Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Shareholder Meeting (March 2011)
14 slides from Magyar Telekom Telecommunications's shareholder meeting presentation, Mar 25, 2011
Slide 1: Annual General Meeting April 12, 2011
Annual General Meeting April 12, 2011 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 2010 Christopher Mattheisen Chairman and CEO
Slide 2: Main strategic priorities of MT for 2011-15
2 Main strategic priorities of MT for 2011-15 Based on core beliefs MT set its main priorities for the next strategic timeframe Keep or increase market shares Excel in mobile BB and TV segments Keep positions in high-margin voice segments Innovation to clearly support core business Add new services
Slide 3: Macroeconomic environment
3 Macroeconomic environment Macroeconomic trends Economic indicators influence telecommunication spending in different ways Although GDP has started to grow in 2010, household consumption is still under pressure telecommunication spending lags GDP trend demand for telecommunication services is more
Slide 4: Major determinants – Infrastructure based-competition
4 Major determinants – Infrastructure based-competition Pay TV trends Wireline voice traffic trends Broadband subscriber trends Competing infrastructures: Copper network: LTO structure, 80% of households served by Magyar Telekom Cable network: over 70% households covered (of which most have been upg
Slide 5: Strong positions in all segments of the Hungarian market
5 Strong positions in all segments of the Hungarian market Wireline broadband market shares TV market shares Mobile broadband market shares** **based on traffic generating subs. Mobile voice market shares* *based on active SIM cards Source: NRA 45% 45% 44% 45% 34% 33% 34% 32% 21% 22% 22% 44% 34% 22%
Slide 6: Headcount reduction in 2011
6 Headcount reduction in 2011 300+ employee redundancies at the parent company by end-2011 severance-related expenses of HUF 3.5bn (majority was accounted in Q4 2010) 4% wage increase for parent company employees from July 2011, but only 2% for managers Underlying TWM expense in Hungary Voice revenu
Slide 7: 2010 results – Business Unit analysis
7 Underlying EBITDA development Revenue development 2010 results – Business Unit analysis 5.3% revenue decline driven by recession, competition and regulation CBU revenues declined primarily due to continuing intense competition and depressed household consumption BBU revenues down driven by decline
Slide 8: New generation access roll-out
8 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 Fixed voice access -11% +13% +15% -9% Subscribers TV customer growth Subscribers Infrastr
Slide 9: Consumer Services Business Unit (CBU)
9 Consumer Services Business Unit (CBU) Fixed line revenues Mobile revenues -14% -1% +14% -3% +11% +9% -6% no ch. +8% Revenue decline principally driven by economic recession lower consumer spending and intense competition remain the most significant negative drivers fixed voice migration towards IP
Slide 10: Business Services Business Unit (BBU) - Financials
10 Business Services Business Unit (BBU) - Financials Revenues -12% -7% -2% -7% EBITDA and margin 47.0% 45.3% -1.7pp -10% Falling voice and data revenues strong pressure on clients to renegotiate contract terms high churn among fixed voice, data and internet customers continued pressure on mobile ta
Slide 11: International operations
11 International operations Intense competition in the fixed line market competition from altnets, cables and mobile operators positive contribution from revenues related to broadband services number of ADSL lines up by 19% successful launch of IPTV and 2Play/3Play offers Mobile revenue growth thank
Slide 12: Proposal for dividend payment
12 Proposal for dividend payment The Board of Directors proposes HUF 50 dividend per share after 2010 earnings for approval to the Annual General Meeting. Targeted net debt ratio Net debt ratio* DPS (HUF) Historical dividend payments * net debt / total capital ** 2006 dividend payment (for 2005 fina
Slide 13: Dividend payment details
13 Dividend payment details The proposed gross dividend is HUF 50 per share with a nominal value of HUF 100 April 22, 2011 detailed announcement will be published on the order of dividend disbursement on the homepage of the Company and the Budapest Stock Exchange May 2, 2011 last day of trading with
Slide 14: Dividend – tax implication
14 Dividend – tax implication Dividends are subject to withholding tax Tax will be deducted before payment Rates and taxes: domestic private individuals: 16% personal income tax foreign private individuals: 16% personal income tax legal entities with Hungarian domicile: 0% legal entities with foreig