Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q3 2011 Earnings Presentation
19 slides from Magyar Telekom Telecommunications's earnings presentation, Nov 10, 2011
Slide 1: Group Q3 2011 Results Presentation
Group Q3 2011 Results Presentation Magyar Telekom Signs of revenue pressures easing with growth in underlying EBITDA margin; guidance for full full-year year confirmed 1
Slide 2: Q3 highlights
Q3 highlights deteriorating economic indicators, GDP forecast downgraded to ca. 1% Revenues down byy 1.7% , fixed fi d voice i churn h slowed l d ddown improvement compared to last higher SI/IT revenues thanks to some infrastructure projects at KFKI quarters increasing TV and mobile internet
Slide 3: Q3 2011 Group results
Q3 2011 Group results Group revenues Group EBITDA 156 000 154 768 4 224 72 000 Special Influence Underlying performance 154 000 67 436 6 320 2 479 152 120 152 000 64 000 4 098 5 473 2 071 150 000 791 5 085 148 000 708 375 56 000 146 000 829 251 51 638 4 000 0 Q3 F. F voice i M.M voice i F.F data d t
Slide 4: Results and Hungarian macro-economy trends 2009-2011
Results and Hungarian macro-economy trends 2009-2011 Growth structure and wages Contribution to GDP growth (%) 10 5 Macro effects 0 -5 Economic recovery still doubtful and hurts MT results - 10 MT results are most - 15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 sensitive to 2009 2010 2011 developments in inter
Slide 5: Telekom Hungary – fixed revenue decline slowing down
Telekom Hungary – fixed revenue decline slowing down Fixed line revenues Mobile revenues HUF million -3% HUF million -2% 50 000 47 137 45 521 70 000 61 970 60 737 9 830 60 000 8 373 40 000 10 695 8 364 6 601 50 000 10 940 7 189 11 504 30 000 40 000 10 204 10 001 30 000 20 000 Other TV 20 000 42 657
Slide 6: Hungary -- improvement in fixed voice churn
Hungary -- improvement in fixed voice churn Telekom Hungary fixed voice subscribers Subscribers Hungary fixed voice churn -6% 2000 000 1 727 268 1 617 679 1500 000 Fixed voice significantly lower fixed voice churn 1000 000 thanks to the retention effect of: Hoppá package: flat fee package VoCa 5
Slide 7: Hungary -- Fixed broadband: stable market position
Hungary -- Fixed broadband: stable market position Fixed broadband market developments in Hungary T-Home retail fixed BB market share 36.4% 36.6% Subscribers +10% Fixed broadband 800 000 724 331 657 201 market growth driven by cable and fiber, 600 000 while ADSL market growth has slowed down 400 0
Slide 8: Hungary -- TV market: significant growth achieved
Hungary -- TV market: significant growth achieved TV market growth in Hungary T-Home market share Subscribers +6% 3500 000 TV customer growth 3 157 000 2 981 000 3000 000 2500 000 28.8% 26.6% significant migration from cable to IPTV driven by EuroDocsis 3-enabled cable 2000 000 23.3% 21.5% network
Slide 9: Hungary -- Mobile voice: stable market share
Hungary -- Mobile voice: stable market share Mobile voice market shares (based on total SIM cards) -1% Subscribers 11 832 566 11 668 700 12000 000 22.1% 22.8% Mobile voice 10000 000 8000 000 34.4% 32.4% population-based penetration at 117% 6000 000 stable market share, slight growth in 4000 000
Slide 10: Hungary -- Mobile broadband: major growth driver
Hungary -- Mobile broadband: major growth driver Mobile broadband market developments (based on total SIM cards) +53% Mobile broadband Subscribers 1800 000 1 792 361 300 HSPA+ base stations offering 21 Mbps, 1600 000 24.8% full coverage by 2013 1400 000 1 174 976 significantly increasing smartph
Slide 11: T-Systems Hungary – Revenue growth of 16% in Q3
T-Systems Hungary – Revenue growth of 16% in Q3 Revenues T-Systems HUF million +16% Falling voice and data revenues 35 000 30 776 lower usage and high fixed churn, churn 30 000 26 518 principally caused by mobile substitution 25 000 48.6% continued pressure on mobile tariff levels 20 000 42.9%
Slide 12: Macedonia – Financial performance
Macedonia – Financial performance Revenues Macedonia HUF million 25 000 -12% HUFstrengthened by 3.9% Q3-o-Q3 against MKD 20 793 Declining fixed line revenues 20 000 10.7% 18 221 11.9% decreasing fixed retail voice revenues due 15 000 45.3% to cable competition and strong mobile 42.8% substitution
Slide 13: Montenegro – Financial performance
Montenegro – Financial performance Revenues Montenegro HUF million -5% 10 000 9 556 HUFstrengthened by 3.9% Q3-o-Q3 against EUR 9 109 6.4% 9.3% Fixed voice revenues under pressure 8 000 deterioration in retail voice revenues driven 42.9% 6 000 40.6% by strong mobile substitution growing internet
Slide 14: Financials
Financials 14
Slide 15: Magyar Telekom - Consolidated Income Statement
Magyar Telekom - Consolidated Income Statement HUF million Q3, 2010 Q3, 2011 Change Fixed line revenues 62 157 59 167 -4.8% Mobile revenues 81 651 79 922 -2.1% System Integration/Information Technology revenues 10 960 13 031 18.9% R Revenues 154 768 152 120 -1.7% 1 7% Direct costs (39 084) (41 521)
Slide 16: Magyar Telekom - Consolidated Balance Sheet
Magyar Telekom - Consolidated Balance Sheet HUF million Dec 31, 2010 Sep 30, 2011 Change Current assets 200 574 196 151 -2.2% C and cash equivalents Cash 15 841 8 15 087 08 -4.8% 8% Other current financial assets 56 560 49 650 -12.2% Non current assets 908 432 891 404 -1.9% Propert plant and eq Prop
Slide 17: Magyar Telekom - Consolidated Cashflow Statement
Magyar Telekom - Consolidated Cashflow Statement HUF million Sep 30, 2010 Sep 30, 2011 Change Net cash generated from operating activities 148 185 134 233 -9.4% Investments in tangible and intangible assets (54 303) (43 875) -19.2% Adjustments to cash purchases (4 177) (6 705) 60.5% Purchase of subs
Slide 18: Investigations into certain consultancy contracts
Investigations into certain consultancy contracts As previously disclosed, the Company’s Audit Committee conducted an internal investigation regarding certain contracts relating to the activities of the Company and/or its affiliates in Montenegro and Macedonia that totaled more than EUR 31 million.
Slide 19: For further questions please contact the IR department
For further questions please contact the IR department: Investor Relations Phone: +36 1 458-0423 Fax: +36 1 458-0443 e-mail: investor.relations@telekom.hu Abbreviations: 3G: third generation, ARPU: average revenue per user, BB: broadband, CBC: call-by-call, CPS: carrier pre-selection, HQ: headquarte