C.a. Nacional Telefonos De Venezuela Class D · BVCV:TDV.D
C.a. Nacional Telefonos De Venezuela Class D — Compañía Anónima Nacional Teléfonos de Venezuela (CANTV) — Q2 2005 Earnings Presentation
20 slides from C.a. Nacional Telefonos De Venezuela Class D's earnings presentation, Jul 29, 2005
Slide 1: Second Quarter 2005 Results Conference Call
Second Quarter 2005 Results Conference Call 2Q05 Earnings Release July 29, 2005 Compañía Anónima Nacional Teléfonos de Venezuela (NYSE:VNT)
Slide 2: Safe Harbor Statement
“Safe Harbor” Statement This document contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Actual results could differ materially from those predicted in such forward-looking statements. Factors which may cause actual
Slide 3: Initial Notes
Initial Notes • On July 26, 2005, Cantv received an adverse decision of the Court Social Chamber of the Supreme Court of Venezuela in the Courtdecision decision lawsuit brought by the Venezuelan National Telephone Association of Retirees and Pensioners regarding the adjustment of pensions of retiree
Slide 4: Initial Notes
Initial Notes • This presentation includes certain Non-GAAP financial Non-GAAP Non-GAAP measures. We have provided a reconciliation of those measures measures measures to the most directly comparable GAAP measures in this presentation and in our Earnings Press Release • Financial results are stated
Slide 5: Agenda
Agenda • Key highlights • Review of income, cash flow and balance sheet: z Revenue z Earnings and Expenses z Cash flow z Balance sheet z Closing highlights on 2Q05 results • Guidance revision 5 2Q05 Results / June 29, 2005 NYSE: VNT
Slide 6: Key Highlights
Key Highlights Billions of constant Bs. 9 Strong performance in Mobile and Broadband drove revenue growth 2Q05/2Q04 2Q05 change 9 EBITDA decreased due to Revenue 1,197.7 11.1% growth related costs, the change in PBO expenses Operating expenses 1,218.0 26.4% accounting treatment and EBITDA 264.4 (28.
Slide 7: Revenue
Revenue Billions of constant Bs. Year-over-year growth 11.1% 1,198 1,078 152 25.1% Broadband 121 318 433 36.3% Mobile Fixed 639 613 (4.1%) 2Q04 2Q05 Mobile and broadband continuing growth resulted in 11.1% total revenue growth 7 2Q05 Results / June 29, 2005 NYSE: VNT
Slide 8: Fixed telephony
Fixed telephony In thousands Year-over-year growth Lines in Service Net Adds 2Q05 8.2% 2,923 2,971 2,884 3 2,745 2,798 19 48 26 2Q04 3Q04 4Q04 1Q05 2Q05 Prepaid Postpaid PT Total Focused plans and technologies, fixed and wireless, drove growth in fixed telephony 8 2Q05 Results / June 29, 2005 NYSE:
Slide 9: Fixed telephony
Fixed telephony Revenue 2Q05 % Revenue variations `2Q04-`2Q05 Billion of Bs. Billion of Bs. Local 231 (12.1) DLD 75 (8.0) 639 ILD 24 (12.9) IX 217 10.6 (32) (4.1%) (5) 613 Others 66 (6.7%) 21 613 (4.1%) (10) Traffic* 2Q05 % Thousand of minutes Local 3,541 (0.0) DLD 537 (8.4) ILD 78 62.5 IX 1,045 14.
Slide 10: Mobile
Mobile Year-over-year growth Subscribers Outgoing Traffic 2Q05 Thousands Thousands of minutes 27.6% 31.0% 20.7% 3,599 Postpaid 3,191 3,106 207 2,821 2,747 303 3.2% 96 Unbundled Bundled Total Prepaid 172.0% 28.9% 83 5.3% 304 136 188 455 77 319 2Q04 3Q04 4Q04 1Q05 2Q05 Unbundled Bundled Total A strong
Slide 11: Mobile
Mobile Revenue ARPU 2Q05 Year-over-year growth Billions of constant Bs. Thousands of constant Bs. 4.1% 36.3% 433 167 6.1% 9.6% 318 38 46 2Q04 2Q05 Prepaid Postpaid Blended Special services revenue Handsets revenue Billions of constant Bs. Billions of constant Bs. 89.9% 30.7% 89 85 68 45 2Q04 2Q05 2Q
Slide 12: Broadband
Broadband Year-over-year growth Broadband Customers Thousands 211.6 Revenue 186.1 103.2% ABA Data 159.0 Billion of Bs. 127.1 152 104.1 25.1% 121 18.4 17.3 17.7 16.5 17.9 67 112.2% ABA 31 2Q04 3Q04 4Q04 1Q05 2Q05 (10.7%) Broadband ARPU Thousand of Bs. 5.3% Private (0.1%) Circuits 90 85 (5.5%) 1,717 1
Slide 13: EBITDA variation 2Q05/2Q04
EBITDA variation 2Q05/2Q04 Percentage of Revenue Billions of constant Bs. Increase in Favorable (unfavorable) variation revenue of costs and expenses • Company’s role of principal handset supplier (40) (14) • Increased legal contingencies 120 (25) • PBO accounting 34% treatment change (94) (8) 31% 2
Slide 14: Cash flow
Cash flow All figures expressed in Billions of Constant Bs. as of June 30, 2005 2Q04- 2Q04- (176) (34) YTD YTD 757 (226) Free cash flow Bs. 547 billion (381) (55) 916 801 Beginning cash EBITDA CAPEX Other FCF Net debt Dividend Others Ending cash increase payments 2Q05- 2Q05- (339) (33) YTD YTD 675 -
Slide 15: Closing highlights
Closing highlights 9 Strong operating and financial performance 9 Remarkable growth in mobile customer base while maintaining ARPUs 9 Continued growth in fixed telephony customer base and traffic, partially compensating for the absence of tariffs adjustments 9 ADSL (ABA) subscribers more than double
Slide 16: Guidance revision
Guidance revision Macroeconomic Scenario Original Revised scenario scenario GDP growth Total 4% - 7% 7% - 10% Communication 5% - 8% 10% - 13% FX (Bs./US$) Higher economic growth based Year end 2,150 - 2,300 2,150 on higher oil revenue and Average 2,131 - 2,256 2,102 public spending Devaluation Yea
Slide 17: Guidance revision
Guidance revision Financial and operating indicators Year-Over-Year growth rates in real terms Original 2Q05-YTD Revised Fixed lines 5–7 8.2 5–7 Mobile subs 9 –11 27.6 26 – 32 ABA (ADSL) subs 95 – 105 103.2 70 – 82 Revenue 9 – 12 13.6 12 – 17 Op. expenses 13 –17 16.0 24 – 25 EBITDA 5–6 (10.8) (10) –
Slide 18: Reconciliation of Non-GAAP financial measures
Reconciliation of Non-GAAP financial measures Billions of constant Bs. as of June 30, 2005 For the quarters ended June 30, 2005 and 2004 Bs. Bs. US$ US$ 2005 2004 2005 2004 EBITDA (Restated) (Restated) Net income 4,636 114,240 2 53 Plus: Income tax 23,936 9,148 11 4 Plus: Minority interest (785) 1,3
Slide 19: Reconciliation of Non-GAAP financial measures
Reconciliation of Non-GAAP financial measures Billions of constant Bs. as of June 30, 2005 For the six-month period ended June 30, 2005 and 2004 Bs. Bs. US$ US$ 2005 2004 2005 2004 Cash Earnings (Restated) (Restated) Net income 282,334 206,348 131 96 Plus: (Gain) loss from net monetary position (40,
Slide 20: cant
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Compañía Anónima Nacional Teléfonos de Venezuela (CANTV) — Q2 2005 Earnings Presentation on 6ix