Magyar Telekom Telecommunications PLC · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Q1 2005 Earnings Presentation
11 slides from Magyar Telekom Telecommunications's earnings presentation, May 2005
Slide 1: Leading positions in all segments despite strengthening competition
Leading positions in all segments despite strengthening competition First quarter 2005 results
Slide 2: Agenda
Agenda Overview, first quarter 2005 results Segment analysis Dividend and acquisition policy This 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
Slide 3: Magyar Telekom at a glance
Magyar Telekom at a glance Market leader in all core businesses Stock information Hungarian operations Over EUR 3bn market capitalisation ! fixed line incumbent operator in Hungary ! 100% stake in the leading Hungarian mobile Stock exchange listing operator ! listed on NYSE and Budapest Stock Exchan
Slide 4: First quarter 2005 summary
First quarter 2005 summary Revenues EBITDA EBITDA margin Group HUF 143,602m -1.7% HUF 59,127m -6.4% 41.2% Fixed-line* HUF 79,150m -6.7% HUF 30,947m -8.0% 39.1% Hungarian ! increased competitor activity ! improving workforce efficiency 71,778 -6.0% 26,524 -7.9% 37.0% Macedonian ! no improvement in ma
Slide 5: Regulatory snapshot
Regulatory snapshot Hungarian regulation in line with EU new regulatory framework Fixed-line Mobile New Electronic Communications Act in effect from January 2004 ! geographical number portability from January 2004 ! mobile number portability from May 2004 ! new services, eg. local bitstream access,
Slide 6: Hungarian fixed line operations
Hungarian fixed line operations Focus on efficiency, acceleration of broadband program Pressure on traffic revenues Successful broadband activity Line and usage churn Accelerated broadband roll-out to bring new ! increased competitor activity impetus to fixed-line business ! mobile substitution due
Slide 7: Hungarian mobile operations
Hungarian mobile operations Stable position despite competitive pressure Highly competitive environment Solid operational indicators Subscribers, market shares and penetration Tariff erosion boosts usage but hits ARPU Subscribers (mn) ! MOU increased by 6% y/y to 113 10 48.3% 67.6% 78.5% 86.4% 87.4%
Slide 8: Macedonian fixed line operations
Macedonian fixed line operations Cost control to preserve profitability Market environment Focus on efficiency Subscribers and penetration (%) Main drivers of revenue decrease 800,000 ! weak macroeconomy limits top-line growth 603,114 28% ! decreased number of revenue producing 600,000 customers 400
Slide 9: Macedonian mobile operations
Macedonian mobile operations Strong leadership and high profitability preserved Focus on market share and profitability Rapid market expansion Leading position maintained MobiMak customers and market penetration ! intensifying presence of second mobile player Customer base (‘000) Penetration 900 60%
Slide 10: Dividend policy and acquisition driven growth
Dividend policy and acquisition driven growth Dividend policy Acquisition driven growth AGM approved HUF 70 per share dividend Strategic priority remains growth through for the year 2004 value-accretive acquisitions Net debt ratio and dividend yield Target selection criteria Net debt ratio Dividend
Slide 11: Acquisition of a majority stake in Telekom Montenegro
Acquisition of a majority stake in Telekom Montenegro TCG Group companies 2004 operational and financial figures market penetration (%) customers (‘000) Telekom Montenegro 68 195 179 fixed line operator 31 incumbent 50** 8 100% 51% ** approximate data 85% Monet Montecard revenue (mEUR) EBITDA margin