Budapest, August 5, 2020 17:30
Magyar Telekom (Reuters: MTEL.BU and Bloomberg: MTELEKOM HB, hereinafter the “Company”), the leading Hungarian
telecommunications service provider, today reported its consolidated financial
results for the second quarter and first half of 2020, in accordance with International
Financial Reporting Standards (IFRS) as adopted by EU.
Financial highlights:
Operational highlights
Tibor Rékasi, Magyar Telekom CEO commented:
“Magyar
Telekom has been through an extremely challenging second quarter with COVID-19
impacting our operations in many ways. I am very proud that we supported
families, communities as well as businesses allowing for enhanced digital
cooperation during this extraordinary period. At the same time, we were equally
successful in preserving the profitability of Magyar Telekom by delivering
strong results in the second quarter despite fast-changing external conditions.
We have decided to fast-track the
development of our fiber network to enhance broadband coverage, driving our
2020 investments higher than we anticipated earlier. Early
signs of changing customer behavior in light of COVID-19 proves that we are on
the right track.We expect these investments to further reinforce our position as a
trusted provider of seamless telecommunications services in both Hungary and
North Macedonia, which will be key to leveraging favorable long-term trends
accelerated by recent developments.
Looking ahead
to the second half of 2020, we will focus on delivering our previously
announced EBITDA AL target.”
Outlook
2019 Actual | Public Guidance for 2020 | Public Guidance for 2021 | |
Revenue | HUF 666.7 billion | broadly stable | |
EBITDA | HUF 197.6 billion | increasing at 1%-2% per annum | |
Capex 1 | HUF 89.6billion | increasing with ca. 10%* | broadly stable vs 2019 |
FCF 2 | HUF 65.1 billion | broadly stable* | broadly stable* |
1) excluding spectrum license fees and CAPEX of right-of-use assets (i.e. the impact of IFRS 16)
2) excluding spectrum license fees
* modified
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, 2019, available on our website at https://www.telekom.hu which 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.
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