Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Investor Presentation (May 2018)
20 slides from Magyar Telekom Telecommunications's investor presentation, May 2018
Slide 1: Magyar Telekom Group Investor Presentation May 2018
MAGYAR TELEKOM GROUP INVESTOR PRESENTATION MAY 2018
Slide 2: Strategy and Market Position
STRATEGY AND MARKET POSITION
Slide 3: Overview – Magyar Telekom at a Glance
OVERVIEW – MAGYAR TELEKOM AT A GLANCE Overview Strategic pillars Integrated operations in Hungary and Macedonia* Together. We listen: customer and colleague opinions For our form an important part of our decision leading telecommunications service provider in both customers making countries Inte
Slide 4: Market Positions in the Hungarian Telco Market
MARKET POSITIONS IN THE HUNGARIAN TELCO MARKET Total mobile market* Fixed voice market** Vodafone Other Subscribers -1.1% Subscribers 12,000,000 Telenor 3,500,000 -0.1% Invitel MT DIGI 24.5% 25.3% 25.1% 3,000,000 5.0% 5.1% 5.2% 13.0% 12.4% 12.3% UPC 9,000,000 2,500,000 10.9% 11.8% 12.8% MT 27.6% 27.
Slide 5: IT Market in Hungary
IT MARKET IN HUNGARY Total B2B IT market (HW&SW and IT services)* IT Services market shares (by revenue)** HUF bn SYSTEM INTEGRATION IT INFRASTRUCTURE SI&IT 800 App. OS & Package Custom System IT Infra. OS & Infra. proj. +4.9% appl. app. dev. integration consulting IT Out- Hosting operation service
Slide 6: Hungarian Economic Environment
HUNGARIAN ECONOMIC ENVIRONMENT Growth structure Domestic demand 6% Domestic demand to remain strong 4.0% 4.2% 3.7% 3.4% Governmental measures support consumer 4% spending 2.0% 2% 1.5% Investment levels show volatility due to EU fund cycles 0% MT leverages positive trends of domestic demand -
Slide 7: Network Developments in Hungary
NETWORK DEVELOPMENTS IN HUNGARY Mobile network coverage (population based) Fixed network (Households covered) % HHs ths 97% 98% 99% 4,000 100 83% 83% 86% 87% 78% 80 3,000 33% 38% 39% 4% 60 2,000 36% 28% 84% 87% 89% 40% 40 71% 65% 71% 76% 76% 45% 1,000 34% 22% 20 7% 2% 25% 17% 15% 14% 0 0 2014 2015 2
Slide 8: Hungarian Mobile Spectrum Allocation
HUNGARIAN MOBILE SPECTRUM ALLOCATION Current spectrum allocation (MHz) BAND Magyar Telekom Telenor 700 MHz 2x5 2x5 2x5 2x5 2x5 2x5 Vodafone Digi Free 800 MHz 2x10 2x10 2x10 900 MHz 2x11.8 2x11 2x12 1800 MHz 2x15 2x5 2x25 2x30 2100 MHz 2x15 2x15 2x15 2x5 2x5 2x5 2600 MHz 2x30 2x20 + 1x25 2x20 3.4 - 3
Slide 9: 2018 Guidance and Dividend
2018 GUIDANCE AND DIVIDEND
Slide 10: 2018 Financial Targets
2018 FINANCIAL TARGETS 2017* 2018 RESULTS TARGETS Temporarily slowdown in SI/IT revenue growth around REVENUE HUF 610.9 bn Follout of energy revenues following the energy market exit in Nov. 2017 HUF 600 bn Continued focus on cost optimization to offset impacts from lower revenues around EBITD
Slide 11: Dividend Policy
DIVIDEND POLICY Dividend payment and net debt ratio developments Highlights Net debt ratio* Dividend per share (HUF) 50% 70 Aiming to maintain net debt ratio 45.7% (net debt/total capital) target of 43.8% 42.9% 39.1% 60 30% - 40% 40% 34.1% 34.3% 50 AGM approved HUF 25 dividend per TARGET 34.8% s
Slide 12: Q1 2018 Results
Q1 2018 RESULTS
Slide 13: Q1 2018 Group Segmental Revenue and EBITDA
Q1 2018 GROUP SEGMENTAL REVENUE AND EBITDA Group segmental revenues* Group segmental EBITDA* HUF bn HUF bn +6.5% +9.4% 152 3.6 43 0.3 0.4 0.0 149.6 0.3 41.9 150 42 0.8 -1.6 -0.1 -0.5 148 3.8 2.7 41 146 144 3.0 40 142 39 140.5 38.3 140 38 0 0 1Q 2017 Mobile Fixed SI/IT Energy Mobile Fixed SI/IT 1Q 20
Slide 14: Q1 2018 Strategic Highlights
Q1 2018 STRATEGIC HIGHLIGHTS Almost 1 million subscribers signed up to new postpaid tariff plans (launched in March 2017) Strong growth in data continued, boosted by hard cut limits and increased customer uptake of more expensive MOBILE packages Strong equipment sales due to more expensive han
Slide 15: Hungary
HUNGARY Revenue* EBITDA* HUF bn HUF bn 140 +6.8% 38 +10.6% 3.6 136.9 0.8 36.6 -1.6 36 2.7 0.3 1.1 135 1.3 -0.2 1.3 0.7 2.9 34 -0.7 33.1 130 128.1 0 0 1Q 2017 Mobile Mobile Mobile Fixed Fixed Fixed SI/IT Energy 1Q 2018 1Q 2017 Gross profit Employee Utility tax Other op. 1Q 2018 serviceequipment other
Slide 16: Hungary – Mobile
HUNGARY – MOBILE Mobile SIMs Mobile ARPU* ‘000 HUF -1.3% -0.1% 6,000 5,372 5,304 5,298 Prepaid 3,289 1Q 2017 5,000 Blended +6.1% Postpaid 3,488 1Q 2018 42.3% 39.9% 35.2% 4,000 1,031 3,000 Prepaid 998 -3.2% 2,000 57.7% 60.1% 64.8% 4,817 1,000 Postpaid +0.7% 4,853 0 Mar 2016 Mar 2017 Mar 2018 Total mo
Slide 17: 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 1,448 1,395 1,370 1,374 1,500 1,424 1,402 Broadbad 1,400 2Play PayTV 1,200 3Play 34% 31% 28% 1,030 985 1,089 1,039 1,001 964 1,000 1,000 800 29% 28%
Slide 18: 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
Slide 19: Macedonia
MACEDONIA Financials* Mobile market Revenues (MKD mn) EBITDA (MKD mn) Subscribers Lycamobile 2,600 +9.6% +1.8% -2.2% One.Vip +1.6% 1,100 2,500,000 71 1.1% Telekom 2,550 57 1,045 2.6% 1,050 2,000,000 4 2,514 52.1% 49.5% 48.8% 2,500 35 1,500,000 2,475 -36 1,000 953 1,000,000 2,450 950 500,000 47.9% 49
Slide 20: 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