Magyar Telekom - Earnings normalized
MTEL Q1 results were mixed compared to the consensus. Revenue (-0.2%), EBITDA (-0.4%), EBIT (-
1.5%) came slightly below expectations but profit surprised on the upside (+8.5%) on lower financial
expense thanks to some unrealized gain on derivatives stemming from positive yield curve
movements.
Key positives:
1. Earnings normalized and mgmt. KPI’s are on track to meet FY guidance.
2. Guidance remained unchanged.
3. Seasonally strong EBITDA margin (31%) thanks to cost saving (ca. HUF 2
billion vs ‘20Q1)
Key negatives:
1. EBITDA growth dynamic slowed from 10% y-o-y in Q4 to 8.2% y-o-y in Q1,
predominantly because of the temporarily levied free internet measures.
2. Broadband ARPU (-5.6% y-o-y) declined on the back of free internet
measures which hopefully will be phased out by the end of June.
3. Net debt peaked in Q1 driven at HUF 512 bn (net debt to EBITDA of 2.2x)
because of the recognition of future liabilities of the spectrum auction (900
MHz and 1800 MHz). Cash outflow will materialize only in 2022Q2.
MTEL announced the timing of the share buyback auction which is scheduled for 10th June – p
Magyar Telekom is engaged in the providing fixed line and mobile telecommunication services for public and business customers. Co. provides voice and non-voice (SMS, MMS, internet, data and content provision) within mobile services; voice, data, internet and TV services within fixed line services. In addition, Co. sells equipment needed for using fixed line and mobile services (telephones, tablets, notebooks, TV sets etc.).
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.