Magyar Telekom Telecommunications Plc · BET:MTELEKOM

Magyar Telekom Telecommunications — Magyar Telekom — Q4 2017 Earnings Presentation

16 slides from Magyar Telekom Telecommunications's earnings presentation, Feb 21, 2018

  1. Slide 1: Magyar Telekom Group Q4 2017 Results Presentation

    MAGYAR TELEKOM GROUP Q4 2017 RESULTS PRESENTATION FEBRUARY 21, 2018

  2. Slide 2: Q4 2017 Group Segmental Revenue and EBITDA

    Q4 2017 GROUP SEGMENTAL REVENUE AND EBITDA Group segmental revenues* Group segmental EBITDA* +6.3% HUF bn HUF bn +1.2% 2.3 0.0 0.0 161.4 1.2 162 43.0 3.0 -0.4 160 42.5 0.5 42.3 158 4.6 42.0 41.8 156 -0.9 0.7 154 41.5 151.9 152 41.0 -0.9 0 0.0 4Q 2016 Mobile Fixed line SI/IT & Mobile Fixed line SI/IT

  3. Slide 3: 2017 Highlights

    2017 HIGHLIGHTS  HSI network (above 30 Mbps capabilities) rolled out to over 270 thousand households in 2017 and now NETWORKS reaches over 3 million households  Further expansion of 4G indoor coverage and 4G+ availability; launch of VoLTE  Ca. 700 thousand subscribers signed up to new postpaid ta

  4. Slide 4: 2017 Financial Results and Targets

    2017 FINANCIAL RESULTS AND TARGETS* RESULTS TARGETS (change year-on-year)  Higher Hungarian SI/IT revenues driven by uptick in EU fund inflows  Higher equipment revenues reflect change in loyalty regulation HUF 610.9 bn REVENUE around HUF 580 bn  Increased visitor revenues following the change in

  5. Slide 5: Hungary

    HUNGARY Revenue* EBITDA HUF bn HUF bn +7.2% 150 3.5 40 148.4 -1.2 +0.6% 2.7 1.2 145 2.4 0.7 0.3 38 0.9 37.8 37.6 3.0 -0.8 140 138.5 -1.9 -0.8 0 0 4Q Mobile Mobile Mobile Fixed Fixed TV Fixed SI/IT Energy 4Q 4Q 2016 Gross profit Employee Other op. 4Q 2017 2016 voice non- other voice BB other 2017 rel

  6. Slide 6: Hungary – Mobile

    HUNGARY – MOBILE Mobile SIMs Mobile ARPU ‘000 HUF -3.1% -0.7% 6,000 5,504 5,332 5,293 Prepaid 3,326 4Q 2016 5,000 Blended +4.2% Postpaid 3,467 4Q 2017 43.6% 40.8% 35.5% 4,000 1,085 3,000 Prepaid +1.0% 1,096 2,000 56.4% 59.2% 64.5% 4,882 1,000 Postpaid -1.7% 4,799 0 Dec 2015 Dec 2016 Dec 2017 Total m

  7. Slide 7: Hungary – Fixed Voice, Broadband and TV

    HUNGARY – FIXED VOICE, BROADBAND AND TV Fixed line customer number development Fixed line multiplay residential subs. development ‘000 ‘000 Voice 1Play 1,500 1,461 1,423 1,412 Broadbad 1,500 1,410 2Play 1,400 1,373 PayTV 3Play 1,074 1,027 36% 32% 28% 996 962 1,016 969 1,000 1,000 29% 28% 30% 500 500

  8. Slide 8: Hungary – SI/IT

    HUNGARY – SI/IT SI/IT revenue developments SI/IT revenue breakdown by vertical segments* HUF bn Market Share* Finance 11% 90 Hardware & Software Manufacturing 7% w/o mobile devices 75 Retail&WS 7% 45% IT Infrastructure 50% services Prof. Services 14% 60 39% System Integration / Telco+Media 8% 45 IT

  9. Slide 9: Macedonia

    MACEDONIA Financials Mobile market Revenues (MKD mn) EBITDA (MKD mn) Subscribers One (T. Slovenia)* -3.4% 2,700 1,000 -4.2% 2,500,000 +2.2% +0.2% VIP (T. Austria) 2,684 923 One.Vip -6 154 884 2,000,000 24.7% Telekom 2,650 900 49.8% 51.4% 1,500,000 800 28.0% 2,600 2 2,592 1,000,000 -87 700 -193 47.3%

  10. Slide 10: 2017 Results and Public Targets for 2018

    2017 RESULTS AND PUBLIC TARGETS FOR 2018 2017 RESULTS1 2018 TARGETS REVENUE HUF 610.9 billion around HUF 600 billion EBITDA HUF 185.7 billion around HUF 190 billion CAPEX HUF 86.2 billion around HUF 90 billion FCF HUF 58.4 billion around HUF 60 billion DPS HUF 25 HUF 252 1Excluding Crnogorski Teleko

  11. Slide 11: Appendix

    APPENDIX

  12. Slide 12: Market Positions in the Hungarian Telco Market

    MARKET POSITIONS IN THE HUNGARIAN TELCO MARKET Total mobile market* Fixed voice market** Vodafone Other Subscribers -1.0% Subscribers Telenor +0.8% Invitel 12,000,000 3,500,000 MT DIGI 24.3% 25.0% 24.6% 3,000,000 3.2% 3.2% 3.3% 12.8% 13.1% 12.4% UPC 9,000,000 2,500,000 11.1% 11.9% 12.7% MT 27.9% 28.

  13. Slide 13: Magyar Telekom – Consolidated Income Statement

    MAGYAR TELEKOM – CONSOLIDATED INCOME STATEMENT HUF million Q4 2016 Q4 2017 Change Mobile revenues 78,656 83,258 5.9% Fixed line revenues 48,888 51,488 5.3% System Integration/Information Technology revenues 22,797 26,368 15.7% Revenue from energy services 1,516 328 -78.4% Revenues 151,857 161,442 6.

  14. Slide 14: Magyar Telekom – Consolidated Balance Sheet

    MAGYAR TELEKOM – CONSOLIDATED BALANCE SHEET HUF million Dec 31, 2016 Dec 31, 2017 Change Current assets 193,978 189,027 -2.6% Cash and cash equivalents 10,805 5,399 -50.0% Other current financial assets 5,104 8,162 59.9% Non current assets 981,551 920,634 -6.2% Property, plant and equipment - net 48

  15. Slide 15: Magyar Telekom – Consolidated Cash Flow Statement

    MAGYAR TELEKOM – CONSOLIDATED CASH FLOW STATEMENT HUF million Dec 31, 2016 Dec 31, 2017 Change Net cash generated from operating activities 154,825 157,388 1.7% Investments in tangible and intangible assets (97,723) (86,197) 11.8% Adjustments to cash purchases 1,327 (4,603) 446.9% Purchase of subsid

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

    For further questions please contact the IR department: Péter Bauer Rita Walfisch Head of Investor Relations Investor Relations Manager Phone: +36 1 481-7676 Phone: +36 1 457-6084 e-mail: bauer.peter@telekom.hu e-mail: walfisch.rita@telekom.hu DISCLAIMER This investor presentation contains forward-l

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