Zegona Communications Plc · LSE:ZEG
Zegona Communications — H1 2016 Earnings Presentation
13 slides from Zegona Communications's earnings presentation, Sep 7, 2016
Slide 1: H1 2016 Results
H1 2016 Results 7 September 2016 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 3 months and 6 months ended 30 June 2016. The forecast financial information contained herein was prepared expressly for use herein and is b
Slide 3: Agenda
Agenda 1 Summary 2 Zegona’s Strategy 3 Telecable H1 2016 Results 4 Shareholder Returns 1
Slide 4: Summary
Summary Telecable acquisition continues to deliver strong performance, on track for full year guidance 1 Zegona continues to see many attractive investment opportunities in European TMT 2 Telecable acquisition performing well • Results fully in line with full year guidance • 4.4% revenue growth • 10
Slide 5: Zegona's Strategy…. A Reminder
Zegona’s Strategy…. A Reminder Zegona acquired Telecable in 2015 for €640m and continues to see many attractive investment opportunities 1 Experienced Team with Proven Track Record 2 Buy-Fix-Sell Strategy Significant sector expertise Investor friendly Buy-Fix-Sell strategy in European TMT Exte
Slide 6: Telecable Overview
Telecable Overview Leading quad-play operator in Asturias, North West Spain Telecable is a Strong Regional Champion Telecable Well-Positioned for Future Consolidation Leading quad-play telecommunications provider in Asturias Asturias Region High profile local brand Advanced cable network deliv
Slide 7: Telecable Financial Results
Telecable Financial Results In line with expectations, with continuing growth in Revenue, EBITDA and Cash flow Q2 2016 H1 2016 YoY YoY €m Growth €m Growth Revenue 34.3 3.1% 69.2 4.4% EBITDA 16.7 0.2% 33.3 1.9% % Revenue 49% 48% Capex 5.1 - 16.7% 12.9 - 9.3% % Revenue 15% 19% Cash Flow* 11.6 10.2% 20
Slide 8: Telecable Operational Results
Telecable Operational Results Product and service enhancements driving KPI improvements H1 YoY 2016 Growth Consumer* Revenue (€m) 50.4 2.8% High value customer base Customers (AOP K) 139 -3.7% Stable RGUs ARPU (€/mth) 60.3 6.7% ARPU growing with recent price increase in line with market RGUs (
Slide 9: Significant Progress on Key Strategic Initiatives
Significant Progress on Key Strategic Initiatives 1 Grow Consumer Revenues 2 Enhance Mobile Experience Doubled min. BB speed to 200Mbps, launched 500Mbps Doubled mobile data allowances in January 2016 Investment in best-in-class football offering: customers Continued Wifisfera take-up to 61k
Slide 10: Shareholder Returns - Dividend Confirmed
Shareholder Returns - Dividend Confirmed £4.4m to be paid in October 2016 and a further £4.4m in March 2017 1 4.5p per share dividend confirmed 2 £8.8m full year payment 3 Half (2.25p/ £4.4m) to be paid in Oct 2016, balance in March 2017 4 Current dividend yield of 4.5%* 5 Intention to gro
Slide 11: Shareholder Returns - Reduced Interest Costs
Shareholder Returns - Reduced Interest Costs We are exploring the opportunity to refinance existing debt to significantly reduce interest costs Current Debt Possible Refinancing Potential Benefits Amount:1 €274m €274m Over €4m reduction in interest costs Maturity: Bullet in Aug 2022 Amortising but
Slide 12: Shareholder Returns - Valuation Perspectives
Shareholder Returns - Valuation Perspectives 1 Valuation multiple: Zegona June 2016 LTM EBITDA valuation multiple is only 7.3x1 vs Euskaltel at 9.3x2 Circa 50% shareholder value upside compared to Euskaltel rating 2 Growth: Telecable revenue growing faster than peers - growth of circa 3% in 20
Slide 13: Conclusions
Conclusions 1 Many attractive investment opportunities for Zegona in European TMT 2 Telecable performing well in 2016, building on a robust 2015 performance 3 Strong cash returns and shareholder value upside potential 11
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