Hutchison Telecommunications (Australia) Ltd
Hutchison Telecommunications (Australia) — FY2009 Earnings Presentation
23 slides from Hutchison Telecommunications (Australia)'s earnings presentation, Feb 19, 2010
Slide 1: ASX Cover Letter: 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 Securities Exchange Date
Slide 2: Media Release: Vodafone and 3 merger on track
Hutchison Telecommunications (Australia) Limited ABN 15 003 677 227 Building A, 207 Pacific Highway St Leonards NSW 2065 Tel: 02 9964 4646 Fax: 02 9964 4668 www.hutchison.com.au Media Release Vodafone and 3 merger on track HTA Profit for Full Year 2009: $467.7 million VHA adds 584,000 customers in s
Slide 3: Media Release (continued): Mobile broadband growth and financial highlights
VHA continued its rapid mobile broadband growth with 673,000 customers now using mobile broadband USB modems and data cards, a 133.7% increase year-on-year. A further 717,000 customers either subscribe to 3G services on their mobile handset or use their handset as a modem to access the internet, up
Slide 4: Operating highlights
Operating highlights: • Merger with Vodafone Australia effective from 9 June 2009 to form Vodafone Hutchison Australia (VHA) • 6,895,000 customers at 31 December 2009 o Net addition of 4,859,000 customers, which includes 3,970,000 customers acquired following the merger with Vodafone • Merger rebala
Slide 5: 2009 Full Year Results
Hutchison Telecommunications (Australia) Limited 2009 Full Year Results Nigel Dews VHA Chief Executive Officer 19 February 2010
Slide 6: Financial Highlights
Financial Highlights • HTAL profit for year $467.7 million • Net loss (before gain on merger) $119.6 million, a $43.5 million improvement • Gain on merger of $587.3m • HTAL’s share of VHA results • Customer service revenue of $1,884.5 million, up $416.6 million or 28.4% • 39.2% increase in full year
Slide 7: VHA Operating Highlights
VHA Operating Highlights • Merger of 3 with Vodafone Australia effective 9th June 2009 to form Vodafone Hutchison Australia • 6,895,000 customers end of December • Net adds of 4,859,000, including 3,970,000 customers acquired following merger with Vodafone • 56.8% of base postpaid down from 90.6% du
Slide 8: VHA Key Financials
VHA Key Financials Full Year to 31 Dec Full Year to 31 Dec (HTAL’s Share - $million) Change 09 08 Total revenue 2,040.1 1,623.3 25.7% Service revenue 1,884.5 1,467.9 28.4% EBITDAR 227.8 190.4 19.6% EBITDA 175.2 190.4 (8.0%) CAPEX 236.2 200.2 18.0% Unless otherwise stated, all % and $ increases are o
Slide 9: VHA Mobile Customer Base
VHA Mobile Customer Base 6,895 (Customers '000) 6,311 1,808 2,036 1,405 1,578 Jun.07 Dec.07 Jun.08 Dec.08 Jun.09 Dec.09 HTAL VHA Net adds of 584,000 in 2nd Half 5
Slide 10: Mobile Broadband & 3G Data on Handset customers
Mobile Broadband & 3G Data on Handset customers (Customers ‘000) 1,390 717 526 238 195 673 113 288 82 Dec.07 Dec.08 Dec.09 MBB Customers 3G Data on Handset customers 133.7% increase in MBB customers Mobile Broadband customers = Mobile Broadband cards, USB Modems and NetConnect Cards 3G Data on Hands
Slide 11: Service Revenue & Margin
Service Revenue & Margin (HTAL Share - $ million) 1,885 1,468 1,386 1,174 Service Revenue 996 Operating Margin 784 2007 2008 2009 HTAL HTAL Share 39.2% increase in full year margin 7
Slide 12: Blended ARPU
Blended ARPU $69 $69 $68 $67 $63 $56 1H07 2H07 1H08 2H08 1H09 2H09 HTAL VHA Prepaid % of base has increased VHA represents ARPU of the Operating entity 8
Slide 13: Non-voice ARPU
Non-voice ARPU $21 $20 $19 SMS 3G services $11 $10 $11 $10 $10 $8 2007 2008 2009 HTAL VHA 36.7% of ARPU is non-voice 3G services includes all non-voice services with the exception of SMS 9
Slide 14: Running Operating Expenditure per customer
Running Operating Expenditure per customer $/Customers $509 $474 $455 2007 2008 2009 HTAL VHA Benefits of scale emerging VHA results are 100% of the underlying operating entity 10
Slide 15: Customer Acquisition Costs per Connection
Customer Acquisition Costs per Connection $263 $238 $165 2007 2008 2009 HTAL VHA Impacted by Prepaid & MBB mix 11
Slide 16: CAPEX
CAPEX (% Service Revenue) 22.8% 13.6% 12.5% 2007 2008 2009 HTAL VHA Capex 12.5% of Service Revenue 12
Slide 17: Progress on Merger
Progress on Merger • VHA made significant progress in 2009 on the realisation of merger benefits including employee selection and reorganisation, supplier rationalisation and procurement savings, call centre consolidation, removal of capex duplication, roaming cost savings and retail rationalisation
Slide 18: 2010 VHA Outlook
2010 VHA Outlook • Continued focus on business integration throughout 2010 • Continued growth in customer acquisition • Maintain leadership in non-voice service innovation and usage • Intensity of competition expected to continue, fuelled by smartphones and MBB • Maintain focus on customer satisfact
Slide 19: Hutchison Telecommunications Group
MM Hutchison BM Telecoms Telecommunications operations of MUL Hutchison Whampoa Limited EN Hutchison Hi Telecoms
Slide 20: Nigel Dews' Presentation Notes
Hutchison Telecommunications (Australia) Limited 2009 Full Year Results 19 February 2010 Nigel Dews’ Presentation Notes Introduction Good afternoon. I’m Nigel Dews, CEO at Vodafone Hutchison Australia. I’d like to welcome you to the call. I’ll be taking you through the 2009 Full Year Results for Hut
Slide 21: Presentation Notes: ARPU, churn and mobile broadband
ARPU has come off as a result of the increase in prepaid and mobile broadband customers, but remains broadly in line with the industry at $55.82. Our monthly postpaid churn remains steady and low at 1.3% - the lowest in the industry. Use of internet services, both on mobile phones and mobile broadba
Slide 22: Presentation Notes: Service revenue and ARPU
Slide 7 Service Revenue grew by 28.4% year-on-year and Operating Margin grew by 39.2% to $1.39 billion driven by improvements in revenue mix towards data services and reductions in direct costs through our improved negotiating strength. Slide 8 This is a view of our blended ARPU, and the decline sin
Slide 23: Presentation Notes: Costs, merger synergies and outlook
We are also reducing our warehousing and distribution costs and working on improving our retail sales efficiency and productivity by rolling out the best approaches from the Vodafone and 3 retail stores, including new approaches to sales incentives. We plan to continue to increase our utilization of
Hutchison Telecommunications (Australia) — FY2009 Earnings Presentation on 6ix