Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Q1 2008 Earnings Presentation
19 slides from Telecom Argentina Sa Class B's earnings presentation, 2008
Slide 1: First Quarter 2008 Earnings Results Conference Call Presentation
First Quarter 2008 Earnings Results Conference Call Presentation UNAUDITED DATA
Slide 2: Disclaimer
Disclaimer This presentation may include statements that could constitute forward-looking statements, including, but not limited to, the Company’s expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; the impa
Slide 3: Agenda
Agenda • Market Overview • Business Highlights • Financials • Q&A Session 2
Slide 4: Argentinean Macroeconomic Evolution
Argentinean Macroeconomic Evolution Real GDP Trade & Fiscal Balance Consumption Billions ARS, 1993 based Quarterly Fiscal Balance as % of GDP Billions ARS, 1993 based Trade Balance (Billions USD) ∆ YoY 9,4% ∆ YoY 8,9% 8,9% 8,6% 9,4% 8,2% 8,7% 8,8% 9,1% 3,0% 4,4% 4,1% 4,7% 1,3% 239 238 246 236 8,0% 2
Slide 5: Agenda
Agenda • Market Overview • Business Highlights • Financials • Q&A Session 4
Slide 6: Fixed Line: TEO continues to deliver growth in value and volume
Fixed Line: TEO continues to deliver growth in value and volume Millions of lines in service In a mature business and in a market with high cellular penetration, fixed lines Evolution of Lines in Service continue to grow. ARPUs remain stable due to: Offer innovation Introduction of new products and
Slide 7: Broadband: The door to growth in the fixed line business
Broadband: The door to growth in the fixed line business Thousand of broadband connections TEO continues to outperform the market due to: +54% 2.673 • Strong brand positioning 2.504 • Innovative offer +60% • Broad portfolio of products. 1.735 Despite the strong growth, ARPU 1.561 1.721 1.832 remains
Slide 8: Mobile: Continuous growth in value
Mobile: Continuous growth in value Millions of lines TEO continues to grow in a market that is reaching maturity. TEO vs. Market Growth The customer base continues to grow supported by: - New products offering - Innovation +22% 38,9 - Quality of service +28% 37,8 - Multi-channel approach 31,8 - Focu
Slide 9: Mobile: Growth without Dilution in Customer Value
Mobile: Growth without Dilution in Customer Value Customer base mix VAS relative participation over total Millions of lines Millions of ARS 967 969 32% 32% Voice 897 Postpaid 33% 34% 34% 792 836 VAS 332 391 392 264 277 Prepaid 68% 68% 67% 66% 66% 1Q07 2Q07 3Q07 4Q07 1Q08 VAS as % of 1Q07 2Q07 3Q07 4
Slide 10: Evolution of CAPEX
Evolution of CAPEX Argentine GAAP, Millions of ARS (excluding materials) 1Q08 Mobile Capex breakdown % Revenues 14% 14% 7% 10% IT Quality & 1.302 Innov ation 30% 16% 1.055 25% Coverage 613 248 29% Mobile * 562 Capacity 139 104 208 689 148 74 Fixed 493 288 144 65 130 1Q08 Fixed Line Capex breakdown O
Slide 11: Agenda
Agenda • Market Overview • Business Highlights • Financials • Q&A Session 10
Slide 12: TEO Group: Consolidated Results /1
TEO Group: Consolidated Results /1 Argentine GAAP, Millions of ARS, Percentage YoY Variation Revenues * OPBDA * +23% 9.074 7.372 +34% +8% 3.302 +21% 2.480 Fixed 3.053 2.058 +28% +10% 1.726 863 3.052 +34% 1.572 786 5.772 2.285 Mobile 4.319 +27% 1.758 879 1.617 3.234 688 1.376 2.544 1.272 2006 2007 1Q
Slide 13: TEO Group: Consolidated Results /2
TEO Group: Consolidated Results /2 Argentine GAAP, Millions of ARS, Percentage YoY Variation OPERATING PROFIT Net Income +83% +262% 884 Sale of 102 Publicom 1.636 +49% +101% 272 534 782 782 1.068 244 894 358 135 716 408 244 203 2006 2007 1Q07 1Q08 2006 2007 1Q07 1Q08 O. Profit Net Margin 12% 18% 17%
Slide 14: TEO Group: Operating FCF and Net Debt
TEO Group: Operating FCF and Net Debt Argentine GAAP, Millions of ARS On April 15, 2008 TEO OPERATING prepaid U$S 260 MM in FREE CASH FLOW 1.694 principal. 3.222 • Next scheduled principal payment for TA in October 2011 (55% of scheduled installment) (1) 1.666 3.243 77 38 TEO: 1.066 (2) 30 182 205 P
Slide 15: Fixed line: Revenues comparison: 1Q08 – 1Q07
Fixed line: Revenues comparison: 1Q08 – 1Q07 Argentine GAAP, Millions of ARS, Percentage YoY Variation 77 (+10%) 17 7 52 14 7 6 8% -2% -19% 33% 8% 68% 786 863 Revenues 1Q07 Monthly Fee Voice Measured Public Internet & Data Interconnection Others Revenues 1Q08 Services Telephony Note: Does not includ
Slide 16: Fixed Line: Telecom Argentina Unconsolidated P&L
Fixed Line: Telecom Argentina Unconsolidated P&L Argentine GAAP, Millions of ARS, Percentage Mar-31 In MM P$ 3M 2008 3M 2007 $ Var. % Var. 3M08 ∆ 3M07 ∆% Labor costs 207 40 24% Net Revenues 996 893 103 12% Materials and supplies 79 11 16% Operating Costs (577) (465) (112) 24% Advertising 13 2 18% OP
Slide 17: Mobile: Evolution of revenues: 1Q07 -1Q08
Mobile: Evolution of revenues: 1Q07 -1Q08 Argentine GAAP, Millions of ARS, Percentage YoY Variation 345 (+27%) 25 15 5 128 63 56 53 27% 23% 25% 48% 5% 20% 16% 1.617 1.272 Revenues 1Q07 Monthly Fees Prepaid Traffic TLRD & CPP VAS Others Handset Sales Nucleo Revenues 1Q08 Service Revenues + 305 (+29%)
Slide 18: Mobile: Personal and Núcleo Unconsolidated P&L
Mobile: Personal and Núcleo Unconsolidated P&L Argentine GAAP, Millions of ARS, Percentage Telecom Personal SAC & SRC In M M P$ 3M 2008 3M 2007 $ Var. % Var. Mar-31 Net Revenues 1.518 1.185 333 28% Operating Costs 3M08 ∆ 3M07 (1.095) (958) (137) 14% OPBDA 423 227 196 86% Handset subsidies 38 (33) Ma
Slide 19: Agenda
Agenda • Market Overview • Business Highlights • Financials • Q&A Session 18