Magyar Telekom Telecommunications Plc · BET:MTELEKOM

Magyar Telekom Telecommunications — Magyar Telekom — Q3 2020 Earnings Presentation

14 slides from Magyar Telekom Telecommunications's earnings presentation, Nov 5, 2020

  1. Slide 1: Magyar Telekom group Q3 2020 Results presentation

    Magyar telekom group Q3 2020 Results presentation November 5, 2020

  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: Q3 2020: On track to deliver our 2020 targets

    Q3 2020: ON TRACK TO DELIVER OUR 2020 TARGETS 9M 2020 2020 targets 2019 results 2021 targets (vs 9M 2019) (vs 2019) HUF 484.2bn REVENUE HUF 666.7bn (0%) Broadly stable Broadly stable HUF 146.0bn Increase of Increase of EBITDA AL HUF 197.6bn (0%) 1%-2% 1%-2% HUF 75.0bn Up by around Broadly stable CAP

  4. Slide 4: Fiber roll-out continues with over 100,000 access points covered in Q3 2020

    FIBER ROLL-OUT CONTINUES WITH OVER 100,000 ACCESS POINTS COVERED IN Q3 2020 Network Customers Resilience Sustainability ▪ Fixed network rollout: 2.3m gigabit ▪ Average mobile data usage up by ▪ First-time investment grade credit ▪ Magyar Telekom confirmed as a capable access points covered 40% in Q3

  5. Slide 5: EBITDA back to growth following a dip in Q2 2020 driven by COVID-19

    EBITDA BACK TO GROWTH FOLLOWING A DIP IN Q2 2020 DRIVEN BY COVID-19 Quarterly group revenue changes YoY (%) Quarterly group EBITDA (AL)1 changes YoY (%) 12.4 5.5 4.1 1.8 0.6 4.1 0.2 3.6 1.5 1.1 -2.2 -4.1 -2.9 -2.5 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2002 Q3 2020 Q1 2019 Q2 2019 Q3 2019 Q4 201

  6. Slide 6: Equipment sales, broadband and mobile data revenue growth mitigate lower SI/IT contribution in Q3

    EQUIPMENT SALES, BROADBAND AND MOBILE DATA REVENUE GROWTH MITIGATE LOWER SI/IT CONTRIBUTION IN Q3 Group revenue, Q3 2020 vs Q3 2019 Group revenue, 9M 2020 vs 9M 2019 +1.8% 0.0% HUF bn HUF bn 2.8 3.9 5.3 2.1 -2.2 167.7 -0.8 4.0 1.3 -10.4 164.6 484.3 484.2 -3.1 Q3 2019 Mobile Fixed service Equipment S

  7. Slide 7: Increase in mobile data usage and mobile SIMs supports YoY revenue growth

    increase in mobile data usage and mobile sims supports Yoy revenue growth Mobile SIMs1 Mobile ARPU 1 +1.9% HUF ‘000 M2M Q3 2019 5,323 5,425 Prepaid 3,606 Blended +0.8% Q3 2020 5.1% 6.5% 3,634 Postpaid 30.8% 29.0% 1,176 Prepaid +5.4% 1,239 5,073 Postpaid -0.9% 5,026 64.2% 64.4% 628 M2M -15.6% 530 Q3

  8. Slide 8: Higher fixed line contribution driven by growing customer base and broadband ARPU

    HIGHER FIXED LINE CONTRIBUTION DRIVEN BY GROWING CUSTOMER BASE AND BROADBAND ARPU Fixed line multiplay residential subscribers 1 Fixed Voice, BB and TV ARPU 1 ‘000 +3.6% Q3 2019 1,465 2,165 Q3 2020 1,415 Fixed voice -2.6% 1Play 2,109 23% 20% 2Play 3,485 32% 35% 3Play Fixed BB +3.3% 3,601 3,284 45% 4

  9. Slide 9: Material efficiency gains delivered throughout 9M 2020

    MATERIAL EFFICIENCY GAINS DELIVERED THROUGHOUT 9M 2020 Group EBITDA AL, Q3 2020 vs Q3 2019 Group EBITDA AL, 9M 2020 vs 9M 2019 HUF bn +1.5% HUF bn 0.0% 0.4 54.9 146.1 2.6 146.0 0.3 1.9 0.4 54.1 0.1 1.6 4.8 3Q 2019 Gross profit Indirect costs Other op. IFRS 16 impact 3Q 2020 9M 2019 Gross profit Indi

  10. Slide 10: Capex growth driven by fiber roll-out and mobile network modernization

    CAPEX GROWTH DRIVEN BY FIBER ROLL-OUT AND MOBILE NETWORK MODERNIZATION Group CAPEX after lease, 9M 2020 vs 9M 2019 Gigabit capable fixed network development in Hungary 166.6 # of HUF bn access points 4 500 4 194 4 209 4 224 4 238 4 090 4 119 4 139 4 164 +31.1% (th) 4 000 75.0 3 500 51.7% 49.4% 46.3%

  11. Slide 11: Net profit in line with base period, higher D&A offset by lower net financial charges in 9M 2020

    NET PROFIT IN LINE WITH BASE PERIOD, HIGHER D&A OFFSET BY LOWER NET FINANCIAL CHARGES IN 9M 2020 Group EBIT(DA), earnings, 9M 2020 +0.2% -4.7% -6.8% +16.2% -2.7% -0.3% -12.7% -2.7% HUF bn 163.3 After lease impact 17.3 104.4 Q3 2020: -1.2bn 58.9 (vs -8.9bn in Q3 2019) 17.6 41.3 EBITDA AL 146.0 10.9 2

  12. Slide 12: 9M 2020 cash generation (excl. spectrum) in line with FY 2020 guidance

    9M 2020 CASH GENERATION (EXCL. SPECTRUM) IN LINE WITH FY 2020 GUIDANCE Group EBITDA and cash-flow, 9M 2020 HUF bn +0.2% +35.8% +31.1% +17.9% 163.3 6.5 After lease impact 17.3 29.9 126.8 EBITDA AL 146.0 75.0 19.0 32.9 54.2 -21.4 EBITDA Working capital Taxes, financial Operating CF CAPEX AL Lease and

  13. Slide 13: Q&A - For further questions please contact the IR department

    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

    North Macedonia Revenues EBITDA AL (MKD mn) (MKD mn) -9.9% -1.7% 1,292 2,816 20 2,769 21 5 1,164 -89 -120 -11 -2 Q3 2019 Mobile Fixed SI/IT Q3 2020 Q3 2019 Gross profit Indirect costs Other op. IFRS 16 impacts Q3 2020 income KPIs (mobile/fixed voice/fixed BB/TV) ▪ COVID-19 unfavorable impacting fina

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