Hutchison Telecommunications (Australia) Ltd
Hutchison Telecommunications (Australia) — H1 2004 Earnings Presentation
20 slides from Hutchison Telecommunications (Australia)'s earnings presentation, Aug 18, 2004
Slide 1: Media Release: Strong Half for Hutchison
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 Media Release 18 August 2004 Strong Half for Hutchison 3 and Orange cus
Slide 2: Media Release (page 2)
Hutchison Telecommunications (Australia) Limited A member of the Hutchison Telecommunications Group -2- “As we grow, we are constantly vigilant on all aspects of capital and operational expense to ensure the business retains a competitive cost structure.” “Overall, the business is heading firmly in
Slide 3: 2004 First Half Year Results
Hutchison Telecommunications (Australia) Limited 2004 First Half Year Results Kevin Russell Chief Executive Officer 18 August 2004
Slide 4: Highlights
Highlights • 110% increase in mobile customers to over 626,476 • 155% increase in mobile revenues • Total mobile customer base of 691,000 as at 18 August • Strong customer acquisition rates continue in 2H 2004 • ARPU levels grow to market leading levels • Strong non-voice ARPU contribution • Depth a
Slide 5: Key Financial Data
Key Financial Data $ million Half Year Half Year Half Year 30 Jun 2004 31 Dec 2003 30 Jun 2003 Revenue (1) 3 144.6 74.6 13.6 Orange mobile 149.3 120.2 101.7 Other Services 12.8 14.8 15.2 Total Revenue 306.7 209.6 130.5 EBITDA (2) 3 -159.2 -187.0 -73.5 Orange 13.1 17.5 11.7 NPAT (3) -280.5 -280.4 -12
Slide 6: Key Performance Drivers
Key Performance Drivers • Ongoing revenue growth • acquisition of profitable market share • incremental contribution from non-voice revenue • Margin improvements and optimisation of cost structure • reduction in roaming and termination charges • sharing of radio access network – significant ongoing
Slide 7: Mobile Customers
Mobile Customers 626,476 3 52% 411,938 240,071 Orange 297,296 86,758 39% 18,435 325,180 386,405 278,861 1H03 2H03 1H04 On track to achieve 1 million mobile customers in 2005 5
Slide 8: Net Customer Growth
Net Customer Growth 214,538 3 114,642 153,313 18,435 Orange 68,323 33,795 61,225 18,435 46,319 15,360 1H03 2H03 1H04 Record half of customer growth 6
Slide 9: Market Net Post Paid Growth
Market Net Post Paid Growth 215,000 2H03 1H04 130,000 115,000 91,000 93,000 79,000 Vodafone Vodafone Telstra Optus Hutchison Telstra Optus Hutchison -40,000 40% of total post 80% of total post paid net adds paid net adds -130,000 7 Source: company estimates
Slide 10: Average Revenue per User (ARPU)
Average Revenue per User (ARPU) $85 $80 3 $10 $10 Orange $57 Non-voice $56 $54 ARPU $3 $3 1H03 2H03 1H04 Strong customer revenue profile 8
Slide 11: Market Leading Offering with 3
Market Leading Offering with • Comprehensive and targeted tariff offerings • target segment broadened with prepaid launch this week • Increased consumer focus on differentiated service offering • Big Brother, Sony & Warner music, multiplayer games, Playboy • comprehensive business messaging solution
Slide 12: Value Leading Offering with Orange
Voice Leading Offering With • Value leadership for basic voice services cemented • simple, targeted mobile calling rates • on-net and fixed line replacement incentives • clear and concise market communications driving results • Service enhancements targeting proven revenue generators • international
Slide 13: Funding
Funding • $1 billion in equity contribution – already in place • Additional facility with HWL – in place • $1.5 billion bank facility – signed on 17 August 2004 • five year term • favourably priced • strong support from local and international banks Anticipated peak funding requirements already cove
Slide 14: On Track
On Track • Strong customer and revenue growth to continue • Achieving strong results within a proven dual brand strategy • Tight capital and operational expenditure discipline to ensure leading services are provided at competitive prices • Strong growth with minimal capital requirements • Momentum b
Slide 15: Hutchison Telecoms
MM Hutchison BM ‘Telecoms Telecommunications operations of Hutchison Whampoa Limited MUL
Slide 16: Half-year Results: Speaking notes
Hutchison Telecommunications (Australia) Limited Half-year Results 18 August 2004 Speaking notes accompanying slide presentation The highlights page on slide 2 headlines with customer growth -- the fastest growth rates in today’s Australian mobile market. Combining 3 and Orange, we have more than do
Slide 17: Speaking notes: customers, EBITDA and key drivers
EBITDA for Orange remains positive but is below the previous half as a result of increased marketing and acquisition costs and significant investment in customer retention. Overall at Hutchison, we are targeting to break through to a positive EBITDA by the end of 2005. Slide 4 outlines a number of t
Slide 18: Speaking notes: market share and post-paid growth
Our experience of July and August to date tells us that we are well positioned to at least deliver a comparable level of growth at Hutchison in the six months to December 31. We are in a period of heightened competition, which we expect to continue for the rest of the year, but we are confident that
Slide 19: Speaking notes: ARPU and 3G leadership
At $85, including a $10 non-voice contribution, 3 has the industry’s highest ARPU and the highest average contribution from data services. The data-contribution comparison to Orange, at $3, illustrates the difference between the type of customers being attracted to each brand – and reinforces the ou
Slide 20: Speaking notes: offering and funding position
Our plans are simple and offer on-net and fixed-line replacement incentives. Our marketing is simple and concise, without fuss and without fanfare. And our handsets now compete with GSM handsets on size, fashion and function. Going forward, service enhancements will target proven revenue earning are
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