Magyar Telekom Telecommunications Plc · BET:MTELEKOM

Magyar Telekom Telecommunications — Magyar Telekom — Q1 2023 Earnings Presentation

13 slides from Magyar Telekom Telecommunications's earnings presentation, May 10, 2023

  1. Slide 1: Magyar Telekom Group Q1 2023 Results Presentation

    MAGYAR TELEKOM GROUP Q1 2023 RESULTS PRESENTATION May 10, 2023

  2. 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

  3. Slide 3: Q1 2023 Result Performance Against Public Targets

    Q1 2023 RESULT PERFORMANCE AGAINST PUBLIC TARGETS Q1 2023 results 2022 results 2023 guidance Key drivers (change y-o-y) HUF 195.9 bn ▪ Continued customer base expansion REVENUE HUF 746.7 bn 5%-10% growth (+12.5%) ▪ Temporarily higher SI/IT revenues ▪ Absence of supplementary telecom. tax in Q1 2022

  4. Slide 4: Continued Customer Base Expansion and Positive ARPU Trends

    CONTINUED CUSTOMER BASE EXPANSION AND POSITIVE ARPU TRENDS Mobile SIMs Mobile ARPU ‘000 HUF +4.5% M2M Q1 2022 5,987 Prepaid 3,747 5,727 Blended +7.2% Q1 2023 14.0% 4,017 11.4% Postpaid 25.1% 23.2% 5,341 Postpaid +9.5% 5,851 63.5% 62.7% 1,180 Prepaid +2.5% 1,209 Q1 2022 Q1 2023 Mobile data SIMs Mobil

  5. Slide 5: Fiber Uptake Supporting Customer Base Expansion and ARPU Trends

    FIBER UPTAKE SUPPORTING CUSTOMER BASE EXPANSION AND ARPU TRENDS Fixed line multiplay residential subscribers Fixed voice, BB and TV ARPU ‘000 HUF +2.9% Q1 2022 1,542 1,587 1,918 Q1 2023 Fixed voice +0.2% 15% 1,922 16% 1Play 41% 2Play 3,721 39% Fixed BB +13.6% 4,226 3Play 3,504 45% 44% Pay TV* +6.7%

  6. Slide 6: Revenue Growth Driven by Sustained Commercial Momentum

    REVENUE GROWTH DRIVEN BY SUSTAINED COMMERCIAL MOMENTUM Revenue, Q1 2023 vs Q1 2022 +12.5% HUF bn 2.6 195.9 4.9 5.2 0.3 8.8 174.1 Q1 2022 Mobile service Fixed service* Equipment SI/IT Other* Q1 2023 ▪ Increase in mobile service revenue driven by growing data usage ▪ Growth in fixed service attributab

  7. Slide 7: EBITDA AL Performance Impacted by External Challenges

    EBITDA AL PERFORMANCE IMPACTED BY EXTERNAL CHALLENGES EBITDA AL, Q1 2023 vs Q1 2022 HUF bn -8.9% 13.2 -7.2 -0.5 -1.3 55.8 -5.0 50.8 -3.4 -0.9 Q1 2022 Gross profit Supplementary Utility tax Employee Other operating Operating income IFRS 16 impact Q1 2023 telecommunication related expenses expenses ta

  8. Slide 8: Supplementary Telecommunication Tax and Higher Interest Rate Environment Weigh on Net Profit

    SUPPLEMENTARY TELECOMMUNICATION TAX AND HIGHER INTEREST RATE ENVIRONMENT WEIGH ON NET PROFIT Net income (and adjusted net income), Q1 2023 vs Q1 2022 HUF bn -22.0% -43.0% 18.5 1.8 15.6 2.9 -4.1 1.6 12.1 0.5 10.5 -5.7 -0.4 Q1 2022 Adjustments* Q1 2022 EBITDA D&A Net financial Income tax Non-contr. Q1

  9. Slide 9: Free Cashflow Reflects Challenging External Environment

    FREE CASHFLOW REFLECTS CHALLENGING EXTERNAL ENVIRONMENT Free cashflow, Q1 2023 vs Q1 2022 CAPEX, Q1 2023 vs Q1 2022 HUF bn HUF bn +2.2% 23.0 23.5 -0.5 18% 13% 5% 5% 5% 5% 4.1 25% 37% 0.3 2.7 0.8 47% 40% 2.8 -10.7 Q1 2022 Q1 2023 Q1 2022 EBITDA Interest and Capex Repayment of Other changes Q1 2023 No

  10. Slide 10: 2023 Public Targets

    2023 PUBLIC TARGETS Q1 2023 results 2022 results 2023 guidance Key drivers (change y-o-y) HUF 195.9 bn ▪ Inflation-based fee adjustment introduced in March 2023 REVENUE HUF 746.7 bn 5%-10% growth (+12.5%) ▪ Pressure on household and business spending HUF 50.8 bn ▪ Supplementary telecom. tax to level

  11. Slide 11: Back-up

    Back-up

  12. Slide 12: North Macedonia: Q1 2023 Results

    NORTH MACEDONIA: Q1 2023 RESULTS Revenues, Q1 2023 vs Q1 2022 EBITDA AL, Q1 2023 vs Q1 2022 HUF mn HUF mn +10.3% +11.6% 578 963 18,171 -181 7,285 1,304 -177 -30 16,470 6,529 Q1 2022 Mobile Fixed SI/IT Q1 2023 Q1 2022 Gross profit Indirect costs IFRS 16 impact Q1 2023 12

  13. Slide 13: 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

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