Zegona Communications Plc · LSE:ZEG
Zegona Communications — FY2015 Earnings Presentation
13 slides from Zegona Communications's earnings presentation, Mar 8, 2016
Slide 1: Full Year 2015 Results
Full Year 2015 Results 8 March 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 year ended 31 December 2015. The estimated financial information contained herein was prepared expressly for use herein and is based on cert
Slide 3: Agenda
Agenda 1 Summary 2 Zegona strategy 3 Telecable 2015 results 4 Telecable 2016 outlook 5 Shareholder returns 1
Slide 4: Summary
Summary Robust 2015 performance with accelerating growth momentum into 2016 1 Zegona continues to see many attractive investment opportunities in European TMT 2 Telecable acquisition performing well, with strong finish to 2015 • Results fully in line with Zegona pre-acquisition expectations • Good p
Slide 5: Zegona Strategy
Zegona Strategy Zegona acquired Telecable in August 2015 for €640m and continues to see many attractive investment opportunities in European TMT 1 Experienced Team with Proven Track Record 2 Differentiated Buy-Fix-Sell Strategy Significant sector expertise Compelling, investor friendly Buy-Fix-S
Slide 6: Telecable - Introduction
Telecable - Introduction Leading quad play operator in Asturias, North West Spain Telecable is a Strong Regional Champion Spanish Cable Operators by Region Leading quad-play telecommunications provider in Asturias Asturias Region High profile local brand Advanced HFC network updated to latest
Slide 7: Telecable 2015 Financial Results
Telecable 2015 Financial Results Fully in line with pre-acquisition expectations, with continuing growth in Revenue, EBITDA and Cash flow Q4 Full Year €m Growth €m Growth Revenue 34.4 5.0% 134.4 2.7% EBITDA 16.2 3.3% 65.0 3.3% % Revenue 47% 48% Capex 7.3 3.2% 28.9 4.5% % Revenue 21% 22% Cash flow* 8
Slide 8: Telecable 2015 Operational Results
Telecable 2015 Operational Results Product and service enhancements driving KPI improvements 2014 2015 Growth Consumer* Revenue (€m) 97.7 99.0 1.3% Stable, high value customer base Customers (AOP K) 143 144 0.2% Continuing growth in RGUs RGUs (K) 454 456 0.4% ARPU growing & will accelerate in
Slide 9: Significant Progress on Key Strategic Initiatives
Significant Progress on Key Strategic Initiatives 1 Grow Consumer Revenues 2 Enhance Mobile Experience Doubled minimum BB speed to 200Mbps, launched 500Mbps Doubled mobile data allowances 4% Q4 YoY ARPU growth, now at record high of €59/mth Continued Wifisfera rollout, 60% traffic increase i
Slide 10: Telecable 2016 Outlook - Accelerating Growth Expected
Telecable 2016 Outlook - Accelerating Growth Expected Revenue growing circa twice as fast as 2015 with double digit cash flow growth Backdrop Accelerating Revenue Growth Targeting mid single digit revenue growth in 2016 Strong finish to 2015 Significant progress on key Mid single digit strategic
Slide 11: Zegona Shareholder Returns
Zegona Shareholder Returns Attractive dividend and additional capital return potential 1 Annual Dividend Policy Confirmed 2 Significant Additional Capital Return Potential 4.5p per share dividend policy for 2016 confirmed Telecable will generate significant excess cash in 2016 This cash is ove
Slide 12: Zegona Valuation Perspectives
Zegona Valuation Perspectives 1 Valuation multiple: Zegona 2015 EBITDA valuation multiple of only 8.5x vs Euskaltel at 10.8x* Circa 50% shareholder value upside compared to Euskaltel rating* 2 Growth: Telecable revenue growing faster than peers in 2015 - growth of 2.7% with acceleration to mid
Slide 13: Conclusions
Conclusions 1 Many attractive investment opportunities for Zegona in European TMT 2 Robust 2015 Telecable performance 3 Accelerating Telecable growth expected in 2016 4 4.5p dividend plus additional capital return capacity 5 Shareholder value upside potential 11