Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q1 2008 Earnings Presentation
16 slides from Magyar Telekom Telecommunications's earnings presentation, 2008
Slide 1: First quarter 2008 results
Presentation First quarter 2008 results Strong performance with efficiency improvements showing visible benefits
Slide 2: Agenda
Agenda Overview Public targets for 2007 and 2008 First quarter 2008 summary and segment analysis Regulatory snapshot Key strategic priorities Organizational changes and headcount reduction Dividend policy Abbreviations: IC: interconnection, NRA: National Regulatory Authority, CPI: consumer price ind
Slide 3: Magyar Telekom Group at a glance
Magyar Telekom Group at a glance Market leader in all core businesses Stock information Integrated operations in Hungary, EUR 3.6bn market capitalization Macedonia and Montenegro alternative/wholesale operations in Romania, Stock exchange listing Bulgaria and Ukraine listed on NYSE and Budapest
Slide 4: Public targets for 2007 and 2008
Public targets for 2007 and 2008 2007 public targets and results 2008 public targets Revenue Flat over 2006 +0.8% 9 Flat over 2007 competitive landscape sluggish economic growth limits disposable income Underlying EBITDA Flat over 2006 +2.9%* 9 Slight decline over 2007 *Excluding investigation-
Slide 5: First quarter 2008 summary
First quarter 2008 summary Revenues EBITDA EBITDA margin Group HUF 162.6bn +0.9% HUF 68.9bn +9.4% 42.4% Underlying** HUF 70.5bn +3.8% 43.3% T-Com HUF 72.7bn -3.4% HUF 33.2bn +8.6% 45.6% underlying HUF 33.2bn +2.3% 45.6% T-Mobile HUF 82.3bn +1.9% HUF 35.4bn +2.7% 43.0% Segments* underlying HUF 35.4bn
Slide 6: T-Com: Hungarian operations
T-Com: Hungarian operations Focus on efficiency and customer retention Voice revenues under threat from Revenue breakdown HUF million competition 75 000 -5.2% strong mobile substitution as mobility 60 000 premium diminishes 45 000 cable operators offering VoCaTV & 3Play 30 000 Successful retenti
Slide 7: T-Com: Hungarian operations
T-Com: Hungarian operations Continued focus on broadband Cable services Incentives to increase customer base Second player on the cable market general deceleration of BB market growth T-Kábel market share ~19% based on cableTV cable broadband is more popular than ADSL among customers (~420,000
Slide 8: T-Mobile: Hungarian operations
T-Mobile: Hungarian operations Competitive environment Increasing focus on customer acquisition clear market leadership position maintained Breakdown of T-Mobile customer base continued growth in RPC base (up 10%) Subscribers acquisition cost/new RPC grew by 10% to HUF 5 000 000 7,200 driven b
Slide 9: T-Mobile: Hungarian operations & TETRA
T-Mobile: Hungarian operations & TETRA Solid operational performance Usage increase supports ARPU Usage and ARPU trends MOU increased by 7% qoq to 150 ARPU (HUF) MOU ARPU down by 8% to HUF 4,090 (~EUR 16) 6 000 160 growing importance of VAS (17% of ARPU) 5 500 150 5 000 140 4 500 130 Mobile te
Slide 10: T-Systems
T-Systems Growing importance of SI/IT services Declining traditional revenues Leading position in the Hungarian SI/IT intense competition from alternative service providers market strong mobile substitution – mobile tariff levels are full scale IT service portfolio offered significantly lower
Slide 11: T-Com: international operations
T-Com: international operations Macedonia Montenegro Limited top line growth opportunities Stable fixed line voice market and booming strong mobile substitution, competition from altnets broadband market and cables stable fixed line customer base decreasing tariff levels fixed line penetrati
Slide 12: T-Mobile: international operations
T-Mobile: international operations Macedonia Montenegro Subscribers (th) Subscribers (th) 70% 73% 81% 93% 96% Penetration 107% 121% 164% 169% 180% Penetration 2 500 000 1 200 1 000 23% 2 000 000 16% 25% 8% 9% 800 4% 1 500 000 30% 30% 600 48% 42% 33% 58% 41% 34% 34% 57% 1 000 000 400 200 43% 42% 36%
Slide 13: Regulatory snapshot
Regulatory snapshot Fixed-line Mobile Hungary – in line with EU regulatory framework geographic number portability since January 2004 mobile number portability since May 2004 WS naked ADSL offered to ISPs since end-March 2007 EU roaming regulation adopted IC fees close to EU average NRA
Slide 14: Key strategic priorities
Key strategic priorities Current direction maintained, strengthened focus on 3 key areas Excellence Expansion stronger customer focus seeking value-accretive acquisitions both in Hungary improved service quality and the region integrated sales and call-center services strengthening positio
Slide 15: Changes in organization, headcount reduction
Changes in organization, headcount reduction New organizational structure Headcount rationalization Structural changes in the telecom industry: Agreement with trade unions reached on technological development and innovation October 1, 2007 convergence throughout the industry changes in custome
Slide 16: Dividend policy
Dividend policy Net debt ratio and dividend yield Net debt ratio** Dividend yield*** 50% 9.1% 9.2% 10% 46.6% 8.7% 8.7% 8.7% 40% 38.8% 8% 32.9% 33.2% 31.7% 31.0% Targeted net 31.6% debt ratio range 30% 6% 20% 4% 10% 2.3% 2% 1.4% 0% 0% 2001 2002 2003 2004 2005 Q1 2007* 2007 2008 2009 * 2006 dividend p