Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Q4 2015 Earnings Presentation
22 slides from Telecom Argentina Sa Class B's earnings presentation, 2016
Slide 1: 4Q15 Earnings Release Conference Call Presentation
Telecom Argentina 4Q15 Earnings Release Conference Call Presentation
Slide 2: Disclaimer
Disclaimer This presentation is based on audited financial statements and 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, dividen
Slide 3: Agenda
Agenda Market Overview Business Highlights Financials Q&A 2
Slide 4: Macro: a new administration focused on normalization of the economy
Macro: a new administration in office that is focused the normalization of the economy Central Bank Reserves FX Rate Main measures that allowed exchange rate Central Bank Reserves (Billion U$S) unification: Lifting of restrictions on FX markets . Reduction or elimination of export taxes for 43.3 30.
Slide 5: Agenda
Agenda Market Overview Business Highlights Financials Q&A 4
Slide 6: Highlights
Highlights BUSINESS Mobile – Sustained growth driven by Data & Internet Solid position in value segments: postpaid gross adds +500k subs in 4Q15, 6% YoY Important delivery of handsets during 4Q15: quantities increase by 18% vs 4Q14. LTE device sell-out >85% Quick adoption of Data Centric offers (cli
Slide 7: New Regulatory Framework: merger of telco and media and new regulatory entity
New Regulatory Framework: merger of telco and media and new regulatory entity MAIN AUTHORITIES REGULATION AMENDS ARGENTINA DIGITAL LAW (Former Ministry of Federal Planning and Decree 267/15 LAW N 27.078 Secretary of Communications) It was enacted as of 12/19/2014 Main regulation - Declares of public
Slide 8: Group Revenues: focus on mix and trend. Strong revenue performance in 4Q15
Group Revenues: focus on mix and trend. Strong revenue performance in 4Q15 Retail Fixed Voice AR$, Million 3,304 2,853 +16% Group Revenue Mix 925 4Q 744 24% 723 17% 846 3Q 704 12% 788 2Q Retail Fixed Voice 9% 8% 682 9% 745 1Q 14% 16% BB and fixed data FY14 FY15 Broadband & Fixed Data +34% 6,330 Reta
Slide 9: Fixed – UBB accesses increased significantly in 4Q15
Fixed – UBB accesses increased significantly in 4Q15 propped by competitive offer BB Accesses BB ARPU & Churn Thousand of broadband accesses, thousand of net adds AR$/Month +38% +43k; +2% 217.4 231.5 201.6 167.3 178.5 1,814 1,804 1,786 1,771 1,768 1.2% 1.3% 1.4% 1.4% 1.4% 4Q14 1Q15 2Q15 3Q15 4Q15 4Q
Slide 10: Fixed – ARBU sustained through flat pricing and business fee adjustment
Fixed – ARBU sustained thru flat pricing + price adjustment in the business monthly fee ARBU AR$/Month In AR$ +27% Lines in Service Thousand of lines 76.2 69.6 64.4 4,093 4,077 4,064 4,054 4,043 60.1 60.5 4Q14 1Q15 2Q15 3Q15 4Q15 4Q14 1Q15 2Q15 3Q15 4Q15 Drivers of ARBU increase: increase: Monthly F
Slide 11: Mobile: capturing growth through increased data penetration
Mobile: capturing growth through increased data penetration and revenue securization Customer Base (Mill) Revenue Mix Mobile services revenue mix 19.6 19.7 40% 40% Bundle Prepaid Postpaid 1 6.3 6.5 42% 32% Prepaid 13.3 13.2 18% 28% PxQ Postpaid FY14 FY15 FY14 FY15 FY14 FY15 Browsing SMS + Content 4Q
Slide 12: Mobile: monetizing through Data Centric Plans
Mobile: monetizing through Data Centric Plans Data Centric Subs •25% of the total Postpaid are Data Centric 33% Plans Non +350% Data •18% of the resets of data quotas came from Centric 67% subs with Data Centric plans Data Centric •During December 2015 revenues coming Migrations Adds from data quota
Slide 13: Mobile – Focus on 4G
Mobile – Focus on 4G Main cities with 4G coverage Average ARPU 4G ARPU* Sell Out LTE Devices 5% 14% +85% Non LTE LTE Apr/May Jul/Aug Apr/May Jul /Aug 56% 56 % of the total traffic is from video sites 1.3Gb is the average data consumption (146% 146% higher than non non-- 4G clients clients)) Network
Slide 14: Capex – Infrastructure as a key enabler
Capex – Infraestructure as a key enabler Capex Evolution Capex Breakdown Million of AR$ +13% 10,100 Mobile Sites FTTx 8,957 +70% +52% +85% 2,256 Spectrum 3,530 +45% 7,844 4,851 5,427 FY14 FY15 FY14 FY15 FY13 FY14 FY15 26% 25% 24% % Revenues 18% 27% 25% 12% 13% Network Achievements Mobile Fixed Acces
Slide 15: Personal: Only operator in Latam with a fully new multi-technological network
Personal : Only operator in Latam that has built a fully new multi multi--tecnological network (2G/3G/4G) Before upgrade After upgrade 2G & 3G 2G / 3G / 4G Technology and shelter ocupation 2G 2G 3G Multi-standard equipment (SDR) 850 1900 1900 100 MHz 42,5 MHz Spectrum Usage (700, 850, 1900 and AWS (
Slide 16: Agenda
Agenda Market Overview Business Highlights Financials Q&A 15
Slide 17: TEO Group: Consolidated Results
TEO Group: Consolidated Results Service Rev growth in Argentina (Yoy) Handset Results - Mobile in Argentina Handsets Revenues – Costs (in million of AR$) 22% 21% 24% 24% 1,431 20% Before capitalization of SAC & SRC 900 -55 -491 FY12 FY13 FY14 FY15 4Q14 1Q15 2Q15 3Q15 4Q15 Revenues EBITDA IFRS, Milli
Slide 18: TEO Group: Consolidated costs and EBITDA evolution
TEO Group: Consolidated costs and EBITDA evolution EBITDA FY14 – FY15 IFRS, Million of AR$ +2,164; +25% YoY Variation 953 452 96 1,662 646 721 586 6,199 825 10,866 8,702 30% 28% 22% 19% 20% 22% 11% 18% 5% EBITDA FY14 Ss. Revenues & Handsets Handsets Costs ITX Costs Labor Costs Taxes Other Marketing
Slide 19: TEO Group: Consolidated Results
18 TEO Group: Consolidated Results Operating Net Income Income IFRS, Million of AR$, Percentage attributable to Telecom IFRS, Million of AR$, Percentage 6,229 +14% 5,443 3,673 -7% 4Q 3,403 1,770 +11% 19% 1,029 -37% 646 4Q +14% 1,600 +7% 1,311 3Q -5% 801 3Q 1,225 839 +18% 1,468 2Q 3,202 4,518 +1% 928
Slide 20: TEO Group: Net Income Evolution
TEO Group: Group: Net Income Evolution in million of AR$ FY14 FY15 3G/4G Net Interests $ 265 -$ 526 Period D&A Spectrum Total Gains on Mutual Funds & $ 289 $ 601 Amortization other inv. FY14 3,223 20 3,243 FX results -$ 275 -$ 1,140 FY15 4,115 323 4,438 Results on NDF $0 $0 Others -$ 26 -$ 37 Total
Slide 21: TEO Group: FCF, Net Financial Position & Financing
TEO Group: Group: FCF, Net Financial Position & Financing IFRS, Million of AR$ - Last 12 months Free Cash Flow Operating free Cash Flow 10,866 7,844 1,631 1,199 1,823 745 2,256 61 170 EBITDA Capex Δ WK & others 2,277 849 Net Financial Operating Spectrum Net Interest FX Dividend Net Financial Taxes P
Slide 22: Agenda
Agenda Market Overview Business Highlights Financials Q&A 21