Magyar Telekom Telecommunications Plc · BET:MTELEKOM

Magyar Telekom Telecommunications — Magyar Telekom — Q3 2017 Earnings Presentation

15 slides from Magyar Telekom Telecommunications's earnings presentation, Nov 8, 2017

  1. Slide 1: Magyar Telekom Group Q3 2017 Results Presentation

    MAGYAR TELEKOM GROUP Q3 2017 RESULTS PRESENTATION NOVEMBER 8, 2017

  2. Slide 2: Q3 2017 Group Segmental Revenue and EBITDA

    Q3 2017 GROUP SEGMENTAL REVENUE AND EBITDA Group segmental revenues Group segmental EBITDA +8.8% HUF bn HUF bn +12.1% 4.5 0.0 -0.2 -0.2 155.4 156 58 0.4 57.2 5.7 0.2 -0.1 154 57 152 1.8 56 150 6.7 55 148 54 146 53 144 142.9 52 51.1 142 51 0 0 3Q 2016 Mobile Fixed line SI/IT & Mobile Fixed line SI/IT

  3. Slide 3: Highlights

    HIGHLIGHTS  Launch of new postpaid tariff system in March drove demand for larger data packages MOBILE  Introduction of EU Roam Like Home legislation had limited revenue and EBITDA impacts thanks to increase in visitor data usage  New broadband portfolio with increased download speed offering to

  4. Slide 4: 9M 2017 Financial Results and 2017 Targets

    9M 2017 FINANCIAL RESULTS AND 2017 TARGETS* 9M 2017 RESULTS 2017 TARGETS  Continued growth in mobile service revenue REVENUE  Higher Hungarian SI/IT revenues driven by uptick in EU fund inflows HUF 449.4 bn around HUF 580 bn  One-off project boosted fixed line data revenue  One-off impacts (prov

  5. Slide 5: Hungary

    HUNGARY Revenue* EBITDA HUF bn HUF bn +13.0% +10.0% 145 52 0.4 51.0 4.6 -0.1 141.9 5.7 -0.3 50 140 1.3 4.4 -0.8 0.9 48 0.4 135 3.5 46 45.1 130 129.0 -1.1 44 0 0 3Q Mobile Mobile Mobile Fixed Fixed TV Fixed SI/IT Energy 3Q 3Q 2016 Gross profit Employee Other op. 3Q 2017 2016 voice non- other voice BB

  6. Slide 6: Hungary – Mobile

    HUNGARY – MOBILE Mobile SIMs Mobile ARPU ‘000 HUF -3.3% +1.9% 6,000 5,482 5,401 5,301 Prepaid 3,354 3Q 2016 5,000 Blended +2.8% 37.4% Postpaid 3,446 3Q 2017 44.0% 41.1% 4,000 1,197 3,000 Prepaid -11.2% 1,063 2,000 56.0% 58.9% 62.6% 4,882 1,000 Postpaid +0.4% 4,899 0 Sep 2015 Sep 2016 Sep 2017 Total

  7. Slide 7: Hungary – Fixed Voice, Broadband and TV

    HUNGARY – FIXED VOICE, BROADBAND AND TV Fixed line customer number development Fixed line multiplay residential subs. development ‘000 ‘000 Voice 1Play 1,500 1,467 1,437 1,421 Broadbad 1,500 1,410 1,387 1,366 2Play PayTV 3Play 1,063 1,016 36% 32% 29% 984 952 1,019 979 1,000 1,000 29% 28% 30% 500 500

  8. Slide 8: Hungary – SI/IT

    HUNGARY – SI/IT SI/IT revenue developments SI/IT revenue breakdown by vertical segments* HUF bn Market Share* Finance 13% 90 Hardware & Software Manufacturing 6% w/o mobile devices 75 Retail&WS 6% IT Infrastructure 50% services Prof. Services 11% 60 39% System Integration / Telco+Media 10% 43% 45 IT

  9. Slide 9: Macedonia

    MACEDONIA Financials Mobile market Revenues (HUF bn) EBITDA (HUF bn) Subscribers One (T. Slovenia)* -3.3% +4.5% +0.4% +1.9% VIP (T. Austria) 14.2 6.4 2,500,000 14.0 0.0 -0.2 0.4 6.2 One.Vip 14.0 6.2 2,000,000 25.0% Telekom -0.2 49.5% 50.7% 13.8 5.9 1,500,000 6.0 27.8% 13.6 13.5 5.8 1,000,000 -0.1 13

  10. Slide 10: Appendix

    APPENDIX

  11. Slide 11: Market Positions in the Hungarian Telco Market

    MARKET POSITIONS IN THE HUNGARIAN TELCO MARKET Total mobile market* Fixed voice market** Vodafone Other Subscribers -0.5% Subscribers 12,000,000 Telenor 3,500,000 +1.0% Invitel MT DIGI 24.1% 24.7% 24.9% 3,000,000 3.1% 3.2% 3.3% 13.1% 12.4% UPC 9,000,000 13.0% 2,500,000 11.5% 12.4% MT 10.8% 28.1% 28.

  12. Slide 12: Magyar Telekom – Consolidated Income Statement

    MAGYAR TELEKOM – CONSOLIDATED INCOME STATEMENT HUF million Q3 2016 Q3 2017 Change Mobile revenues 78,810 85,531 8.5% Fixed line revenues 47,336 48,913 3.3% System Integration/Information Technology revenues 15,260 19,590 28.4% Revenue from energy services 1,459 1,347 -7.7% Revenues 142,865 155,381 8

  13. Slide 13: Magyar Telekom – Consolidated Balance Sheet

    MAGYAR TELEKOM – CONSOLIDATED BALANCE SHEET HUF million Dec 31, 2016 Sep 30, 2017 Change Current assets 193,978 181,670 -6.3% Cash and cash equivalents 10,805 6,294 -41.7% Other current financial assets 5,104 2,195 -57.0% Non current assets 981,551 919,836 -6.3% Property, plant and equipment - net 4

  14. Slide 14: Magyar Telekom – Consolidated Cash Flow Statement

    MAGYAR TELEKOM – CONSOLIDATED CASH FLOW STATEMENT HUF million Sep 30, 2016 Sep 30, 2017 Change Net cash generated from operating activities 100,759 95,536 -5.2% Investments in tangible and intangible assets (55,700) (56,595) -1.6% Adjustments to cash purchases (12,736) (4,591) 64.0% Purchase of subs

  15. Slide 15: For further questions please contact the IR department

    For further questions please contact the IR department: Linda László Rita Walfisch Head of Investor Relations Investor Relations Manager Phone: +36 1 481-7676 Phone: +36 1 457-6084 e-mail: laszlo.linda@telekom.hu e-mail: walfisch.rita@telekom.hu DISCLAIMER This investor presentation contains forward

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