Hutchison Telecommunications (Australia) Ltd
Hutchison Telecommunications (Australia) — H1 2008 Earnings Presentation
17 slides from Hutchison Telecommunications (Australia)'s earnings presentation, Aug 19, 2008
Slide 1: Hutchison Telecommunications (Australia) Limited 2008 Half Year Results
Hutchison Telecommunications (Australia) Limited 2008 Half Year Results Nigel Dews Chief Executive Officer 19 August 2008
Slide 2: Financial Highlights
Financial Highlights • Net customer growth of 230,000 in the half • Total revenue of $760.9m, up 23.7% • Total margin $539.7m, up 28.0% • Average monthly margin $90.0m, up 28.0% • EBITDA $90.3m, up 187.6% • EBIT loss $31.1m, a 64.7% improvement • Net loss $85.4m, a 56.7% improvement * Unless otherwi
Slide 3: Operating Highlights
Operating Highlights • Total 1.81 million customers, up 28.7% • Net customer growth of 230,000 in the half • 90.7% of base postpaid • Postpaid churn low and steady at 1.1% • 346,000 Mobile Broadband subscribers, up 322.0% • 82.6 million internet access and Planet 3 events, up 35.4% • 64.7% of custom
Slide 4: Key Financials
Key Financials Half Year to Half Year to ($million) Change 30 Jun 08 30 Jun 07 760.9 615.0 23.7% Total revenue Service revenue 683.8 549.2 24.5% EBITDA 90.3 31.4 187.6% EBIT (loss) (31.1) (88.0) 64.7% NPAT (loss) (85.4) (197.3) 56.7% CAPEX 78.6 134.7 41.6% Finance cost (54.3) (109.3) 50.3% Double di
Slide 5: Revenue and Margin
Revenue and Margin 761 704 ($ million) 615 568 540 491 490 422 382 322 1H06 2H06 1H07 2H07 1H08 Revenue Service Margin Continued strong growth 5
Slide 6: EBITDA, EBIT and NPAT
EBITDA, EBIT and NPAT 83 90 ($ million) 3 27 31 -36 -31 -94 -88 -88 -85 EBITDA EBIT -197 NPAT -234 -401 -525 1H06 2H06 1H07 2H07 1H08 On track for EBIT positive 6
Slide 7: Running Operating Expenditure
Running Operating Expenditure 476 430 ($million) 414 371 321 240 188 216 174 161 101 105 78 95 42 54 58 56 59 65 28 27 28 24 30 36 34 41 36 36 1H06 2H06 1H07 2H07 1H08 Other Adv & Promotion Employee Benefits Expense Net Handset Costs Direct Telecommunication Growth in roaming costs 7
Slide 8: Customer Acquisition Costs
Customer Acquisition Costs $284 $276 $265 $251 $227 1H06 2H06 1H07 2H07 1H08 Reduction due to mobile broadband modems 8
Slide 9: Customer Base
Customer Base 1,808 (Customers '000) 1,578 1,405 1,245 1,044 1H06 2H06 1H07 2H07 1H08 230,000 net increase in subscribers 9
Slide 10: Mobile Broadband subscribers
Mobile Broadband subscribers* (Customers ‘000) 346 195 82 1H07 2H07 1H08 *Mobile Broadband subscribers = Mobile Broadband cards, USB Modems, X-Series plans, Mobile Web plans and phones used as a modem Strong growth continues 10
Slide 11: Margin and ARPU
Margin and ARPU $67 $69 $69 $68 $65 $52 $52 $52 $48 $49 ARPU Margin 1H06 2H06 1H07 2H07 1H08 * Blended Margin and ARPU Margin steady underpinned by non-voice strength 11
Slide 12: Non-voice ARPU
Non-voice ARPU $20 $19 $18 $17 $17 $11 $11 $10 SMS $10 $10 3G services $9 $8 $8 $7 $7 1H06 2H06 1H07 2H07 1H08 3G services includes all non-voice services with the exception of SMS 29% of ARPU is non-voice 12
Slide 13: Non-voice usage
Non-voice usage Internet and Planet 3 access events 83 (millions) 72 61 Jun.07 Dec.07 Jun.08 Steady growth in non-voice usage 13
Slide 14: Capital Expenditure
Capital Expenditure ($million) 135 133 119 85 79 1H06 2H06 1H07 2H07 1H08 Returning to 2006 level 14
Slide 15: Network
Network • Expansion of 3G coverage to 96% of the population – Fringe build including 50 sites by year-end – 3G roaming on parts of Telstra’s 850MHz network, in addition to 2G roaming – Reduction in wholesale roaming rates • Upgrade to HSDPA 7.2 Mbps underway • Existing infill program continues Expan
Slide 16: Outlook
Outlook • Maintaining strong customer growth • Continued uptake of Mobile Broadband services • Ongoing upgrade of network to 7.2 Mbps • Network expansion in fringe areas • Lower wholesale roaming rates • Exit 2008 EBIT positive on a monthly basis Exit 2008 EBIT positive on a monthly basis 16
Slide 17: Slide 17
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