid ratio to 48% from 46.5%  smartphone sales reached 67% 20 % 18.4 %  broadband subscription attach rate at ca. 84% 10 %  full

  10. Slide 10: T-Systems Hungary – Financial Performance

    T-SYSTEMS HUNGARY – FINANCIAL PERFORMANCE Revenues +9% HUF million 29,950 T-Systems Hungary 30,000 27,597 Fixed revenues down 6% 20,000 49.6% 58.6%  lower usage data networks  continued pressure on tariff levels 10,000 28.9% 22.6% Absence of Pro-M revenues SI/IT Mobile 21.5% 18.7% 28% increase in

  11. Slide 11: Macedonia – Financial Performance

    MACEDONIA – FINANCIAL PERFORMANCE Revenues HUF million Macedonia 20,000 -6% Mobile revenues under pressure 16,330 11.0% 15,318  strong price competition 15,000 13.0%  MOU up due to increasing volume of 47.6% bundled minutes 10,000 43.9% Mobile other  #1 position maintained with 48% market 5,000 1

  12. Slide 12: Montenegro – Financial Performance

    MONTENEGRO – FINANCIAL PERFORMANCE Revenues HUF million Montenegro 10,000 0% Competitive mobile market 8,249 8,239 8,000  unfavorable economic environment and 11.0% 14.4% SIM based tax put pressure on retail voice 6,000 33.7% 29.3% revenues  lower wholesale revenues driven by 43% 4,000 cut in inte

  13. Slide 13: Magyar Telekom – Consolidated Income Statement

    MAGYAR TELEKOM – CONSOLIDATED INCOME STATEMENT HUF million 2Q 2012 2Q 2013 Change Mobile revenues 75 970 78 939 3.9% Fixed line revenues 54 000 53 522 -0.9% System Integration/Information Technology revenues 12 436 15 191 22.2% Revenue from Energy Services 3 056 9 255 202.8% Revenues 145 462 156 907

  14. Slide 14: Magyar Telekom - Consolidated Balance Sheet

    MAGYAR TELEKOM - CONSOLIDATED BALANCE SHEET HUF million Jun 30, 2012 Jun 30, 2013 Change Current assets 183,176 195,657 6.8% Cash and cash equivalents 11,992 15,118 26.1% Other current financial assets 36,461 31,009 -15.0% Non current assets 851,077 842,406 -1.0% Property, plant and equipment - net

  15. Slide 15: Magyar Telekom - Consolidated Cashflow Statement

    MAGYAR TELEKOM - CONSOLIDATED CASHFLOW STATEMENT HUF million Jun 30, 2012 Jun 30, 2013 Change Net cash generated from operating activities 63,559 41,468 -34.8% Investments in tangible and intangible assets (40,181) (40,620) 1.1% Adjustments to cash purchases (13,881) 2,758 -119.9% Purchase of subsid

  16. Slide 16: For further questions please contact the IR department

    For further questions please contact the IR department: Investor Relations Phone: +36 1 458-0424 Fax : +36 1 458-0443 e-mail: investor.relations@telekom.hu Abbreviations: 3G: third generation, 4G: fourth generation, ARPU: average revenue per user, BB: broadband, CUG: closed user group, HQ: headquart

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