Magyar Telekom Telecommunications PLC · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q2 2010 Earnings Presentation
14 slides from Magyar Telekom Telecommunications's earnings presentation, 2010
Slide 1: Magyar Telekom Second Quarter 2010 results
Presentation Magyar Telekom Second Quarter 2010 results Strong cash flow generation despite continued top line pressure; guidance revised
Slide 2: Economic environment – continues to affect Magyar Telekom
Economic environment – continues to affect Magyar Telekom Group revenues and Hungarian GDP Economic indicators influence telecommunication 2% spending in different ways 0% in 2009 all components of economic activity suffered a meaningful decline in Hungary -2% telecommunication spending lags GDP
Slide 3: Strong positions in all segments of the Hungarian market
Strong positions in all segments of the Hungarian market TV market shares Mobile voice market shares** 100% 100% 14% 13% 13% 14% 13% 6% 6% 5% 5% 21% 22% 22% 22% 22% 80% 7% 80% 24% 24% 23% 23% 23% 60% 60% 34% 33% 34% 34% 33% 40% 33% 33% 31% 31% 33% 40% 20% 20% 45% 45% 45% 44% 45% 22% 24% 26% 27% 28%
Slide 4: Change in organizational structure
Change in organizational structure New organizational structure – effective from July 1, 2010 CEO Finance Technology Human Strategy & Business Sales & Service Marketing Legal & Resources Business Services Corporate Development Affairs Rationale: improved effectiveness in responding to rapidly chan
Slide 5: Public targets for 2010 revised
Public targets for 2010 revised revised 2010 public targets 2010 H1 results Revenue 6-8% decline (prev. 5-7% ) 7.1% decline decreasing consumer spending continued recessionary impacts rationalization in the business sector intense competition stronger forint compared to average 2009 satu
Slide 6: Q2 2010 results – Business Unit analysis
Q2 2010 results – Business Unit analysis Revenue development Underlying EBITDA development HUF million HUF million 165,000 70,000 69,079 22 161,095 160,000 -1,022 59 -2,353 -635 66,000 -749 155,000 -1,966 -798 -492 -1,459 150,460 63,126 150,000 -3,568 -2,640 62,000 145,000 140,000 58,000 135,000 r i
Slide 7: Consumer Services Business Unit (CBU)
Consumer Services Business Unit (CBU) Fixed line revenues Mobile revenues HUF million 33,101 -5% 31,429 HUF million 47,451 -1% 46,770 35,000 50,000 +46% +10% 28,000 +13% 40,000 +9% 21,000 -1% 30,000 14,000 20,000 -5% -13% 7,000 10,000 0 0 Q2 2009 Q2 2010 Q2 2009 Q2 2010 Voice Internet TV Other Voice
Slide 8: CBU – fixed line operations
CBU – fixed line operations Fixed voice access Strong focus on triple play on all networks (fixed Subscribers line, cable and mobile) -9% 2 000 000 +22% 1 800 000 new packages include more favorable VoIP solutions +17% 1 600 000 triple play offers start from HUF 5,340/month (~EUR 19) New generat
Slide 9: CBU – mobile operations
CBU – mobile operations ARPU MOU Mobile internet development HUF min leading market position with 51% market share 4,000 150 134 number of subscribers exceeded 500,000 at the 3,090 3,144 122 3,000 +2% +10% end of Q2 2010 100 2,000 3G/HSDPA network covering ~75% of population 50 1,000 0 0 Mobil
Slide 10: Business Services Business Unit (BBU)
Business Services Business Unit (BBU) Revenues Falling voice and data revenues HUF million rationalization and cost cutting initiatives at our key corporate 41,634 -5% 39,668 45,000 clients lead to reduction in their telecom spending +2% strong pressure on clients to renegotiate contract terms 3
Slide 11: Macedonia
Macedonia Revenues Results negatively impacted by FX trend HUF million 21,452 -9% 19,593 HUF strengthened on average by 5.1% to the Macedonian 24,000 Denar in Q2 2010 -20% excluding FX impact revenues were down by 4% and EBITDA 18,000 was down by 5% -8% 12,000 Declining fixed line revenues -4% 6
Slide 12: Montenegro
Montenegro Revenues Results negatively impacted by FX trend HUF million 8,653 -10% 7,764 HUF strengthened on average by 4.9% to the Euro in Q2 10,000 2010 -13% excluding FX impact, revenues were down by 6% but 7,500 EBITDA increased by 2% thanks to cost cutting measures -15% reversal of previo
Slide 13: Abbreviations
Abbreviations: 3G: third generation, ARPU: average revenue per user, BB: broadband, CBC: call-by-call, CPS: carrier pre-selection, HQ: headquarters, HSDPA: high-speed downlink packet access, IC: interconnection, IP: internet protocol, IT: information technology, LTO: local telecommunication operator
Slide 14: For further questions please contact the IR department
For further questions please contact the IR department: Investor Relations Phone: +36 1 458-0423 Fax: +36 1 458-0443 e-mail: investor.relations@telekom.hu In addition to figures prepared in accordance with IFRS, Magyar Telekom also presents non-GAAP financial performance measures, including, among o