Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Investor Presentation (March 2025)
27 slides from Magyar Telekom Telecommunications's investor presentation, March 2025
Slide 1: Magyar Telekom Investor Presentation March 2025
MAGYAR TELEKOM INVESTOR PRESENTATION March 2025
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: Magyar Telekom at a glance
Magyar Telekom at a glance Overview 2024 revenue composition ▪ Integrated ICT operations in Hungary and North Macedonia Other North Macedonia Mobile voice ▪ Leading telecommunications service provider in both 7.0% countries 13.6% 8.1% ▪ Leading SI/IT service provider in Hungary SI/IT revenues ▪ Offe
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS
Slide 5: More favourable environment with sector-specific tax removals
More favourable environment with sector-specific tax removals Key macroeconomic indicators 20% 17.6% 14.5% ▪ Inflation up again in H2 2024, reaching 5.5% yoy in January 15% 10% 7.1% 2025 4.9% 4.6% 3.7% 5% 0.5% 0% ▪ GDP decline in 2023 and H1 2024 due to weaker household -5% -5.0% -0.9% consumption,
Slide 6: Strong market leading position
Strong market leading position Mobile voice SIM market share1 Mobile data SIM market share1 % % Stable leading position in the 60 60 Hungarian mobile market 40 40 20 20 0 0 2019 2020 2021 2022 2023 June 2019 2020 2021 2022 2023 June 2024 2024 Fixed broadband market share2 TV market share2 Increasing
Slide 7: Outstanding networks: a critical differentiator
Outstanding networks: a critical differentiator Continuous investment into our fixed network Facilitating growing mobile data usage # of access points (th) Total monthly mobile traffic (GB thousand) 5 000 4 435 4 538 4 576 80 000 4 194 4 259 4 374 16.5% 70 000 4 000 23.2% 20.3% 30.9% 60 000 40.7% 19
Slide 8: Consistent improvement in revenue and profitability
Consistent improvement in revenue and profitability Magyar Telekom revenues Seamless connectivity experience HUF bn 1,000 7.7% 964.2 848.9 Strong brand, excellent servicing & 800 745.8 666.9 673.1 692.8 more-for-more pricing strategy 600 400 ~90% 200 Employees in Budapest HQ working 0 under agile fr
Slide 9: Three-pronged strategy for continued success
Three-pronged strategy for continued success Strategic priorities 2025 focus NETWORK & INVESTEMENTS Differentiate via leading network Increase fiber coverage by 250,000 experience by ensuring seamless access points connectivity CUSTOMERS Implement 3.7% inflation-based fee Grow by monetizing high-qua
Slide 10: Sustainable practices underpin strategic initiatives
Sustainable practices underpin strategic initiatives Digitalization of Hungary Climate protection Digital inclusion and education ▪ 5G coverage Scope 1 & 2 Digital inclusion ▪ Gigabit access ▪ Carbon neutrality (since 2015) ▪ Education platforms ▪ Consultancy ▪ Green energy ▪ Child protection ▪ Ener
Slide 11: Committed to delivering sustainable shareholder value
Committed to delivering sustainable shareholder value Record shareholder remuneration for 2024 Enhanced policy for 2025 and beyond ▪ cash dividend of HUF 90.9 billion* (~HUF 100 ▪ Target annual shareholder remuneration: 60% - 100% of dividend per share) consolidated adjusted net income, up from 60%
Slide 12: 2024 Results and Outlook
2024 RESULTS AND OUTLOOK
Slide 13: Delivery against strategic objectives
Delivery against strategic objectives Resilience & Efficiency SAT TV phase-out* Network & Investments Full upgrade of CRM system architecture Hungarian gigabit fixed access points EBITDA margin up by 4 p.p YoY over 3.8 million Completed Hungarian RAN modernization Population-based outdoor 5G coverag
Slide 14: 2024 targets successfully achieved
2024 targets successfully achieved 2023 results 2024 guidance FY 2024 results HUF 967.5 billion REVENUE HUF 849.4 bn ca 10% growth (+13.9%) HUF 333.1billion EBITDA AL HUF 257.9 bn ca 25% growth (+29.1%) ADJUSTED NET ca HUF 150 bn HUF 162.6 billion HUF 93.6 bn (+73.7%) INCOME HUF 165.1 billion FCF 1
Slide 15: Sustained growth in customer base and ARPU levels
Sustained growth in customer base and ARPU levels Mobile SIMs Mobile ARPU ‘000 +3.3% HUF M2M Q4 2023 6,454 Prepaid 4,430 Q4 2024 6,246 Blended +11.4% Postpaid 4,935 17.9% 21.7% 6,649 21.1% 19.7% Postpaid +17.6% 7,816 1,427 Prepaid -0.4% 1,421 61.0% 58.5% 258 M2M -3.2% 250 December 2023 December 2024
Slide 16: Fiber uptake fuels fixed market growth
Fiber uptake fuels fixed market growth Fixed voice, BB and TV customers Fixed voice, BB and TV ARPU ‘000 +4% YE 2023 HUF Q4 2023 YE 2024 Q4 2024 1,654 1,968 +1% Fixed voice +7.9% 2,123 1,438 -6% 4,694 1,273 Fixed BB +18.1% 1,592 5,542 1,424 1,197 4,032 Pay TV +9.6% 4,420 Fixed voice Broadband TV ▪ H
Slide 17: Revenue growth reflects inflation-based fee adjustment and favorable operational developments
Revenue growth reflects inflation-based fee adjustment and favorable operational developments Revenue, Q4 2024 vs Q4 2023 HUF bn ▪ Subscription revenues boosted by +11.9% 0.9 256.5 inflation-based fee adjustment 2.3 1.6 7.8 14.8 229.2 ▪ Continued demand for data and connectivity drove service revenu
Slide 18: EBITDA AL growth driven by strong gross profit momentum
EBITDA AL growth driven by strong gross profit momentum EBITDA AL, Q4 2024 vs Q4 2023 HUF bn 18.7% ▪ Gross profit rose in line with revenues 26.5 -1.5 77.6 65.4 -7.0 -5.3 -0.5 ▪ Employee-related expenses boosted by one-off bonus payment Q4 2023 Gross profit Supplementary Employee Other operating IFR
Slide 19: Rise in net income driven by EBITDA growth and favorable financial expense trend
Rise in net income driven by EBITDA growth and favorable financial expense trend Net income (and adjusted net income), Q4 2024 vs Q4 2023 HUF bn 2.9 12.7 1.2 36.3 34.6 ▪ Strong organic growth boosts net -3.3 -0.5 -1.7 income 25.8 23.2 -2.6 ▪ Net financial result improvement Q4 2023 Adj.* Q4 2023 EBI
Slide 20: Positive EBITDA drives strong free cashflow
Positive EBITDA drives strong free cashflow Free cashflow excluding spectrum licenses, FY 2024 vs FY 2023 CAPEX, FY 2024 vs FY 2023 HUF bn HUF bn +7.8% 76.2 3.3 2.7 165.1 113.3 105.1 12% -3.9 15% 13% 10% 12% 10% 86.8 25% 20% 40% 43% FY 2023 EBITDA Other Investing CF* Repayment of FY 2024 FY 2023 FY
Slide 21: 2025 guidance
2025 guidance 2024 results 2025 guidance REVENUE HUF 967.5 billion 1%-3% growth EBITDA AL HUF 333.1billion 12%-15% growth ADJUSTED NET HUF 162.6 billion ca HUF 190 bn INCOME FCF 1 HUF 165.1 billion ca HUF 180 bn 1 excluding spectrum licenses 21 21
Slide 22: Appendix
APPENDIX
Slide 23: Mobile KPIs
Mobile KPIs Postpaid customers Prepaid customers M2M ‘000 ‘000 ‘000 1,318 3,828 1,305 1,402 3,811 3,799 1,296 3,785 3,778 1,286 1,318 1,274 1,294 1,191 1,117 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Average mobile data us
Slide 24: Fixed KPIs
Fixed KPIs Fixed voice customers Fixed broadband customers Pay TV customers ‘000 ‘000 ‘000 1,654 1,273 1,251 1,637 1,440 1,438 1,232 1,214 1,197 1,622 1,435 1,433 1,609 1,592 1,424 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024
Slide 25: North Macedonia: Q4 2024 and FY 2024 results
North Macedonia: Q4 2024 and FY 2024 results Revenues, Q4 2024 vs Q4 2023 EBITDA AL, Q4 2024 vs Q4 2023 HUF mn HUF mn +11.1% +16.6% 518 38 20,696 1,880 1,511 7,852 18,629 -681 -84 6,737 Q4 2023 Mobile Fixed SI/IT Q4 2024 Q4 2023 Gross profit Indirect costs IFRS 16 impact Q4 2024 Revenues, FY 2024 vs
Slide 26: Hungarian mobile spectrum allocations
Hungarian mobile spectrum allocations 26
Slide 27: For further questions please contact the IR department
For further questions please contact the IR department: Diána Párkányi-Várkonyi Rita Walfisch Capital Market Relations Hub Lead Investor Relations Manager Phone: +481-7676 Phone: +36 1 457-6084 e-mail: varkonyi.diana.annamaria@telekom.hu e-mail: walfisch.rita@telekom.hu