Hutchison Telecommunications (Australia) Ltd

Hutchison Telecommunications (Australia) — FY2006 Earnings Presentation

17 slides from Hutchison Telecommunications (Australia)'s earnings presentation, Feb 27, 2007

  1. Slide 1: ASX Announcement: Annual Results Presentation

    Hutchison Telecommunications (Australia) Limited ABN 15 003 677 227 A member of the Hutchison Telecommunications Group Building A, 207 Pacific Highway St Leonards NSW 2065 Tel: (02) 9964 4646 Fax: (02) 9964 4668 www.hutchison.com.au Companies Announcements Office Australian Stock Exchange Date 27 Fe

  2. Slide 2: 2006 Full Year Results

    Hutchison Telecommunications (Australia) Limited 2006 Full Year Results Nigel Dews Chief Executive Officer 27th February 2007

  3. Slide 3: Operational Highlights

    Operational Highlights • Positive EBITDA of $30.2 million for the period, a turnaround of $195.8 million from 2005 • Average monthly margin for 3 increased from $28.7 million in 2005 to $53.3 million in 2006 • Over 1.2 million 3 customers, an increase of 90.4% – 1.1 million of whom are postpaid • Se

  4. Slide 4: Financials

    Financials ($million) Full Year to Full Year to Change 31 Dec 06 31 Dec 05 Service revenue 924.9 758.2 22% 3 service revenue 848.9 482.9 76% Accounting EBITDA 30.2 (165.6) n/a (loss) Underlying NPAT (loss) (451.5) (547.3) 18% Impact of CDMA network (307.9) - n/a closure Reported NPAT (loss) (759.4)

  5. Slide 5: Mobile Customer Base

    Mobile Customer Base (Mobile Customers '000) 1,245 2G 3 1,035 839 381 1,099 426 post-paid (88.3%) 412 654 325 413 87 2003 2004 2005 2006 Step change in scale for 3 4

  6. Slide 6: Service Revenue

    Service Revenue ($million) 925 76 758 2G 275 3 523 849 274 241 483 208 249 33 2003 2004 2005 2006 76% increase in 3 service revenue 5

  7. Slide 7: Margin and ARPU

    Margin and ARPU $70 $67 $67 $55 $48 $49 ARPU $45 Margin $41 2003 2004 2005 2006 Margins supported by strong contribution from non-voice services 6

  8. Slide 8: Non-voice strength

    Non-voice strength $20 SMS $19 3G services $17 $13 $12 $11 $10 $8 $8 $8 $7 $5 2004 2005 2006 2006 Excl CDMA customers • 56% of base generating billable content events, compared to 53% in 2005 • 930,000 monthly subscription services at 31 December 2006, up from 521,000 at 31 December 2005 • 92.5m con

  9. Slide 9: Running Operating Expenditure

    Running Operating Expenditure ($million) 762 745 22 70 692 88 69 73 105 55 103 Other 112 111 Adv & Promotion 136 Employee Benefits Expense 119 Net Handset Costs Direct Telecommunication 435 367 334 2004 2005 2006 Scalable cost base 8

  10. Slide 10: 3 Customer Acquisition Costs

    3 Customer Acquisition Costs $416 $402 $274 2004 2005 2006 Significant reduction in handset subsidies 9

  11. Slide 11: CAPEX

    CAPEX ($million) 307 207 204 2004 2005 2006 CAPEX stable 10

  12. Slide 12: What to Expect in 2007

    What to Expect in 2007 • Exit with positive operating cashflow • Capital structure optimised • 3G market growth will accelerate • HSDPA upgrade in line with device roadmap • Significant innovation in mobile broadband services Well positioned for growth with improved financial performance 11

  13. Slide 13: Hutchison Telecoms

    EN Hutchison Hi Telecoms

  14. Slide 14: Chief Executive's Address: Introduction and Highlights

    Hutchison Telecommunications (Australia) Limited 2006 Full Year Results 27 February 2007 Chief Executive’s Address Slide 1 – Introduction During this call I will take you through the financial results for Hutchison Telecoms for the twelve months to 31 December 2006, and provide some direction for 20

  15. Slide 15: Chief Executive's Address: Financials

    Overall we are very pleased with the underlying operating results for the Company and there is significant momentum being carried into 2007. Slide 3 – Financials Service revenue growth of 22% reflects the increase in the customer base and, importantly includes the 76% growth in 3 services revenue dr

  16. Slide 16: Chief Executive's Address: Margin, ARPU and Non-voice

    Slide 6 – Margin and ARPU Blended average monthly margin per customer increased from $48 in 2005 to $49 in 2006. Total monthly ARPU was stable at $67, despite the decrease in mobile interconnect rates from 18 cents to 15 cents effective 1st January 2006. Slide 7 – Continued Strength in 3 Non-voice 3

  17. Slide 17: Chief Executive's Address: Customer Acquisition Costs and CAPEX

    Slide 9 – 3 Customer Acquisition Costs The cost of acquisition (CAC) for each new 3 customer fell significantly from $402 in 2005 to $274 in 2006. The decline is due to falling handset prices and lower distribution costs. As handset manufacturers continue to produce handsets with improved features a

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