Magyar Telekom confirmed at BUY, TP HUF 345 - Pushed by headwinds into bargain territory
Following the introduction of the supplementary tax MTEL adjusted its FY 22e EBITDA AL and FCF guidance to moderate decline, while the revenue guidance of 1-3% growth has been confirmedFor FY 22e we expect MTEL to beat its revenue guidance (RBIe: +6.3% yoy) and meets its EBITDA AL guidance (RBIe: -0.4% yoy
While the tie-up of 4iG and Vodafone is a step towards the creation of a national ICT champion and could hurt MTELs SI/IT prospects, we consider MTELs market leadership with regard to telecom services convergence to be sustainable in the mid-term
We reckon with a DPS/share buyout component of HUF 16/HUF 15 for FY 22e at 66% of adjusted net income, implying a total shareholder remuneration yield of 11%
We highlight that MTEL is trading significantly below its long-term multiples as well as below peer multiples
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.).
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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