Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q2 2014 Earnings Presentation
15 slides from Magyar Telekom Telecommunications's earnings presentation, Aug 7, 2014
Slide 1: Magyar Telekom Group Q2 2014 Results Presentation
MAGYAR TELEKOM GROUP Q2 2014 RESULTS PRESENTATION AUGUST 7, 2014
Slide 2: Strategic Highlights
STRATEGIC HIGHLIGHTS Portfolio simplification CUSTOMER Integrated offerings EXPERIENCE Faster and tailor made customer service Expand IT revenue potential among SMBs via enhanced sales focus and fine-tuned service portfolio PARTNERING Becoming the transformation partner in the enterprise s
Slide 3: Q2 2014 Financial Highlights
Q2 2014 FINANCIAL HIGHLIGHTS Increase in TV, fixed and broadband revenues REVENUE Higher mobile broadband revenues -3.3%; HUF 151.8bn Lower fixed and mobile voice revenues Lower revenues from SI/IT and energy services Expansion in the gross margins of energy and SI/IT services REPORTED EBITDA Reduct
Slide 4: H1 2014 Results and Public Targets for 2014
H12014 RESULTS AND PUBLIC TARGETS FOR 2014 H1 2014 RESULTS 2014 TARGETS REVENUE -3.1% up to 3% decline Lower energy revenues due to cuts in regulated retail energy prices and the mild winter Decline in equipment sales and SI/IT revenues REPORTED +1.5% up to 3% decline* EBITDA Strong improvemen
Slide 5: Q2 2014 Group Results – Revenues and EBITDA
Q2 2014 GROUP RESULTS – REVENUES AND EBITDA GROUP REVENUES GROUP EBITDA HUF bn HUF bn -3.3% 158 51 156.9 -2.4 -0.3% 156 0.2 -1.1 -1.8 0.8 -0.6 0.5 154 -1.9 0.9 0.2 151.8 152 -0.4 1.5 -1.2 150 50 49.8 148 49.6 2 0 0 Q2 Mobile Fixed Equip. SI/IT Energy M. non- TV Other Q2 Q2 2013 Energy Other gross Em
Slide 6: Q2 2014 Segment Results – Revenues and EBITDA
Q2 2014 SEGMENT RESULTS – REVENUES AND EBITDA SEGMENTS’ REVENUE DEVELOPMENTS SEGMENTS’ EBITDA DEVELOPMENT HUF bn HUF bn -0.3% 1.2 -0.2 160 51 -1.5 -3.3% 158 156.9 -3.2 156 50 49.8 -2.0 0.4 49.6 154 0.1 -1.8 2.0 151.8 152 49 -0.2 150 0 35 Q2 2013 T-HU T-Systems Maced. Monten. Elim. Q2 2014 Q2 2013 T-
Slide 7: Hungary – Fixed Voice Market
HUNGARY – FIXED VOICE MARKET TELEKOM HUNGARY FIXED VOICE SUBSCRIBERS Significant reduction in fixed voice churn due to the Subscribers 2,000,000 retention effect of: -1% – Hoppá package 1,500,000 1,438,474 1,421,063 – 2Play/3Play offers – Retail energy bundling 1,000,000 VoCa Decline in 1Play cu
Slide 8: Hungary – Energy Retail
HUNGARY – ENERGY RETAIL GAS AND ELECTRICITY POINTS OF DELIVERY (POD) RETAIL ENERGY BUSINESS PODs (thousand) 200 Soft launch in 2010, nationwide since April 2012 Gas Electricity Residential customers receive a 3-8% discount to 150 regulated universal service prices on their energy 68.7 67.6 67.6
Slide 9: Telekom Hungary – Broadband and TV Market
TELEKOM HUNGARY -- BROADBAND AND TV MARKET FIXED BROADBAND SUBSCRIBER BREAKDOWN Subscribers +6% 1,000,000 943,876 890,661 6% 5% Growth in broadband market driven by cable 750,000 29% 31% and fiber Significant ARPU pressure from multiplay 500,000 Fiber Cable BB migration and local pricing 57% 56%
Slide 10: Telekom Hungary – Mobile Market
TELEKOM HUNGARY – MOBILE MARKET TELEKOM SMARTPHONE PENETRATION % of total handsets Improving customer mix: y-o-y increase in 50 % 45.6 % postpaid ratio from 48.0% to 49.3% 41.1 % 40 % Smartphone sales reached 90% of postpaid 31.3 % handsets 30 % Broadband subscription attach rate at ca. 90% 20
Slide 11: Macedonia and Montenegro
MACEDONIA AND MONTENEGRO MACEDONIAN MOBILE VOICE MARKET One (T. Slovenia) MONTENEGRIN MOBILE VOICE MARKET Telenor VIP (T. Austria) Subscribers m:tel (T. Serbia) Subscribers T-Mobile +4% T-Mobile -8% 0% -1% 1,500,000 2,500,000 -6% -14% 24% 22% 1,200,000 0% 0% 2,000,000 24% 24% 26% 40% 20% 26% 900,000
Slide 12: Magyar Telekom – Consolidated Income Statement
MAGYAR TELEKOM – CONSOLIDATED INCOME STATEMENT HUF million Q2 2013 Q2 2014 Change Mobile revenues 78,939 77,372 -2.0% Fixed line revenues 53,522 51,533 -3.7% System Integration/Information Technology revenues 15,191 14,785 -2.7% Revenue from Energy Services 9,255 8,096 -12.5% Revenues 156,907 151,78
Slide 13: Magyar Telekom - Consolidated Balance Sheet
MAGYAR TELEKOM - CONSOLIDATED BALANCE SHEET HUF million Jun 30, 2013 Jun 30, 2014 Change Current assets 195,657 182,923 -6.5% Cash and cash equivalents 15,118 13,967 -7.6% Other current financial assets 31,009 14,420 -53.5% Non current assets 842,406 886,558 5.2% Property, plant and equipment - net
Slide 14: Magyar Telekom - Consolidated Cash Flow Statement
MAGYAR TELEKOM - CONSOLIDATED CASH FLOW STATEMENT HUF million Jun 30, 2013 Jun 30, 2014 Change Net cash generated from operating activities 41,468 56,216 35.6% Investments in tangible and intangible assets (40,620) (33,330) -17.9% Adjustments to cash purchases 2,758 (9,390) -440.5% Purchase of subsi
Slide 15: For further questions please contact the IR department
For further questions please contact the IR department: Investor Relations Phone: +36 1 458-0424 Fax : +36 1 458-0443 e-mail: investor.relations@telekom.hu Abbreviations: 3G: third generation, 4G: fourth generation, ARPU: average revenue per user, BB: broadband, IP: internet protocol, IT: informatio