Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Q3 2013 Earnings Presentation
22 slides from Telecom Argentina Sa Class B's earnings presentation, 2013
Slide 1: 3Q13 Earnings Release Conference Call Presentation
Telecom Argentina 3Q13 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 Session 2
Slide 4: Market Overview: Navigating in a challenging context
Market Overview: Navigating in a challenging context Real GDP* Consumption & Wages Trade & Fiscal Balance Billion USD, at current prices – Last 12 months Billion USD, at current prices – Last 12 months Trade Balance (Billion USD) Last 12 months ∆ YoY - constant prices National Wages - ∆ % YoY Fiscal
Slide 5: Agenda
Agenda Market Overview Business Highlights Financials Q&A Session 4
Slide 6: Business Highlights
Business Highlights MOBILE Leading revenue share and growth while optimizing commercial costs Focus in service quality improvement strengthening 3G/Data access capacity 3G customer base reached 41% in 3Q13, with strong share in smartphone sellout that achieved 65% FIXED Continuous FTTx deployment to
Slide 7: Mobile: Value proposition fostered growth in post and prepaid segments
Mobile: Value proposition fostered growth in post and prepaid segments; ARPU uplift driven by non- non-voice revenues ARPU & Mobile Customer Million of lines AR$/Month/million of customers Mob. Internet Evolution YoY var Unique User YoY var 5.8 6.3 +28%v Mobile Unique 5.1 5.5 4.9 19.9 +5% Internet U
Slide 8: Mobile: Sustaining #1 in revenue share while optimizing costs
Mobile: Sustaining #1 in revenue share while optimizing costs Service Revenue Million ARS – Argentine Market SAC & SRC as % of Argentine Service Revenues - Before Breakdown capitalization of SAC & SRC 13,312 11,762 +21% +23% 10,983 1,248 1,405 SAC & SRC 16.2% 9,573 YoY var +58% 14.5% Internet Servic
Slide 9: Paraguay: VAS pushes revenues up
Paraguay: VAS pushes revenues up Customers Thousand of lines Financials IFRS Million of ARS YoY var +6% 867 842 2,270 2,301 2,335 2,381 2,407 714 +21% +34% Post 410 428 447 475 482 17% 627 paid 1 REVENUES +25% +28% 331 302 264 236 1,860 1,872 1,888 1,906 1,925 4% Pre OIBDA paid 2011 2012 9M12 9M13 3
Slide 10: Mobile Revenues: VAS gaining participation in Mobile Revenues
Mobile Revenues: VAS gaining participation in Mobile Revenues Evolution of revenues 9M12 – 9M13 IFRS, Million of ARS, Percentage +3,105; +27% 701 215 14,713 1,262 515 11,608 299 113 YoY Variation +9% +9% +31% +58% +50% +34% 9M12 Retail Wholesale* Data Internet Handsets Paraguay* 9M13 Revenues Voice
Slide 11: Fixed Broadband: Confirming positive net adds trend
Fixed Broadband: Confirming positive net adds trend Evolution of BB Thousand of broadband accesses Accesses FTTx deployment focused on offering higher speeds +57k; +4% to enrich value proposal ARPU rose by 19% YoY in 3Q13 with slight reduction in churn Broadband regains strength with ~35k net adds i
Slide 12: Fixed Voice & Data: Data contributes to growth in Fixed Revenues
Fixed Voice & Data: Data contributes to growth in Fixed Revenues Evolution of ARBU evolution Lines in Services Thousand of lines in service (excluding broadband and data) +9% 52,8 53,1 49,9 49,5 48,8 Monthly Churn 4,140 4,128 4,109 4,114 4,124 ARPU 0,5% 0,5% 0,6% 0,6% 0,5% (ARS) 3Q12 4Q12 1Q13 2Q13
Slide 13: Fixed Services: BB + Data services continue to be key drivers
Fixed Services: BB + Data services continue to be key drivers Evolution of revenues 9M12 – 9M13 IFRS, Million of ARS, Percentage +697; +16% 385 -12 5.114 158 4.417 131 35 33% Regulated Regulated 38% YoY Variation +7% +6% +30% +27% -20% 67% 62% Non Regulated Non Regulated Revenues Retail Voice Wholes
Slide 14: Evolution of CAPEX: Focus in Network quality upgrade
Evolution of CAPEX: Focus in Network quality upgrade (+55% vs. 9M12)* Capex Evolution Million of ARS PP&E Capex Breakdown 9M12 9M13 +2% Others 7% +32% 2,896 4% 2,187 IT 21% 1,342 3Q 18% +59% 3,257 842 Core & 33% 3,192 1 Infraestructure 31% 813 2Q +24% 655 Fixed access 18% +7% 1Q 22% 690 741 Mobile a
Slide 15: Executing action plan in a consistent manner
Consistent Executing action plan in a consistent manner Access Network Vs. 9M12 Migration to 6-sector cell sites to take 6 Sectors >5x advantage of existing infrastructure New Non Conventional >4x Incremental coverage and capacity thru Sites unconventional sites New Conventional >20% Spectrum refarm
Slide 16: Agenda
Agenda Market Overview Business Highlights Financials Q&A Session 15
Slide 17: TEO Group: Consolidated Results
TEO Group: Consolidated Results IFRS, Million of ARS, Percentage IFRS, Million of ARS, Percentage Revenues OIBDA* +20% 22,117 19,827 18,498 +24% +10% 6,570 16,025 5,993 3Q +18% 5,554 7,114 +26% 4,726 5,645 1,930 3Q 2Q 1,587 +22% 6,649 5,254 +27% +22% 1,825 2Q 1,492 +18% 1Q 5,126 6,064 +9% 1,799 1Q 1
Slide 18: TEO Group: Consolidated Costs and OIBDA evolution
TEO Group: Consolidated Costs and OIBDA evolution Operating Income Before Depreciation and Amortization 9M12 – 9M13 IFRS, Million of ARS OPEX1 +828; +18% +26% 14,299 11,315 172 138% 3,812 628 500 810 314 292 9M12 9M13 268 34% 27% 25% 4,726 24% 24% 20% 5,554 YoY 14% Variation OIBDA Revenues & ITX Cos
Slide 19: TEO Group: Actions to increase efficiencies to offset higher consolidated costs
TEO Group: Actions to increase efficiencies to offset higher consolidated costs Consolidated Costs1 Operating Costs1 as % of Revenues 9M13 vs. 9M12 VAS Costs Salary and Social Security 70.6% 72.1% 4% Others 21% 7,6% 7,0% 22% ITX Costs 21,3% Marketing & 21,3% Sales 2,5% 14% 1,3% VAS costs Taxes 9,1%
Slide 20: TEO Group: Consolidated Results
TEO Group: Consolidated Results Net Income Operating Income IFRS, Million of ARS, Percentage attributable to IFRS, Million of ARS, Percentage Telecom Fi na ncia l Results 9M12 9M13 Net Interes ts $ 194 $ 428 FX res ul ts -$ 29 -$ 131 Others -$ 6 $ 80 3,857 +3% 3,966 Total $ 159 $ 377 3,263 +7% 2,685
Slide 21: TEO Group: FCF and Net Financial Position
TEO Group: FCF and Net Financial Position IFRS, Million of ARS - Last 9 months Operating free Cash Flow 5,554 2,896 1,227 343 498 90 16 310 OIBDA Capex Δ WK & others 3,001 5,684 Net Financial Position Telecom Argentina 1,093(1) 3,648 Telecom Personal 4,745(2) Nucleo (Paraguay) (154) Net Financial Op
Slide 22: Agenda
Agenda Market Overview Business Highlights Financials Q&A Session 21