Hutchison Telecommunications (Australia) Ltd
Hutchison Telecommunications (Australia) — H1 2004 Earnings Presentation
13 slides from Hutchison Telecommunications (Australia)'s earnings presentation, Aug 18, 2004
Slide 1: Hutchison Telecommunications (Australia) Limited 2004 First Half Year Results
Hutchison Telecommunications (Australia) Limited 2004 First Half Year Results Kevin Russell Chief Executive Officer 18 August 2004
Slide 2: Highlights
Highlights • 110% increase in mobile customers to over 626,476 • 155% increase in mobile revenues • Total mobile customer base of 691,000 as at 18 August • Strong customer acquisition rates continue in 2H 2004 • ARPU levels grow to market leading levels • Strong non-voice ARPU contribution • Depth a
Slide 3: Key Financial Data
Key Financial Data $ million Half Year Half Year Half Year 30 Jun 2004 31 Dec 2003 30 Jun 2003 Revenue (1) 3 144.6 74.6 13.6 Orange mobile 149.3 120.2 101.7 Other Services 12.8 14.8 15.2 Total Revenue 306.7 209.6 130.5 EBITDA (2) 3 -159.2 -187.0 -73.5 Orange 13.1 17.5 11.7 NPAT (3) -280.5 -280.4 -12
Slide 4: Key Performance Drivers
Key Performance Drivers • Ongoing revenue growth • acquisition of profitable market share • incremental contribution from non-voice revenue • Margin improvements and optimisation of cost structure • reduction in roaming and termination charges • sharing of radio access network – significant ongoing
Slide 5: Mobile Customers
Mobile Customers 626,476 52% 3 411,938 240,071 Orange 297,296 86,758 39% 18,435 325,180 386,405 278,861 1H03 2H03 1H04 On track to achieve 1 million mobile customers in 2005 5
Slide 6: Net Customer Growth
Net Customer Growth 214,538 3 114,642 153,313 18,435 Orange 68,323 33,795 61,225 18,435 46,319 15,360 1H03 2H03 1H04 Record half of customer growth 6
Slide 7: Market Net Post Paid Growth
Market Net Post Paid Growth 215,000 2H03 1H04 130,000 115,000 91,000 93,000 79,000 Vodafone Vodafone Telstra Optus Hutchison Telstra Optus Hutchison -40,000 40% of total post 80% of total post paid net adds paid net adds -130,000 7 Source: company estimates
Slide 8: Average Revenue per User (ARPU)
Average Revenue per User (ARPU) $85 $80 3 $10 $10 Orange $56 $57 Non-voice $54 ARPU $3 $3 1H03 2H03 1H04 Strong customer revenue profile 8
Slide 9: Market Leading Offering
Market Leading Offering with • Comprehensive and targeted tariff offerings • target segment broadened with prepaid launch this week • Increased consumer focus on differentiated service offering • Big Brother, Sony & Warner music, multiplayer games, Playboy • comprehensive business messaging solution
Slide 10: Voice Leading Offering
Voice Leading Offering With • Value leadership for basic voice services cemented • simple, targeted mobile calling rates • on-net and fixed line replacement incentives • clear and concise market communications driving results • Service enhancements targeting proven revenue generators • international
Slide 11: Funding
Funding • $1 billion in equity contribution – already in place • Additional facility with HWL – in place • $1.5 billion bank facility – signed on 17 August 2004 • five year term • favourably priced • strong support from local and international banks Anticipated peak funding requirements already cove
Slide 12: On Track
On Track • Strong customer and revenue growth to continue • Achieving strong results within a proven dual brand strategy • Tight capital and operational expenditure discipline to ensure leading services are provided at competitive prices • Strong growth with minimal capital requirements • Momentum b
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