Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q3 2014 Earnings Presentation
14 slides from Magyar Telekom Telecommunications's earnings presentation, Nov 6, 2014
Slide 1: Magyar Telekom Group Q3 2014 Results Presentation
MAGYAR TELEKOM GROUP Q3 2014 RESULTS PRESENTATION NOVEMBER 6, 2014
Slide 2: Q3 2014 Financial Highlights
Q3 2014 FINANCIAL HIGHLIGHTS Increase in TV and mobile internet revenues REVENUE Higher mobile equipment sale revenues -0.5%; HUF 157.5bn Lower fixed and mobile voice revenues Lower revenues from SI/IT services Increase in gross margins of mobile services REPORTED EBITDA Lower net operating expenses
Slide 3: 9M2014 Results and Public Targets for 2014
9M2014 RESULTS AND PUBLIC TARGETS FOR 2014 9M 2014 RESULTS 2014 TARGETS REVENUE -2.2% up to 3% decline Further decline in fixed and mobile voice revenues Lower energy revenues due to cuts in regulated retail energy prices Decline in SI/IT revenues REPORTED -1.0% up to 3% decline EBITDA Stron
Slide 4: Q3 2014 Group Results – Revenues and EBITDA
Q3 2014 GROUP RESULTS – REVENUES AND EBITDA GROUP REVENUES GROUP EBITDA HUF bn HUF bn -5.2% -0.5% 51.9 -1.4 159 52 158.3 -1.6 158 1.6 157.5 51 157 -2.1 0.0 -2.2 0.9 156 50 1.3 0.1 49.2 155 -2.2 0.8 49 154 1.3 153 130 0 Q3 2013 Mobile Fixed SI/IT Mobile M. non- TV Other Q3 2014 Q3 2013 Bad debt Other
Slide 5: Q3 2014 Segment Results – Revenues and EBITDA
Q3 2014 SEGMENT RESULTS – REVENUES AND EBITDA SEGMENTS’ REVENUE DEVELOPMENTS SEGMENTS’ EBITDA DEVELOPMENT HUF bn HUF bn -5.2% -0.5% 51.9 -0.6 162 3.0 -5.4 52 -2.6 160 51 158.3 3.2 157.5 50 158 0.8 0.0 -0.2 49.2 -1.4 49 156 -0.2 48 154 36 0 35 Q3 2013 T-HU T-Systems Maced. Monten. Elim. Q3 2014 Q3 20
Slide 6: Hungary – Fixed Voice Market
HUNGARY – FIXED VOICE MARKET TELEKOM HUNGARY FIXED VOICE SUBSCRIBERS Significant reduction in fixed voice churn due to the Subscribers 2,000,000 retention effect of: -1% – Hoppá package 1,500,000 1,434,394 1,417,368 – 2Play/3Play offers – Retail energy bundling 1,000,000 VoCa Decline in 1Play cu
Slide 7: Hungary – Energy Retail
HUNGARY – ENERGY RETAIL GAS AND ELECTRICITY POINTS OF DELIVERY (POD) RETAIL ENERGY BUSINESS PODs (thousand) 200 Residential customers receive a 3-8% discount to Gas Electricity regulated universal service prices on their energy 150 bill depending on the number of fixed line services 68.7 67.6 66.8
Slide 8: Telekom Hungary -- Broadband and TV Market
TELEKOM HUNGARY -- BROADBAND AND TV MARKET FIXED BROADBAND SUBSCRIBER BREAKDOWN Subscribers +5% 1,000,000 953,113 906,367 6% 5% Growth in broadband market driven by cable 750,000 30% 32% and fiber ARPU pressure from multiplay migration and 500,000 Fiber Cable BB local pricing 57% 55% 250,000 ADS
Slide 9: Telekom Hungary – Mobile Market
TELEKOM HUNGARY – MOBILE MARKET TELEKOM SMARTPHONE PENETRATION % of total handsets Smartphone sales reached over 90% of postpaid 50 % 47.5 % handsets 41.1 % 40 % Broadband subscription attach rate at ca. 90% 31.3 % 73% population-based countrywide coverage 30 % MTRs currently at HUF 7.06 / m
Slide 10: Macedonia and Montenegro
MACEDONIA AND MONTENEGRO MACEDONIAN MOBILE VOICE MARKET One (T. Slovenia) MONTENEGRIN MOBILE VOICE MARKET Telenor VIP (T. Austria) Subscribers m:tel (T. Serbia) Subscribers T-Mobile +4% T-Mobile -8% 0% +4% 1,500,000 2,500,000 -6% -14% +12% 24% 22% 1,200,000 0% 2,000,000 24% 24% 26% 40% 20% 26% 900,0
Slide 11: Magyar Telekom – Consolidated Income Statement
MAGYAR TELEKOM – CONSOLIDATED INCOME STATEMENT HUF million Q3 2013 Q3 2014 Change Mobile revenues 80 040 82 295 2,8% Fixed line revenues 52 946 52 079 -1,6% System Integration/Information Technology revenues 16 628 14 404 -13,4% Revenue from Energy Services 8 650 8 726 0,9% Revenues 158 264 157 504
Slide 12: Magyar Telekom - Consolidated Balance Sheet
MAGYAR TELEKOM - CONSOLIDATED BALANCE SHEET HUF million Sep 30, 2013 Sep 30, 2014 Change Current assets 198 502 191 891 -3,3% Cash and cash equivalents 15 922 12 460 -21,7% Other current financial assets 24 354 18 137 -25,5% Non current assets 898 065 941 659 4,9% Property, plant and equipment - net
Slide 13: Magyar Telekom - Consolidated Cash Flow Statement
MAGYAR TELEKOM - CONSOLIDATED CASH FLOW STATEMENT HUF million Sep 30, 2013 Sep 30, 2014 Change Net cash generated from operating activities 76 662 98 094 28,0% Investments in tangible and intangible assets (117 445) (53 633) -54,3% Adjustments to cash purchases 54 114 (5 791) -110,7% Purchase of sub
Slide 14: For further questions please contact the IR department
For further questions please contact the IR department: Investor Relations Phone: +36 1 458-0424 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, IP: internet protocol, IT: informatio