Magyar Telekom Telecommunications Plc · BET:MTELEKOM

Magyar Telekom Telecommunications — Magyar Telekom — Q3 2009 Earnings Presentation

15 slides from Magyar Telekom Telecommunications's earnings presentation, 2009

  1. Slide 1: Magyar Telekom Q3 2009 Results

    Presentation Magyar Telekom Q3 2009 Results Difficult economic environment continues to put pressure on revenues; cost efficiency remains the key priority 1

  2. Slide 2: Third quarter 2009 results: Business Unit analysis

    Third quarter 2009 results Business Unit analysis Revenue development Underlying EBITDA development 168 000 167 078 72 000 166 000 71 212 71 000 1 514 70 756 164 000 - 866 162 000 - 4 774 70 000 2 246 191 160 110 372 26 160 000 -1 225 69 000 - 3 406 - 1 450 158 000 r ia o U U 08 09 68 000 he r on BB

  3. Slide 3: Focus on efficiency and special influences

    Focus on efficiency Special influences Headcount rationalization Provision reversal in Q3 2009 Underlying TWM expense in Hungary Special influences Annual wage Total SI 1 702 -409 increase 5.5% 5.6% 1.5% HUF billion HUF million 150 3 000 121 -5% 114 2 000 269 100 1 164 1 000 1 522 538 0 50 Q3 2008 Q

  4. Slide 4: Public targets for 2009 confirmed

    Public targets for 2009 confirmed 2009 public targets 2009 nine month results Revenue Around 2% decline compared to 2008 2.8% decline „ excluding IC fees related „ significant drop in disposable income of „ significant pressure on private reversal of provisions in 2008 households due to recession (r

  5. Slide 5: Consumer Services Business Unit (CBU) - Financials

    Consumer Services Business Unit (CBU) - Financials CBU Fixed line revenues CBU Mobile revenues HUF million HUF million -6% -5% 40 000 52 000 -2% -2% 30 000 +20% 39 000 +2% -8% 20 000 26 000 -11% -7% 10 000 13 000 0 0 Q3 2008 Q3 2009 Q3 2008 Q3 2009 Voice Internet TV Other Voice Non-voice Other CBU E

  6. Slide 6: CBU – focus on triple play services

    CBU – focus on triple play services TV customer growth Strong focus on service bundling on all our networks - fixed line, cable and mobile Subscribers +34% 600 000 n.a. 400 000 +186% ƒ voice access churn accelerated by the recession, focus on retention through product bundling -2% ƒ conscious migrat

  7. Slide 7: Improving service quality and portfolio

    Improving service quality and portfolio New generation access strategy Launch of satellite TV service Households coverage Number of customers 1 200 000 150 000 121 563 120 000 800 000 780 000 87 748 90 000 400 000 138 000 160 000 60 000 47 144 350 000 350 000 380 000 30 000 0 5 338 0 Septem ber 2009

  8. Slide 8: CBU - mobile operations

    CBU - mobile operations Mobile market shares Penetration growth stopped in the recessionary environment Subscribers 117% Penetration 118% „ penetration even declined since beginning of the year due 12 000 000 to declining number of inactive customers 21.4% 20.8% +2.9% „ residential customer base dow

  9. Slide 9: CBU - mobile KPIs

    CBU - mobile KPIs Declining tariff and usage levels ARPU MOU „ average tariff levels declined due to competitive pressure, closed-user-group offers and regulation HUF min „ recession negatively influencing usage 4 000 150 3 415 3 141 126 124 -8% -2% „ mobile termination rate cuts and roaming 3 000 1

  10. Slide 10: Business Services Business Unit (BBU) - Financials

    Business Services Business Unit (BBU) - Financials BBU revenues Falling voice revenues now coupled with pressure HUF million 50 000 on SI/IT services -8% „ rationalization and cost cutting initiatives at our key 40 000 corporate clients lead to a reduction in their telecom -11% spending 30 000 -2% „

  11. Slide 11: BBU KPIs

    BBU KPIs Fixed voice access DSL customers Subscribers Subscribers 450 000 250 000 -6% -12% 360 000 200 000 -5% 270 000 150 000 -14% 180 000 100 000 90 000 -23% 50 000 -9% +1% 0 0 September 2008 September 2009 September 2008 September 2009 Business lines Managed leased lines ISDN channels Retail DSL

  12. Slide 12: Macedonia

    Macedonia Macedonia revenues Results supported by significant FX impact HUF million +12% „ HUF weakened on average by 14.0% to the Macedonian 24 000 Denar in Q3 20 000 „ excluding FX impact revenues are down by 2%, EBITDA down +19% 16 000 by 8% +21% 12 000 Declining traditional fixed line voice reve

  13. Slide 13: Montenegro

    Montenegro Montenegro revenues Results supported by significant FX impact HUF million „ HUF weakened on average by 14.1% to the Euro in Q3 +2% 10 000 „ excluding FX impact revenues are down by 11%, underlying -18% EBITDA down by 13% 7 500 0% Fixed voice revenue decline 5 000 +30% „ decrease in voice

  14. Slide 14: International KPIs: Macedonia, Montenegro

    International KPIs Macedonia Fixed voice access ADSL customer growth Mobile subscribers Subscribers 106% Penetration 115% 21.6% Penetration 19.0% Subscribers 150 000 Subscribers 2 500 000 480 000 120 000 8 301 13% 2 000 000 12% 400 000 -14% 90 000 29% 30% 320 000 1 500 000 240 000 60 000 +40% 119 09

  15. Slide 15: 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

Magyar Telekom — Q3 2009 Earnings Presentation on 6ix