Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — Q1 2020 Earnings Presentation
29 slides from Hellenic Telecommunications Organization Sa's earnings presentation, May 2020
Slide 1: Q1 2020 Results
OTE Hellenic Telecommunications Organization Q1 2020 Results May 2020
Slide 2: Disclaimer
Disclaimer This presentation is provided to persons who are entitled to receive it in accordance with the laws and regulations of appropriate jurisdictions. This presentation is provided for information purposes only and does not constitute an offer or an invitation to buy or sell or subscribe to an
Slide 3: Q1 2020 Highlights
Q1 2020 Highlights +3.6% Group revenues up 3.6% on positive performance in Greece and Romania Group revenue* +1.4% Total revenues* Mobile service revenues up 3.3% on higher data +4.5% Group Adj. EBITDA (AL) up 4.5%, driven by improved margin in both Greece and Romania Fixed retail up 1.3%, on strong
Slide 4: COVID-19 Update
COVID-19 Update Impact Overall, impact is lessened by being a technology company and being able to operate digitally with our customers and employees • Delays in some payments and pre-paid top-ups though initial shortfall has partially recovered during April • Sales revenue in physical stores declin
Slide 5: Cosmote Actions due to Covid-19
Cosmote Actions due to Covid-19 Employees Supporting Greek society Ensuring seamless delivery while protecting employees and • €2mn donation to Greek hospitals, including medical customers: equipment such as ventilators • Health system support through provision of free 80% of workforce now working r
Slide 6: Financial Review
Financial Review OTE | Q1 2020 RESULTS 6
Slide 7: KPIs and Group Overview
KPIs and Group Overview Revenues €941mn Romania Revenues Greece, 75% (yoy +3.6%) Romania, 25% €322mn Adj. EBITDA (AL) (yoy +4.5%) Adj. EBITDA (AL) Greece €166mn Greece, 89% Adj. Capex Romania, 11% (yoy -5.5%) €133mn Shareholders* Adj. FCF OTE Group is the largest telecommunications (yoy +€97mn) prov
Slide 8: Capex
Capex Adjusted Capex (€mn) FY2019: -€44m or -6.3% yoy 740 706 20.0% 200 176 178 25.0% 175 690 662 19.0% 180 166 18.0% 160 20.0% 640 18.6% 600 133 19.4% 17.0% 140 18.8% 17.7% 590 16.9% 16.0% 120 16.8% 15.0% 540 15.0% 100 490 14.0% 80 13.2% 10.0% 13.0% 60 440 12.0% 40 5.0% 390 11.0% 20 340 10.0% 0 0.0
Slide 9: Cashflow
Cashflow Adjusted FCF (€mn) 25% growth in Adjusted FCF (ex spectrum Q1’20: +€97mn yoy & restructuring) expected in 2020 351 334 299 254 1,150 1,210 212 173 159 1,051 121 133 488 610 36 345 (176) (133) (175) (166) (706) (662) (600) (178) FY 2018 FY 2019 FY 2020 Guidance Q1'19 Q2'19 Q3'19 Q4'19 Q1'20
Slide 10: Shareholder Remuneration Policy
Shareholder Remuneration Policy Dividend per Share (€) Shareholder Remuneration Policy 0.55 0.46 100% FCF Distribution through a combination of dividends and share buybacks 65%/35% Targeted split between dividends and share buybacks FY 2018 FY 2019 €0.55 The company will pay €0.55 dividend per share
Slide 11: Debt and Liquidity Profile
Debt and Liquidity Profile Leverage (excluding leases) (€mn) (IFRS amounts) 0.6x 0.5x 0.6x 0.5x Adjusted Net Debt/EBITDA 0.4x 2,069 1,733 1,731 1,713 1,650 732 602 773 649 541 • Adj. Net Debt under IFRS 16 stood at €930mn • Adj. Net Debt/EBITDA (AL) (1,001) (1,129) (1,064) (1,109) stood at 0.7x (1,2
Slide 12: Greece
Greece OTE | Q1 2020 RESULTS 12
Slide 13: Greece – Financial Overview
Greece – Financial Overview Total Revenues (€mn) Adj. EBITDA (AL) (€mn)* 840 30.0% 2,943 771 50.0% 43.7% 2,888 790 756 25.0% 40.9% 41.5% 48.0% 40.5% 40.8% 450 40.3% 46.0% 40.0% 1,450 41.8% 720 707 44.0% 740 697 20.0% 36.8% 1,181 1,220 42.0% 400 35.0% 337 40.0% 1,250 690 15.0% 38.0% 302 350 31.8% 290
Slide 14: Greece – Financial Overview
Greece – Financial Overview Retail Fixed Revenues (€mn) 20.0% 15.0% 936 261 916 233 237 234 234 231 10.0% 211 5.0% 2.8% 2.8% 0.0% • Retail fixed services increased by 1.3% fueled by 1.8% 1.4% 1.3% 161 -5.0% ongoing growth in broadband -10.0% 111 -15.0% 61 -20.0% FY 2018 FY 2019 Q1'19 Q2'19 Q3'19 Q4'
Slide 15: Greece – Fixed KPIs
Greece – Fixed KPIs Fixed Voice Market Evolution (000) OTE Fixed Lines at 2,651k 4,766 4,766 4,759 4,779 4,785 4,782 4,771 4,795 4,804 45% 44% 44% 45% 45% 45% 45% 45% 45% 55% 56% 56% 55% 55% 55% 55% 55% 55% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 OTE Market Share Competitors Market Sha
Slide 16: Greece – Broadband KPIs
Greece – Broadband KPIs Broadband Market Evolution (000) OTE Broadband Lines Market Penetration at 2,036k 120% 3,955 3,987 4,017 4,042 4,095 4,134 3,841 3,865 3,887 85% 86% 83% 84% 85% 100% 81% 81% 82% 83% 80% 73% 74% 75% 76% 77% 53% 53% 52% 52% 52% 51% 51% 51% 51% 60% 68% 69% 70% 72% 40% 47% 47% 48
Slide 17: Greece – Fiber Services
Greece – Fiber Services Fiber Subscribers (000) Fiber Subscribers additions (000) 80 787 742 70 695 60 646 750 54 51 60 586 49 100.0% 650 49 47 531 43 45 483 50 449 550 80.0% 450 405 40 34 60.0% 350 30 60.6% 60.5% 250 55.1% 50.0% 40.0% 20 150 44.5% 43.9% 44.0% 39.6% 34.4% 20.0% 10 50 0 -50 0.0% Q1'1
Slide 18: Greece – COSMOTE TV
Greece – COSMOTE TV TV Subscribers (000) 700 100 534 542 540 544 549 555 557 528 526 • +3.0% yoy increase in Customer base 600 80 500 60 • Champions League, Europa League and English 400 40 Premier League 2018-2021 300 20 200 0 8 8 5 6 3 3 2 100 (2) (2) -20 0 -40 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Slide 19: Greece – Mobile KPIs
Greece – Mobile KPIs Data Revenues (€mn) +44% of Mobile Service Avg.Data usage* (GB) Revenues 3.6 96 97 100 3.2 3.5 3.1 86 100 45.0% 90 79 76 40.0% 3.0 80 70 74 2.3 2.4 64 35.0% 2.1 2.5 70 2.0 30.0% 1.7 1.8 60 32.1% 32.4% 25.0% 2.0 50 20.0% 1.5 +71% 22.2% 40 20.4% 21.4% 15.0% 30 18.6% 17.8% 18.8% 1.
Slide 20: Greece – Digitalization
Greece – Digitalization Smartphone penetration (%) 90% 72% 73% 75% 80% 68% 70% 70% 71% 70% 66% 67% 60% COSMOTE app was downloaded by 3.1mn users by end of 50% 40% the quarter. It was further boosted during April and 30% +5pp 20% became one the major tools for dealing with collection 10% 0% issues ra
Slide 21: Romania
Romania OTE | Q1 2020 RESULTS 21
Slide 22: Romania – Financial Overview
Romania – Financial Overview Total Revenues (€mn) Adj. EBITDA (AL) (€mn)* 980 289 0.14 14.7% 160 14.6% 300 100.0% 933 17.7% 244 237 80.0% 0.12 11.9% 12.5% 14.7% 14.3% 231 60 250 217 60.0% 150 144 51 160.0% 0.1 50 136 19.3% 140 200 40.0% 110.0% 7.4% 9.5% 0.08 40 36 34 150 -4.4% -2.8% 20.0% 130 29 106
Slide 23: Romania – Financial Overview
Romania – Financial Overview Retail Fixed Revenues (€mn) 247 229 70 58 59 57 120.0% 60 56 55 100.0% 50 80.0% • Retail Fixed Service revenues down 2.2%; Continuing 40 60.0% improvement quarter after quarter 40.0% -5.3% -6.0% -5.3% -2.2% • Trends are expected to return into positive, fueled 30 20.0% -
Slide 24: Romania – Fixed KPIs
Romania – Fixed KPIs Fixed Line Subscribers (000) Broadband Subscribers (000) 1,403 1,347 1,298 1,247 1,191 1,078 1,055 1,039 1,014 977 3,000 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 2,500 TV Subscribers (000) FMC Subscribers (000) Q1'20: +10.7% yoy 2,000 1,409 1,380 1,353 1,320 1
Slide 25: Romania – Mobile KPIs
Romania – Mobile KPIs Data Revenues (€mn) Data Revenues as % of Service Revenues 30 26 24 80.0% 25 22 41% 21 19 60.0% 36% 36% 31% 20 29% 40.0% 15 35.0% 20.0% 10 22.2% 15.2% 15.2% 5 10.6% 0.0% 0 -20.0% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 yoy change % Total Subscribers (000) 4,
Slide 26: Strategy
Strategy THE 6 PILLARS OF OUR STRATEGIC PLAN DIGITALIZATION, GROWTH TECHNOLOGY BEST CUSTOMER REVENUE LEAD IN SIMPLIFICATION AND MINDSET AND SUPERIORITY EXPERIENCE TRANSFORMATION CORE BUSINESS COST OPTIMIZATION CULTURE • Continue Optical • Digital Transformation • Data services • COSMOTE brand • Digi
Slide 27: Digital Transformation
Digital Transformation Our goal: to be the leader for Digital Transformation in Greece and a role–model in Europe with superior Customer Experience & Operational Efficiency Digital Interactions Digitalize Service Processes Simplify Portfolio • One App primary touchpoint • Order2Bill: self-service •
Slide 28: Best Mobile Network in Greece
Best Mobile Network in Greece Best in 2XSPEED in Big Cities test 42.09 Speed Score “Best in Test” certification, for sixth 3XSPEED consecutive year, for its mobile on Main Roads COSMOTE Fastest Mobile Network internet and voice services in Greece for 2017,2018 and 2019 compared to the nearest ranked
Slide 29: Thank you
Thank you OTE | Q1 2020 RESULTS 29
Hellenic Telecommunications Organization (OTE) — Q1 2020 Earnings Presentation on 6ix