Hutchison Telecommunications (Australia) Ltd
Hutchison Telecommunications (Australia) — H1 2007 Earnings Presentation
15 slides from Hutchison Telecommunications (Australia)'s earnings presentation, Aug 22, 2007
Slide 1: Hutchison Telecommunications (Australia) Limited 2007 Half Year Results
Hutchison Telecommunications (Australia) Limited 2007 Half Year Results Nigel Dews Chief Executive Officer 22 August 2007
Slide 2: Highlights 1H 07
* Highlights 1H 07 • Customer base increased by 160,000 active net additions • 1.4 million 3 customers, an increase of 35% • 93% of net additions were postpaid - 89% of base postpaid • 3 service revenue of $541.4 million, up 50% • 3 non-voice revenue at $138.7 million, an increase of 75% • 3 average
Slide 3: Financial Summary
Financial Summary ($million) Half Year to Half Year to Change 30 Jun 06 30 Jun 07 Service revenue 423.6 549.2 30% 3 service revenue 360.1 541.4 50% EBITDA 3.0 31.4 947% NPAT (524.7) (197.3) 62% CAPEX (84.5) (134.7) 59% Service revenue excludes device revenue, interest income and other income EBITDA
Slide 4: Mobile Customer Base
Mobile Customer Base (Mobile Customers '000) 2G 3 1,131 1,035 87 950 381 1,248 418 1,405 post-paid 1,245 (89%) 1,044 654 532 1H05 2H05 1H06 2H06 1H07 Continued strong growth 4
Slide 5: Service Revenue
Service Revenue ($million) 549 501 8 424 12 394 2G and Paging 364 64 3 129 146 541 489 360 265 218 1H05 2H05 1H06 2H06 1H07 50% increase in 3 service revenue on 1H 06 5
Slide 6: Margin and ARPU
Margin and ARPU $69 $67 $67 $69 $65 $49 $51 $48 $48 $48 ARPU Margin 1H05 2H05 1H06 2H06 1H07 Increase in ARPU and margin 6
Slide 7: Non-voice ARPU
Non-voice ARPU SMS 3G services $20 $19 $19 $17 $17 $16 $12 $13 $11 $11 $12 $10 $10 $9 $8 $8 $8 $8 $8 $7 $7 $7 $5 $4 1H04 2H04 1H05 2H05 1H06 2H06 1H07 1H07 Adj * Leading 3G services ARPU * Excluding former 2G CDMA customers now in the 3 customer base 3G services includes all non-voice services with
Slide 8: Non-voice usage
Non-voice usage • On average over 1 million customers accessed Planet 3 each month during the first half compared with 642,000 in 1H 06 • On average 635,000 customers per month were billed for at least one billed content event in 1H 07 compared with 484,000 per month in 1H 06 • 82,000 Broadband subs
Slide 9: Running Operating Expenditure
Running Operating Expenditure ($million) 414 391 371 354 321 Variable Costs 176 213 174 191 161 80 78 83 56 42 50 53 54 58 56 36 Fixed Costs 28 27 28 49 33 21 36 34 34 1H05 2H05 1H06 2H06 1H07 Other Adv & Promotion Employee Benefits Expense Net Handset Costs Direct Telecommunication Fixed costs stab
Slide 10: Customer Acquisition Costs
3 Customer Acquisition Costs $427 $377 $284 $276 $265 1H05 2H05 1H06 2H06 1H07 CAC relatively stable despite intensified market aggression 10
Slide 11: CAPEX
CAPEX ($million) 307 207 204 195 59 2H 119 1H 148 135 112 85 2004 2005 2006 2007 CAPEX build to meet capacity 11
Slide 12: Net Debt and Interest Charge
Net Debt and Interest Charge ($million) 30 Jun 06 31 Dec 06 30 June 07 Change Net debt 3,342.7 3,573.8 1,029.9 -69.2% Interest Charge 123.9 140.9 109.3 -11.8% Interest charge to fall by $250 million on annualised basis 12
Slide 13: Telecom New Zealand shareholding
Telecom New Zealand shareholding Current shareholder structure Post TCNZ rollup Other Shareholders HCAPL Public Other & Leanrose Shareholders HCAPL TCNZ 97.63% 87.86% HTAL HTAL 2.37% 2.14% 10.00% 80.06% 100% H3GAH TCNZ H3GAH 19.94% 100% 100% H3GA H3GA • Option for TCNZ to buy a further 9.94% of HTAL
Slide 14: What to Expect in 2H 2007
What to Expect in 2H 2007 • Exit 2007 with positive operating cashflow • Continued benefits from acceleration of 3G market growth • Strong growth in mobile broadband subscriptions • '3 Service' centres opening - covering all licence areas • Maintain leadership in non-voice service innovation On trac
Slide 15: EN Hutchison
EN Hutchison Hi Telecoms
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