Hutchison Telecommunications (Australia) Ltd
Hutchison Telecommunications (Australia) — H1 2011 Earnings Presentation
14 slides from Hutchison Telecommunications (Australia)'s earnings presentation, Aug 2, 2011
Slide 1: Hutchison Telecommunications (Australia) Limited 2011 Half-Year Results
Hutchison Telecommunications (Australia) Limited 2011 Half-Year Results Nigel Dews Chief Executive Officer Vodafone Hutchison Australia 2 August 2011
Slide 2: Financial results
Financial results HTAL profit / (loss) HTAL’s share of VHA results: $17.9m •Customer service revenue decreased 3.0% 1H10 1H11 to $1,038.5 million •6.6% decrease in half- ($78.2m) year operating margin •EBITDA $140.8 million, a decrease of 36.8% Unless otherwise stated, all % and $ increases are on t
Slide 3: VHA operating summary
VHA operating summary • Total customer base declined 375,000 to 7.2 million • Prepaid base down 347,000 to 3.0 million1 • Postpaid customer base unchanged at 4.2 million2 • 3.2 million 3G services3, up 36% YoY • Operating expenditure tightly controlled at $625.0 million4 • Integration cost synergies
Slide 4: HTAL's share of VHA key financials
HTAL’s share of VHA key financials ($millions) 1H11 1H10 $ var VHA EBITDA (% Service Revenue) Total revenue 1,137.6 1,179.1 (41.5) 20.8% Service revenue1 1,038.5 1,070.9 (32.4) 13.6% EBITDA2 140.8 222.7 (81.9) 11.4% Share of net profit (78.8) (0.6) (78.2) / (loss) from VHA3 Capital 162.1 124.1 38.0
Slide 5: VHA customer base
VHA customer base Underlying postpaid base Continued growth in data users unchanged Total customer base (‘000)1 3G services (‘000) 7,434 7,576 3,155 7,201* 3,004 3,248 3,319 2,973 2,317 2,333 2,149 1,535 4,186 4,257 4,228 782 855 822 Jun 10 Dec 10 Jun 11 Jun 10 Dec 10 Jun 11 Postpaid Prepaid 3G serv
Slide 6: HTAL's share of VHA service revenue & margin
HTAL’s share of VHA service revenue & margin Higher credits and interconnection costs $1,131m $1,071m $1,039m $828m $863m $774m 1H10 2H10 1H11 Service revenue1 Operating margin2 1 Service revenue excludes handset revenue, interest income and other income 2 Operating margin represents service revenue
Slide 7: VHA ARPU
VHA ARPU Slight reduction in ARPU... ...and non-voice ARPU steady ARPU1 Non-voice ARPU $53 $54 $53 $21 $22 $21 $11 $12 $11 $10 $10 $10 1H10 2H10 1H11 1H10 2H10 1H11 SMS 3G services2 1 ARPU represents the rolling 12 month average revenue per user per month at the end of the period across prepaid and
Slide 8: VHA operating and acquisition costs
VHA operating and acquisition costs Focus on retaining customers... ...and controlling costs Opex per customer1 Acquisition cost2 ($/customers) (per new customer) $181 $180 $187 $155 $135 $144 1H10 2H10 1H11 1H10 2H10 1H11 1 Operating expenditure per customer includes other direct costs of provision
Slide 9: VHA capital expenditure
VHA capital expenditure1 Accelerated investment... ...in strengthening the network Capex Capex (% service revenue) $177.4m $162.1m 15.7% 15.6% $124.1m 11.6% 1H10 2H10 1H11 1H10 2H10 1H11 1 HTAL’s share of VHA capital expenditure 9
Slide 10: Network improvement
Network improvement Network plan Progress Short-term performance issues New 3G 850MHz network In progress VHA network Upgrade existing 2G and 3G network In progress plan ahead of Replace network equipment across all sites In progress schedule Upgrade core and transmission network In progress New sit
Slide 11: Customer service improvement
Customer service improvement • adding 300 customer service staff Call centres • 24/7 support Call back • customer call back option now available Online • extension of Twitter and Facebook customer support support Community forum • customer forum to provide support and answers Coverage • enhanced cov
Slide 12: Progress on integration
Progress on integration On track to deliver integration cost synergies • Appointed new vendor for IT managed services • Voicemail platform consolidated • Improvements to key IT systems • Retail store consolidation largely complete • Retail store refit and upgrade two-thirds complete • Consolidation
Slide 13: 2011 VHA outlook
2011 VHA outlook Operationally turned the corner • Continue network upgrade and expansion plans • Launch further customer service improvements • Further churn improvements expected • Continue participation in fixed-line service trials with NBN Co • Engaged on ACMAs ‘Reconnecting the Customer’ initia
Slide 14: www.hutchison.com.au/Investor/InvestorCentre
www.hutchison.com.au/Investor/InvestorCentre
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