Macquarie Technology Group Limited · ASX:MAQ
Macquarie Technology — Macquarie Telecom — H1 2009 Earnings Presentation
25 slides from Macquarie Technology's earnings presentation, February 2009
Slide 1: Half Year Results 2009
Half Year Results 2009 For personal use only Macquarie Telecom
Slide 2: Current Economic Climate
Current Economic Climate For personal use only Macquarie Telecom has a diverse customer base. Macquarie Telecom delivers essential services to our customers. Macquarie Telecom has experienced strong profit growth during the current economic crisis. Macquarie Telecom expects this growth to continue d
Slide 3: Delivering on Strategy, Building Momentum
Half Year Results 2009 For personal use only Delivering on Strategy Building Momentum
Slide 4: Agenda
Agenda For personal use only 1. Half Year in Review 2. EBITDA Growth 3. 2009 Guidance 4. Revenue Summary 5. Australian Data and Hosting Business 6. Australian Voice Business 7. Mobiles Business 8. Asian Business 9. Financials
Slide 5: 1. Half Year in Review
1. Half Year in Review For personal use only • EBITDA profit of $12.0 million up 100% on pcp. • EBITDA as a % of revenue increased from 4.8% in 1H08 to 9.2% in 1H09. • EBIT profit of $4.3 million up from EBIT loss of $1.8 million in pcp. • Strong operating cash flows of $12.3 million up 94.4% on pcp
Slide 6: 2. EBITDA Growth
2. EBITDA Growth For personal use only $millions 14 12.0 12 10 7.7 8 6.5 6.0 6 4.8 4 2 - 1H07 2H07 1H08 2H08 1H09 EBITDA on solid growth path
Slide 7: 3. 2009 Guidance
3. 2009 Guidance For personal use only • FY09 profitability expected to continue on a solid growth path as our investments increasingly deliver profit benefits. • Capex for FY09 expected to be approximately 5-6% of revenue. A business with genuine momentum
Slide 8: 4. Revenue Summary – 1H09
4. Revenue Summary – 1H09 For personal use only • Total service revenue up 2.4% to $129.3 million on pcp. • Data & Hosting revenue up 20.9% to $47.6 million on pcp. • Voice revenue down 9.0% to $61.1 million on pcp. • Mobile revenue steady on pcp at $14.7 million. Revenue mix continues to improve
Slide 9: 4. Revenue by Line of Business
4. Revenue by Line of Business For personal use only $millions 125 13.5 14.7 12.9 14.8 5.7 5.3 13.6 6.0 5.0 5.2 100 35.30 36.78 39.36 47.59 41.84 75 50 72.12 73.00 67.18 57.97 61.11 25 - 1H07 2H07 1H08 2H08 1H09 Voice Data & Hosting Singapore Mobile Ongoing mix change towards higher margin business
Slide 10: 4. Revenue % mix by Line of Business
4. Revenue % mix by Line of Business For personal use only 10% 10% 12% 11% 11% 5% 4% 4% 4% 5% 28% 29% 31% 35% 37% 57% 57% 53% 49% 47% Ongoing mix change towards higher margin business
Slide 11: 5. Australian Data & Hosting Business
5. Australian Data & Hosting Business For personal use only • Hosting business leverages our primary data centre, the Intellicentre, to provide managed hosting services for mission critical applications. • Hosting success driven by Thought Leadership around. 1. Green IT 2. Enterprise Server Virtuali
Slide 12: 5. Australian Data & Hosting Business
5. Australian Data & Hosting Business For personal use only • Hosting business is performing strongly. • Data & Hosting revenue up 20.9% on pcp to $47.6 million for 1H09. • Data & Hosting 36.8% of total revenue in first half of year. • Corporate & Government Hosting revenue is approximately one thir
Slide 13: 6. Australian Voice Business
6. Australian Voice Business For personal use only • Voice service revenue of $61.1 million down 9.0% on pcp. • Voice revenue reduction primarily attributable to continued industry wide price pressure although customer retention remains strong. • Voice EBITDA grows 91.2% on pcp to $8.9 million. • Vo
Slide 14: 7. Mobile Business
7. Mobile Business For personal use only • Revenues steady at $14.7 million on pcp. • EBITDA profit of $1.2 million up from $1.0 million in pcp. • Continues to be an important element in bundled service solutions. • Growth in sophisticated and secure mobile data products. Mobile data gains traction
Slide 15: 8. Asian Business
8. Asian Business For personal use only • Revenue up 19.3% on pcp to $6.0 million. • IDD performs well in a competitive market. • Asian EBITDA profit of $0.4 million. • Investment in regional data network meets the needs of our regional customers. Adds a regional dimension to Macquarie’s business mo
Slide 16: 9. Financials - Gross Profit
9. Financials - Gross Profit For personal use only 60.0 50.0% 50.0 45.0% 40.0 43.4% 40.0% 30.0 40.8% 36.6% 35.0% 20.0 34.8% 33.8% 30.0% 10.0 - 25.0% 1H07 2H07 1H08 2H08 1H09 Gross Margin $m Gross Margin % Gross margin grows in both dollar and % terms
Slide 17: 9. Financials - Opex
9. Financials - Opex For personal use only 50.00 95.0% 45.00 90.0% 40.00 35.00 85.0% 88.7% 87.0% 85.4% 30.00 84.0% 80.0% 25.00 78.7% 75.0% 20.00 15.00 70.0% 10.00 65.0% 5.00 - 60.0% 1H07 2H07 1H08 2H08 1H09 Opex $m Opex % Gross Margin Opex as a % of gross margin continues to reduce
Slide 18: 9. Financials - EBITDA
9. Financials - EBITDA For personal use only ! ! ! ! ! ! ! " ! ! ! ! ! # !$ ! # !$ ! % &' ' # !$ # !$ # !$ # !$ ( ! " ! ! ! Voice share of allocated opex reduced in 1H09 as resources are redirected to the Data & Hosting line of business to support future growth. Momentum builds
Slide 19: 9. Financials - Capex
9. Financials - Capex For personal use only 8.00 16.0% 14.5% 7.00 14.0% 14.2% 13.6% 13.0% 10.3% 6.00 12.0% 5.00 10.0% 4.00 8.0% 3.00 6.0% 2.00 4.0% 1.00 2.0% - 0.0% 1H07 2H07 1H08 2H08 1H09 Capex $m Capex % Gross Margin Capex remains stable as a % of gross margin
Slide 20: 9. Financials - Profit & Loss
9. Financials - Profit & Loss For personal use only ($ millions) 1H08 1H09 Revenue from services 126.3 129.3 Carrier Costs 83.0 76.2 Personnel Costs 26.6 27.5 Other Operating Costs 10.7 13.7 T otal Costs 120.3 117.4 EBITDA 6.0 12.0 Depreciation & Amortisation 7.8 7.6 EBIT (1.8) 4.3 Net Interest 0.0
Slide 21: 9. Financials - Cash flow
9. Financials - Cash flow For personal use only ($ millions) 1H08 1H09 Cash flows from Operating Activities 6.33 12.31 Cash flows from Investing Activities (6.57) (5.96) Cash flows from Financing Activities (1.47) (1.13) Net Increase/(Decrease) in Cash Held (1.71) 5.22 Opening Cash & Cash Equivalent
Slide 22: 9. Financials - Cash flow
9. Financials - Cash flow For personal use only • Cash & cash equivalents of $27.8 million at 31 Dec 2008. • Strong operating cash flow of $12.3 million. • Net cash inflow of $5.2 million. • Capex $5.8 million. • Additional funding capacity in place. Strong Balance Sheet
Slide 23: Personal Accountable Service
Personal Accountable Service For personal use only • Macquarie Telecom has been judged on a global stage for the best customer care through the ' Personal Accountable Service'(PAS) program. • PAS is “Our attitude and commitment to delivering a superior experience for our customers through Ownership,
Slide 24: Summary
Summary For personal use only • Our revenue mix continues to improve, with growing contributions from Hosting and Data. • Our focus is driving profitable growth through leveraging communications technology change for medium to large sized business customers. • Our strong platform and proven track re
Slide 25: Half Year Results 2009
Half Year Results 2009 For personal use only Macquarie Telecom