Sonera — FY1999 Earnings Presentation
22 slides from Sonera's earnings presentation, Feb 14, 2000
Slide 1: Financial Statements for 1999
Financial Statements for 1999 February 14, 2000 Financial Statements, Feb 14, 2000/ 1
Slide 2: Strong earnings growth continued
Strong earnings growth continued • Revenues grew by 14% and were EUR 1,849 million (1,623) • Revenues from associated companies grew by 105% and were EUR 2,970 million (1,446)* • Profit before extraordinary items and taxes rose by 44% and was EUR 497 million (346) • Equity income in associated compa
Slide 3: Revenue Composition 1999
Revenue Composition 1999 Equipment Sales and Other Operations 9% Fixed Network 20 % Mobile Communications Voice 52 % and Data 11 % 8% Media and New Services Total EUR 1,849 million (FIM 10,991 million) Financial Statements, Feb 14, 2000/ 3
Slide 4: Mobile Communications
Mobile Communications • Revenues were up 21 %, proportion in Group´s total revenues rose to 52% • The number of GSM subscriptions grew by 21% and totaled 1,938,644, estimated market share still over 60% • Value added services accounted for 8% (4.5) in Mobile Communications´ revenues • Profitability
Slide 5: Media and New Services
Media and New Services • Revenues were up 22% and totaled EUR 140 million • Outlays on new services weakened EBITDA by about EUR 70 million compared to the previous year, SmartTrust and Zed proceeded as planned • The leading ISP market share stayed at nearly 40% • In December a weekly average of abo
Slide 6: Fixed Network Voice and Data Services
Fixed Network Voice and Data Services • Revenues on the previous year´s level at EUR 570 million (+2 (+2%), data services´ revenues were up 13% to EUR 168 million • Profitability stable, EBITDA margin 35 (33) • On the local and long distance voice estimated market share unchanged, on the internation
Slide 7: Equipment Sales and Other Operations
Equipment Sales and Other Operations • Revenues grew by 16% and totaled EUR 173 million • Revenues from Equipment Sales rose by 19% to EUR 114 million, growth mainly attributable to companies´ millennium equipment and systems upgrading • In order to improve growth and ensure steady cashflow Telecom
Slide 8: Revenue Growth
Revenue Growth 1,849 1,623 1,352 1,125 EUR 991 892 million 1994 1995 1996 1997 1998 1999 Financial Statements, Feb 14, 2000/ 8
Slide 9: Revenues of Associated Companies
Revenues of Associated Companies 2,970 1,446 EUR million 575 347 240 121 1994 1995 1996 1997 1998 1999 Reporting beginning with the time of acquisition (excluding TietoEnator) TietoEnator) Financial Statements, Feb 14, 2000/ 9
Slide 10: EBITDA Growth
EBITDA Growth 668 587 489 420 EUR 356 331 million 1994 1995 1996 1997 1998 1999 Financial Statements, Feb 14, 2000/ 10
Slide 11: Profit before Extraordinary Items and Taxes
Profit before Extraordinary Items and Taxes 497 346 309 EUR million 178 183 168 1994 1995 1996 1997 1998 1999 Financial Statements, Feb 14, 2000/ 11
Slide 12: Equity Income in Associated Companies
Equity Income in Associated Companies 110 EUR 59 million 19 4 6 0,3 1994 1995 1996 1997 1998 1999 Reported beginning with the time of acquisition, reduced by amortization of goodwill Financial Statements, Feb 14, 2000/ 12
Slide 13: Equity-to-assets Ratio
Equity-to-assets Ratio 77.4 78.0 74.3 70.9 51.5 50.6 % 1994 1995 1996 1997 1998 1999 Financial Statements, Feb 14, 2000/ 13
Slide 14: Personnel on Average
Personnel on Average 9,270 8,609 7,667 7,967 6,930 7,239 1994 1995 1996 1997 1998 1999 Financial Statements, Feb 14, 2000/ 14
Slide 15: Mobile Communications
Mobile Communications IV Q 134 mins / month Average Monthly Outgoing MOUs Mins. Mins. 2,136 2,000 1,932 130 1,750 1,586 130 115 1,500 116 1,250 1 211 100 1,000 890 103 750 97 90 85 500 250 70 1995 1996 1997 1998 1999 No. Subscribers (000´s) Monthly Usage / Subscriber (mins (mins)) Financial Statemen
Slide 16: Mobile Communications: Usage of Value Added Services
Mobile Communications Usage of Value Added Services 70 150000 60 125000 Percentage of customers 50 100000 40 75000 30 50000 20 10 25000 0 0 1/99 2/99 3/99 4/99 5/99 6/99 7/99 8/99 9/99 10/99 11/99 12/99 Registered Zed- Zed-users SMS user activity / month Service SMS user activity / month Financial S
Slide 17: Mobile Communications
Mobile Communications ARPU IV Q 39.4 EUR 40 39 36 35 36 34 EUR 1994 1995 1996 1997 1998 1999 Financial Statements, Feb 14, 2000/ 17
Slide 18: Mobile Communications
Mobile Communications GSM Churn Rate IV Q 12.9 % 16.5 % 14.0 % 14.6 % 12.1 % 11.5 % 1995 1996 1997 1998 1999 Financial Statements, Feb 14, 2000/ 18
Slide 19: Mobile Communications
Mobile Communications Subscribers at the end of period Turkcell 5,466,093 Sonera 2,136,241 Pannon 668,441 EMT, LMT, Omnitel 640,837 Powertel 546,364 Aerial 422,900 LibanCell 304,404 Joint ventures total over 8.2 million subscribers (3.8) Excluding VoiceStream and Omnipoint North West GSM 131,960 Fin
Slide 20: Mobile Communications
Mobile Communications Foreign joint ventures: Licenced Pops. ger 350 er m eam Str ice Vo r Million f te A 146 122 89 1997 1998 1999 2000 Financial Statements, Feb 14, 2000/ 20
Slide 21: Outlook for telecom industry in 2000
Outlook for telecom industry in 2000 • Consolidation continues as global competition opens up and players become more international • More mergers and partnerships to come as telecom companies join forces with content and other service providers • The significance of services will grow in telecom bu
Slide 22: Sonera's outlook for year 2000
Sonera´s outlook for year 2000 • Additional outlays on new services continue, totaling EUR 500 million in 2000 - 2002 • Equity income in associated companies about doubles compared to the previous year (1999: EUR 110 million) • Domestic revenue growth remains over 10% • Profitability of Mobile Commu