Magyar Telekom Telecommunications Plc · BET:MTELEKOM

Magyar Telekom Telecommunications — Magyar Telekom — Q1 2010 Earnings Presentation

15 slides from Magyar Telekom Telecommunications's earnings presentation, 2010

  1. Slide 1: Magyar Telekom First Quarter 2010 results

    Presentation Magyar Telekom First Quarter 2010 results Economic difficulties continue to exert downward pressures

  2. Slide 2: Change in organizational structure

    Change in organizational structure New organizational structure – effective from July 1, 2010 CEO Finance Technology Human Strategy & Business Sales & Service Marketing Legal & Resources Business Services Corporate Development Affairs „ improve effectiveness in responding to quickly changing market

  3. Slide 3: Hungarian market – infrastructure based-competition

    Hungarian market – infrastructure based-competition Wireline voice traffic trends Mobile subscriber trends 100% Penetration 121% 119% 118% 118% 119% 7% 7% 7% 7% 7% 100% 10% 11% 14% 18% 19% 80% 80% 60% 59% 58% 57% 56% 60% 60% 40% 83% 82% 78% 75% 74% 40% 20% 20% 40% 41% 42% 43% 44% 0% 0% Q1 2009 Q2 20

  4. Slide 4: Strong positions across all segments of the Hungarian market

    Strong positions across all segments of the Hungarian market TV market shares Mobile voice market shares** 100% 100% 14% 13% 13% 13% 6% 6% 6% 21% 21% 22% 22% 23% 80% 7% 80% 24% 24% 23% 22% 60% 60% 34% 34% 33% 34% 33% 40% 33% 33% 32% 40% 33% 20% 20% 45% 45% 45% 44% 44% 22% 24% 26% 27% 0% 0% Q2 2009 Q

  5. Slide 5: Dividend policy

    Dividend policy Historical dividend payments Usage of free cash flow Net debt ratio* DPS (HUF) % of the generated free cash 50% 73 74 74 74 80 70 70 125% 6% 36% 38% 40% 100% 1% 33.2% 60 16% 31.7% 31.0% 29.7% 30.8% Target 17% 30% 13% 1% 1% 75% 40 14% 20% 50% 91% 74% 78% 79% 20 59% 10% 25% 0% 0 0% 200

  6. Slide 6: Economic environment – still a drag on Magyar Telekom

    Economic environment – still a drag on Magyar Telekom Group revenues and Hungarian GDP Economic indicators influence telecommunication 2% spending in different ways 0% ƒ in 2009 all components of economic activity suffered a meaningful decline in Hungary -2% ƒ telecommunication spending lags GDP tre

  7. Slide 7: Public targets for 2010 maintained

    Public targets for 2010 maintained 2010 public targets 2010 Q1 results Revenue 5-7% decline 7.5% decline „ decreasing consumer spending „ continued recessionary impacts „ rationalization in the business sector „ intense competition „ stronger HUF compared to average 2009 „ saturated core markets FX

  8. Slide 8: Q1 2010 results – Business Unit analysis

    Q1 2010 results – Business Unit analysis Revenue development Underlying EBITDA development HUF million HUF million 68 000 66,622 170 000 159,409 -3,132 150 000 -3,294 147,374 64 000 -2,120 -918 -137 -2,178 -2,376 -1,486 100 130 000 60 000 -2,595 59,207 - 919 -395 110 000 56 000 90 000 r ct ia o U 09

  9. Slide 9: Consumer Services Business Unit (CBU) - Financials

    Consumer Services Business Unit (CBU) - Financials Fixed line revenues Mobile revenues HUF million HUF million 35 000 33,858 -5% 32,099 45,085 -3% 43,712 50 000 +53% 28 000 +19% +18% 40 000 +3% 21 000 -1% 30 000 14 000 20 000 -6% 7 000 -15% 10 000 0 0 Q1 2009 Q1 2010 Q1 2009 Q1 2010 Voice Internet T

  10. Slide 10: CBU – mobile operations

    CBU – mobile operations ARPU MOU Mobile internet development HUF min „ leading market position with 49% market share 4 000 150 131 „ number of subscribers exceeded 460,000 at end of 2 987 3 042 119 3 000 +2% +10% Q1 2010 100 2 000 „ 3G/HSDPA network covering ~75% of population 50 1 000 0 0 Mobile te

  11. Slide 11: Business Services Business Unit (BBU) - Financials

    Business Services Business Unit (BBU) - Financials Revenues Falling voice and data revenues HUF million -8% 39,603 „ rationalization and cost cutting initiatives at our key corporate 42,897 45 000 clients lead to reduction in their telecom spending -7% „ both private and public sector affected by ec

  12. Slide 12: Macedonia - Financials

    Macedonia - Financials Revenues Results negatively impacted by FX impact HUF million 20,848 -12% 18,384 „ HUF strengthened on average by 7.8% to the Macedonian 21 000 Denar in Q1 2010 -13% „ excluding FX impact: revenues were down by 4% 14 000 „ excluding FX impact: underlying EBITDA down by 23% -4%

  13. Slide 13: Montenegro - Financials

    Montenegro - Financials Revenues Results negatively impacted by FX impact HUF million 8,217 -9% 7,448 „ HUF strengthened on average by 7.8% to the Euro in Q1 2010 9 000 „ excluding FX impact, revenues were down by 4% but -1% underlying EBITDA increased by 3% 6 000 „ special influence in an amount of

  14. Slide 14: Abbreviations

    Abbreviations: 3G: third generation, ARPU: average revenue per user, BB: broadband, CBC: call-by-call, CPS: carrier pre-selection, HQ: headquarters, HSDPA: high-speed downlink packet access, IC: interconnection, IP: internet protocol, IT: information technology, LTO: local telecommunication operator

  15. Slide 15: 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 In addition to figures prepared in accordance with IFRS, Magyar Telekom also presents non-GAAP financial performance measures, including, among o

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