Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q3 2010 Earnings Presentation
14 slides from Magyar Telekom Telecommunications's earnings presentation, 2010
Slide 1: Magyar Telekom Third Quarter 2010 results
Presentation Magyar Telekom Third Quarter 2010 results Solid performance driven by successful strategic initiatives
Slide 2: Some improvement in the economic environment
Some improvement in the economic environment Group revenues and Hungarian GDP Economic indicators influence telecommunication spending in different ways in 2009 all components of economic activity suffered a meaningful decline in Hungary telecommunication spending lags GDP trend demand for tel
Slide 3: Strong positions in all segments of the Hungarian market
Strong positions in all segments of the Hungarian market TV market shares Mobile voice market shares* *based on active SIM cards Wireline broadband market shares Mobile broadband market shares** Source: NRA **based on traffic generating subs. 3
Slide 4: Change in organizational structure
Change in organizational structure New organizational structure – effective from July 1, 2010 CEO Finance Technology Human Strategy & Business Sales & Service Marketing Legal & Resources Business Services Corporate Development Affairs Rationale: improved effectiveness in responding to rapidly chan
Slide 5: Performance against public targets for 2010
Performance against public targets for 2010 2010 public targets 2010 9M results Revenue 6-8% decline (prev. 5-7% ) 5.8% decline decreasing consumer spending recessionary impacts rationalization in the business sector intense competition stronger forint compared to average 2009 saturated
Slide 6: Q3 2010 results – Business Unit analysis
Q3 2010 results – Business Unit analysis Revenue development Underlying EBITDA development HUF million HUF million 165,000 1,400 70,756 160,110 754 160,000 70,000 113 68,719 - 1,044 1,434 - 3,220 - 73 - 1,011 - 1,694 154,768 155,000 - 1,179 - 463 - 2,396 66,000 150,000 62,000 145,000 140,000 58,000
Slide 7: Consumer Services Business Unit (CBU)
Consumer Services Business Unit (CBU) Fixed line revenues Mobile revenues -6% +2% -52% +10% +19% +17% -1% -2% -13% EBITDA and margin Revenue decline principally driven by recession depressed consumer spending and intense competition 59.3% +2.4pp 61.7% remain the most significant negative drivers
Slide 8: CBU – fixed line operations
CBU – fixed line operations Fixed voice access Strong focus on triple play on all networks (PSTN, Subscribers cable and fiber) -9% +18% new packages include improved VoIP solutions +14% triple play offers start from HUF 5,340/month (~EUR 19) New generation access roll-out -11% ratio of xPlay c
Slide 9: CBU – mobile operations
CBU – mobile operations ARPU MOU Mobile internet development leading market position with 49% market share number of T-Mobile’s subscribers exceeded +3% +11% 545,000 at the end of Q3 2010 3G/HSDPA network covering ~75% of population Mobile termination rate regulation asymmetry eliminated fro
Slide 10: Business Services Business Unit (BBU)
Business Services Business Unit (BBU) Revenues Falling voice and data revenues strong pressure on clients to renegotiate contract terms -4% high churn among fixed voice, data and internet customers continued pressure on mobile tariffs resulting in lower ARPU +23% level Governmental measures
Slide 11: Macedonia
Macedonia Revenues Results positively impacted by FX trend -1% HUF weakened on average by 4.8% to the Macedonian Denar in Q3 2010 -9% excluding FX impact revenues and EBITDA were down by 6% and 1%, respectively -3% Declining fixed line revenues 3% decreasing fixed retail voice revenues (in loc
Slide 12: Montenegro
Montenegro Revenues Results negatively impacted by FX trend no ch. HUF weakened on average by 5.4% to the Euro in Q3 2010 -8% excluding FX impact, revenues were down by 5% but EBITDA increased by 3% thanks to cost cutting measures 1% Fixed voice revenues under pressure 15% deterioration in ret
Slide 13: 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
Slide 14: 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 In addition to figures prepared in accordance with IFRS, Magyar Telekom also presents non-GAAP financial performance measures, including, among o