Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q1 2006 Earnings Presentation
12 slides from Magyar Telekom Telecommunications's earnings presentation, 2006
Slide 1: First quarter 2006 results
First quarter 2006 results Impressive top line growth, solid cash-flow generation
Slide 2: Agenda
Agenda Overview and public targets Regulatory snapshot Segment analysis Acquisition strategy and dividend policy As disclosed on April 26, 2006 and March 30, 2006, as well as in the full-year 2005 results announcement made on February 13, 2006, the Company is still inquiring into certain consultancy
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, Nearly EUR 4bn market capitalisation Macedonia and Montenegro and alternative/wholesale operations in Romania, Stock exchange listing Bulgaria, and Ukraine listed on NYSE and
Slide 4: First quarter 2006 summary
First quarter 2006 summary Revenues EBITDA EBITDA margin Group HUF 153,280m +6.7% HUF 62,025m +4.9% 40.5% Fixed-line* HUF 82,041m +3.7% HUF 30,282m -2.1% 36.9% Hungarian increased competitor activity growth in broadband connections 69,792 -2.5% 23,581 -11.1% 33.8% International includes MakTel
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 Lines per employee ratio target met; growth in broadband Focus on access revenues Successful broadband operations Aim to migrate traffic revenues to access Accelerated broadband rollout to bring new revenues impetus to fixed-line business line and usage erosion due
Slide 8: Hungarian mobile operations
Hungarian mobile operations Clear market leadership preserved, EBITDA growth Highly competitive environment Solid operational performance Subscribers, market shares and penetration Price elasticity boosts usage Subscribers (m) MOU increased by 14% y/y to 129 86.4% 92.4% 93.3% Penetration continu
Slide 9: Merger of Magyar Telekom and T-Mobile Hungary
Merger of Magyar Telekom and T-Mobile Hungary Synergies Benefits Enhanced product and client offerings Financial impact bundled fixed-mobile packages After full implementation, we expect significant broadband-based value-added services financial benefits from the following factors: Increased r
Slide 10: International fixed line operations
International fixed line operations Strong EBITDA margin, consolidation impact of TCG Macedonia Montenegro Main drivers of revenue increase Saturated fixed line market growing internet revenues fixed line penetration rate at 31%, minor line favourable FX movement erosion expanding internet b
Slide 11: International mobile operations
International mobile operations Robust EBITDA margin at Mobimak; improving profitability at Monet Macedonia Montenegro Subscribers, market shares and penetration Subscribers, market shares and penetration Subcribers (th) Subcribers (th) 33.0% 43.5% 51.2% 59.1% 62.0% Penetration 67.9% 75.7% 99.1% 78.
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