21 slides from Magyar Telekom Telecommunications's earnings presentation, August 2019
Slide 1: Magyar Telekom Group Investor Presentation
MAGYAR TELEKOM GROUP INVESTOR PRESENTATION August 2019
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: Content
CONTENT 01 Strategy and Market Position 2019 Q2 Results and Guidance for 02 2019-2021 03 2019 Q2 Results by Segment
Slide 4: Strategy and Market Position
01 STRATEGY AND MARKET POSITION 4
Slide 5: Overview – Magyar Telekom at a glance
OVERVIEW – MAGYAR TELEKOM AT A GLANCE Overview Pillars of transformation Integrated operations in Hungary and Macedonia1 GROW Leading telecommunications service provider in both countries Lead In Customer Lead in Lead in Business Leading SI/IT service provider in Hungary Experience Technology
Slide 6: Hungarian telco market positions
HUNGARIAN TELCO MARKET POSITIONS Total mobile market1 Fixed voice market2 Subscribers (mn) Subscribers (mn) Vodafone 4 Other 11.8 11.7 11.8 Telenor INVITEL 12 3.1 3.1 3.0 26.1% 26.0% 26.6% Magyar Telekom 3 3.2% 3.3% 3.5% DIGI 13.1% 12.3% 9 11.9% 12.7% 23.8% UPC 28.6% 28.9% 28.4% 2 17.9% 19.3% 21.2%
Slide 7: IT market in Hungary: 2016-2021
IT MARKET IN HUNGARY: 2016-2021 Revenue Total B2B1 IT market (HW&SW and IT services)1 EBITDA IT Services 1 market shares (by revenue)3 HUF bn SYSTEM INTEGRATION IT INFRASTR. SI & +3.3% 700 629 Pack- age Custom app. IT Apps. OS & IT Infra. OS Infra. proj. IT 611 600 582 591 598 60 appl. 60 dev. 60 SI
Slide 8: Hungarian economic environment
HUNGARIAN ECONOMIC ENVIRONMENT Growth structure Domestic demand 8% 4.9% Domestic demand to remain strong 3.7% 4.0% 4% 3.4% Governmental measures support consumer spending 1.5% 2.0% 2% Investment levels show volatility due to EU fund cycles 0% Magyar Telekom leverages positive trends of domes
Slide 9: Network developments in Hungary
NETWORK DEVELOPMENTS IN HUNGARY Revenue Mobile network 1 coverage (population based) EBITDA Fixed network 1 (access points) ‘000 % 97% 98% 99% 97% 99% 4 500 100 3 964 4 015 4 090 4 000 3 925 86% 87% 83% 80 3 500 3 000 43% 47% 50% 54% 60 2 500 87% 89% 89% 2 000 40 84% 85% 71% 76% 76% 1 500 1 000 57%
Slide 10: 2019 Q2 Results and Guidance for 2019-2021
02 2019 Q2 RESULTS AND GUIDANCE FOR 2019-2021 10
Slide 11: 2019 Q2 Group segmental revenue and EBITDA
2019 Q2 GROUP SEGMENTAL REVENUE AND EBITDA Group segmental revenues Group segmental EBITDA HUF bn HUF bn 4.7 56.9 57 175 56 -4.1% 55 1.4 54 +4.1% 170 1.0 167.7 53 1.0 52.3 52 0.5 165 51 50.2 0.5 0.3 0.1 160.8 0.0 0.5 0.1 50 160 -10.3 49 1.0 0 0 Q2 2018 Mobile Fixed line SI/IT Mobile Fixed line SI/IT
Slide 12: H1 2019 results and 2019 financial targets
H1 2019 RESULTS AND 2019 FINANCIAL TARGETS 1 H1 2019 Results Target 2019 (change y-o-y) Significant decline in SI/IT revenues driven by one-off items and different HUF 319.7 bn REVENUE seasonality vs 2018 (+0.4%) Slight decline Growth in fixed broadband and mobile data usage Higher gross profi
Slide 13: Hungarian mobile spectrum
HUNGARIAN MOBILE SPECTRUM Current spectrum allocation (MHz) BAND Magyar Telekom 700 MHz 2x5 2x5 2x5 2x5 2x5 2x5 Telenor Vodafone 800 MHz 2x10 2x10 2x10 Digi Free 900 MHz 2x11.8 2x11 2x12 1800 MHz 2x15 2x5 2x25 2x30 2100 MHz 2x15 2x15 2x15 2x5 2x5 2x5 2600 MHz 2x30 2x20 + 1x25 2x20 3.4-3.8 GHz1 2x30
Slide 14: Revenue and capex developments
REVENUE AND CAPEX DEVELOPMENTS Revenues Capex 100% 100% 11% 13% 14% 80% 54% 56% 56% 80% 60% 42% 47% 44% 60% 40% 15% 13% 15% 40% 12% 8% 13% 16% 18% 14% 10% 20% 15% 10% 20% 9% 9% 10% 7% 6% 5% 8% 9% 9% 12% 12% 9% 0% 0% 2018 2019 2021 2018 2019 2021 Telco Service revenue SI/IT MakTel Maktel IT IFRS 16 i
Slide 15: 2019 Q2 Results by Segment
03 2019 Q2 RESULTS BY SEGMENT 15
Slide 16: Hungary - Total
HUNGARY - TOTAL Revenue1 EBITDA1 HUF bn -5.1% HUF bn 158 50 4.5 49.8 0.8 1.8 0.7 156 154.7 -0.9 48 154 +1.2% 152 46 0.8 45.3 150 44.7 0.1 148 0.0 146.9 44 -0.5 146 -10.3 0 0 Q2 2018 Mobile Mobile Fixed Fixed SI/IT Other Q2 2019 Q2 2018 Gross profit Employee Other operating Q2 2019 w/o IFRS 16 impact
Slide 17: Hungary - Mobile
HUNGARY - MOBILE Mobile SIMs Mobile ARPU ‘000 HUF Prepaid 3,441 Q2 2018 6,000 5,390 5,306 5,332 Blended +3.1% Postpaid 3,546 Q2 2019 5,000 38.3% 34.4% 31.4% 4,000 1,095 Prepaid +2.7% 3,000 1,125 2,000 65.6% 68.6% 61.7% 4,696 1,000 Postpaid -0.6% 4,669 0 June 2017 June 2018 June 2019 Total mobile dat
Slide 18: Hungary – Fixed voice, broadband and TV
HUNGARY – FIXED VOICE, BROADBAND AND TV Fixed line customer base Fixed line multiplay residential subscribers ‘000 ‘000 1,500 1,425 1,391 1,372 Voice 1,500 1,368 1,374 1,405 1Play 1,189 1,122 Broadbad 24% 2Play 1,050 1,006 1,104 1,045 30% 27% PayTV 3Play 1,000 1,000 29% 31% 28% 500 500 42% 45% 45% 0
Slide 19: Hungary – SI/IT
HUNGARY – SI/IT SI/IT revenue trends SI/IT revenue breakdown by vertical segments1 HUF bn 2018, HUF bn Market share1 120 Finance 10% 105 Hardware & Software Manufacturing 6% 90 Retail&WS 6% 46% w/o mobile devices 75 Prof. Services 16% 45% IT Infrastructure 60 50% Telco+Media 8% 39% services Utilitie
Slide 20: North Macedonia
NORTH MACEDONIA Financials Mobile market Revenues (MKD mn) EBITDA excl. IFRS 16 effects (MKD mn) Subscribers (mn) -3.2% +1.3% Telekabel +4.5% +8.4% 2.5 2.211 2.141 2.169 Lycamobile 48 2,646 58 2.5% 2.4% 1.9% 0.4% One.Vip 1,153 2.0 59 8 70 48.9% 48.4% Telekom -38 1.5 49.2% 2,531 1,064 1.0 0.5 48.6% 4
Slide 21: For further questions please contact the IR department
For further questions please contact the IR department: Péter Bauer Rita Walfisch Head of Investor Relations Investor Relations Manager Phone: +36 1 481-7676 Phone: +36 1 457-6084 e-mail: bauer.peter@telekom.hu e-mail: walfisch.rita@telekom.hu ? 21