Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Investor Presentation (May 2025)
27 slides from Magyar Telekom Telecommunications's investor presentation, May 2025
Slide 1: Magyar Telekom Investor Presentation May 2025
Magyar Telekom Investor Presentation May 2025
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: Magyar Telekom at a glance
Magyar Telekom at a glance Overview 2024 revenue composition Integrated ICT operations Other • Leading telecommunications service provider in both Mobile voice countries North Macedonia 7.0% 13.6% 8.1% • Leading SI/IT service provider in Hungary • Offering full spectrum of fixed and mobile services
Slide 4: Financial highlights of 2024
Financial highlights of 2024 Revenue EBITDA AL Adjusted net income Free cash flow 967 bn HUF 333 bn HUF 163 bn HUF 166 bn HUF Earnings per share Dividend per share Share buyback Net debt 172 HUF 100.1 HUF 39.1 bn HUF 336 bn HUF 4
Slide 5: Investment Highlights
Investment Highlights
Slide 6: More favourable environment with sector-specific tax removals
More favourable environment with sector-specific tax removals Key macroeconomic indicators • Inflation up again in H2 2024, reaching 5.5% yoy in January 2025 20% 17.6% Consumption of HH-s 14.5% Consumption of GOV • GDP decline in 2023 and H1 2024 due to 15% 3.7% Inflation weaker household consumptio
Slide 7: Strong market leading position
Strong market leading position Mobile voice SIM market share1 Mobile data SIM market share1 % % 60 60 40 40 Stable leading position in the 20 20 Hungarian mobile market 0 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Fixed broadband market share2 TV market share2 % % 60 60 Increasing
Slide 8: Outstanding networks: a critical differentiator
Outstanding networks: a critical differentiator Continuous investment into our fixed network Facilitating growing mobile data usage # of access points (th) Total monthly mobile traffic (GB thousand) 5 000 4 435 4 538 4 576 80 000 4 194 4 259 4 374 17% 70 000 4 000 23% 20% 31% 60 000 41% 20% 20% 3 00
Slide 9: Consistent improvement in revenue and profitability
Consistent improvement in revenue and profitability Magyar Telekom revenues Seamless connectivity experience HUF bn 7.7% 964.2 1,000 7.7% 848.9 Nort Macedonia 800 745.8 Strong brand, excellent servicing & more- 666.9 673.1 692.8 Other for-more pricing strategy 600 SI/IT 400 Fixed service Mobile serv
Slide 10: Three-pronged strategy for continued success
Three-pronged strategy for continued success Strategic priorities 2025 focus NETWORK & INVESTEMENTS Differentiate via leading network experience by ensuring seamless connectivity Increase fiber coverage by 250,000 access points CUSTOMERS Grow by monetizing high-quality networks & services that enhan
Slide 11: Sustainable practices underpin strategic initiatives
Sustainable practices underpin strategic initiatives Digitalization of Hungary Climate Protection Digital inclusion & education • 5G coverage Scope 1 & 2 Digital inclusion • Gigabit access • Carbon neutrality (since 2015) • Education platforms • Consultancy • Green energy • Child protection • Energy
Slide 12: Committed to delivering sustainable shareholder value
Committed to delivering sustainable shareholder value Record shareholder remuneration for 2024 Enhanced policy for 2025 and beyond • cash dividend of HUF 90.9 billion (~HUF 100 dividend per share) • Target annual shareholder remuneration: 60% - 100% of consolidated adjusted net income, up from 60% -
Slide 13: Q1 2025 Results
a— ZA Q1 2025 Results
Slide 14: Delivery against strategic objectives
Delivery against strategic objectives Network & Investments • 58,000 fiber access points added, increasing the gigabit coverage ratio of the Hungarian fixed network to 84% • Population-based outdoor 5G coverage at ~77% Customers • 24,000 new fiber broadband customers • Over 1.4 million Magenta Momen
Slide 15: 2025 guidance reaffirmed
2025 guidance reaffirmed 2024 results 2025 guidance Q1 2025 results change y-o-y HUF HUF Revenue 967.5 bn ca 1-3% growth 241.6 bn (+7.8%) HUF HUF EBITDA AL 333.1 bn ca 12-15% growth 97.5 bn (+26.7%) HUF HUF HUF Adjusted Net Income 162.6 bn ca 190 bn 54.6 bn (+43.4%) HUF HUF HUF FCF1 165.1 bn ca 180
Slide 16: Growing mobile data usage drives momentum in mobile segment
Growing mobile data usage drives momentum in mobile segment Mobile SIMs Mobile ARPU +3.3% ‘000 HUF +2.2% M2M Q1 2024 Prepaid 6,324 6,464 4,439 Q1 2025 Postpaid Blended +10.7% 4,912 18.8% 22.1% 6,793 20.6% 19.5% Postpaid +15.4% 7,840 61.0% 58.5% 1,280 Prepaid +9.4% 1,401 60.5% 58.4% 251 M2M -3.5% 243
Slide 17: Fiber uptake fuels fixed market growth
Fiber uptake fuels fixed market growth Fixed voice, BB and TV customers Fixed voice, BB and TV ARPU ‘000 HUF Q1 2024 +4% Q1 2025 2,010 1,666 -1% Fixed voice +3.6% 2,082 1,433 -6% 4,955 Fixed BB +12.3% 1,251 5,566 1,609 1,418 1,178 4,174 Pay TV +3.6% 4,324 Fixed voice Broadband TV • Higher fixed voic
Slide 18: Revenue growth reflects inflation-based fee adjustment and positive operational developments
Revenue growth reflects inflation-based fee adjustment and positive operational developments Revenue, Q1 2025 vs Q1 2024 HUF bn +7.8% 245 0.4 241.6 4.6 2.3 240 11.3 -1.1 235 230 224.2 225 0 Q1 2024 Mobile service Fixed service Equipment SI/IT Other Q1 2025 • Service revenue growth driven by continue
Slide 19: EBITDA AL growth driven by strong gross profit momentum and expiry of the supplementary tax
EBITDA AL growth driven by strong gross profit momentum and expiry of the supplementary tax EBITDA AL, Q1 2025 vs Q1 2024 HUF bn 110 26.7% 8.9 100 0.4 97.5 14.6 -3.2 -0.1 90 80 77.0 0 Q1 2024 Gross profit Supplementary Employee Other operating IFRS 16 impact Q1 2025 telecommunication tax related exp
Slide 20: Significant rise in net income driven by EBITDA growth
Significant rise in net income driven by EBITDA growth Net income (and adjusted net income), Q1 2025 vs Q1 2024 HUF bn +43% 60 2.6 20.6 54.2 0.4 54.6 55 -0.1 -2.6 -0.2 50 45 40 38.1 35 33.7 -4.4 0 Q1 2024 Adj. Adj.* Q1 2024 EBITDA D&A Net financial Income tax Non-contr. Q1 2025 Adj.* Q1 2025 Adj. ne
Slide 21: Positive trends in EBITDA and working capital changes drive strong free cash flow
Positive trends in EBITDA and working capital changes drive strong free cash flow Free cash flow excluding spectrum licenses, Q1 2025 vs Q1 2024 HUF bn 40 11.8 30 1.1 28.5 20.6 -4.2 20 10 0 -0.9 -10 Q1 2024 EBITDA Other operating CF Investing CF Repayment of Q1 2025 lease liabilities • Strong increa
Slide 22: Appendix
Appendix
Slide 23: Mobile KPIs
Mobile KPIs Postpaid customers Prepaid customers M2M ‘000 ‘000 ‘000 1,305 1,296 3,828 1,286 1,402 1,431 3,799 3,785 3,778 3,774 1,274 1,260 1,318 1,294 1,191 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Average mobile data us
Slide 24: Fixed KPIs
Fixed KPIs Fixed voice customers Fixed broadband customers Pay TV customers ‘000 ‘000 ‘000 1,666 1,435 1,440 1,438 1,654 1,433 1,251 1,232 1,214 1,418 1,197 1,178 1,637 1,622 1,609 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025
Slide 25: North Macedonia performance highlights
North Macedonia performance highlights Revenues, Q1 2025 vs Q1 2024 EBITDA AL, Q1 2025 vs Q1 2024 HUF bn +3.1% HUF bn +5.4% 19,600 239 8,600 852 19,421 19,400 8,400 408 -56 19,200 8,200 8,080 19,000 8,000 -435 -1 18,830 7,800 18,800 7,664 7,600 0 0 Q1 2024 Mobile Fixed SI/IT Q1 2025 Q1 2024 Gross pr
Slide 26: Hungarian mobile spectrum allocations
Hungarian mobile spectrum allocations 26
Slide 27: For further questions please contact the IR team
For further questions please contact the IR team Diána Párkányi-Várkonyi Capital Market Relations Hub Lead Phone: +36 1 481-7676 Email: varkonyi.diana.annamaria@telekom.hu Rita Walfisch Investor Relations Manager Phone: +36 1 457-6084 Email: walfisch.rita@telekom.hu