Hutchison Telecommunications (Australia) Ltd
Hutchison Telecommunications (Australia) — H1 2009 Earnings Presentation
16 slides from Hutchison Telecommunications (Australia)'s earnings presentation, Aug 11, 2009
Slide 1: Hutchison Telecommunications (Australia) Limited 2009 Half Year Results
Hutchison Telecommunications (Australia) Limited 2009 Half Year Results Nigel Dews Chief Executive Officer 11 August 2009
Slide 2: Financial Highlights
Financial Highlights • Profit for 1st half of $552.0 million • Net loss (before gain on merger) $35.3 million, a $42.3 million improvement • Gain on merger of $587.3 million • Free Cash Flow positive in 1H09 • Total revenue of $912.5 million, up $148.3 million, or 19.4% • Total customer service reve
Slide 3: Operating Highlights
Operating Highlights • Merger with Vodafone Australia effective 9th June 2009 to form Vodafone Hutchison Australia (VHA) • 6,311,000 customers end of June • net adds of 4,275,000, including customers acquired following merger with Vodafone • 55.5% of base postpaid • Low post paid churn 1.3% • 926,00
Slide 4: Key Financials
Key Financials Half Year to 30 Half Year to 30 Jun ($million) Change Jun 091 08 Total revenue 912.5 764.2 19.4% Service revenue 863.1 687.0 25.6% EBITDA 97.8 86.7 12.8% EBIT (32.7) (34.7) 5.8% CAPEX 105.3 78.6 34.0% Free Cash Flow 3.1 (7.2) 143.1% 1 HTAL Share are 5 months of the 3 business and 1 mo
Slide 5: Mobile Customer Base
Mobile Customer Base (Active Customers '000) 6,311 1,808 2,036 1,578 1,405 1H07 2H07 1H08 2H08 1H09 HTAL VHA Merger provides scale VHA Mobile Customer Base includes MVNO customers VHA represents combined customer base as at 30 June 2009 5
Slide 6: Service Revenue
Service Revenue 913 ($million) 781 687 708 624 619 549 543 492 422 1H07 2H07 1H08 2H08 1H09 HTAL Share* HTAL 30% increase in half year margin HTAL Share – are 5 months of the 3 business and 1 month 50% share of VHA 6
Slide 7: Non-voice ARPU
Non-voice ARPU $21 $20 $19 $17 $18 $ 11 SMS $ 10 $ 10 3G services $ 10 $ 10 $ 10 $ 10 $9 $8 $7 1H07 2H07 1H08 2H08 1H09 HTAL VHA Stong Mobile Broadband growth, 34% of ARPU is non-voice 3G services includes all non-voice services with the exception of SMS VHA represents ARPU of the Operating entity 7
Slide 8: Blended ARPU
Blended ARPU $69 $69 $68 $67 $63 ARPU 1H07 2H07 1H08 2H08 1H09 HTAL VHA Pre-paid/post-paid mix change VHA represents ARPU of the Operating entity 8
Slide 9: Mobile Broadband subscribers
Mobile Broadband subscribers Customers (‘000) 926 526 346 195 82 Jun.07 Dec.07 Jun.08 Dec.08 Jun.09 HTAL VHA 580,000 new subscribers Mobile Broadband subscribers = Mobile Broadband cards, USB Modems, Data plans, Mobile Internet plans and phones used as a modem VHA = results are 100% of the underlyin
Slide 10: Non-voice usage (excluding SMS)
Non-voice usage (excluding SMS) Total Content and Mobile Broadband events 395 (millions) 116 83 61 72 1H07 2H07 1H08 2H08 1H09 HTAL Share HTAL Dramatic increase in non-voice usage growth Content events are discrete items – eg a tone, a game, a videoclip Data events are sessions HTAL Share are 5 mont
Slide 11: Running Operating Expenditure
Running Operating Expenditure 632 ($million) 533 479 282 432 Direct Telecommunication 414 Net Hands et Cos ts 252 Employee Benef its Expens e 240 Adv & Promotion 188 216 Other 187 137 101 105 95 65 71 56 59 65 27 30 28 24 30 42 38 39 52 62 1H07 2H07 1H08 2H08 1H09 HTAL HTAL Share Increase largely du
Slide 12: Total Operating Expenditure per subscriber
Total Operating Expenditure per subscriber $/Customers $350 $313 $294 $300 $283 $277 $250 $222 $200 $150 $100 $50 $0 Jun.07 Dec.07 Jun.08 Dec.08 Jun.09 HTAL VHA Benefits of scale evident VHA results are 100% of the underlying operating entity 12
Slide 13: Customer Acquisition Costs
Customer Acquisition Costs $276 $251 $247 $227 $193 1H07 2H07 1H08 2H08 1H09 HTAL VHA CAC reduced by Mix shift & FX benefits VHA results are 100% of the underlying operating entity 13
Slide 14: CAPEX
CAPEX ($million) 135 133 121 105 79 1H07 2H07 1H08 2H08 1H09 HTAL HTAL Share Future CAPEX under review HTAL Share – are 5 months of the 3 business and 1 month 50% share of VHA 14
Slide 15: 2009 Outlook
2009 Outlook • Continued resilience in a challenging economy • Mobile Broadband subscriber growth expected to continue • CAC expected to increase in second half due to iPhone • Focused on merging businesses – Rationalise organisation – Integrate operations – Begin to realise synergies from merger –
Slide 16: EH Hutchison
EH Hutchison HH Telecoms
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