Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — Q3 2020 Earnings Presentation
27 slides from Hellenic Telecommunications Organization Sa's earnings presentation, November 2020
Slide 1: Q3 2020 Results
OTE Hellenic Telecommunications Organization Q3 2020 Results November 2020
Slide 2: Disclaimer
Disclaimer This presentation is provided to persons who are entitled to receive it in accordance with the laws and regulations of appropriate jurisdictions. This presentation is provided for information purposes only and does not constitute an offer or an invitation to buy or sell or subscribe to an
Slide 3: Q3 2020 Highlights
Q3 2020 Highlights -0.8% Group revenues down just 0.8% despite negative effects from COVID-19 pandemic -1.1% Group revenue Total revenues Mobile service revenues down 8.1%;two-thirds of drop due to roaming +0.9% Group Adj. EBITDA (AL) up 0.9% Fixed retail unchanged on solid broadband performance Gro
Slide 4: Financial Review
Financial Review OTE | Q2 2020 RESULTS 4
Slide 5: KPIs and Group Overview
KPIs and Group Overview Revenues €1,004mn Romania Revenues Greece, 76% (yoy -0.8%) Romania, 24% €376mn Adj. EBITDA (AL) (yoy +0.9%) Adj. EBITDA (AL) Greece €117mn Greece, 87% Adj. Capex Romania, 13% (yoy -11.8%) €130mn Shareholders* Adj. FCF OTE Group is the largest telecommunications (yoy +7.1%) pr
Slide 6: Capex
Capex Adjusted Capex (€mn) FY2019: -€44m or -6.3% yoy 740 706 20.0% 200 176 178 25.0% 175 662 19.0% 180 166 151 690 18.0% 160 20.0% 640 18.6% 600 133 19.4% 117 17.0% 140 18.8% 17.7% 590 16.9% 16.0% 120 16.8% 16.5% 15.0% 540 15.0% 100 80 13.2% 10.0% 11.7% 14.0% 490 13.0% 60 440 12.0% 40 5.0% 390 11.0
Slide 7: Cashflow
Cashflow Adjusted FCF (€mn) 25% growth in Adjusted FCF (ex spectrum Q3’20: +7.1% yoy & restructuring) expected in 2020 351 334 299 336 254 247 1,150 1,210 212 173 185 1,051 159 133 121 130 488 610 36 345 (133) (117) (176) (178) (175) (166) (151) (706) (662) (600) FY 2018 FY 2019 FY 2020 Guidance Q1'
Slide 8: Shareholder Remuneration Policy
Shareholder Remuneration Policy Dividend per Share (€) Shareholder Remuneration Policy 0.55 0.46 100% FCF Distribution through a combination of dividends and share buybacks 65%/35% Targeted split between dividends and share buybacks FY 2018 FY 2019 €0.555409 Dividend per share paid by Company to its
Slide 9: Debt and Liquidity Profile
Debt and Liquidity Profile Leverage (€mn) (IFRS amounts) 0.9x 0.9x 0.8x 0.8x 0.7x 0.7x 0.6x Adjusted Net Debt/EBITDA 2,478 2,382 2,149 2,142 2,110 2,039 1,731 1,148 1,012 1,182 1,046 930 848 1,032 • Adj. Net Debt stood at €1,032mn • Adj. Net Debt/EBITDA (AL) (700) stood at 0.8x (1,001) (1,129) (1,06
Slide 10: Greece
Greece OTE | Q2 2020 RESULTS 10
Slide 11: Greece – Financial Overview
Greece – Financial Overview Total Revenues (€mn) Adj. EBITDA (AL) (€mn)* 840 30.0% 2,943 771 2,888 790 756 763 25.0% 1,450 41.8% 40.9% 41.5% 450 720 707 40.5% 40.3% 43.7% 40.0% 40.8% 41.2% 42.7% 740 697 692 20.0% 36.8% 1,181 1,220 400 35.0% 337 1,250 690 15.0% 326 302 31.8% 350 640 10.0% 1,050 283 2
Slide 12: Greece – Financial Overview
Greece – Financial Overview Retail Fixed Revenues (€mn) 20.0% 936 15.0% 916 261 231 233 237 234 234 231 237 10.0% 211 5.0% • Retail fixed services were stable as pressure on the 2.8% 2.8% voice and TV segments was offset by continuing 0.0% 1.8% 1.4% 1.3% 161 -0.9% 0.0% -5.0% growth in broadband -10.
Slide 13: Greece – Fixed KPIs
Greece – Fixed KPIs Fixed Voice Market Evolution (000) OTE Fixed Lines at 2,664k 4,766 4,766 4,759 4,779 4,785 4,783 4,772 4,797 4,806 4,836 4,829 45% 44% 44% 45% 45% 45% 45% 45% 45% 45% 45% 44% 44% 45% 45% 45% 45% 45% 45% 45% 45% 55% 56% 56% 55% 55% 55% 55% 55% 55% 55% 55% 56% 56% 55% 55% 55% 55% 5
Slide 14: Greece – Broadband KPIs
Greece – Broadband KPIs Broadband Market Evolution (000) OTE Broadband Lines Market Penetration at 2,104k 120% 100% 83% 84% 85% 85% 86% 87% 87% 4,017 4,042 4,095 4,134 4,191 4,216 81% 81% 82% 83% 3,841 3,865 3,887 3,955 3,987 80% 53% 53% 52% 52% 52% 51% 51% 51% 51% 50% 50% 75% 76% 77% 78% 79% 53% 53
Slide 15: Greece – Fiber Services
Greece – Fiber Services Fiber Subscribers (000) Fiber Subscribers additions (000) 80 70 886 60 840 900 787 54 53 51 60 742 120.0% 49 49 800 695 47 45 46 646 50 43 586 700 100.0% 531 34 483 600 40 449 80.0% 500 405 30 60.0% 400 300 60.6% 60.5% 55.1% 40.0% 20 50.0% 44.5% 200 43.9% 44.0% 39.6% 10 34.5%
Slide 16: Greece – COSMOTE TV
Greece – COSMOTE TV TV Subscribers (000) 700 100 542 540 544 549 555 557 563 563 528 526 534 80 600 500 60 • +2.6% yoy increase in Customer base 400 40 • Champions League, Europa League and English Premier 20 League 2018-2021 300 200 0 3 8 8 3 5 6 2 7 0 • OTE is leveraging its new OTT platform to st
Slide 17: Greece – Mobile KPIs
Greece – Mobile KPIs Data Revenues (€mn) +44% of Mobile Service Avg.Data usage* (GB) Q3'20: +45% yoy Revenues 4.4 108 4.5 96 97 100 101 3.8 3.6 110 45% 4.0 86 40% 3.1 3.2 79 76 3.5 74 90 70 35% 64 2.4 3.0 2.3 2.0 2.1 70 30% 2.5 32% 32% 25% 2.0 1.7 1.8 50 20% 1.5 30 20% 22% 21% 15% 19% 18% 19% 18% 1.
Slide 18: Greece – Digitalization
Greece – Digitalization Smartphone penetration (%) 90% 74% 75% 75% 76% 80% 70% 70% 71% 72% 66% 67% 68% 70% 60% 50% COSMOTE app was downloaded by 3.1mn users by end of 40% +4pp 30% the quarter. It was further boosted during the quarter 20% 10% and became the major digital contact point with the custo
Slide 19: Romania
Romania OTE | Q2 2020 RESULTS 19
Slide 20: Romania – Financial Overview
Romania – Financial Overview Total Revenues (€mn) Adj. EBITDA (AL) (€mn)* 980 289 0.14 11.9% 12.5% 14.7% 17.7% 14.3% 15.8% 20.6% 14.7% 160 14.6% 300 100.0% 933 244 237 244 80.0% 0.12 60 231 229 150 144 51 50 217 250 160.0% 60.0% 0.1 50 200 19.3% 40.0% 140 136 110.0% 9.5% 36 36 7.4% 106.9% 34 0.08 40
Slide 21: Romania – Financial Overview
Romania – Financial Overview Retail Fixed Revenues (€mn) 247 229 70 58 59 120.0% 60 56 55 57 55 54 100.0% 80.0% 50 • Retail Fixed Service revenues down 4.6%; A double-digit 60.0% 40 40.0% 30 -5.3% -6.0% -5.3% -2.2% -6.6% -4.6% 20.0% increase in broadband revenues was offset by pressure -12.2% 20 0.0
Slide 22: Romania – Fixed KPIs
Romania – Fixed KPIs Fixed Line Subscribers (000) Broadband Subscribers (000) 1,403 1,347 1,298 1,247 1,191 1,078 1,055 1,152 1,039 1,014 1,105 977 959 934 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 3,000 TV Subscribers (000) FMC Subscribers (000) Q3'20: +10.
Slide 23: Romania – Mobile KPIs
Romania – Mobile KPIs Data Revenues (€mn) Data Revenues as % of Service Revenues 30 26 24 80.0% 25 22 23 41.2% 21 21 38.1% 19 60.0% 36.4% 35.8% 35.3% 20 29.2% 30.8% 40.0% 15 35.0% 20.0% 10 22.2% 15.2% 15.2% 5 10.6% 0.0% 3.5% 0 -6.9% -20.0% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q1'19 Q2'19 Q3'19
Slide 24: Strategy
Strategy OTE, THE LEADING DIGITAL TELCO: THE 6 PILLARS OF OUR STRATEGIC PLAN DIGITALIZATION, GROWTH TECHNOLOGY BEST CUSTOMER REVENUE LEAD IN SIMPLIFICATION AND MINDSET AND SUPERIORITY EXPERIENCE TRANSFORMATION CORE BUSINESS COST OPTIMIZATION CULTURE • Optical Fiber • Digital Transformation • ICT Sol
Slide 25: Digital Transformation
Digital Transformation Our goal: to be the leader for Digital Transformation in Greece and a role–model in Europe with superior Customer Experience & Operational Efficiency Digital Interplay Digitalize Service Processes Simplify Portfolio • One App primary touchpoint • Order2Bill: self-service • Sim
Slide 26: Mobile Network Superiority in Greece
Mobile Network Superiority in Greece Best in Test” certification, for sixth COSMOTE Fastest Mobile Network for 4th consecutive year, for its mobile internet and consecutive year voice services in Greece OPERATOR OPERATOR 2XSPEED in Big Cities 3XSPEED On main roads DOWNLOAD SPEED (MBPS) UPLOAD SPEED
Slide 27: Thank you
Thank you OTE | Q2 2020 RESULTS 27
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