Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q4 2023 Earnings Presentation
15 slides from Magyar Telekom Telecommunications's earnings presentation, Feb 22, 2024
Slide 1: Magyar Telekom Group Q4 2023 Results Presentation
MAGYAR TELEKOM GROUP Q4 2023 RESULTS PRESENTATION February 22, 2024
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: Progress Against Strategic Priorities
PROGRESS AGAINST STRATEGIC PRIORITIES Digitization Customer experience Resilience ▪ Advanced network developments ▪ Ensure outstanding customer experience ▪ Sustainable growth despite external challenges ▪ Strengthen digital solutions and offerings ▪ Effectively monetize technology leadership ▪ Infl
Slide 4: Delivery of 2023 Guidance
DELIVERY OF 2023 GUIDANCE 2023 results 2022 results 2023 guidance Key drivers (change y-o-y) ▪ Sustained strength of operational performance 10%-15% HUF 849.4 bn REVENUE HUF 746.7 bn growth (+13.8%) ▪ Inflation-based fee adjustment implemented in March 2023 ▪ Major SI/IT project contributions ▪ Tele
Slide 5: Demand for Data Driving Growth in Hungary
DEMAND FOR DATA DRIVING GROWTH IN HUNGARY Mobile SIMs Mobile ARPU ‘000 +5.0% HUF 6,246 3,870 Q4 2022 5,950 Blended +14.5% M2M 4,430 753 1,117 Q4 2023 (12.7%) (17.9%) Prepaid 1,409 1,318 5,562 Postpaid Postpaid +19.5% (23.7%) (21.1%) 6,649 1,234 3,789 3,811 Prepaid +15.6% 1,427 (63.7%) (61.0%) 308 M2
Slide 6: Unlocking Value Through Network Leadership in Hungary's Fixed Market
UNLOCKING VALUE THROUGH NETWORK LEADERSHIP IN HUNGARY’S FIXED MARKET Fixed line multiplay residential subscribers Fixed Voice, BB and TV ARPU ‘000 HUF +2.8% Q4 2022 1,582 1,627 1,844 Q4 2023 Fixed voice +6.7% 14% 1,968 15% 1Play 44% 2Play 3,926 41% Fixed BB +19.6% 4,694 3Play 3,569 44% 43% Pay TV +1
Slide 7: Revenue Growth Reflects Sustained Commercial Momentum and Fee Adjustments
REVENUE GROWTH REFLECTS SUSTAINED COMMERCIAL MOMENTUM AND FEE ADJUSTMENTS Revenue, Q4 2023 vs Q4 2022 HUF bn +15.1% ▪ Sustained positive demand for mobile data 3.1 1.6 229.2 5.8 7.2 ▪ Continued expansion of broadband and TV 12.3 customer bases 199.2 ▪ Subscription revenue benefitting from the 14.5%
Slide 8: EBITDA AL Improvement Achieved Despite Cost Pressures
EBITDA AL IMPROVEMENT ACHIEVED DESPITE COST PRESSURES EBITDA AL, Q4 2023 vs Q4 2022 HUF bn ▪ Growth in gross profit reflects favorable 17.4% 16.7 underlying trends in telecommunication 65.4 -2.0 -4.6 -0.4 services 55.7 ▪ Increased revenues led to higher Q4 2022 Gross profit Supplementary Other IFRS
Slide 9: Sustained Net Income Growth Driven by Strong Operational Results
SUSTAINED NET INCOME GROWTH DRIVEN BY STRONG OPERATIONAL RESULTS Net income (and adjusted net income), Q4 2023 vs Q4 2022 HUF bn ▪ Higher D&A in Q4 2023 due to different within 37.7% 10.1 2.6 25.8 year dynamic of SW license related 23.2 -1.7 -0.9 depreciation in Hungary -0.8 -0.4 17.1 16.9 -0.3 ▪ Ne
Slide 10: Free Cash Flow Rise Due to Higher EBITDA and Reduced Investment Levels
FREE CASH FLOW RISE DUE TO HIGHER EBITDA AND REDUCED INVESTMENT LEVELS Free cashflow, 2023 vs 2022 CAPEX, 2023 vs 2022 HUF bn +70% HUF bn -17% 39.2 18.3 126.7 86.8 86.5 -1.1 -0.3 18% 105.1 -8.3 6% 15% 9% 10% -12.3 11% 21% 47.4 50.9 25% 46% 40% 3.6 2022 2023 2022 Spectrum 2022 w/o EBITDA Interest& Wo
Slide 11: Guidance for 2024
GUIDANCE FOR 2024 2023 results 2024 guidance REVENUE HUF 849.4 bn 5%-10% growth EBITDA AL HUF 257.9 bn 20%-25% growth ADJUSTED NET INCOME HUF 93.6 bn ca HUF 130 bn FCF 1 HUF 86.8 bn ca HUF 120 bn 1 EXCLUDING SPECTRUM LICENSES 11
Slide 12: Shareholder Remuneration After 2023 Results
SHAREHOLDER REMUNERATION AFTER 2023 RESULTS Total shareholder remuneration is proposed to be equal to ca 70% of the 2023 adjusted net income: 1) cash dividend of HUF 41.56 billion* (corresponding to HUF 44.7 dividend per share) 2) share buyback of up to HUF 24.0 billion* HUF bn 65.56 24.00 Share buy
Slide 13: Appendix
Appendix
Slide 14: North Macedonia: Q4 2023 and 2023 Results
NORTH MACEDONIA: Q4 2023 AND 2023 RESULTS1 Revenues, Q4 2023 vs Q4 2022 EBITDA AL, Q4 2023 vs Q4 2022 HUF mn HUF mn -5.4% -0.9% 19,690 6,801 35 569 6,737 -639 18,629 -396 -26 -668 Q4 2022 Mobile Fixed SI/IT Q4 2023 Q4 2022 Gross profit Indirect costs IFRS 16 impact Q4 2023 Revenues, 2023 vs 2022 EBI
Slide 15: For further questions please contact the IR department
? For further questions please contact the IR department: Diana Párkányi-Várkonyi Rita Walfisch Capital Market Relations Hub Lead Investor Relations Manager Phone: +481-7676 Phone: +36 1 457-6084 e-mail: varkonyi.diana.annamaria@telekom.hu e-mail: walfisch.rita@telekom.hu