Hutchison Telecommunications (Australia) Ltd
Hutchison Telecommunications (Australia) — FY2008 Earnings Presentation
19 slides from Hutchison Telecommunications (Australia)'s earnings presentation, Feb 19, 2009
Slide 1: Hutchison Telecommunications (Australia) Limited 2008 Full Year Results
Hutchison Telecommunications (Australia) Limited 2008 Full Year Results Nigel Dews Chief Executive Officer 19 February 2009
Slide 2: Financial Highlights
Financial Highlights • Total revenue of $1.6 billion, up $305 million, or 23.1% • Total margin $1.2 billion, up 27.4% • Average monthly margin up to $96.8 million from $76.0 million • EBITDA $200.0 million, an increase of $86.0 million • Net loss $163.1 million, a $122.0 million improvement • Averag
Slide 3: Operating Highlights
Operating Highlights • 2,036,000 customers, an increase of 29%. Net adds of 458,000 for the full year, 228,000 in the second half year • 90.6% of base postpaid • Churn level low and steady - 1.2% • Mobile Broadband subscribers reached 526,000, up 169.7% for the full year and 52.0% for the half year
Slide 4: Revenue and Margin
Revenue and Margin ($ million) 862 761 704 615 622 540 490 421 1H07 2H07 1H08 2H08 Revenue Service Margin Continued strong growth 4
Slide 5: Key Financials
Key Financials Full Year to 31 Dec Full Year to 31 Dec ($million) Change 08 07 Total revenue 1,623.3 1,318.7 23.1% Service revenue 1,467.9 1,172.0 25.2% EBITDA 200.0 114.0 75.4% EBIT (loss) (58.5) (123.9) 52.8% NPAT (loss) (163.1) (285.1) 42.8% CAPEX 200.2 268.0 (25.3%) Net debt 865.4 1,066.9 (18.9%
Slide 6: EBITDA, EBIT & NPAT
EBITDA, EBIT & NPAT $200 $100 $0 -$100 2006 2007 2008 EBITDA EBIT -$200 EBIT – IFRS NPAT -$300 -$400 -$500 -$600 -$700 -$800 Strong Financial Performance Improvement 6
Slide 7: Mobile Customer Base
Mobile Customer Base (Customers '000) 2,036 1,808 1,578 1,405 1H07 2H07 1H08 2H08 Breakthrough 2 million customers with strong growth 7
Slide 8: Service Revenue
Service Revenue ($million) 784 684 615 557 1H07 2H07 1H08 2H08 25.2% increase in full year service revenue 8
Slide 9: Margin and ARPU
Margin and ARPU* $69 $69 $68 $67 $51 $52 $52 $51 ARPU Margin 1H07 2H07 1H08 2H08 Margin resilient in aggressive market * Blended ARPU and Margin 9
Slide 10: Non-voice ARPU
Non-voice ARPU $20 $19 $18 $17 SMS $10 $10 3G services $10 $10 $10 $9 $8 $7 1H07 2H07 1H08 2H08 31.2% of ARPU is non-voice 3G services includes all non-voice services with the exception of SMS 10
Slide 11: Total non-voice usage (excluding SMS)
Total non-voice usage (excluding SMS) 68% 64% 56% 53% • 199 million Planet 3 Content and Mobile Broadband events in 2008 • 1,289,000 customers per month billed for Planet 3 Content and Mobile Broadband in 2H08, up from 1,084,000 in 1H08 2005 2006 2007 2008 * % of customers billed for Planet 3 conten
Slide 12: Non-voice usage (excluding SMS)
Non-voice usage (excluding – SMS) Planet 3 Content and Mobile Broadband events 116 (millions) 83 72 61 1H07 2H07 1H08 2H08 Strong non-voice usage growth 12
Slide 13: Mobile Broadband subscribers
Mobile Broadband subscribers Customers (‘000) 526 346 195 82 Jun.07 Dec.07 Jun.08 Dec.08 180,000 new subscribers in 2nd Half Mobile Broadband subscribers = Mobile Broadband cards, USB Modems, X-Series plans, Mobile Internet plans and phones used as a modem 13
Slide 14: Running Operating Expenditure
Running Operating Expenditure 537 ($million) 476 414 430 253 240 191 213 137 112 105 83 65 56 59 65 25 27 28 30 34 43 36 55 1H07 2H07 1H08 2H08 Other Adv & Promotion Employee Benefits Expense Net Handset Costs Direct T elecommunication Handset cost drives running opex increase 14
Slide 15: Customer Acquisition Costs
Customer Acquisition Costs $274 $263 $238 2006 2007 2008 Full year CAC reduced 15
Slide 16: CAPEX
CAPEX ($million) 268 207 204 200 133 59 2H 119 121 1H 148 135 85 79 2005 2006 2007 2008 CAPEX back at 2006 level 16
Slide 17: 2009 Outlook
2009 Outlook • Continued growth in a highly aggressive environment • Further strong growth of Mobile Broadband • Maintain leadership in non-voice service innovation and usage • Network speed upgrades in line with capacity needs and mass market device speeds • Expansion of 3G coverage to 96% of the p
Slide 18: Proposed Merger with Vodafone
Proposed Merger with Vodafone • 50/50 joint venture (VHA) to form stronger single operator (Subject to shareholder, ACCC and FIRB approval) • 6 million customers, $4 billion revenue, 27% market share • Lead with Vodafone brand & 3’s strengths ‘innovation’, ‘value’ & ‘challenger’ • Significantly enha
Slide 19: Hutchison Hi Telecoms
EN Hutchison Hi Telecoms
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