Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Q1 2019 Earnings Presentation
26 slides from Telecom Argentina Sa Class B's earnings presentation, May 2019
Slide 1: Telecom Argentina Earnings Release 1Q19
TELECOM ARGENTINA Earnings Release May 2019 1Q19
Slide 2: Disclaimer
This presentation may contain statements that could constitute forward-looking statements, including, but not limited to (i) the Company’s expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; (ii) the synergi
Slide 3: Disclaimer
The Company has accounted for the effects of inflation adjustment adopted by Resolution 777/18 of the Comisión Nacional de Valores (“CNV”), which establishes that the restatement for inflation will be applied to the annual financial statements, for intermediate and special periods ended as of Decemb
Slide 4: Agenda
AGENDA MACRO OVERVIEW STRATEGY BUSINESS HIGHLIGHTS FINANCIALS Q&A
Slide 5: Macro Overview
MACRO OVERVIEW STRATEGY BUSINESS HIGHLIGHTS FINANCIALS Q&A
Slide 6: Macro - Evolution so far and where we stand
MACRO - EVOLUTION SO FA R A N D W H E R E W E S TA N D : FX I N F L AT I O N M O N E TA R Y POLICY
Slide 7: Macro - Evolution so far and where we stand
i} i} I l I 1 ! 1 1 159 I ' 1 rl I I - | 1 I 1 om Il cc, 1 I sav 1018 ! 8 ! 39) ! 4a18 eS laige Source:INDEC Bloomberg donsensus ! 38% 37% 1 I l . l I 62% I 60% i} I I I i} 1 1 1 > I H I I am! I ee ; 91% ' wt MACRO - EVOLUTION me SO FAR AND WHERE t t t t t WE STAND: 407 1018 1 2018 1 3018 1 4ql8 1 1
Slide 8: Strategy
MACRO OVERVIEW STRATEGY BUSINESS HIGHLIGHTS FINANCIALS Q&A
Slide 9: New Bundling Strategies
OTT bundle is a OTT video platforms boosts the quality “must have” and value of the bundle Mobile within the Offering more than a line will help bundles operators to tie up the household and reduce churn “Build your own” bundles is a new trend in the NEW BYO Bundles market. Nonetheless, operators sh
Slide 10: 6 Avenues to Reach Our Goals
Enhance the commercial and operational model by product, region and Porfolio Convergent Develop the best Development Channels segment convergent value proposal Regional Field Management Service Model Lead convergence and grow in VAS in Transform us into a simple, the corporate 6 AV E N U E S TO Agil
Slide 11: Pillars of the Transformation: Initiatives and Projects
Initiatives and Projects CLIENTS NETWORK COMPANY CULTURE PILLARS OF THE T R A N S F O R M AT I O N • BSS Transformation • Cloud Strategy and - #Fan DC Evolution • Operational Model • Back Office Transformation- 4UP • Digital Experience • OSS System • Talent Management Transformation • Digital Office
Slide 12: Business Highlights
MACRO OVERVIEW STRATEGY BUSINESS HIGHLIGHTS FINANCIALS Q&A
Slide 13: 1Q19 Highlights
1Q19 REVENUES P$ 44.3 bn Highlights Margin : EBITDA P$ 14.5bn 32.7% Fixed Voice ARBU: $ 314.3 ARPU Pay TV ARPU: $871.5 Broadband ARPU: $ 819.4 (per month) Mobile ARPU: $ 225.5 Mobile subs in Argentina : 18.4 mm SUBSCRIBERS Broadband : 4.1 mm 12.5mm Fixed Voice : 3.5 mm 4G Pay TV: 3.4 mm CLIENTS CORP
Slide 14: Telecom Revenues
REVENUES BREAKDOWN YoY EVOLUTION 6,3% 0,3% -9% 15,5% 33,4% TELECOM REVENUES 48.725 Revenues 21,6% 44.328 coming from mobile still the Mobile Broadband 22,9% Pay TV 1Q18 1Q19 most prevalent Fixed & Data Handsets Other business of all In P$ Million REVENUES COMPOSITION 2.807 44.328 6.865 9.575 10.152
Slide 15: Mobile in Argentina: 4G Coverage
MOBILE POSTPAID MOBILE ARPU DATA USAGE SUBSCRIBERS 2,7% 2,6% 300 ,0 +48% 36% 40% 0,0 1° in Flow 250 ,0 0,0 200 ,0 Share. More 0,0 255 150 ,0 than 600K new 0,0 226 100 ,0 64% post-paid 0,0 50,0 3.340 60% clients in the - - 2.256 last twelve 1Q18 1Q19 MOBILE IN months. 1Q18 1Q19 ARGENTINA: Prepaid Pos
Slide 16: Differentiation through Customer Experience: Internet and CATV
BROADBAND BROADBAND SPEEDS BB ARPU SUBSCRIBERS In Million 2,2 % 1.200,00 2,0% Broadband subscribers Of total subscribers with 2,0 % 1.100,00 +38K compared with 1Q18 44% speeds between 20 and 100 1,8 % 1,8% 1.000,00 Mb 1,6 % 882,3 900,00 819,4 27% 1,4 % 800,00 INTERNET AND 4,08 4,11 44% 1,2 % 700,00
Slide 17: Capex Evolution
CAPEX EVOLUTION TECHNICAL CAPEX BREAKDOWN Million of P$ -3% 6% 10% 47% 9.327 9.067 CAPEX: 38% Continuous 1Q18 1Q19 investment Network and Technology Installations and CPE efforts to improve International Capex Other our network and % REVENUES 19% 20% services ✓During 1Q19 the Company deployed more t
Slide 18: Financials
MACRO OVERVIEW STRATEGY BUSINESS HIGHLIGHTS FINANCIALS Q&A
Slide 19: Consolidated Results: Revenues and EBITDA
REVENUES SERVICE -8% -9% +38% 48,725 44,328 +40% 45,219 41,521 1.868 1.749 18.027 16.716 42.460 39.772 C O N S O L I D AT E D 30.698 28.503 R E S U LT S 1Q18 1Q19 1Q18 IAS 19 1Q19 IAS 19 1Q18 1Q19 1Q18 IAS 291Q19 IAS 29 IAS 29 Adjustment EBITDA EBITDA EVOLUTION +21% -21% -9% -2% 38,8% 37,8% 250 00 3
Slide 20: EBITDA 1Q19 – 1Q18 Consolidated Results
IAS 29EBITDA 1Q19 – 1Q18 IFRS, Million of P$ YoY Variation -P$3,942;-21% 18.433 3.698 699 437 494 41 427 363 1 86 14.491 234 C O N S O L I D AT E D 6% 6% R E S U LT S -8% -20% -17% -3% -11% -13% 0% 2% IFRS, Million of P$, EBITDA 1Q18 Ss. Revenues & Handsets Handsets Costs Labor Costs ITX Costs Fees
Slide 21: Consolidated Results: Operating Income and Net Income
OPERATING INCOME NET INCOME (Attributable to controlling company IFRS, Million of P$, Percentage 1Q18 IAS 29 1Q19 IAS 29 ∆$ ∆% In million of P$ 1Q18 IAS 29 1Q19 IAS 29 ∆$ Operating Income $ 9.939 $ 4.496 -$ 5.443 D&A $ 8.494 $ 9.995 $ 1.501 18% Financial Results $ 3.817 $ 105 -$ 3.712 Financial expe
Slide 22: Ratios LTM1Q19
In Million P$ LTM1Q19 ✓Revenues 183,478(*) ✓ EBITDA 59,077(*) ✓Gross Debt* 91,357 ✓Cash & Equivalents* 19,756 ✓Net Debt* 71,601 ✓ Capex 47,233(*) ✓ EBITDA-Capex 11,845 Ratios EBITDA / Margin 32.2% Gross Debt / EBITDA 1.55x Net Debt / EBITDA 1.21x (*) The figures were calculated applying the accumula
Slide 23: Financing: IFC loan, Núcleo notes and new credit facility
On March 4, 2019, the Company entered into 1 a loan agreement with the International Finance Corporation ("IFC"), for a total amount of up to U$S 450 million On March 12, 2019, Núcleo issued its Series I notes due to 2024 for an amount of GUA 120 bn (approx. U$S 20 million). Moreover, on March 28 ,
Slide 24: Debt Stock
Debt Principal as of March 31, 2019 U$S P$ GUA Total (U$S) ✓ CV 5 year Bond Class A 500 - - 500 ✓ Ve n d o r F i n a n c i n g 57 - - 57 ✓ IFC Loan 350 - - 350 ✓ IFC New Loan 290 - - 290 ✓ IIC Loan 88 - - 88 ✓ Te r m L o a n d u e 2 0 2 2 400 - - 400 D E B T S TO C K ✓ Deutsche Bank Loan 300 - - 300
Slide 25: Q&A
MACRO OVERVIEW STRATEGY BUSINESS HIGHLIGHTS FINANCIALS Q&A
Slide 26: Investor Relations Contact
Investor Relations Contact Telephone: (5411) 4968 3628 E-mail: relinver@teco.com.ar