Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Shareholder Meeting (May 2010)
14 slides from Magyar Telekom Telecommunications's shareholder meeting presentation, May 11, 2010
Slide 1: Annual General Meeting April 7, 2010 – Report of the Board of Directors
Annual General Meeting April 7, 2010 Report of the Board of Directors on the management of Magyar Telekom Plc., on the business operation, on the business policy and on the financial situation of the company and Magyar Telekom Group in 2009 Christopher Mattheisen Chairman and CEO
Slide 2: Board of Directors report basis under Articles of Association
According to Section 7.4.1.e) of the Articles of Association and Section 10.1.e) of the Rules of Procedures of the Board of Directors, the Board of Directors draws up, at the end of each business year, a report for the General Meeting on the management of the Company, the assets of the Company, the
Slide 3: Our strategy
Integrated IT-telecommunication offerings Application Service Provider (ASP) and IT outsourcing Further selective acquisitions in the Hungarian SI/IT market Our strategy TV, PC, and mobile screens Technological leadership – superior 3G mobile network, fiber roll-out, cable upgrade Integrated fixed a
Slide 4: Changing trends require continued efficiency improvements
Headcount reduction in 2010 agreement with trade unions reached in September 2009 400+ employee redundancies at the parent company by end-2010 goal is to reduce underlying TWM-related expenses by HUF 6.5bn in two years despite wage increases severance-related expenses amounted to HUF7bn, accounted f
Slide 5: Hungarian market – infrastructure based-competition
Hungarian market – infrastructure based-competition Mobile market trends Wireline voice market trends Broadband market trends Competing infrastructures Copper network: LTO structure, 80% of households served by Magyar Telekom Cable network: above 70% HH coverage, most upgraded to high-speed broadban
Slide 6: Strong positions across all segments of the Hungarian market
Strong positions across all segments of the Hungarian market Wireline broadband market shares TV market market shares Mobile broadband market shares** **based on traffic generating subs. Mobile voice market shares* Source: NRA, 2009 year end figures are preliminary data *based on active SIM cards 44
Slide 7: Economic environment – still a drag on Magyar Telekom
Economic environment – still a drag on Magyar Telekom New generation access roll-out 5-year plan to cover ~30% of Hungarian households with bandwidth of up to 100 Mbps fiber to ca. 780k & cable Docsis 3.0 to 380k household total investment need of HUF 40 billion Group revenues and Hungarian GDP Hung
Slide 8: 2009 results – Business Unit analysis
Underlying EBITDA development Revenue development 2009 results – Business Unit analysis 3.1% revenue decline driven by recession, competition and regulation CBU revenues declined primarily due to the worsening economic environment with the austerity measures launched in July contracting private cons
Slide 9: CBU – fixed operations
CBU – fixed operations Fixed voice access -13% +37% +62% -9% Subscribers TV customer growth -4% +2,825% +137% +38% Subscribers New generation access rollout 5-year plan to cover ~30% or 1.2mn of Hungarian households with bandwidth of up to 100 Mbps household coverage by end-2009: 170k fiber and 370k
Slide 10: CBU – mobile operations
CBU – mobile operations Mobile internet development leading market position with 49% market share number of subscribers exceeded 320,000 at end-2009 3G/HSDPA network covering ~74% of population Tariff erosion average voice revenue per minute decline of 9% more conscious package selection wide use of
Slide 11: Business Services Business Unit (BBU)
Falling voice revenues rationalization and cost cutting initiatives at our key corporate clients lead to reduction in their telecom spending both private and public sector affected by economic recession number of fixed voice customers decreasing strong pressure on mobile tariffs resulting in lower A
Slide 12: International operations
International operations Intense competition in the fixed line market competition from altnets, cables and mobile operators resulting in decreasing fixed tariff levels and pressure on voice revenues positive contribution from revenues related to broadband services number of ADSL lines at 128,000 (up
Slide 13: Dividend payment details
Dividend payment details The proposed gross dividend is HUF 74 per share with a nominal value of HUF 100 April 21, 2010 detailed announcement will be published on the order of dividend disbursement on the homepage of the Company and the Budapest Stock Exchange April 27, 2010 last day of trading with
Slide 14: Dividend – tax implication
Dividend – tax implication Dividends are subject to withholding tax Tax will be deducted before payment Rates and taxes: domestic private individuals: 10% personal income tax foreign private individuals: 10% personal income tax legal entities with Hungarian domicile: 0% legal entities with foreign d