Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — FY2018 Earnings Presentation
21 slides from Magyar Telekom Telecommunications's earnings presentation, March 2019
Slide 1: Magyar Telekom Group Investor Presentation
MAGYAR TELEKOM GROUP INVESTOR PRESENTATION March 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 02 2018 Results and 2019-2021 Guidance 03 2018 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: 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 11: 2018 Results and Guidance for 2019-2021
02 2018 RESULTS AND GUIDANCE FOR 2019-2021 11
Slide 12: 2018 Group Segmental Revenue and EBITDA
2018 GROUP SEGMENTAL REVENUE AND EBITDA Group segmental revenues1 Group segmental EBITDA1 HUF bn HUF bn +7.2% +3.8% 660 19.1 194 1.6 1.7 0.5 0.5 655.2 192.8 650 -4.6 192 2.5 -0.4 640 9.3 190 3.5 630 17.8 188 620 610.9 186 185.7 610 0 0 2017 Mobile Fixed line SI/IT Energy Mobile Fixed line SI/IT 2018
Slide 13: Public Targets for 2019-2021
PUBLIC TARGETS FOR 2019-2021 2018 RESULTS 2019 TARGETS2 2021 TARGETS2 REVENUE HUF 657.1 bn MODERATE DECLINE BROADLY STABLE EBITDA HUF 192.5 bn INCREASING AT A CAGR OF 1% - 2% CAPEX1 HUF 91.8 bn BROADLY STABLE INCREASING AT A FREE CASHFLOW1 HUF 68.0 bn CA. 5% INCREASE CAGR OF CA. 5% DIVIDEND PER SHAR
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: 2018 Results by Segment
03 2018 RESULTS BY SEGMENT 15
Slide 16: Hungary - Total
HUNGARY - TOTAL Revenue1 EBITDA1 HUF bn HUF bn +7.4% +3.6% 610 19.1 172 4.6 171.0 600.8 600 -4.6 -2.0 170 590 5.8 3.5 8.0 2.2 168 580 13.1 166 -2.1 570 165.0 559.2 164 560 0 0 2017 Mobile Mobile Fixed Fixed SI/IT Energy Other 2018 2017 Gross profit Employee Other operating 2018 service equipment ser
Slide 17: Hungary - Mobile
HUNGARY - MOBILE Mobile SIMs Mobile ARPU1 ‘000 -39 +37 HUF Prepaid 3,392 2017 6,000 5,332 5,293 5,330 Blended +6.8% Postpaid 3,624 2018 5,000 40.8% 35.5% 32.8% 4,000 1,073 Prepaid +0.5% 3,000 1,078 2,000 64.5% 67.2% 59.2% 4,833 1,000 Postpaid +2.4% 4,950 0 2016 2017 2018 Total mobile data subscriber
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 -27 +20 1,500 1,423 1,412 1,383 Voice 1Play Broadbad 1,500 1,400 1,373 1,393 2Play 1,148 1,088 1,016 969 1,074 1,027 PayTV 32% 28% 25% 3Play 1,000 1,000 28% 29% 29% 500 500 39% 44%
Slide 19: Hungary – SI/IT
HUNGARY – SI/IT SI/IT revenue SI/IT revenue breakdown by vertical segments1 HUF bn 2018, HUF bn Market share1 120 Finance 10% 105 Hardware & Software Manufacturing 6% 90 w/o mobile devices Retail&WS 6% 46% 75 IT Infrastructure Prof. Services 16% 45% 60 50% services Telco+Media 8% 39% System Integrat
Slide 20: Macedonia
MACEDONIA Financials1 Mobile market Revenues (MKD mn) EBITDA (MKD mn) Subscribers (mn) +0.2% +3.1% -0.8% +1.7% Lycamobile 48 4,148 2.5 2.197 2.202 2.184 One.Vip 89 10,498 2.6% 2.1% 75 2.0 Telekom 115 49.8% 48.7% 48.3% 1.5 -25 10,318 4,024 1.0 0.5 50.2% 48.6% 49.6% 2017 Mobile Fixed SI/IT 2018 2017 G
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