Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — H1 2006 Earnings Presentation
12 slides from Magyar Telekom Telecommunications's earnings presentation, 2006
Slide 1: On track to meet full year target - 2006 interim results
On track to meet full year target 2006 interim results
Slide 2: Agenda
Agenda Overview and public targets Regulatory snapshot Segment analysis Acquisition strategy and dividend policy As disclosed in the full-year 2005 results announcement made on February 13, 2006, in the first quarter 2006 results announcement made on May 11, 2006 as well as in announcements made on
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 3.5bn market capitalization Macedonia and Montenegro alternative/wholesale operations in Romania, Stock exchange listing Bulgaria and Ukraine listed on NYSE and Budapest
Slide 4: First half 2006 summary
First half 2006 summary Revenues EBITDA EBITDA margin Group HUF 316,147m +5.4% HUF 124,722m +0.5% 39.5% Fixed-line* HUF 168,055m +3.4% HUF 59,603m -4.8% 35.5% Hungarian growth in broadband connections SI/IT opportunities captured 143,150 0.0% 46,740 -12.5% 32.7% continuous fall in traffic Inte
Slide 5: Public targets for 2006-2007
Public targets for 2006-2007 2006 2007 Revenue above 3% growth EBITDA maintain 2005 level growth in HUF terms recent investments and initiatives to show tangible contribution from 2007 Capex / Sales below 15% below 14% excl. EDR investment of max. HUF 22bn in 2006 Broadband connections ~ 600,000 Hun
Slide 6: Regulatory snapshot
Regulatory snapshot Hungarian regulation in line with new EU regulatory framework Fixed-line Mobile New Electronic Communications Act in effect since January 2004 geographic number portability since January 2004 mobile number portability since May 2004 IC fees close to EU average approx 14% cu
Slide 7: Hungarian fixed line operations
Hungarian fixed line operations Increasing access revenues; growth in broadband Focus on stabilizing revenues Successful broadband operations Aim to migrate traffic revenues to access Accelerated broadband rollout program revenues with flat rate offers number of broadband customers* close to 450,0
Slide 8: Hungarian mobile operations
Hungarian mobile operations Clear market leadership preserved, stable financials Highly competitive environment Solid operational performance Subscribers, market shares and penetration Price elasticity boosts usage Subscribers (m) 48% 68% 79% 86% 92% 94% Penetration MOU increased by 13% y/y to 136
Slide 9: Merger of T-Mobile Hungary and Magyar Telekom
Merger of T-Mobile Hungary and Magyar Telekom Synergies Benefits Enhanced product and client offerings Financial impact bundled packages After full implementation, we expect significant targeted cross-selling, up-sell opportunities financial benefits from the following factors: Increased reven
Slide 10: International fixed line operations
International fixed line operations Competition started in Macedonia, seasonality impact at TCG Macedonia Montenegro Main drivers of revenue increase Saturated fixed line market favourable FX movement fixed line penetration rate at 31%, minor line positive impact of tariff rebalancing (August
Slide 11: International mobile operations
International mobile operations Robust EBITDA margin at Mobimak; impressive growth at Monet Macedonia Montenegro Subscribers, market shares and penetration Subscribers, market shares and penetration Subcribers (th) Subcribers (th) Penetration 68% 76% 99% 79% 79% 90% Penetration 1,400 38% 48% 54% 61%
Slide 12: Acquisition-driven growth and dividend policy
Acquisition-driven growth and dividend policy Acquisition-driven growth Dividend policy Growth through value-accretive acquisitions Net debt ratio and dividend yield remains a priority Net debt ratio 47,0% 7,8% 7,8% Dividend yield* 50% 8% integrated operations in Macedonia and Montenegro 38,8% a