Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q2 2020 Earnings Presentation
15 slides from Magyar Telekom Telecommunications's earnings presentation, Aug 6, 2020
Slide 1: Magyar Telekom Group Q2 2020 Results presentation
Magyar telekom group Q2 2020 Results presentation August 6, 2020
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: 2020 Guidance: EBITDA confirmed, capex upgraded
2020 GUIDANCE: EBITDA CONFIRMED, CAPEX UPGRADED YTD 2020 Targets 2020 2019 results Targets 2021 (vs YTD 2019) (vs 2019) HUF 316.5bn REVENUE HUF 666.7bn (-3.2bn) Broadly stable Broadly stable HUF 91.0bn Increase of Increase of EBITDA AL HUF 197.6bn (-0.9bn) 1%-2% 1%-2% HUF 48.5bn Up by around Broadly
Slide 4: Q2 highlights: seamless operations despite COVID-19
Q2 HIGHLIGHTS: SEAMLESS OPERATIONS DESPITE COVID-19 Network Customers Efficiency & optimisation Communities ▪ Accelerated fiber rollout: 2.2mn ▪ Mobile broadband data usage up by ▪ Over HUF 2bn efficiency ▪ Enhancing digital cooperation in gigabit capable access points over 60% in Q2 2020 improvemen
Slide 5: Wide-ranging effects of COVID-19 in H1 2020
WIDE-RANGING AFFECTS OF COVID-19 IN H1 2020 Affected areas H1 2020 trends Financial impact Cost savings ▪ Lower travel costs and other OPEX ▪ Bandwidth upgrades in fixed BB; 2X10GB customer offer somewhat limited Data traffic monetization ▪ Higher market shares in fixed BB and TV as well as improvem
Slide 6: Growing EBITDA AL trend interrupted by COVID-19
GROWING EBITDA AL TREND INTERRUPTED BY COVID-19 Quarterly revenue changes YoY (%) Quarterly EBITDA (AL)1 changes YoY (%) 12.4 5.5 4.1 0.6 4.1 0.2 3.6 1.1 -2.2 -4.1 -2.9 -2.5 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2002 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2002 6 (1) 2019 YoY quarterly chang
Slide 7: Revenues affected by lower SI/IT contribution both in Q2 and H1 2020
REVENUES AFFECTED BY LOWER SI/IT CONTRIBUTION BOTH IN Q2 AND H1 2020 Revenue YoY, Q2 2020 vs Q2 2019 Revenue YTD, H1 2020 vs H1 2019 HUF bn -2.2% -1.0% HUF bn 1.2 1.1 3.3 1.8 0.2 2.8 160.8 319.7 -5.1 -8.1 157.2 316.5 -1.6 -2.2 Q2 2019 Mobile service Fixed service Equipment SI/IT Other Q2 2020 H1 201
Slide 8: Increase in mobile SIMs supported moderate revenue growth in Q2 2020
increase in mobile sIMs supported moderate revenue growth in Q2 2020 Mobile SIMs Mobile ARPU +1.2% HUF ‘000 M2M Q2 2019 5, 332 5, 398 Prepaid 3,546 Q2 2020 Blended -1.5% 5.0% 5.5% 3,494 Postpaid 31.4% 29.7% 1,125 Prepaid -12.5% 984 5,038 Postpaid -2.7% 4,900 63.6% 64.8% M2M 644 -8.5% 589 Q2 2019 Q2
Slide 9: Subscriptions and broadband ARPU growth drives increasing fixed line contribution
subsciptions and broadband arpu growth drives increasing fixed line contribution Fixed line multiplay residential subscribers Fixed Voice, BB and TV ARPU +3.2% ‘000 Q2 2019 1, 405 1, 450 2,217 Q2 2020 21% Fixed voice -3.2% 24% 1Play 2,145 2Play 31% 34% 3,494 3Play Fixed BB +2.4% 3,579 45% 46% 3,301
Slide 10: Lower indirect costs offset gross profit decline in Q2 and H1 2020
LOWER INDIRECT COSTS OFFSET GROSS PROFIT DECLINE BOTH IN Q1 AND H1 2020 EBITDA AL YoY, Q2 2020 vs Q2 2019 EBITDA AL YTD, H1 2020 vs H1 2019 HUF bn HUF bn -2.5% -0.9% 51.5 2.5 91.9 2.4 91.0 1.0 50.2 1.5 0.1 0.5 2.7 3.2 2Q 2019 Gross profit Indirect costs Other op. IFRS 16 impact 2Q 2020 1H 2019 Gross
Slide 11: Capex growth of 2020 driven by fiber roll-out and mobile network modernization
CAPEX GROWTH OF 2020 DRIVEN BY FIBER ROLL-OUT AND MOBILE NETWORK MODERNIZATION CAPEX AL (w/o spectrum licenses) YTD, H1 2020 vs H1 2019 CAPEX AL (w/o spectrum licenses), FY 2020 HUF bn Up by ca. 10% +43.7% Broadly stable (vs 2019) 48.5 89.6 (vs 2019) 33.8 H1 2019 H1 2020 2019 Original guidance (2020
Slide 12: Net profit under pressure mainly due to higher D&A and financial charges in H1 2020
NET PROFIT UNDER PRESSURE MAINLY DUE TO HIGHER D&A AND FINANCIAL CHARGES IN H1 2020 EBITDA, earnings, H1 2020 -1% -5% -10% -35% -33% +8% -14% -46% HUF bn 102.5 69.0 33.5 16.4 17.1 6.4 1.7 9.0 EBITDA D&A Operating profit Net financial result PBT Income tax Non-controlling interests PAT ▪ D&A: slightl
Slide 13: H1 2020 cash generation covered investments and seasonal uplift in working capital
H1 2020 CASH GENERATION COVERED INVESTMENTS (EXCL. SPECTRUM) AND SEASONAL UPLIFT IN WORKING CAPITAL AND EBITDA AL and cash-flow, H1 2020 HUF bn -1% +58% +44% -12% 91.0 23.3 67.7 48.5 15.8 3.4 54.2 -50.8 EBITDA AL Working capital and Operating CF CAPEX AL excl. spectrum Lease and other FCF excl. Spec
Slide 14: Q&A: For further questions please contact the IR department
Q&A ? For further questions please contact the IR department: Zoltán Pandi Rita Walfisch Head of Investor Relations Investor Relations Manager Phone: +36 1 481-7676 Phone: +36 1 457-6084 e-mail: zoltan.pandi@telekom.hu e-mail: walfisch.rita@telekom.hu
Slide 15: North Macedonia
North Macedonia Revenues EBITDA AL (MKD mn) (MKD mn) -2.9% -2.6% 2,646 1,151 22 1 1,121 12 7 2,569 -65 -81 -2 Q2 2019 Mobile Fixed SI/IT Q2 2020 Q2 2019 Gross profit Employee Other operating IFRS 16 impacts Q2 2020 related exp. exp (net) KPIs (mobile/fixed voice/fixed BB/TV) ▪ COVID-19 unfavorable i