Magyar Telekom - The Power Of Inflation
The power of inflation
- We update our model and increase our TP after MTEL has introduced and will increase its subscription fees by 14.5%.
- Fueled by the indexation MTEL’s revenue will increase by ca. 6% and 5% in 2023 and 2024 respectively (7% in 2022), which will be more than enough to mitigate the cost pressures (5.2% and 2.4% compared to sales in ’22 and ‘23), leaving room for the bottom-line to expand 9% / 22% / 23% (y-o-y) between 2023 – 2025. As a result of this earnings momentum, shareholder remuneration should be on an increasing trend as well, thanks to the shr. rem. policy that links the two together (pays out 60 – 80% of adjusted net profit). Hence we forecast a full shareholder remuneration per share of 38 / 45 / 56 from the profit of ‘22 / ‘23 / ’24 implying 10% / 12% / 15% yield. Please note we used with the lower end of the guided range (60 – 80%) for the calculation.
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.