Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q2 2018 Earnings Presentation
20 slides from Magyar Telekom Telecommunications's earnings presentation, August 2018
Slide 1: Magyar Telekom Group Investor Presentation
MAGYAR TELEKOM GROUP INVESTOR PRESENTATION AUGUST 2018
Slide 2: Strategy and Market Position
STRATEGY AND MARKET POSITION
Slide 3: Overview – Magyar Telekom at a Glance
OVERVIEW – MAGYAR TELEKOM AT A GLANCE Overview Strategic pillars Integrated operations in Hungary and Macedonia* TOGETHER. We listen: customer and colleague opinions FOR OUR form an important part of our decision leading telecommunications service provider in both CUSTOMERS making countries INTE
Slide 4: Market Positions in the Hungarian Telco Market
MARKET POSITIONS IN THE HUNGARIAN TELCO MARKET Total mobile market* Fixed voice market** Vodafone Other Subscribers -0.1% Subscribers Telenor INVITEL 12,000,000 3,500,000 -1.9% MT DIGI 24.7% 24.9% 25.5% 3,000,000 3.1% 3.3% 3.6% UPC 9,000,000 13.2% 12.4% 2,500,000 11.4% 12.2% 23.9% MT 28.1% 27.5% 27.
Slide 5: IT Market in Hungary: 2016-2021
IT MARKET IN HUNGARY: 2016-2021 Total B2B IT market (HW&SW and IT services)* IT Services market shares (by revenue)* HUF bn SYSTEM INTEGRATION IT INFRASTRUCTURE SI&IT +3.3% 650 629 App. OS & 598 611 Package Custom System IT IT Out- Hosting Infra. OS & Infra. proj. Cloud 582 591 appl. app. dev. integ
Slide 6: Hungarian Economic Environment
HUNGARIAN ECONOMIC ENVIRONMENT Growth structure Domestic demand 6% Domestic demand to remain strong 4.0% 4.2% 4% 3.7% 3.4% Governmental measures support consumer spending 2.0% 2% 1.5% Investment levels show volatility due to EU fund cycles 0% MT leverages positive trends of domestic demand -
Slide 7: Network Developments in Hungary
NETWORK DEVELOPMENTS IN HUNGARY Mobile network coverage (population based) Fixed network (Households covered) % HHs ths 97% 98% 99% 4,000 100 83% 83% 86% 87% 78% 80 3,000 33% 38% 39% 4% 60 2,000 36% 28% 84% 87% 89% 40% 40 71% 65% 71% 76% 76% 45% 1,000 34% 22% 20 7% 2% 25% 17% 15% 14% 0 0 2014 2015 2
Slide 8: Hungarian Mobile Spectrum Allocation
HUNGARIAN MOBILE SPECTRUM ALLOCATION Current spectrum allocation (MHz) BAND Magyar Telekom Telenor 700 MHz 2x5 2x5 2x5 2x5 2x5 2x5 Vodafone Digi Free 800 MHz 2x10 2x10 2x10 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
Slide 9: 2018 Guidance and Dividend
2018 GUIDANCE AND DIVIDEND
Slide 10: H1 2018 Results and 2018 Financial Targets
H1 2018 RESULTS AND 2018 FINANCIAL TARGETS H1 2018 RESULTS 2018 (change y-o-y) TARGETS Strong growth in SI/IT revenue and equipment sales HUF 318.3 bn around REVENUE Improving service revenue trends (+8.2%) HUF 630 bn* Higher gross profit driven by increased sales volumes HUF 92.8 bn around EB
Slide 11: Dividend Policy
DIVIDEND POLICY Dividend payment and net debt ratio developments Highlights Net debt ratio* Dividend per share (HUF) 50% 70 Aiming to maintain net debt ratio 45.7% (net debt/total capital) target of 43.8% 42.9% 39.1% 60 30% - 40% 40% 34.1% 34.3% AGM approved HUF 25 dividend per TARGET 50 34.8% s
Slide 12: Q2 2018 Results
Q2 2018 RESULTS
Slide 13: Q2 2018 Group Segmental Revenue and EBITDA
Q2 2018 GROUP SEGMENTAL REVENUE AND EBITDA Group segmental revenues* Group segmental EBITDA* HUF bn HUF bn +9.2% 170 8.7 52 +6.6% 0.2 0.0 0.1 167.7 168 0.4 0.0 51.0 166 -1.3 51 0.4 164 0.5 162 2.6 50 1.8 160 158 3.9 49 156 153.5 47.9 154 48 152 2 0 0 2Q 2017 Mobile Fixed SI/IT Energy Mobile Fixed SI
Slide 14: Q2 2018 Strategic Highlights
Q2 2018 STRATEGIC HIGHLIGHTS Accelerated fibre rollout to increase competitiveness; LAND Continuous growth in fixed-mobile convergent households GRABBING Leading position in the IT market strengthened Service revenue increase thanks to positive customer developments Growth in equipment sal
Slide 15: Hungary
HUNGARY Revenue* EBITDA* HUF bn HUF bn +9.9% +5.4% 160 46 8.7 0.4 45.4 154.7 0.0 155 -1.3 1.8 -0.9 150 1.9 44 1.1 0.7 3.8 145 43.1 140.8 140 0 0 2Q 2017 Mobile Mobile Fixed Fixed SI/IT Energy Other 2Q 2018 2Q 2017 Gross profit Employee Other 2Q 2018 service equipment service equipment related operat
Slide 16: Hungary – Mobile
HUNGARY – MOBILE Mobile SIMs Mobile ARPU* ‘000 HUF +0.9% -1.6% 6,000 5,390 5,344 5,306 Prepaid 3,365 2Q 2017 5,000 Blended +7.8% 34.4% Postpaid 3,626 2Q 2018 41.8% 38.3% 4,000 1,107 3,000 Prepaid -1.1% 1,095 2,000 58.2% 61.7% 65.6% 4,815 1,000 Postpaid +3.4% 4,980 0 Jun 2016 Jun 2017 Jun 2018 Total
Slide 17: Hungary – Fixed Voice, Broadband and TV
HUNGARY – FIXED VOICE, BROADBAND AND TV Fixed line customer base Fixed line multiplay residential subscribers ‘000 ‘000 Voice 1Play 1,441 1,395 1,368 1,374 1,500 1,425 1,391 Broadbad 1,400 2Play PayTV 1,200 27% 3Play 1,104 34% 30% 1,009 971 1,050 1,006 1,045 1,000 1,000 800 28% 29% 30% 600 500 400 3
Slide 18: Hungary – SI/IT
HUNGARY – SI/IT SI/IT revenue developments SI/IT revenue breakdown by vertical segments* HUF bn 2017, HUF bn Market Share* Finance 11% 90 Hardware & Software Manufacturing 7% w/o mobile devices 75 Retail&WS 7% 45% IT Infrastructure 50% services Prof. Services 11% 60 39% System Integration / Telco+Me
Slide 19: Macedonia
MACEDONIA Financials* Mobile market Revenues (MKD mn) EBITDA (MKD mn) Subscribers Lycamobile 2,600 +11.1% +2.4% -3.2% One.Vip 1,100 2,500,000 -0.5% 80 1,064 2.5% Telekom 2.4% 1,050 2,000,000 2,550 2,543 17 2,531 51.5% 48.9% 49.2% 1,500,000 -6 1,000 26 -23 958 1,000,000 2,500 950 500,000 48.5% 48.6%
Slide 20: 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 DISCLAIMER This investor presentation contains forward-l