Proximus Sa · EURONEXT:PROX
Proximus Sa — Belgacom — H1 2009 Earnings Presentation
31 slides from Proximus Sa's earnings presentation, Jul 31, 2009
Slide 1: Half-Year Results 2009
Half-Year Results 2009 31 July 2009 Slide 1
Slide 2: Highlights
Highlights
Slide 3: Group highlights
Group highlights Group revenue of € 2,996m, increasing by +1.4% year over year Organic revenue growing +0.4% Continued solid performance ICS (+18%) H109 EBITDA1 at € 994m, -2.2% year over year EBITDA margin at 33.2% Belgacom has anticipated the crisis with successful cost reduction Rep
Slide 4: Group operational highlights
Group operational highlights Sustained growing customer base in 1st half 2009: 5 million mobile customers: +83,000 in the first 6 months of 2009 Belgacom TV: +82,000 customers leading to a total customer base of 589,000 In total 1,487,000 broadband customers, or +142,000 compared to end 2008,
Slide 5: 2009 guidance reiterated
2009 guidance reiterated So far, the residential segment of the Belgacom Group continued its resilient path, not experiencing any significant impact on its financial performance from the economic downturn. As expected, the enterprise business sees the impact mainly in the slowdown in mobile usage an
Slide 6: Consumer Business Unit (CBU)
Consumer Business Unit (CBU) H1 2009 Results
Slide 7: CBU - Highlights
CBU - Highlights So far, no significant financial impact from weak economic climate Reported H109 revenue €1,195m, + €94m or +8.6% year over year (yoy): €96m contribution of Scarlet & Tango, organic revenue flat yoy €15m regulation impact Underlying business +1.3% yoy Continued growth in
Slide 8: CBU - Highlights
CBU - Highlights TV +82k new subscribers in H109, total customer base at 589k ARPU per household1 at €19.8 +23k broadband net adds incl. small net loss Scarlet customers Net adds in line with normalized2 H108 Business Total customer base including Belgian residential customers of Scarlet at 1,04
Slide 9: CBU - Voice - Fixed
CBU - Voice - Fixed Net line loss* (000) Line loss improved in Q209 1 2 3 4 5 6 H109 line loss limited to 80k versus 88k for the -42 -39 -36 -37 -46 -43 same period in 2008 Q209 loss at -37k due to the success of new Q 10 8 Q208 Q308 Q408 Q 10 9 Q209 converged packs including a fixed line and
Slide 10: CBU - Voice – Mobile
CBU - Voice – Mobile +32k new customers in H109 MVNO Mobile customer growth (000) Own cust 65 72 H109 +46k under own brands versus +47k in H108 27 33 Pick up of net adds in Q209 driven by a.o. the port-in 46 23 24 of scarlet MVNO customers 27 33 45 10 32 Q108 customer growth driven by MVNO c
Slide 11: CBU - Data - Fixed
CBU - Data - Fixed Broadband Growth (000) +23k broadband net adds in H109 37 net adds include a small loss in Scarlet 26 broadband as customers are offered the 17 20 possibility to end their contract free of charge net adds H109 in line with normalized H108 5 3 Q108 net adds exceptionally hi
Slide 12: CBU - Data - Fixed
CBU - Data - Fixed Broadband Growth (000) +23k broadband net adds in H109 37 net adds include a small loss in Scarlet 26 broadband as customers are offered the 17 20 possibility to end their contract free of charge net adds H109 in line with normalized H108 5 3 Q108 net adds exceptionally hi
Slide 13: CBU - Data - Mobile
CBU - Data - Mobile Normalized SMS* (units/month) H109 monthly SMS/user increased 62% going from 103.5 72.2 SMS to 167.4 SMS driven by success of pricing plans incl. 66.8 68.3 58.9 60.0 free SMS. 54.9 Paying SMS/user continues strong growth, going up to 72 Q110 8 Q 22 0 8 Q3 3 0 8 Q 44 0 8 Q510
Slide 14: CBU - Belgacom TV
CBU - Belgacom TV TV Growth (000) +82k new TV customers in H109 TV revenue of € 59m ytd June 09, up 53% +33k net adds in Q209 63 44 42 52 49 2nd quarter net adds driven by seasonality and less 33 promotional activities Q 10 18 Q 2 20 8 Q 330 8 Q 44 0 8 Q 105 9 Q 260 9 TV EOP (000) Tot al TV
Slide 15: Enterprise Business Unit (EBU)
Enterprise Business Unit (EBU) H1 2009 Results
Slide 16: EBU - Highlights
EBU - Highlights Revenue impacted by economic crisis, but in line with expectations Reported H109 revenue €1,267m, € -99m or -7.2% yoy due to: Impact divestment program Telindus International: € -48m Organic revenue decline of € 51m or -3.9% yoy Regulation impact of € -18m Financial Unde
Slide 17: EBU - Highlights
EBU - Highlights As expected, impact of crisis mainly visible in: Mobile usage ICT-domain, with customers delaying or spreading large IT-projects However, business order intake remains healthy Continued strong growth Mobile data subscriptions Business Paying SMS +9% yoy performance Mobil
Slide 18: EBU - Voice - Fixed
EBU - Voice - Fixed Net line loss* (000) 1 -7 2 -8 3 4 5 6 Some enterprises encouraged by crisis to lower -9 -10 -15 -14 fixed line park. Trend did not accelerate in Q209. Q 10 8 Q208 Q308 Q408 Q 10 9 Q209 Voice lines EOP* (000) V OI P P ST N 1,568 1,562 1,554 1,544 1,529 1,515 2 2 4 7 11 11 1,5 6
Slide 19: EBU - Voice - Mobile
EBU - Voice - Mobile Mobile customer growth (000) +51k new customers in H109 1,190 Net adds H109 slightly below net adds H108 1,170 1,065 1,093 1,116 1,139 1,100 Total customer base at 1,190k 41 600 21 Net voice ARPU at € 40.7, yoy pressured by: 27 28 23 23 30 21 1 Q 10 8 Q208 Q308 Q408 Q 10
Slide 20: EBU - Data - Fixed
EBU - Data - Fixed Broadband growth & lines EOP (000) Broadband: 431 436 439 443 445 443 500 400 Saturated enterprise Broadband market 300 End of June 09, total broadband customer 200 base at 443k 11 5 4 -2 100 H109 customer base remained unchanged 1 3 2 0 Q 10 8 Q208 Q308 Q408 Q 10 9 Q209 1 2
Slide 21: EBU - Data - Mobile
EBU - Data - Mobile Normalized SMS* (units/month) Continued positive trend in mobile data revenue +13% yoy . 53.5 54.3 49.6 48.8 48.2 53.3 Advanced data revenue +15% yoy Representing 66% of mobile data revenue Subscriptions mobile internet >50% yoy & continued Q 10 8 1 Q208 2 Q308 3 Q408 4 Q
Slide 22: EBU – ICT
EBU – ICT ICT feels pressure from economic crisis, but within expectation Large IT-projects delayed or spread in time Revenue preservation through increase “share of wallet” Impact on margins closely monitored with strong focus on cost of sales Order intake remains healthy Organic ICT revenu
Slide 23: International Carrier Services (ICS)
International Carrier Services (ICS) Slide 23 H1 2009 Results
Slide 24: Revenue & Gross Margin overview
Revenue & Gross Margin overview Strong revenue increase continued in H109: +18% yoy Strong growth in Voice volumes (+22% yoy) mainly on premium products. This positive effect on voice revenue was partly offset by decrease in mobile termination rates Volume driven revenue growth in non-voice (+
Slide 25: Cost overview
Cost* overview Increase in HR related expenses reflecting the headcount increase required to sustain the mobile data growth Network, IT & General & Administrative expenses in line with last year Cost structure (EUR Mio) 29.5 -5.6 % 31.2 6,5 6,6 12,7 12,5 10,3 12,0 H1 08 H1 09 HR related expenses
Slide 26: Operational Overview
Operational Overview MTN Transaction milestone in consolidation strategy Belgacom ICS and the MTN Group, a multinational telecommunications group, have announced a next step in their strategic co-operation by combining their international carrier services, resulting in MTN holding an equity stak
Slide 27: Group Financials
Group Financials belgacom
Slide 28: Consolidated income statement
Consolidated income statement (EUR million) H108 H109 % var Total Revenue before non-recurring items 2,954 2,996 1.4% Costs of materials and charges to revenue -948 -1,023 7.8% Personnel expenses and pensions -562 -561 -0.1% Other operating expenses -428 -418 -2.3% TOTAL OPERATING EXPENSES -1,938 -2
Slide 29: Investments per Business Unit
Investments per Business Unit Ytd June 09, €270m capex spent or 9% of total Capex Ytd June revenues 12.5%* 9.0% 370 €44m invested in Belgacom TV: settop boxes & 3 18 content (CBU) and TV platform (SDE) 270 5 8 SDE: 213 €25m Broadway leading to a total 205 population coverage of 70% 10 €19m i
Slide 30: Free cash flow (in million €)
Free cash flow (in million €) FCF YTD June ‘09 increased 8% to €362m, including the payment of the €66.3m fine to the Belgian Competition Authority. +8% 362 336 H108 Q2 H109 Slide 30
Slide 31: Net financial position (in million €)
Net financial position (in million €) Belgacom continues to have a sound financial position Increase in net debt driven by the dividend paid in H109 which exceeded the FCF 362 ( 1,8 3 5 ) 7 ( 2 ,0 2 1) (555) N e t de bt D e c e m be r FCF D iv ide nds O t he r N e t de bt J une 2 0 0 9 2008 Slid