Zegona Communications Plc · LSE:ZEG
Zegona Communications — FY2016 Earnings Presentation
13 slides from Zegona Communications's earnings presentation, Apr 6, 2017
Slide 1: Full Year 2016 Results
Full Year 2016 Results 6 April 2017 Confidential
Slide 2: Disclaimer
Disclaimer This Presentation has been prepared by Zegona Communications plc (the “Company”) in connection with the financial performance of the Company for the year ended 31 December 2016. The estimated financial information contained herein was prepared expressly for use herein and is based on cert
Slide 3: Agenda
Agenda 1 Summary 2 2016 Telecable Results 3 2017 Outlook 1
Slide 4: Summary
Summary Robust 2016 performance with continuing growth momentum into 2017 1 Telecable continues to perform strongly, meeting expectations for 2016 • Results in line with full year guidance • 3.0% Revenue growth1 • 9.7% Cash Flow growth1 2 Further growth expected in 2017 • Targeting 3-5% Revenue grow
Slide 5: 2016 Results – Spanish Market Context
2016 Results – Spanish Market Context Favourable market conditions position Telecable for growth 1 Strong macro economic environment 2 Industry price repair gaining momentum Spain’s economy among the fastest growing in the Euro area Sustained trend in price rises starting in 2015, continuing in
Slide 6: Telecable 2016 Financial Results
Telecable 2016 Financial Results In line with expectations, with continuing growth in Revenue, EBITDA and Cash Flow Q4 Full Year €m Growth €m Growth Revenue1 35.0 1.8% 138.5 3.0% EBITDA1 15.9 -1.8% 65.1 0.2% % Revenue 45% 47% Capex 5.9 - 19.2% 25.6 - 11.7% % Revenue 17% 18% Cash Flow1 10.0 12.6% 39.
Slide 7: Telecable 2016 Operational Results
Telecable 2016 Operational Results Product and service enhancements driving KPI improvements 2015 2016 Growth Consumer1 Revenue (€m) 99.0 100.8 1.9% High value triple play/quad play customers now over 70% Customers (AOP K) 144 138 -3.8% Quad play customers at record 37% RGUs (K) 456 451 -1.0% AR
Slide 8: Progress on Key Strategic Initiatives
Progress on Key Strategic Initiatives 1 Grow customer revenues 2 Enhance Mobile Experience Doubled minimum BB speed to 200Mbps, launched 500Mbps Doubled mobile data allowances 5.9% ARPU growth, record high of over €60/mth Continued Wifisfera rollout, 50% traffic increase in 2016 Football r
Slide 9: 2017 Growth Expectations
2017 Growth Expectations Sustained Revenue growth, with another year of strong Cash Flow generation Backdrop Sustained Revenue Growth Targeting 3-5% Revenue* growth in 2017 Robust 2016 performance Significant progress on key 3.0% 3-5% 2.7% strategic initiatives 2015 2016 2017 Strong macros and
Slide 10: 2017 Outlook – Increased Zegona Shareholder Returns
2017 Outlook – Increased Zegona Shareholder Returns Attractive dividend and additional capital return potential 1 Annual Dividend Policy Confirmed 2 Significant Additional Capital Return Potential 4.5p per share paid for 2016 Telecable will generate significant excess cash in 2017 This cash is
Slide 11: 2017 Outlook – Zegona Valuation Perspectives
2017 Outlook – Zegona Valuation Perspectives 1 Valuation multiple*: Zegona 2016 EBITDA valuation multiple is only 8.7x vs Euskaltel at 9.5x Circa 17% shareholder value upside compared to Euskaltel rating 2 Growth: Telecable revenue growing faster than peers in 2016 – growth of 3.0% 3 Cash flow
Slide 12: 2017 Outlook – Additional Opportunities
2017 Outlook – Additional Opportunities Zegona continues to see many attractive investment opportunities in European TMT Underlying trends create attractive opportunities … and Zegona is well placed to capitalise Demand for data and speed growing exponentially Skilled management team with extens
Slide 13: Conclusions
Conclusions 1 Robust 2016 Telecable performance 2 Further growth expected in 2017 3 5.0p dividend policy confirmed for 2017 plus additional capital return capacity 4 Shareholder value upside potential 5 Many attractive investment opportunities for Zegona in European TMT 11