Magyar Telekom Telecommunications Plc · BET:MTELEKOM

Magyar Telekom Telecommunications — Magyar Telekom — Q1 2021 Earnings Presentation

14 slides from Magyar Telekom Telecommunications's earnings presentation, May 11, 2021

  1. Slide 1: Magyar Telekom Group Q1 2021 Results Presentation

    MAGYAR TELEKOM GROUP Q1 2021 RESULTS PRESENTATION May 11, 2021

  2. 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

  3. Slide 3: Strong start to the year despite significant COVID-19-related challenges

    STRONG START TO THE YEAR DESPITE SIGNIFICANT COVID-19- RELATED CHALLENGES 2021 annual 2021 delivery Q1 2020 results Q1 2021 results targets (vs status 2020) HUF 162.3 bn REVENUE HUF 159.3 bn +1.9% Grow 1-2% HUF 44.2 bn EBITDA AL HUF 40.9 bn +8.1% Grow 1-2% HUF 20.1 bn CAPEX AL* HUF 21.4 bn -6.4% Bro

  4. Slide 4: Q1 2021 sets course towards delivery of full year targets

    Q1 2021 SETS COURSE TOWARDS DELIVERY OF FULL YEAR TARGETS Network Customers Resilience Sustainability ▪ 900/1800 MHz auction ▪ Cloud based TV platform launched ▪ Ongoing drive within finance to ▪ Safeguarding the wellbeing of successfully completed in Hungary promote digitisation and improve employe

  5. Slide 5: Robust revenue and EBITDA AL performance continued in Q1 2021

    ROBUST REVENUE AND EBITDA AL PERFORMANCE CONTINUED IN Q1 2021 Quarterly revenue changes YoY (%) Quarterly EBITDA AL changes YoY (%) 3.6 9.9 8.1 1.8 1.9 0.2 1.5 1.1 -2.2 -2.5 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2002 Q3 2020 Q4 2020 Q1 2021 5

  6. Slide 6: Positive momentum in revenues driven by strong mobile contribution

    POSITIVE MOMENTUM IN REVENUES DRIVEN BY STRONG MOBILE CONTRIBUTION Revenue, Q1 2021 vs Q1 2020 Comments HUF bn +1.9% 0.9 0.1 162.3 -0.3 -0.1 2.3 ▪ Growth of mobile service revenues mostly supported by strong data contribution ▪ Fixed service growth predominantly driven by TV services ▪ Normalizing S

  7. Slide 7: Revenue growth in Hungary driven by increase in mobile SIMs and ARPU

    REVENUE GROWTH IN HUNGARY DRIVEN BY INCREASE IN MOBILE SIMS AND ARPU Mobile SIMs1 Mobile ARPU1 ‘000 +1.4% HUF M2M Q1 2020 5,378 5, 456 Prepaid 3,540 Q1 2021 Blended +1.8% 8.7% 3,604 7.2% Postpaid 30.1% 27.5% 5,110 Postpaid -3.7% 4,923 1,014 Prepaid +8.7% 1,102 62.6% 63.8% 536 M2M -12.1% 471 Q1 2020

  8. Slide 8: Fixed line performance supported by growing customer base, BB ARPU under pressure

    FIXED LINE PERFORMANCE SUPPORTED BY GROWING CUSTOMER BASE, BB ARPU UNDER PRESSURE TEMPORARILY IN HUNGARY Fixed line multiplay residential subscribers Fixed Voice, BB1 and TV ARPU ‘000 +3.4% HUF Q1 2020 1, 492 2,152 Q1 2021 1,443 Fixed voice -4.4% 19% 1Play 2,058 21% 2Play 3,419 33% 36% 3Play Fixed B

  9. Slide 9: Q1 2021 EBITDA AL increase driven by lower indirect costs and gross margin expansion

    Q1 2021 EBITDA AL INCREASE DRIVEN BY LOWER INDIRECT COSTS AND GROSS MARGIN EXPANSION EBITDA AL, Q1 2021 vs Q1 2020 Comments HUF bn 8.1% 0.5 0.5 2.4 44.2 ▪ Improvement in indirect costs mainly attributable to a sizeable severance payment in the base period ▪ Increase in gross profit largely due to 0.

  10. Slide 10: Capex increase driven by non-cash spectrum fees in Q1 2021

    CAPEX INCREASE DRIVEN BY NON-CASH SPECTRUM FEES IN Q1 2021 CAPEX AL, Q1 2021 vs Q1 2020 Gigabit capable fixed network development 83.1 103.1 # of HUF bn access 4 500 4 209 4 224 4 238 4 259 4 314 4 119 4 139 4 164 4 194 -6.4% points (th) 4 000 3 500 38.9% 21.4 2.1 1.3 44.9% 40.7% 1.4 20.1 51.6% 50.3

  11. Slide 11: Net profit improvement of HUF 10.5bn driven by lower net financing costs and improving EBITDA

    NET PROFIT IMPROVEMENT OF HUF 10.5BN DRIVEN BY LOWER NET FINANCING COSTS AND IMPROVING EBITDA EBIT(DA), earnings, Q1 2021 8.2% -4.3% 18.4% 85.2% -35.2% 48.4% HUF bn 50.2 After lease impact 6.0 35.1 EBITDA AL 44.2 15.1 13.4 1.6 3.4 8.9 1.2 EBITDA D&A Operating profit Net financial result PBT Income t

  12. Slide 12: Negative FCF generation driven by seasonal factors

    NEGATIVE FCF GENERATION DRIVEN BY SEASONAL FACTORS EBITDA and cash-flow, Q1 2021 HUF bn 8.2% 102% -6.4% 6.9% 50.2 After lease impact 6.0 15.3 9.2 25.7 EBITDA AL 44.2 20.1 22.7 0.0 -17.1 -17.1 EBITDA Working capital Taxes, financial Operating CF CAPEX AL Cash CAPEX, FCF excl. Spectrum licenses FCF ch

  13. Slide 13: Q&A

    Q&A ? 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

  14. Slide 14: North Macedonia: Q1 2021 highlights

    NORTH MACEDONIA: Q1 2021 HIGHLIGHTS Revenues EBITDA AL (MKD mn) (MKD mn) +2.4% +12.3% 38 21 1,146 2,698 49 -18 42 55 1,021 2,636 Q1 2020 Mobile Fixed SI/IT Q1 2021 Q1 2020 Gross profit Employee Other opex (net) IFRS 16 impact Q1 2021 related expenses ▪ Revenue increase driven by expanding fixed line

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