Budapest, May 12, 2015 18:00
Magyar Telekom (Reuters: MTEL.BU and Bloomberg: MTELEKOM HB), the
leading Hungarian telecommunications service provider, today reported its
consolidated financial results for the first quarter of 2015, in accordance
with International Financial Reporting Standards (IFRS).
Highlights:
Christopher Mattheisen, CEO commented:
“I am
pleased to report that we have closed a very successful quarter in terms of
operating performance. Our group revenues increased by 3.3% compared to the
first quarter of last year driven by strong results from our mobile and energy
operations. Thanks to the efforts made last year to invest in 4G networks
across our Hungarian and international footprints, our mobile broadband and
equipment revenues significantly increased. Revising our discount scheme in the
energy business also helped to grow our overall margin, while savings in
employee related expenses led to a 4.8% uplift in our group EBITDA.
Looking
at our segments, Telekom Hungary was the primary growth driver for the revenue,
recording a 6.9% increase year-on-year. We were able to increase further our
mobile customer base by 2% and ARPU by 4% among the Hungarian residential and
small-medium business subscribers. Our mobile data revenues grew by almost 16%
which was driven by a very attractive device portfolio, which includes the
iPhone6, and a strong 4G push that was supported by the network sharing
agreement with Telenor in the countryside of Hungary. We maintained our
leadership positions in the Hungarian fixed line markets and, driven by the
successful upgrade campaigns, we were able to achieve higher broadband and TV
ARPUs compared to the first quarter of last year.
These
very good results in the residential segment were somewhat offset, however, by
the continuous pressure on our large enterprise customer base owing to the intense
mobile competition leading to a lower mobile ARPU. The state-owned operator
caused a further increase in fixed churn at T-Systems but we were able to slightly
increase our SI/IT margin coupled with lower employee
related expenses. At the same time, in Macedonia, we witnessed a very moderate
revenue decrease compared to previous quarters as the mobile market continues
to show signs of stabilization. The previously witnessed double digit declines
in mobile revenue and EBITDA have slowed down, with the 25% increase in mobile
data revenue – in part reflecting the success of prolonging our Christmas
campaign into January – is also promising. However, in Montenegro, besides the
decline in messaging and prepaid mobile revenues, the regulatory pressures on
fixed voice and broadband continued to weigh, leading to an 8% overall decline.
Looking
forward, we aim to continue promoting superior 4G experience to take greater
advantage of the mobile rebalancing opportunities. We have commenced an
intensive fixed network development program, whereby we will enlarge our High
Speed Internet coverage by 440,000 households in Hungary over the next three
quarters. Next generation network development will also be implemented at our
foreign subsidiaries. A greater focus of our marketing activities across our
whole footprint over the upcoming quarters will be geared on fixed-mobile
convergence products.
In terms
of our financial targets, we maintain our EBITDA and Capex guidance. However,
due to the planned exit from the residential gas market in August this year and
the previously announced decision to set-up a JV in respect of energy services
to our business customers in the second half of 2015 – implying that its
results will no longer be consolidated –, we are now
expecting roughly stable revenues in 2015 compared to a year earlier.”
2015 public guidance
2014 | Public guidance 2015 | |
Revenue | HUF 626.4 billion | roughly stable* |
EBITDA | HUF 181.2 billion | 0-3% decline |
Capex** | HUF 86.8 billion | ca. HUF 105 billion |
*modified from 0-3% increase
** excluding spectrum acquistions and annual frequency fee capitalization
This investor
news contains forward-looking statements. Statements that are not historical
facts, including statements about our beliefs and expectations, are
forward-looking statements. These statements are based on current plans,
estimates and projections, and therefore should not have undue reliance placed
upon them. Forward-looking statements speak only as of the date they are made,
and we undertake no obligation to update publicly any of them in light of new
information or future events.
Forward-looking
statements involve inherent risks and uncertainties. We caution you that a
number of important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Such factors are
described in, among other things, our annual financial statements for the year
ended December 31, 2014, available
on our website at https://www.telekom.huwhich have been prepared in accordance with
International Financial Reporting Standards (“IFRS”) as issued by the
International Accounting Standards Board (“IASB”) and adopted by the European
Union.
In addition to
figures prepared in accordance with IFRS, Magyar Telekom also presents non-GAAP
financial performance measures, including, among others, EBITDA, EBITDA margin
and net debt. These non-GAAP measures should be considered in addition to, but
not as a substitute for, the information prepared in accordance with IFRS.
Non-GAAP financial performance measures are not subject to IFRS or any other
generally accepted accounting principles. Other companies may define these
terms in different ways. For further information relevant to the interpretation
of these terms, please refer to the chapter “Reconciliation of pro forma
figures”, which is posted on Magyar Telekom’s Investor Relations webpage at
www.telekom.hu/investor_relations.