Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q2 2021 Earnings Presentation
16 slides from Magyar Telekom Telecommunications's earnings presentation, Aug 10, 2021
Slide 1: Magyar Telekom Group Q2 2021 Results Presentation
MAGYAR TELEKOM GROUP Q2 2021 RESULTS PRESENTATION August 10, 2021
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: Revenue and EBITDA AL in H1 2021 significantly ahead of original targets
Revenue and EBITDA AL in H1 2021 significantly ahead of original targets Original 2021 H1 2021 results 2021 delivery H1 2020 results annual targets (YoY change) status (vs 2020) HUF 328.4 bn REVENUE HUF 316.5 bn +3.8% Grow 1-2% HUF 97.4 bn EBITDA AL HUF 91.0 bn +7.0% Grow 1-2% HUF 43.2 bn CAPEX AL1
Slide 4: H1 2021 operational delivery underpins strong financial results
H1 2021 operational delivery underpins strong financial results Network Customers Resilience Sustainability ▪ Fixed network rollout: coverage ▪ Highest ever mobile data traffic ▪ Agile transformation in progress ▪ 2016-2020 sustainability strategy expanded to 2.75m gigabit recorded on our network fo
Slide 5: Revenue growth driving positive momentum in EBITDA AL in Q2 2021
REVENUE GROWTH DRIVING POSITIVE MOMENTUM IN EBITDA AL IN Q2 2021 Quarterly revenue changes YoY (%) Quarterly EBITDA AL changes YoY (%) 9,9 8,1 5,7 6,1 3,6 1,8 1,9 1,5 -2,2 -2,5 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q2 2002 Q3 2020 Q4 2020 Q1 2021 Q2 2021 5
Slide 6: Broad-based revenue expansion in Q2 and H1 2021
BROAD-BASED REVENUE EXPANSION IN Q2 AND H1 2021 Revenue, Q2 2021 vs Q2 2020 Revenue, H1 2021 vs H1 2020 HUF bn +5.7% HUF bn +3.8% 2,5 0,7 166.1 2,5 0,7 328.4 -0.4 2,3 -0.7 1,4 7,1 4,8 157.2 316.5 Q2 2020 Mobile Fixed Equipment SI/IT Other Q2 2021 H1 2020 Mobile Fixed Equipment SI/IT Other H1 2021 se
Slide 7: Revenue growth in Hungary driven by rising ARPU on strong data usage
REVENUE GROWTH IN HUNGARY DRIVEN BY RISING ARPU ON THE BACK OF STRONG DATA USAGE AND MOBILE SIM GROWTH Mobile SIMs1 Mobile ARPU1 ‘000 +1.9% HUF M2M Q2 2020 5,398 5,503 Prepaid 3,494 Q2 2021 Blended +5.6% 7.6% 9.5% 3,689 Postpaid 29.7% 26.8% 5,043 Postpaid +3.8% 5,233 62.7% 63.7% 984 Prepaid +20.5% 1
Slide 8: Fixed line performance supported by growing customer base; BB ARPU under pressure
FIXED LINE PERFORMANCE SUPPORTED BY GROWING CUSTOMER BASE; BB ARPU TEMPORARILYUNDER PRESSURE IN HUNGARY Fixed line multiplay residential subscribers Fixed Voice, BB1 and TV ARPU ‘000 +3.4% HUF Q2 2020 1,499 2,145 Q2 2021 1,450 Fixed voice -5.0% 18% 2,037 21% 1Play 2Play 3,444 34% 37% 3Play Fixed BB
Slide 9: Top line driven EBITDA AL expansion
TOP LINE DRIVEN EBITDA AL EXPANSION EBITDA AL, Q2 2021 vs Q2 2020 EBITDA AL, H1 2021 vs H1 2020 HUF bn HUF bn 6.1% 7.0% 6,3 3,2 7,2 0,8 0,5 0,6 97.4 0,0 0,1 53.2 50.2 91.0 Q2 2020 Gross profit Indirect costs Other op. IFRS 16 Q2 2021 H1 2020 Gross profit Indirect Other op. IFRS 16 H1 2021 income imp
Slide 10: Network development continues at pace covering 2.75 million access points
NETWORK DEVELOPMENT CONTINUES AT PACE COVERING 2.75 MILLION ACCESS POINTS WITH GIGABIT CAPABLE NETWORK CAPEX AL, H1 2021 vs H1 2020 Gigabit capable fixed network development # of HUF bn 83.1 126.3 4 333 access 4 500 4 139 4 164 4 194 4 209 4 224 4 238 4 259 4 314 points (th) 4 000 -11.0% 48,5 4,2 3
Slide 11: Net profit improvement of HUF 13.5bn driven by lower net financing costs
NET PROFIT IMPROVEMENT OF HUF 13.5BN DRIVEN BY LOWER NET FINANCING COSTS AND IMPROVING EBITDA EBIT(DA), earnings, H1 2021 6.8% 4.0% 12.4% 65.6% 88.0% -17.0% 26.2% 150% HUF bn 109.5 71,8 After lease impact 12,1 EBITDA AL 97,4 37,7 5,6 32,0 7,4 2,2 22,4 EBITDA D&A Operating profit Net financial result
Slide 12: HUF 10.3bn FCF generation in H1 2021 largely in line with EBITDA trend
HUF 10.3BN FCF GENERATION IN H1 2021 LARGELY IN LINE WITH EBITDA TREND EBITDA and cash-flow, H1 2021 HUF bn 6.8% 18.0% -11.0% 202% 109.5 13,9 After lease impact 12,1 15,8 79.9 43.2 EBITDA AL 97.4 26,3 10,3 10,3 0.0 EBITDA Working capital Taxes, financial Operating CF CAPEX AL Cash CAPEX, FCF excl. S
Slide 13: Revenue and EBITDA AL growth targets upgraded for 2021
REVENUE AND EBITDA AL GROWTH TARGETS UPGRADED FOR 2021, WHILE VOLATILE MACRO ENVIRONMENT MAY STILL AFFECT H2 2021 Upgraded 2021 guidance 2020 results (vs 2020) Grow REVENUE HUF 673.0bn around 3% # upgraded Grow EBITDA (AL) HUF 202.6bn at least 3% CAPEX AL1 HUF 106.0bn Broadly stable Broadly stable /
Slide 14: Strong start to 2021 provides further upside potential to 2021-24 outlook
STRONG START TO 2021 PROVIDES FURTHER UPSIDE POTENTIAL TO 2021-24 OUTLOOK 2020 results 2021-24 outlook (vs 2020)2 Increase potential REVENUE HUF 673.0bn of ~1% with further upside # upgraded Increase potential EBITDA (AL) HUF 202.6bn of ~1% with further upside Increase potential FCF1 HUF 69.5bn of 1
Slide 15: For further questions please contact the IR department
? 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: pandi.zoltan@telekom.hu e-mail: walfisch.rita@telekom.hu
Slide 16: North Macedonia: Q2 2021 highlights
NORTH MACEDONIA: Q2 2021 HIGHLIGHTS Revenues EBITDA AL (MKD mn) (MKD mn) +5.9% -2.0% 116 66 2,720 -32 116 -61 1,121 2,569 0 1,099 -77 Q2 2020 Mobile Fixed SI/IT Q2 2021 Q2 2020 Gross profit Employee Other opex (net) IFRS 16 impact Q2 2021 related expenses 16