Magyar Telekom - Revenue and EBITDA guidance are lifted
MTEL Q2 results exceeded consensus in almost every lines. EBITDA and net profit reached HUF 59
billion and HUF 13.5 billion implying a +6% y-o-y and 28% y-o-y growth respectively.
Key positives:
1. Revenue and EBITDA guidance are lifted from the 1-2% to 3% thanks to the
solid underlying operation and broad based growth (revenue growth was
+4% y-o-y). SI/IT revenue fell y-o-y
2. Highest ever mobile data traffic recorded leading to acceleration of mobile
yearly data revenue growth in Q2 to 19% from Q1 of 11% resulting in a
mobile ARPU increase of 6% y-o-y
3. Despite the dividend and buyback cash outflow, net debt level decreased by
HUF 10 billion in Q2.
Key negatives:
1. Delta virus may cause lockdown and thus free internet measure again for
students hurting MTEL’s top line. However looking at mgmt. guidance, we
think it is conservative enough to leave ample room for the reimplementation
of that measure again as well in our view (+3% y-o-y EBITDA increase vs. H1
growth of 7%).
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.
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