DOCSLIB.ORG

Annual Report 2006 Common Goals, Common Successes Focus on Broadband Products Increasingly Efficient Integrated Operations Expansion and Growth in Convergent Markets

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Annual Report 2006 Common Goals, Common Successes Focus on Broadband Products Increasingly Efficient Integrated Operations Expansion and Growth in Convergent Markets Annual Report 2006 Common goals, common successes Focus on broadband products Increasingly efficient integrated operations Expansion and growth in convergent markets Group Center Lines of Business Wireline Services Mobile Services Corporate Services Market leadership in wireline telephony Market leadership in mobile communica- Market leadership in business communi- and Internet: tions: cations: 3.4 million fixed lines,* 5.7 million mobile phone customers * 3,000 key business partners, full Magyar 572,000 broadband connections Telekom Group product portfolio Successful integration, first fixed–mobile Broadband: 60% growth, increased speed scheme launched A decisive market player in IT, ICT and coverage outsourcing and systems integration Introducing the real mobile broadband: Traffic-enhancing flat-rate packages HSDPA New consolidated subsidiaries, expanding product portfolio Integrated nationwide retail network Web’n’walk: mobile Internet Managed ICT services T-Home TV: digital IPTV service launched Mobile multimedia over 3G network: video phone, mobile TV Group-level integrated relationship- T-Online: market leadership in web content management services Entering the notebook market Electronic bill management * In Hungary, Macedonia and Montenegro. 1 Our vision As the leading services company in the telecommunications and information technology industry, we network society for a better future. With top quality, efficiency and innovation, to the benefit of our customers. In every respect. Magyar Telekom (www.magyartelekom.hu) is the principal provider of telecom services in Hungary. It provides a broad range of fixed line services including telephony, data transmission, value-added services, and it is Hungary’s largest mobile carrier and leading Internet service provider. Magyar Telekom is the majority owner of MakTel, the sole fixed line operator and its subsidiary T-Mobile Macedonia, the country’s leading mobile operator. Magyar Telekom also has a majority stake in Crnogorski Telekom, Montenegro’s largest telecom operator which provides fixed line, mobile and Internet services. Magyar Telekom was incorporated in 1991 (under the name Matáv) and privatized in 1993. Magyar Telekom shares were introduced to national and international stock exchange dealing both in Budapest and New York in 1997. Magyar Telekom’s majority shareholder (59.21%) is MagyarCom Holding GmbH, fully owned by Deutsche Telekom AG. From March 1, 2006 Magyar Telekom’s registered company name is Magyar Telekom Telecommunications Public Limited Company, the abbreviated name is Magyar Telekom Plc. 2 Awards and recognition April 2006: The Euromoney annual corporate survey put Magyar Telekom in the 2nd place in the region in terms of usability of its Internet site, and it also placed 2nd in mobile and wireline telephony in terms of convincing and consistent strategy. May 2006: A Reader’s Digest survey covering 14 European countries found T-Mobile to be the Most Trusted Brand in the mobile operator category in Hungary, just like in the previous 5 years. May 2006: The commercial spot of Magyar Telekom’s Világvonal (World Line) service won a Bronze Blade prize at the Golden Blade Creative Commercial Festival. June 2006: The joint application of T-Com and Allround Informatika – as first Hungarian companies ever – won the World Billing Award, the highest international recognition for billing technologies, in the Best Revenue Assurance/Management Project category. July 2006: Magyar Telekom was ranked as first among 100 leading Hungarian companies based on the survey by Terra Idea research group which measures the online communication of corporate social responsibility. October 2006: The professional jury appointed by Figyelő Top 200 awarded Magyar Telekom as the Corporate Donor of the Year in Hungary. October 2006: In the Accountability Rating Hungary 2006 Magyar Telekom was ranked as best in corporate social responsibility on the basis of a comparative survey of leading Hungarian companies. November 2006: György Simó, head of T-Com and CEO of T-Online Hungary, was given the international Leadership Award by Dale Carnegie & Associates for his merits in organization development. November 2006: Magyar Telekom won the Integrating Employer 2006 award of the Budapest Municipality in the forprofit category in recognition of its outstanding achievements in creating equal opportunities for its employees. November 2006: Magyar Telekom earned the Chairman’s Award of the Central European University with its outstanding support of the University’s activities. November 2006: Magyar Telekom’ Procurement Directorate won a nomination and became a finalist for the year’s European Logistics Award for Excellence. February 2007: Magyar Telekom won the Deutsche Telekom Group’s international Diversity Award 2006 for its achievements in creating equal opportunities for its employees. 3 Contents To our shareholders Magyar Telekom Group: financial highlights III Magyar Telekom Group: summary of operating statistics IV Our vision 1 Awards and recognition 2 Letter to our shareholders 4 The Management Committee of Magyar Telekom 6 Magyar Telekom’s Board of Directors and Supervisory Board 8 Value creation Our strategy 10 Human resources 14 Corporate social responsibility 18 The lines of business Wireline services 22 Mobile services 26 Corporate services 30 The financial year 2006 Management report for the 2006 financial year 34 Consolidated financial statements 40 Report of Independent Registered Public Accounting Firm 40 Consolidated balance sheets at December 31, 2005 and 2006 42 Consolidated income statements for the years ended December 31, 2004, 2005 and 2006 43 Consolidated cashflow statements for the years ended December 31, 2004, 2005 and 2006 44 Consolidated statements of changes in equity for the years ended December 31, 2004, 2005 and 2006 45 Notes to the consolidated financial statements 49 Reconciliation to U.S. GAAP (unaudited) 100 Further information Financial calendar 2007 104 Forward looking statements 104 Contacts 104 Magyar Telekom Group: international presence V 4 Letter to our shareholders Dear Shareholders, 2006 saw a number of positive developments for Magyar Telekom. Despite strong competition in all areas, we preserved our leading position in our key businesses. Both revenue growth of 9% and EBITDA growth of 1% were comfortably in line with our full year targets. The gross additions to tangible and intangible assets to sales ratio was 13.5%, in line with our goal of maintaining the ratio below 15% in 2006. In terms of parent company headcount efficiency, we reached our target of 500 lines per employee ratio by the end of February 2006. In the Hungarian fixed line business, revenue growth was fuelled by the increasing system integration and IT revenues, as well as our focus on broadband services, which were able to counterbalance the ongoing drop in traffic revenues. In the traditional voice market, mobile, cable and alternative providers remain the main competitors. To protect our customer base, we are continuously migrating customers to flat-rate packages with a loyalty period. As a result, the ratio of customers on a fixed-term contract was above 40% in the residential segment by the end of the year. The number of broadband customers increased by 60% year-on-year and our aim is to further increase broadband penetration in the next years through new offers and increased bandwidth. This will be helped by the IPTV services launched in November 2006, offering interactive entertainment services to our customers. In addition, the acquisition of iWiW, the leading Hungarian online social network, has improved our content offers. The network had more than 1.7 million registered members by the end of January 2007 and is the third most visited web page in Hungary. System integration and IT revenues almost tripled in 2006 mainly reflecting the consolidation of Dataplex since April and KFKI since mid-September. Through these companies, we gained a strong position in the growing IT, system integration and telco-outsourcing market. This year, our competitive position in this market will be further strengthened by the operations of T-Systems Hungary, of which we gained control on January 1, 2007. In 2006 we already saw the initial positive impacts of the fixed-mobile integration, especially in terms of sales and customer retention. For example, we fully integrated our store network, which now provides an all-encompassing service to our Magyar Telekom Annual Report 2006 To our shareholders ! Letter to our shareholders 5 customers, and unified the client relationship management of business customers. According to our estimate, the net present value of the benefits of the integration will be around HUF 60 bn in the 2007-2009 period. While penetration levels in the Hungarian mobile market increased to 99% by the end of the year, we maintained our clear leadership with market share of above 44% and increased our customer base by 6%. As new additions were driven mostly by postpaid clients, the improvement in our customer mix positively affected our underlying performance. Revenue per user levels remained broadly stable compared to last year, as the higher usage and the increasing role of data-related value-added services offset the tariff decline and the cut in the mobile termination rates. The successful sales activity was supported by the integrated fixed-mobile shop network and marketing activities. In addition, new wireless Internet subscriptions played a significant role, thanks to
Load more

Recommended publications
  • Annual Report 2008 Contents
    Annual Report 2008 Contents I. Introduction of Slovak Telekom Group ■ Letter to Shareholders 3 ■ Milestones of 2008 7 ■ Company Profi le 12 ■ Corporate Governance 19 II. Shaping Development in the Telecommunications Market ■ Growing Competition, Higher Quality Services 29 ■ Telecommunications Market in Slovakia 32 III. Report of the Company’s Management ■ Products and Services of Slovak Telekom Group 38 ■ Information Technologies: System Support for Effective Business and New Service Launch 55 ■ Human Resources – Essential Prerequisite for a Flourishing Business 59 ■ Communication Affects Customer’s Decision 65 ■ Corporate Social Responsibility of the Slovak Telekom Group 82 IV. Financial Results ■ Consolidated Financial Statements 88 ■ Financial Statements 130 2 I. Introduction of Slovak Telekom Group Letter to Shareholders Dear Shareholders, SKK 13 billion (EUR 432 million), which worked out to net income of SKK 3.5 billion (EUR 117 million). 2008 brought many exacting challenges for the Slovak Telekom group of compa- The Slovak Telekom Group was in excellent fi nancial condition in 2008. Thanks to nies, but we coped with them successfully. the suffi cient generation of uncommitted resources, it was able to pay its share- Therefore it is an honour for me to present holders dividends totalling SKK 3 billion (EUR 100 million). you the Annual Report 2008, refl ecting the accomplishments achieved by Slovak Last year the telecommunications market was effected by activity of operators Telekom and its subsidiaries. modernising access infrastructure, through construction of optical networks. Slovak Telekom, offering its products and services under the T-Com brand, markedly ac- The Slovak Telekom Group generated Miroslav Majoroš celerated the penetration rate of FTTx optical networks into households.
    [Show full text]
  • Bachelorarbeit
    Fachbereich Medien Jahn, Kathleen Implementierung und Vermarktungsansätze/ -möglichkeiten für das Musik Community Programm Electronic Beats (von T-Mobile) in den Neuen Bundesländern und in Polen - Bachelorarbeit - Hochschule Mittweida – University of Applied and Science (FH) Leipzig - 2009 Fachbereich Medien Jahn, Kathleen Implementierung und Vermarktungsansätze/ -möglichkeiten für das Musik Community Programm Electronic Beats (von T-Mobile) in den Neuen Bundesländern und in Polen - Bachelorarbeit - Hochschule Mittweida – University of Applied and Science (FH) Erstprüfer Zweitprüfer Prof. Dr. phil. Ludwig Hilmer Claudia Jonas Leipzig - 2009 Bibliographische Beschreibung Jahn, Kathleen: Implementierung und Vermarktungsansätze/ -möglichkeiten für das Musik Community Programm Electronic Beats (von T-Mobile) in den Neuen Bundesländern und in Polen. - 2009 - 67 S. Referat Diese wissenschaftliche Arbeit beschäftigt sich mit der Ausarbeitung von Vermarktungsansätzen, welche als Grundlage für eine erfolgreiche Vermarktung der Community Plattform Electronic Beats von T-Mobile in den neuen Bundesländern und in Polen dienen soll. Im Fokus der Bachelorarbeit stehen eine Betrachtung der Musikmärkte, die Konkurrenzanalyse, das Aufzeigen von positiven bzw. negativen Sachverhalten für die Implementierung und die Ausarbeitung der Kriterien für eine effiziente Vermarktung in den neuen Bundesländern und in Polen. Das Hauptaugenmerk der Arbeit richtet sich daher speziell auf die Marketingmöglichkeiten und deren spätere Umsetzungsvarianten aus. Beginnend
    [Show full text]
  • Annual Report
    Beat of07 a n n u a l r e p o r t Music, that is tones. And tones are produced by humans. It is them who determine the way a song will impress. Whether it will enchant or soothe. T-Mobile is a body consisting of well coordinated teams as well as excellent soloists – our employees. Hence their name is what it is – successful and not possible to miss… Contents Music menu Who we are 2 Where we came from and where we are going 3 Foreword from the Chairman of the Board 6 Through the management’s eyes 8 Milestones of 2007 0 Marketing (not only) for young people 2 Simply closer 4 Technology: the foundation of success 6 T-Mobile and its customers 8 Selling is an art 20 The T-Mobile team 22 We do not live in a vacuum 24 Entertaining (not only) our customers 28 On the conference circuit in 2007 30 Being part of a big family 32 2007 final accounts 34 Report on the relationships between the related parties for the year 2007 60 Who we are Where we came from and where we are going Band profile Discografie T -Mobile Czech Republic a. s. was established in Award – the most prestigious Czech award for quality 1996 1996 (then called RadioMobil) and in the same year management granted by the Czech Quality Council. On 14 March 1996, the CMobil consortium won the tender proceedings for an international partner of České radiokomunikace organized by the Ministry of Economy. began offering mobile telecommunications services T-Mobile Czech Republic has also received a number RadioMobil was registered in the Commercial Register in June, and the Paegas GSM network began operation on 30 September.
    [Show full text]
  • Sustainability Report 2016 Table of Contents
    SUSTAINABILITY REPORT 2016 TABLE OF CONTENTS LETTER FROM THE CEO ...........................................................................................................................................3 KEY OPERATING STATISTICS OF MAGYAR TELEKOM GROUP .................................................................................... 57 OUR APPROACH ......................................................................................................................................................5 ASSURANCE STATEMENT .......................................................................................................................................60 CORPORATE STRATEGY .....................................................................................................................................................................................5 GRI CONTENT INDEX .............................................................................................................................................. 61 SUSTAINABILITY APPROACH .............................................................................................................................................................................5 BE SMARTER – SUSTAINABILITY STRATEGY (2016 – 2020) .......................................................................................................................6 COMPLIANCE WITH THE PRINCIPLES OF THE UN GLOBAL COMPACT ........................................................................ 81 MATERIALITY ..........................................................................................................................................................................................................7
    [Show full text]
  • Sustainability Report 2016 Table of Contents
    SUSTAINABILITY REPORT 2016 TABLE OF CONTENTS LETTER FROM THE CEO ...........................................................................................................................................3 KEY OPERATING STATISTICS OF MAGYAR TELEKOM GROUP .................................................................................... 57 OUR APPROACH ......................................................................................................................................................5 ASSURANCE STATEMENT .......................................................................................................................................60 CORPORATE STRATEGY .....................................................................................................................................................................................5 GRI CONTENT INDEX .............................................................................................................................................. 61 SUSTAINABILITY APPROACH .............................................................................................................................................................................5 BE SMARTER – SUSTAINABILITY STRATEGY (2016 – 2020) .......................................................................................................................6 COMPLIANCE WITH THE PRINCIPLES OF THE UN GLOBAL COMPACT ........................................................................ 81 MATERIALITY ..........................................................................................................................................................................................................7
    [Show full text]
  • Stakeholders 5 STAKEHOLDERS 33 Table of Contents
    sustainability report 2019 5. stakeholders 5 STAKEHOLDERS 33 table of contents GENDER The stakeholders of Magyar Telekom Group include all those Telekom from where its sustainability activities and approach EQUALITY groups, which have an influence on, or hold an interest in the imp- are accessible, topics evaluated by the stakeholder groups and their importance lementation of the objectives of the Company. The Company ear- which global Sustainable Development Goals (SDGs) should Future Supplier/ Regulator NGO Employee Media Customer Investor Local Average lier identified its stakeholders through review of its management Magyar Telekom consider as priorities, based on its activities. generation partner community systems and benchmark studies, and maintains continuous con- Climate protection and energy efficiency 3,60 3,48 3,56 3,20 3,05 2,82 2,95 2,80 2,44 3,10 CLEAN WATER tact with them to ensure that their interests are taken into consi- The latest survey, conducted in December 2019, shows that most Wastes 3,60 3,48 3,38 3,20 2,85 2,82 2,98 2,65 2,38 3,04 AND SANITATION deration in the course of its operations. Their opinion and critical of our stakeholders consider climate protection and energy effi- comments are important for us in respect of our sustainability ac- ciency, waste management and informing our customers. In the Informing of customers 3,20 3,48 3,35 3,20 2,71 2,74 3,00 2,45 2,36 2,94 tivities. We had the opportunity to meet with our stakeholders on areas of ICT-relevant scientific achievements, they underlined the Emissions 3,60 3,38 3,22 2,87 2,81 2,70 2,95 2,60 2,29 2,94 several occasions at forums and surveys as well as in person whe- importance of climate protection and innovation, which we add- Protection of minors in Digital Age 3,60 3,30 3,64 2,53 2,82 2,88 2,88 2,40 2,29 2,93 DECENT WORK AND re we could discuss our sustainability activities and challenges.
    [Show full text]
  • Sustainability Report 2015 Table of Contents
    1 TABLE OF CONTENTS SUSTAINABILITY REPORT 2015 TABLE OF CONTENTS LETTER FROM THE CEO .................................................................................................................................................................. 3 KEY OPERATING STATISTICS OF MAGYAR TELEKOM GROUP ............................................................................................................ 54 OUR APPROACH ............................................................................................................................................................................. 5 ASSURANCE STATEMENT .............................................................................................................................................................. 57 Corporate strategy .................................................................................................................................................................................................................................5 GRI CONTENT INDEX ..................................................................................................................................................................... 58 Sustainability approach .......................................................................................................................................................................................................................5 Sustainability strategy – preliminaries and plans ...................................................................................................................................................................................................6
    [Show full text]
  • 6. Social Engagement
    SUSTAINABILITY REPORT 2018 6 SOCIAL ENGAGEMENT 38 TABLE OF CONTENTS 6. SOCIAL ENGAGEMENT 6.1 Community investments....................................................................... 39 6.2 Our employees and social engagement........................................... 41 6.3 Sponsorship........................................................................................... 42 6 SOCIAL ENGAGEMENT 39 TABLE OF CONTENTS Support strategy 6.1 workshops for groups of pensioners, volunteer work at the Sus- In 2018 the Become an IT expert! program went a step further COMMUNITY INVESTMENTS tainability Day festival conference, Mobile Professor work at Tel- when Telekom - T-Systems announced a competition for high Magyar Telekom manages the selection and implementation of ekom shops and the compilation of educational articles, content school students under the name of Become a Creative Mind! its social engagement activities at a strategic level. These activ- Development of communities, consciousness forming and presentations. In 2018, 87 interns took part in the program, game, which aims to promote not only IT, but the wider range of ities are performed in line with centrally regulated and audited reaching1044 people with their educational work. educational opportunities inherent in digital devices. processes in consideration of the latest social, environmental As a responsible corporation, we believe that we are not only here and economic developments. to provide services to our customers but also to educate them on the safe and responsible use of internet. Along these efforts we aim The focus of the bidecennial sponsoring efforts of the company to close the digital divide in Hungary, because we firmly believe that have been shifted into an integrated scheme that focuses on the digital solutions can bring us closer to achieving our goals.
    [Show full text]
  • Sustainability Report 2020 TABLE of CONTENTS
    sustainability report 2020 table oF Contents letter FroM tHe Ceo ................................................................................... 3 stakeHolders ............................................................................................30 Stakeholder survey ....................................................................................................................................................................................... 31 Materiality ....................................................................................................................................................................................................... 32 our approaCH ............................................................................................. 5 Suppliers......................................................................................................................................................................................................... 33 Sustainability approach...................................................................................................................................................................................5 Customers ...................................................................................................................................................................................................... 35 Sustainability Strategy - Sustainable Development Goals.........................................................................................................................5
    [Show full text]
  • Chapter 7 Cultural Diplomacy in the Private Sector
    Chapter 7 Cultural Diplomacy in the Private Sector: Company Ranking Report Ranking of the European Private Sector Table of Contents 1. Introduction .......................................................................................................................... 2 2. Research Design .................................................................................................................... 3 3. Concepts ............................................................................................................................... 4 4. Methodology ........................................................................................................................ 5 4.1 STAGE ONE & TWO – COMPANY SELECTION METHODS & INITIAL RESEARCH .................................. 5 4.2 STAGE THREE – PARAMETER SETTING AND ASSESSMENT PROCESS .............................................. 10 4.3 STAGE FOUR - APPLYING PARAMETERS AND GRADING SYSTEM .................................................. 12 5. Barriers to Research ............................................................................................................. 14 6. Company Profiles ................................................................................................................ 16 6.1 AUTOMOBILES AND PARTS ................................................................................................... 16 6.2 BANKS, FINANCIAL INSTITUTIONS, AND INSURANCE ................................................................... 53 6.3 ELECTRONICS AND INFORMATION
    [Show full text]
  • T-Mobile Czech Republic: Annual Report 2006
    Annual Report 2006 T-Mobile Czech Republic: Annual Report 2006 “Behind all these numbers and successes of our company are individuals and teams full of enthusiasm, determination and new ideas – our employees.” 2 T-Mobile Czech Republic: Annual Report 2006 T-Mobile Czech Republic: Annual Report 2006 3 Contents Company profile ............................................................................................................... 5 T-Mobile in 1996–2006 ................................................................................................... 7 Foreword from the Chairman of the Board ................................................................... 8 Management: Meet the management .......................................................................... 10 Strategy: Creating a service culture .............................................................................. 13 Brand: A multinational brand for global movers .......................................................... 15 Services: Shaping the future ........................................................................................... 17 The T-Mobile network: Extending coverage ................................................................. 19 Our customers: Closer to every customer ..................................................................... 21 Human resources: Employees are the key to our success ......................................... 25 Corporate Social Responsibility: Being a good citizen and neighbour .................... 27 Sponsorship
    [Show full text]
  • STAKEHOLDERS 5 STAKEHOLDERS 31 Table of Contents
    sustainability report 2020 5. staKeHolDers 5 STAKEHOLDERS 31 table of contents The stakeholders of Magyar Telekom Group include all those Next to the rating of topics, our stakeholder survey poses the fol- topics evaluated by the stakeholder groups groups, which have an influence on or hold an interest in the imp- lowing questions as well: and their importance lementation of the objectives of the Company. The Company ear- suggestion of other relevant sustainability topics that are not lier identified its stakeholders through a review of its management listed NGO Employees Future Supplier, Local Regulator Media Customer generation Partner Investor Average systems and benchmark studies and maintains continuous con- examples of important scientific findings that would be impor- community tact with them to ensure that their interests are taken into consi- tant and worth consideration for ICT companies. Protection of minors in the Digital Age 4,25 4,09 4,44 4,05 3,72 3,38 4,18 3,46 3,27 3,87 deration in the course of its operations. Their opinion and critical threats and opportunities for companies in relation to their Wastes 4,25 4,20 4,20 4,05 3,75 3,49 3,98 3,16 3,31 3,82 comments are important for us with respect to our sustainability sustainability approach Informing of customers 4,05 4,20 4,22 3,88 3,69 3,41 4,12 3,39 3,13 3,79 activities. the most commonly-used communication platforms of Magyar Customer satisfaction 4,25 4,09 4,19 3,78 3,63 3,06 3,94 3,81 3,32 3,79 Telekom from where its sustainability activities and approach We have had the opportunity to meet with our stakeholders on se- are accessible, Climate protection and energy efficiency 3,75 4,10 4,40 4,13 3,84 3,52 3,92 3,34 2,90 3,77 veral occasions at forums and surveys as well as in person where which global Sustainable Development Goals (SDGs) Magyar Data protection 4,75 4,03 4,07 4,00 3,56 3,11 3,78 3,57 2,96 3,76 we could discuss our sustainability activities and challenges.
    [Show full text]