Magyar Telekom Telecommunications Plc · BET:MTELEKOM

Magyar Telekom Telecommunications — Magyar Telekom — Q3 2012 Earnings Presentation

18 slides from Magyar Telekom Telecommunications's earnings presentation, 2012

  1. Slide 1: Q3 2012 Results Magyar Telekom Group

    Q3 2012 Results Magyar Telekom Group Significant achievements in challenging environment, on track to meet full year revenue and EBITDA guidance 1

  2. Slide 2: Q3 2012 highlights

    Q3 2012 highlights ƒ further pressure on traditional voice and data revenues Revenues ƒ lower l SI/IT revenues down by 1.3% ƒ growth in energy service revenues ƒ higher mobile equipment, TV and mobile internet revenues Underlying ƒ benefits of widespread and deep cost-cutting measures becoming visib

  3. Slide 3: 2012 Q3 Group results – Revenues and EBITDA

    2012 Q3 Group results – Revenues and EBITDA Group revenues Group EBITDA HUF bn HUF million Underlying performance 155 60 000 152.1 3.2 2 795 56 594 09 0.9 150 1 150.1 55 000 1 526 3 697 1 633 150 3.0 4.7 3 693 51 596 1.6 952 50 000 1.8 1.2 0.5 145 0.4 45 000 140 40 000 135 Q3 F. voice M. voice F. da

  4. Slide 4: Telekom Hungary – Energy retail compensates for voice losses

    Telekom Hungary – Energy retail compensates for voice losses T l k H Telekom Hungary revenues HUF million +2% 120,000 106,258 107,946 Telekom Hungary g y 573 5,225 100,000 ƒ fixed line revenues down by 5% 80,000 60,737 59,902 ƒ higher revenues from TV services partly 60,000 compensating for voice re

  5. Slide 5: Hungary -- Mobile voice: increased market share

    Hungary -- Mobile voice: increased market share Mobile voice market shares (based on total SIM cards) Subscribers 15,000,000 -1% 11,668,700 11,508,735 , , 12 000 000 12,000,000 Mobile voice 22.8% 22.7% 9,000,000 ƒ population-based penetration at 116% 32.4% 31.3% 6,000,000 ƒ higher market share, slig

  6. Slide 6: Hungary -- Mobile broadband: continued dynamic growth

    Hungary -- Mobile broadband: continued dynamic growth Mobile broadband market shares (based on total SIM cards) +52% Subscribers 3,000,000 2,852,432 2,500,000 26.0% 1,872,178 Mobile broadband 2,000,000 24.3% 27.6% ƒ already 938 HSPA+ base stations offering 21 1,500,000 28 4% 28.4% Mbps download spee

  7. Slide 7: Hungary -- improvement in fixed voice churn

    Hungary -- improvement in fixed voice churn Telekom Hungary fixed voice subscribers Subscribers Hungary fixed voice churn 2,000,000 -4% 1,617,679 1 500 000 1,500,000 1,553,901 Fixed voice ƒ significant reduction in fixed voice 1,000,000 churn thanks to the retention effect of: VoCa ƒ Hoppá package:

  8. Slide 8: Hungary – Energy retail business as major growth driver

    Hungary – Energy retail business as major growth driver Gas and electricity points of delivery (POD) PODs 140,000 126,017 120,000 100,000 Gas Energy retail 87,819 Electricity 80,000 61,516 ƒ soft launch in 2010, nationwide from April 60,000 2012 40 000 40,000 35 262 35,262 24,628 ƒ customers get 5-8

  9. Slide 9: Hungary -- Fixed broadband: solid market position

    Hungary -- Fixed broadband: solid market position Fixed broadband market shares in Hungary Hungary* Subscribers +6% 2,500,000 2,142,000 2,021,000 2,000,000 18.2% 20.5% 9.7% Fi d broadband Fixed b db d 1,500,000 9.9% Other 13.5% ƒ market growth driven by cable and fiber, 12.1% Invitel 1,000,000 21.1%

  10. Slide 10: Hungary -- TV market: continued subscriber growth

    Hungary -- TV market: continued subscriber growth TV market shares in Hungary Hungary* Subscribers 4,000,000 +2% 3,172,000 3,251,000 3 000 000 3,000,000 26.5% 24.8% TV customer growth 2,000,000 23.2% 23.4% ƒ significant migration from cable to IPTV Other 24 2% 24.2% 25.2% DIGI driven by ED3 ED3-enab

  11. Slide 11: T-Systems Hungary – strong pressure on traditional revenues

    T-Systems Hungary – strong pressure on traditional revenues Revenues HUF million -14% T-Systems Hungary 35,000 30 776 30,776 Falling voice and data revenues 30,000 26,367 25,000 „ lower usage on fixed voice and data 48.6% networks 20,000 48.8% 15 000 15,000 „ continued pressure on tariff levels 27.2

  12. Slide 12: Macedonia – Financial performance

    Macedonia – Financial performance Revenues Macedonia HUF million -9% Mobile revenues under pressure 21,000 18 000 18,000 18,221 „ strongg price p competition p 11.9% 16 570 16,570 15,000 13.0% „ MOU up due to increasing volume of bundled minutes 12,000 42.8% 41.9% „ #1 position maintained with 48% m

  13. Slide 13: Montenegro – Financial performance

    Montenegro – Financial performance Revenues HUF million 0% Montenegro 10,000 9,109 9,075 Competitive mobile market 9 3% 9.3% 11.9% 8,000 „ lower wholesale revenues driven by cut in 40.6% 35.3% interconnection tariffs in 2011 6,000 „ MOU up due to tariff discounts and widening 4 000 4,000 21 0% 21.0%

  14. Slide 14: Financials

    Financials 14

  15. Slide 15: Magyar Telekom – Consolidated Income Statement

    Magyar Telekom – Consolidated Income Statement HUF million 3Q 2011 3Q 2012 Change Mobile revenues 79,922 78,890 -1.3% Fixed line revenues 58,594 54,793 -6.5% System Integration/Information Technology revenues 13,031 11,237 -13.8% Revenue from Energy Services 573 5,225 Revenues 152,120 150,145 -1.3%

  16. Slide 16: Magyar Telekom - Consolidated Balance Sheet

    Magyar Telekom - Consolidated Balance Sheet HUF million Dec 31, 2011 Sep 30, 2012 Change Currentt assets C t 220,396 220 396 179,666 179 666 -18.5% 18 5% Cash and cash equivalents 14,451 13,867 -4.0% Other current financial assets 65,286 40,038 -38.7% Non current assets 877,632 845,175 -3.7% Propert

  17. Slide 17: Magyar Telekom - Consolidated Cashflow Statement

    Magyar Telekom - Consolidated Cashflow Statement HUF million Sep 30, 2011 Sep 30, 2012 Change Net cash generated from operating activities 134,233 105,441 -21.4% Investments in tangible and intangible assets (43,875) (70,891) 61.6% Adjustments j to cash ppurchases ((6,705) , ) ((1,658) , ) -75.3% Pu

  18. Slide 18: For further questions please contact the IR department

    For further questions please contact the IR department: Investor Relations Phone: +36 1 458-0423 Fax: +36 1 458-0443 e-mail: investor.relations@telekom.hu Abbreviations: 3G: third generation, 4G: fourth generation, ARPU: average revenue per user, BB: broadband, CUG: closed user group, HQ: headquarte

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