Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Investor Presentation (October 2023)
26 slides from Magyar Telekom Telecommunications's investor presentation, October 2023
Slide 1: Magyar Telekom Group Investor Presentation October 2023
MAGYAR TELEKOM GROUP INVESTOR PRESENTATION October 2023
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: Overview of Magyar Telekom
OVERVIEW OF MAGYAR TELEKOM
Slide 4: Magyar Telekom at a glance
Magyar Telekom at a glance Overview Telco service offerings & 2022 revenue composition ▪ Integrated operations in Hungary and North Macedonia ▪ Leading telecommunications service provider in both countries ▪ Leading SI/IT service provider in Hungary Mobile ✓ ✓ ✓ ▪ Majority owned by Deutsche Telekom
Slide 5: Undisrupted growth…
Undisrupted growth… Magyar Telekom revenues Seamless connectivity experience HUF bn 3.2% 800 745.8 657.3 666.9 673.1 692.8 Strong brand, excellent servicing & 600 more-for-more pricing strategy 400 ~90% 200 Employees in Budapest HQ working 0 under agile framework 2018 2019 2020 2021 2022 Nort Macedo
Slide 6: …despite external challenges
…despite external challenges Growth structure & Domestic demand 14.6% ▪ Investment levels show volatility due to EU fund cycles 15% 10% 7.1% ▪ GDP growth slowed down in H2 2022 due to pressures on 5.1% 4.9% 4.6% 5% household consumption and tighter fiscal policy 0% -5% ▪ H1 2023 GDP showed 1.7% cont
Slide 7: Magyar Telekom has strong market positions…
Magyar Telekom has strong market positions… Mobile voice SIM market shares1 Mobile data SIM market shares1 60 Stable leading position on the 60 Hungarian mobile market 40 40 20 20 0 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Fixed broadband market shares2 TV market shares2 Increasing market
Slide 8: …inline with positive customer base developments
…inline with positive customer base developments Total mobile SIMs Mobile broadband subscribers ‘000 ‘000 3,904 5,950 6.7% 2.8% 3,625 5,634 3,296 5,369 5,427 3,115 5,330 3,012 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Fixed broadband subscribers Pay TV subscribers ‘000 ‘000 7.2% 1,514 6.1% 1
Slide 9: Strategy, Operation and Results
STRATEGY, OPERATION AND RESULTS
Slide 10: …2023 strategic objectives provide foundation for further growth
…2023 strategic objectives provide foundation for further growth #1 CHOICE OF CUSTOMERS ▪ Continued commitment to network 60% developments Population based coverage 11.5GB ▪ Continued customer base expansion average monthly mobile data usage in Q2 2023 DIGITALLY NATIVE BUSINESS (up 26% YoY) ▪ Enhanc
Slide 11: Network developments in Hungary
Network developments in Hungary Fixed network developments Mobile data usage developments # of access points (th) Total monthly mobile traffic (GB thousand) 5 000 4 435 50 000 4 194 4 259 4 374 4 014 4 000 23.2% 40 000 30.9% 40.7% 30 000 3 000 51.6% 19.8% 74.3% 19.9% 18.2% 20 000 2 000 15.7% 57.1% 1
Slide 12: ESG's strategic focuses at Magyar Telekom
ESG’s strategic focuses at Magyar Telekom Digitalization of Hungary Climate protection Digital inclusion and education ▪ 5G coverage Scope 1 & 2 Digital inclusion ▪ Gigabit access ▪ Carbon neutrality (since 2015) ▪ Education platforms ▪ Consultancy ▪ Green energy ▪ Child protection ▪ Energy reductio
Slide 13: H1 2023 results and public targets
H1 2023 results and public targets H1 2023 results 2022 results 2023 guidance Key drivers (change y-o-y) ▪ Inflation-based fee adjustment introduced in March 10%-15% HUF 404.0 bn REVENUE HUF 746.7 bn growth 3 (+13.3%) 2023 ▪ Continued strong operational performance 10%-15% HUF 119.4 bn ▪ Positive co
Slide 14: Continued demand for mobile data in Hungary
Continued demand for mobile data in Hungary Mobile SIMs Mobile ARPU ‘000 HUF +4.8% M2M Q2 2022 6,089 Prepaid 3,785 Q2 2023 5,811 Blended +16.2% 15.8% 4,399 12.0% Postpaid 24.6% 22.1% 5,406 Postpaid +20.5% 6,516 63.4% 62.0% 1,265 Prepaid +3.9% 1,314 Q2 2022 Q2 2023 Mobile data SIMs Mobile broadband u
Slide 15: Growth in broadband - the primary driver of fixed line performance
Growth in broadband - the primary driver of fixed line performance Fixed line multiplay residential subscribers Fixed Voice, BB and TV ARPU ‘000 HUF +3.6% Q2 2022 1,874 Q2 2023 1,550 1,606 Fixed voice +6.2% 1,990 16% 14% 1Play 2Play 3,777 39% 42% Fixed BB +22.4% 3Play 4,622 3,519 45% 44% Pay TV +14.
Slide 16: Outlook and Shareholder Remuneration
OUTLOOK AND SHAREHOLDER REMUNERATION
Slide 17: 2023 public guidance and 2024 outlook
2023 public guidance and 2024 outlook 2022 results 2023 guidance 2024 outlook REVENUE HUF 746.7 bn 10%-15% growth2 mid-single digit growth EBITDA AL HUF 221.5 bn 10%-15% growth2 solid growth Adjusted net income HUF 63.0 bn double-digit growth dynamic growth FCF 1 HUF 50.9 bn ca HUF 60 bn dynamic gro
Slide 18: Shareholder remuneration
Shareholder remuneration ▪ Since February 2022, Magyar Telekom shareholder remuneration policy as a combination of dividend payments and share buybacks. ▪ The policy envisages growth in annual shareholder remuneration in line with improvements in the Company’s financial performance. ▪ Total sharehol
Slide 19: Back-up
Back-up ?
Slide 20: Revenue growth reflects sustained commercial momentum and fee adjustment
Revenue growth reflects sustained commercial momentum and implementation of the inflation-based fee adjustment Revenue, Q2 2023 vs Q2 2022 HUF bn ▪ Demand for mobile data continued to increase +14.0% 0.2 1.0 2.1 208.1 ▪ Broadband and TV customer base expanded 8.0 14.3 further 182.5 ▪ Subscription re
Slide 21: EBITDA AL improvement despite strong cost pressure
EBITDA AL improvement despite strong cost pressure ▪ Strong increase in gross profit attributable to positive EBITDA AL, Q2 2023 vs Q2 2022 underlying telecommunication service developments HUF bn 33.5% 4.9 ▪ Supplementary telecommunication tax booked in Q2 19.7 68.6 -6.6 -0.8 2022 in relation to re
Slide 22: EBITDA improvements partly offset by weaker net financial results
EBITDA improvements partly offset by weaker net financial results Net income (and adjusted net income), Q2 2023 vs Q2 2022 HUF bn 110.6% ▪ Net financial results down due to higher 18.0 0.3 3.4 25.7 interest expenses and less favorable derivative- 22.3 10.1 10.6 -5.5 -0.9 -0.3 related fair value chan
Slide 23: Free cashflow reflects changes in external environment
Free cashflow reflects changes in external environment Free cashflow, H1 2023 vs H1 2022 CAPEX, H1 2023 vs H1 2022 HUF bn -6.8% HUF bn 13.9 52.6 2.9 49.0 32.4 15% 11% 4% 7% 6% 8% 24% 33% 1.9 7.3 7.0 30.8 3.3 0.3 4.0 50% 41% -11.9 44.3 H1 2022 H1 2023 H1 2022 Spectrum H1 2022 EBITDA Interest& Working
Slide 24: North Macedonia: Q2 and H1 2023 results
North Macedonia: Q2 and H1 2023 results Revenues, Q2 2023 vs Q2 2022 EBITDA AL, Q2 2023 vs Q2 2022 HUF mn -6.8% HUF mn +6.9% 459 14 142 7,768 19,261 370 -9 17,949 7,265 -1,785 Q2 2022 Mobile Fixed SI/IT Q2 2023 Q2 2022 Gross profit Indirect costs IFRS 16 impact Q2 2023 Revenues, H1 2023 vs H1 2022 E
Slide 25: Hungarian mobile spectrum
HUNGARIAN MOBILE SPECTRUM Spectrum allocation (MHz) 700 10 10 5 25 800 10 10 10 30 900 15 10 10 35 1800 15 5 10 20 5 20 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 Yettel Digi not allocated 25
Slide 26: 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: +36 1 481-7676 Phone: +36 1 457-6084 e-mail: varkonyi.diana.annamaria@telekom.hu e-mail: walfisch.rita@telekom.hu
Magyar Telekom — Investor Presentation (October 2023) on 6ix