Magyar Telekom Telecommunications Plc · BET:MTELEKOM

Magyar Telekom Telecommunications — Q1 2022 Earnings Presentation

13 slides from Magyar Telekom Telecommunications's earnings presentation, May 11, 2022

  1. Slide 1: Magyar Telekom Group Q1 2022 Results Presentation

    MAGYAR TELEKOM GROUP Q1 2022 RESULTS PRESENTATION May 11, 2022

  2. 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

  3. Slide 3: Firm Focus on Strategic Priorities

    FIRM FOCUS ON STRATEGIC PRIORITIES Network Customers Resilience ▪ Continued fiber rollout to provide seamless ▪ Customers choosing to sign up for an increasing ▪ Tackle challenges from the fast-changing connectivity to expanding base number of our services macro-economical environment ▪ RAN moderniz

  4. Slide 4: ARPU Growth in Hungary Driven by Favorable Subscriber Base Trends and Strong Data Usage

    ARPU GROWTH IN HUNGARY DRIVEN BY FAVORABLE SUBSCRIBER BASE TRENDS AND STRONG DATA USAGE Mobile SIMs Mobile ARPU ‘000 HUF +5.0% M2M Q1 2021 5,456 5,727 Prepaid 3,604 Q1 2022 Blended +3.4% 8.7% 11.4% Postpaid 3,727 27.5% 25.1% 5,094 Postpaid +4.6% 5,328 63.8% 63.5% 1,102 Prepaid +7.1% 1,180 Q1 2021 Q1

  5. Slide 5: Growing Customer Base Coupled with BB and TV ARPU Trends Driving Growth in Hungary

    GROWING CUSTOMER BASE COUPLED WITH BB AND TV ARPU TRENDS DRIVING GROWTH IN HUNGARY Fixed line multiplay residential subscribers Fixed Voice, BB and TV ARPU ‘000 HUF +3.4% Q1 2021 2,058 Q1 2022 1,492 1,542 Fixed voice -6.8% 1,918 19% 16% 1Play 2Play 3,228 36% 39% Fixed BB +15.3% 3Play 3,721 3,323 45%

  6. Slide 6: Revenue Growth Driven by Sustained Commercial Momentum

    REVENUE GROWTH DRIVEN BY SUSTAINED COMMERCIAL MOMENTUM Revenue, Q1 2022 vs Q1 2021 HUF bn +8.4% ▪ Growth in mobile service revenues driven by strong 4.4 0.9 175.9 data demand that offset lower voice revenue -1.0 contribution 3.7 ▪ Fixed service growth driven by broadband and TV 5.5 services ▪ Increa

  7. Slide 7: Favorable Business Trends and One-off Gain Leading to Outstanding EBITDA Growth

    FAVORABLE BUSINESS TRENDS AND ONE-OFF GAIN LEADING TO OUTSTANDING EBITDA GROWTH EBITDA AL, Q1 2022 vs Q1 2021 HUF bn 26.4% ▪ Strong increase in gross profit attributable to 3.3 55.8 positive underlying telecommunication service -0.3 0.9 developments 7.8 ▪ Decrease in indirect costs primarily driven

  8. Slide 8: Positive Net Income Trend Driven by Strong EBITDA Growth

    POSITIVE NET INCOME TREND DRIVEN BY STRONG EBITDA GROWTH Net income (and adjusted net income), Q1 2022 vs Q1 2021 HUF bn 107.0% 12.0 ▪ Increase in D&A related to RAN -0.2 -1.3 0.3 18.4 modernization in North Macedonia -1.1 15.6 ▪ Net financial result down YoY due to lower -2.8 derivative-related gai

  9. Slide 9: Continued Focus on Network Development

    CONTINUED FOCUS ON NETWORK DEVELOPMENT CAPEX AL, Q1 2022 vs Q1 2021 Gigabit capable fixed network development HUF bn # of access points (th) 4 500 4 259 4 314 4 333 4 356 4 374 4 385 103.1 4 194 4 209 4 224 4 238 4 000 +14.7% 33.7% 30.8% 29.4% 3 500 40.7% 38.9% 36.5% 2.5 23.0 51.6% 50.3% 48.1% 44.9%

  10. Slide 10: Free Cashflow Supported by Strong EBITDA and Subsidiary Disposal

    FREE CASHFLOW SUPPORTED BY STRONG EBITDA AND SUBSIDIARY DISPOSAL Free cashflow, Q1 2022 vs Q1 2021 HUF bn 1.7 ▪ Improvements attributable to 5.5 -0.5 − Favorable business performance 8.7 0.1 0.6 − Lower interest payments due to reduced debt and some temporary timing differences − Proceeds from dispo

  11. Slide 11: Delivery Against Financial Targets

    DELIVERY AGAINST FINANCIAL TARGETS Q1 2022 results 2021 results 2022 guidance (change YoY) HUF 175.9 bn REVENUE HUF 700.1 bn 1%-3% growth (+8.4%) HUF 55.8 bn EBITDA AL HUF 216.3 bn 3%-5% growth (+26.4%) HUF 23.0 bn CAPEX AL1 HUF 109.3 bn broadly stable (+14.7%) HUF -0.5bn FCF 1 HUF 56.2 bn at least

  12. Slide 12: Q&A

    Q&A ? For further questions please contact the IR department: Diana 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

  13. Slide 13: North Macedonia: Q1 2022 Results

    NORTH MACEDONIA: Q1 2022 RESULTS Revenues, Q1 2022 vs Q1 2021 EBITDA AL, Q1 2022 vs Q1 2021 HUF mn +4.9% HUF mn -2.9% 743 69 16,578 462 -39 6,725 15,805 6,529 -627 -31 Q1 2021 Mobile Fixed SI/IT Q1 2022 Q1 2021 Gross profit Indirect costs IFRS 16 impact Q1 2022 13

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