Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q2 2011 Earnings Presentation
19 slides from Magyar Telekom Telecommunications's earnings presentation, Aug 4, 2011
Slide 1: Magyar Telekom Group Q2 2011 results
Presentation Magyar Telekom Group Q2 2011results Growth in underlying margins, reflecting continued focus on cost discipline 1
Slide 2: Q2 highlights
Q2 highlights slowing economic recovery, unemployment still flat at 11% Revenues under pressure, fixed voice and internet revenues declined driven by falling price levels down by 4.6% SI/IT revenues down due to government budget constraints increasing TV and mobile internet revenues savings in emplo
Slide 3: Q2 2011 Group results
Q2 2011 Group results Group revenues Group EBITDA HUF million HUF million Special Influence Underlying performance 152 000 4 242 64 000 61 840 6 345 150 460 150 000 10 400 148 000 56 000 4 007 146 000 1 215 443 143 566 144 000 983 48 000 400 4 969 2 850 44 557 142 000 1 581 140 000 40 000 0 Q2 2010
Slide 4: Magyar Telekom Group and Hungarian macro-economy trends 2009-2011
Magyar Telekom Group and Hungarian macro-economy trends 2009-2011 6 % Underlying EBITDA Revenues GDP Hungary 3.8 % 4 % 1.6 % 2 % N/A 0 % -0.6 % -2.0 % -2.1 % -2 % -4.0 % -2.1 % -2.9 % -3.3 % -2.4 % -4.2 % -3.9 % -4 % -4.6 % -3.3 % -5.6 % -6.6 % -6 % -7.5 % -8 % -7.9 % -8.6 % -10 % -12 % -1
Slide 5: Hungary – Q2 2011 Financial performance
Hungary – Q2 2011 Financial performance Fixed line revenues Mobile revenues -1% HUF million -6% HUF million 47 887 59 335 58 536 50 000 45 213 60 000 7 838 7 745 10 413 50 000 40 000 10 191 10 025 10 997 6 095 40 000 6 942 30 000 10 502 30 000 10 233 20 000 Other 20 000 41 472 39 794 TV Other 10 000
Slide 6: Fixed voice market – focus on retention
Fixed voice market – focus on retention Hungary fixed voice subscribers Hungary fixed voice churn Subscribers -8% 2000 000 1 772 962 1 633 276 Fixed voice 1500 000 declining trend in fixed voice churn 1000 000 thanks to the retention effect of the Hoppá package VoCa flat package with unlimited calls
Slide 7: Fixed broadband market – stable market position
Fixed broadband market – stable market position Fixed broadband market developments in Hungary T-Home retail fixed BB market share 34.6% 36.3% Subscribers +10% Fixed broadband 800 000 706 626 640 307 market growth driven by cable and fiber, 600 000 while ADSL market growth has slowed down 400 000 st
Slide 8: TV market – significant growth achieved
TV market – significant growth achieved TV market growth in Hungary T-Home market share Subscribers +6% 3500 000 3 173 000 TV customer growth 3 005 000 3000 000 27.6% growth mainly driven by IPTV service 2500 000 31.1% offered on EuroDocsis 3-enabled cable 2000 000 23.0% network 19.8% 1500 000 Other
Slide 9: Mobile voice market – Stable market share
Mobile voice market – Stable market share Mobile voice market shares (based on total SIM cards) Penetration -1% Subscribers 11 864 337 11 703 221 12000 000 21.9 % 22.6 % Mobile voice 10000 000 8000 000 34.9 % 32.9 % population-based penetration at 117% 6000 000 stable market share, slight growth in
Slide 10: Mobile broadband market – major growth driver
Mobile broadband market – major growth driver Mobile broadband market developments (based on total SIM cards) Penetration +47% Subscribers Mobile broadband 1 190 167 1200 000 1000 000 27% 3G/HSDPA network coverage of ca. 75% 808 853 300 HSPA+ base stations offering 21 Mbps, 800 000 24% 25% full cove
Slide 11: T-Systems – Financial performance
T-Systems – Financial performance Revenues T-Systems HUF million -10% 30 000 29 068 Falling voice and data revenues 26 229 25 000 private clients remain very cautious, while 42.6% 39.9% public sector clients are still facing budget 20 000 cuts 15 000 29.9% high fixed churn, continued pressure on 31.
Slide 12: Macedonia – Financial performance
Macedonia – Financial performance Revenues Macedonia HUF million -13% 20 000 19 593 Declining fixed line revenues 9.5% 17 023 decreasing fixed retail voice revenues 11.0% 15 000 due to cable competition and strong 45.4% mobile substitution 41.5% 10 000 higher wholesale voice revenues and 14.8% 16.1%
Slide 13: Montenegro – Financial performance
Montenegro – Financial performance Revenues 0% Montenegro HUF million 8 000 7 764 7 746 Fixed voice revenues under pressure 5.6% 10.4% 7 000 deterioration in retail voice revenues 6 000 driven by strong mobile substitution 39.1% 36.1% 5 000 growing internet and TV revenues 4 000 #1 position in the p
Slide 14: Financials
Financials 14
Slide 15: Magyar Telekom - Consolidated Income Statement
Magyar Telekom - Consolidated Income Statement HUF million Jun 30, 2010 Jun 30, 2011 Change Fixed line revenues 61 617 58 470 -5.1% Mobile revenues 78 252 75 798 -3.1% System Integration/Information Technology revenues 10 591 9 298 -12.2% Revenues 150 460 143 566 -4.6% Direct costs (36 785) (34 860)
Slide 16: Magyar Telekom - Consolidated Balance Sheet
Magyar Telekom - Consolidated Balance Sheet HUF million Dec 31, 2011 Jun 30, 2011 Change Current assets 200 574 176 270 -12,1% Cash and cash equivalents 15 841 15 727 -0,7% Other current financial assets 56 560 38 120 -32,6% Non current assets 908 432 877 928 -3,4% Property, plant and equipment - ne
Slide 17: Magyar Telekom - Consolidated Cashflow Statement
Magyar Telekom - Consolidated Cashflow Statement HUF million Jun, 2010 Jun, 2011 Change Net cash generated from operating activities 92 353 95 464 3,4% Investments in tangible and intangible assets (36 176) (26 656) -26,3% Adjustments to cash purchases (3 797) (7 948) 109,3% Purchase of subsidiaries
Slide 18: Investigations into certain consultancy contracts
Investigations into certain consultancy contracts As previously disclosed, the Company’s Audit Committee conducted an internal investigation regarding certain contracts relating to the activities of the Company and/or its affiliates in Montenegro and Macedonia that totaled more than EUR 31 million.
Slide 19: 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 Abbreviations: 3G: third generation, ARPU: average revenue per user, BB: broadband, CBC: call-by-call, CPS: carrier pre-selection, HQ: headquarte