Magyar Telekom Telecommunications Plc · BET:MTELEKOM

Magyar Telekom Telecommunications — Magyar Telekom — Q1 2012 Earnings Presentation

17 slides from Magyar Telekom Telecommunications's earnings presentation, May 10, 2012

  1. Slide 1: Q1 2012 Results Magyar Telekom Group

    Q1 2012 Results Magyar Telekom Group Revenue growth driven by energy resale in Hungary; EBITDA margin under pressure 1

  2. Slide 2: 2012 Q1 Group results – Revenues and EBITDA

    2012 Q1 Group results – Revenues and EBITDA Group revenues Group EBITDA HUF million HUF million 148 000 55 500 1 688 1 690 Underlying performance 394 146 648 711 5 275 54 000 53 246 62 1 328 144 000 142 507 3 063 52 500 278 51 576 784 51 000 140 000 1 191 593 638 136 000 Q1 F. voice M. voice M. non-

  3. Slide 3: Telekom Hungary – significant contribution from energy resale

    Telekom Hungary – significant contribution from energy resale Fixed line and Energy resale revenues Mobile revenues HUF million HUF million 60 000 +9% 80 000 49 487 -2% 2% 45 211 45 000 10 062 60 000 55 921 55 023 9 531 7 646 6 730 682 5 957 30 000 6 888 7 434 Other 10 682 11 244 40 000 9 888 Energy

  4. Slide 4: Hungary – improvement in fixed voice churn

    Hungary -- improvement in fixed voice churn Telekom Hungary fixed voice subscribers Subscribers Hungary fixed voice churn 2500 000 -4% 2000 000 Fixed voice 1 655 692 1 585 092 1500 000 ƒ significant reduction in fixed voice churn thanks to the retention effect of: 1000 000 VoCa ƒ Hoppá package: flat

  5. Slide 5: Hungary – Energy resale business as major growth driver

    Hungary – Energy resale business as major growth driver Gas and electricity points of delivery (POD) PODs 75 000 61 516 60 000 45 000 Energy resale 35 262 30 000 24 628 ƒ soft launch in 2010, nationwide from April 15 226 2012 15 000 11 080 Gas Electricity ƒ customers get 5-8% discounts on their 0 en

  6. Slide 6: Hungary – Fixed broadband: stable market position

    Hungary -- Fixed broadband: stable market position Fixed broadband market shares in Hungary Hungary* Subscribers +6% 2500 000 2 105 000 1 980 000 2000 000 20.7% 19 9% 19.9% Fi d broadband Fixed b db d 1500 000 10.0% Other 10.1% 12.9% market growth driven by cable and fiber, 12.2% Invitel ƒ 1000 000

  7. Slide 7: Hungary – TV market: further growth achieved

    Hungary -- TV market: further growth achieved TV market share share* Subscribers 4000 000 +3% 3 133 000 3 214 000 3000 000 26.1% 28.3% TV customer growth 2000 000 23.1% 23.0% ƒ significant migration from cable to IPTV Other 23 8% 23.8% 25 0% 25.0% DIGI driven by ED3 ED3-enabled enabled cable network

  8. Slide 8: Hungary – Mobile voice: increased market share

    Hungary -- Mobile voice: increased market share Mobile voice market shares (based on total SIM cards) Subscribers 15000 000 -2% 11 893 476 11 633 993 12000 000 Mobile voice 22.5% 22.9% 9000 000 ƒ population-based penetration at 117% 33.7% 31.8% 6000 000 ƒ higher market share, slight growth in custom

  9. Slide 9: Hungary – Mobile broadband: continued dynamic growth

    Hungary -- Mobile broadband: continued dynamic growth Mobile broadband market shares (based on total SIM cards) Subscribers +68% 2500 000 2 342 018 23.9% 2000 000 Mobile broadband 1500 000 1 394 262 28.0% 25.3% ƒ already 600 HSPA+ base stations offering 21 1000 000 26.4% Mbps download speed Vodafone

  10. Slide 10: T-Systems Hungary – SI/IT revenue growth and healthy margin

    T-Systems Hungary – SI/IT revenue growth and healthy margin Revenues HUF million -1% T-Systems Hungary 30 000 28 071 27 833 Falling voice and data revenues 25 000 44.1% 47.5% „ lower usage and high fixed churn, principally 20 000 caused by mobile substitution 15 000 „ continued pressure on mobile ta

  11. Slide 11: Macedonia – Financial performance

    Macedonia – Financial performance Revenues Macedonia HUF million -5% Significant FX impact: HUF weakened by 8.6% 18 000 17 126 Q1-o-Q1 against MKD 16 329 15 000 10.9% 10 9% 10.9% Declining fixed line revenues in MKD „ cable competition and strong mobile 12 000 40.2% 39.0% substitution 9 000 Mobile c

  12. Slide 12: Montenegro – Financial performance

    Montenegro – Financial performance Revenues Montenegro HUF million Significant FX impact: HUF weakened by 8.4% Q1-o- 10 000 +7% Q1 against EUR 7 870 8 000 7 359 Flat fixed revenues in EUR 10.8% 10.5% „ strong mobile substitution 6 000 32.2% 33.8% „ growing internet and TV revenues 4 000 Mobile other

  13. Slide 13: Financials

    Financials 13

  14. Slide 14: Magyar Telekom – Consolidated Income Statement

    Magyar Telekom – Consolidated Income Statement HUF million March 31, 2011 March 31, 2012 Change Mobile revenues 72,449 72 449 72,614 72 614 00.2% 2% Fixed line revenues 58,431 56,421 -3.4% System Integration/Information Technology revenues 10,945 11,656 6.5% Revenue from Energy Services 682 5,957 Re

  15. Slide 15: Magyar Telekom - Consolidated Balance Sheet

    Magyar Telekom - Consolidated Balance Sheet HUF million Dec 31, 2011 March 31, 2012 Change Current assets 220,396 220 396 223,028 223 028 11.2% 2% Cash and cash equivalents 14,451 41,364 186.2% Other current financial assets 65,286 38,259 -41.4% Non o cu current e t assets 8 ,63 877,632 863, 0 863,7

  16. Slide 16: Magyar Telekom - Consolidated Cashflow Statement

    Magyar Telekom - Consolidated Cashflow Statement HUF million March 31, 2011 March 31, 2012 Change Net cash generated from operating activities 44,620 22,255 -50.1% Investments in tangible and intangible assets (12,314) (23,841) 93.6% Adjustments to cash purchases (8,097) (13,974) 72.6% P h off subsi

  17. Slide 17: For further questions please contact the IR department

    For further questions please contact the IR department: Investor Relations Phone: +36 1 458-0423 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, CBC: call-by-call, CPS: carrier pre-se

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