Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q2 2022 Earnings Presentation
13 slides from Magyar Telekom Telecommunications's earnings presentation, Aug 9, 2022
Slide 1: Magyar Telekom Group Q2 2022 Results Presentation
MAGYAR TELEKOM GROUP Q2 2022 RESULTS PRESENTATION August 9, 2022
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
Slide 3: Progress against strategic priorities amid external challenges
PROGRESS AGAINST STRATEGIC PRIORITIES AMID EXTERNAL CHALLENGES Network Customers Resilience ▪ Continued fiber rollout to provide seamless ▪ Continued strong momentum in mobile data and ▪ Price increase initiatives introduced to connectivity to expanding customer base gigabit broadband demand tackle
Slide 4: ARPU growth in Hungary driven by growing data usage
ARPU GROWTH IN HUNGARY DRIVEN BY GROWING DATA USAGE Mobile SIMs Mobile ARPU ‘000 HUF +5.6% M2M Q2 2021 5,811 Prepaid 3,689 Q2 2022 5,503 Blended +2.7% 9.5% 12.0% 3,788 Postpaid 26.8% 24.6% 5,233 Postpaid +3.4% 5,409 63.7% 63.4% 1,185 Prepaid +6.8% 1,265 Q2 2021 Q2 2022 Mobile data SIMs Mobile broadb
Slide 5: Growing customer base coupled with BB and TV ARPU driving Hungarian fixed line performance
GROWING CUSTOMER BASE COUPLED WITH BB AND TV ARPU DRIVING HUNGARIAN FIXED LINE PERFORMANCE Fixed line multiplay residential subscribers Fixed Voice, BB and TV ARPU ‘000 HUF +3.4% Q2 2021 1,550 2,037 Q2 2022 1,499 Fixed voice -8.0% 1,874 18% 16% 1Play 2Play 3,441 37% 39% Fixed BB +9.8% 3,777 3Play 3,
Slide 6: Revenue growth driven by sustained commercial momentum
REVENUE GROWTH DRIVEN BY SUSTAINED COMMERCIAL MOMENTUM Revenue, Q2 2022 vs Q2 2021 HUF bn +10.9% ▪ Growth in mobile service revenues driven by strong 2.4 2.0 184.2 4.6 data demand which continues to offset lower voice 3.3 5.8 revenue contribution 166.1 ▪ Fixed service growth driven by broadband and
Slide 7: EBITDA AL performance strongly impacted by new supplementary telecommunication tax
EBITDA AL PERFORMANCE STRONGLY IMPACTED BY NEW SUPPLEMENTARY TELECOMMUNICATION TAX EBITDA AL, Q2 2022 vs Q2 2021 ▪ Strong increase in gross profit attributable to HUF bn positive underlying telecommunication service -3.5% 9.0 developments 53.2 2.0 51.4 ▪ Recently imposed supplementary -12.4 -0.5 tel
Slide 8: Supplementary telecommunication tax and weakening forint weigh on net profit
SUPPLEMENTARY TELECOMMUNICATION TAX AND WEAKENING FORINT WEIGH ON NET PROFIT Net income (and adjusted net income), Q2 2022 vs Q2 2021 ▪ Lower D&A reflects copper network retirement HUF bn and lower spectrum related amortization in -21.7% Hungary, partly offset by increases in North 13.5 1.5 10.6 10.
Slide 9: Continued focus on network development
CONTINUED FOCUS ON NETWORK DEVELOPMENT CAPEX AL, H1 2022 vs H1 2021 Gigabit capable fixed network development HUF bn # of access points (th) 4 500 4 314 4 333 4 356 4 374 4 385 4 400 4 259 126.3 4 000 +21.6% 30.8% 29.4% 27.2% 3 500 36.5% 33.7% 40.7% 38.9% 3.9 52.6 3 000 19.9% 19.9% 2 500 19.9% 19.4%
Slide 10: Free cashflow supported by EBITDA and subsidiary disposal; tax due in Q4
FREE CASHFLOW SUPPORTED BY EBITDA AND SUBSIDIARY DISPOSAL; SUPPLEMENTARY TELECOMMUNICATION TAX DUE IN Q4 2022 ▪ Underlying improvements attributable Free cashflow, H1 2022 vs H1 2021 to favorable business performance HUF bn coupled with proceeds from disposal of +214% subsidiary 2.0 32.4 11.3 5.5 ▪
Slide 11: Delivery against financial targets
DELIVERY AGAINST FINANCIAL TARGETS H1 2022 results 2021 results 2022 guidance (change YoY) HUF 360.1 bn REVENUE HUF 700.1 bn 1%-3% growth (+9.6%) HUF107.2 bn EBITDA AL HUF 216.3 bn moderate decline2 (+10.1%) HUF 52.6 bn CAPEX AL1 HUF 109.3 bn broadly stable (+21.6%) HUF 32.4 bn FCF 1 HUF 56.2 bn mod
Slide 12: Q&A
Q&A ? For further questions please contact the IR department: Diana Várkonyi Rita Walfisch Capital Market Relations Hub Lead Investor Relations Manager Phone: +481-7676 Phone: +36 1 457-6084 e-mail: varkonyi.diana.annamaria@telekom.hu e-mail: walfisch.rita@telekom.hu
Slide 13: North Macedonia: Q2 and H1 2022 results
NORTH MACEDONIA: Q2 AND H1 2022 RESULTS Revenues, Q2 2022 vs Q2 2021 EBITDA AL, Q2 2022 vs Q2 2021 HUF mn +23.7% HUF mn +14.9% 1,757 19,383 1,182 7,265 355 -191 -50 1,604 15,667 6,324 Q2 2021 Mobile Fixed SI/IT Q2 2022 Q2 2021 Gross profit Indirect costs IFRS 16 impact Q2 2022 Revenues, H1 2022 vs H