Sonera — Q2 2001 Earnings Presentation
17 slides from Sonera's earnings presentation, Jul 23, 2001
Slide 1: Interim Report April - June 2001
Interim Report April - June 2001 July 23, 2001 Interim Report 4-6/2001 1
Slide 2: Contents
Contents • Financial performance and UMTS projects Deputy CEO Aimo Eloholma • Q2 results per business area and financial position CFO Kim Ignatius Interim Report 4-6/2001 2
Slide 3: Financial performance in April - June
Financial performance in April - June • Consolidated revenues grew by 11% on the previous year, amounting to EUR 557 million (500) • The sale of VoiceStream and Powertel shares was completed: capital gains and other non-recurring items totaled EUR 588 million (857) • Profit before extraordinary item
Slide 4: Businesses in brief
Businesses in brief • Mobile Communications Finland continued to grow and showed good profitability: comparable revenues were up 10% on the previous year, and EBITDA margin was 52% • Revenues of Service Businesses grew by 34%, and EBITDA loss decreased compared with January - March • Revenues of the
Slide 5: Outlook for the second half of 2001
Outlook for the second half of 2001 • Growth in revenues expected to continue at the previous year’s level • Profitability of Mobile Communications Finland for the full year is estimated to remain at the previous year’s level • EBITDA loss of Service Businesses is estimated to decrease slightly from
Slide 6: Progress of Group 3G in Germany
Progress of Group 3G in Germany • Group 3G has signed a roaming agreement with E-Plus and an interconnection agreement with Deutsche Telekom; Group 3G will launch its GSM/GPRS service towards the end of 2001 • In June, RegTP approved the shared use of UMTS networks > Group 3G is currently negotiatin
Slide 7: Sonera's other 3G markets in Europe
Sonera’s other 3G markets in Europe • Xfera, Spain - the aim is to launch GSM/GPRS services by a roaming agreement in the autumn - UMTS network under construction; financed with external non-recourse project financing • IPSE 2000, Italy (launch in the first half of 2002) - management selected, and o
Slide 8: Interim report for April - June
Interim report for April - June Q2 results per business area and financial position • Kim Ignatius Interim Report 4-6/2001 8
Slide 9: Consolidated income statement
Consolidated income statement EUR million Q2/2001 Q2/2000 % 2000 Revenues 557 500 11 2,057 EBITDA 710 993 (28) 2,047 Operating profit 626 919 (32) 1,748 • Growth in revenues 11% • EBITDA increased by the sale of the VoiceStream and Powertel shares (gain from the transaction totaled EUR 596 million)
Slide 10: Consolidated income statement (cont.)
Consolidated income statement (cont.) EUR million Q2/2001 Q2/2000 % 2000 Equity income in associated (56) 38 (247) 121 companies Net financial expenses (10) (15) 33 (9) Profit before extraordinary items and taxes 560 942 (41) 1,860 Earnings per share 0.69 0.90 (23) 2.05 • Equity income in associated
Slide 11: Profitability of business areas: Mobile Communications Finland
Profitability of business areas Mobile Communications Finland EUR million Q2/2001 Q2/2000 % 2000 Revenues 310 287 8 1,134 EBITDA 161 135 19 543 Operating profit 129 101 28 414 • Comparable revenues were up 10% on the previous year; profitability improved further due to growth in revenues and tight c
Slide 12: Profitability of business areas: Service Businesses
Profitability of business areas Service Businesses EUR million Q2/2001 Q2/2000 % Q1/2001 Revenues SmartTrust 5 4 25 6 Zed 5 2 150 2 Other Services 84 64 31 55 Total 94 70 34 63 EBITDA SmartTrust (18) (13) (38) (18) Zed (34) (16) (113) (43) Other Services (19) (28) 32 (28) Total (71) (57) (25) (89) •
Slide 13: Profitability of business areas: Sonera Telecom
Profitability of business areas Sonera Telecom EUR million Q2/2001 Q2/2000 % 2000 Revenues 260 243 7 1,020 EBITDA 59 83 (29) 300 Operating profit 28 52 (46) 162 • Revenues from fixed network voice and data services were EUR 147 million (135) - domestic voice revenues decreased, while international v
Slide 14: Associated companies
Associated companies EUR million Equity income in associated companies Q2/2001 Q2/2000 2000 Mobile 2G associated companies (41) 44 147 Mobile 3G associated companies (10) - (2) Fixed network associated companies 10 7 38 Other associated companies - 3 4 Amortization of goodwill (15) (16) (66) Total (
Slide 15: Financial income and expenses
Financial income and expenses EUR million Q2/2001 Q2/2000 Change 2000 Dividend income 12 4 8 21 Interest income 45 5 40 82 Interest expenses (75) (23) (52) (155) Capitalized interest expenses 12 - 12 20 Other fin. income and exp. (3) 1 (4) 23 Exchange gains (losses) (1) (2) 1 - Total (10) (15) 5 (9)
Slide 16: Balance sheet
Balance sheet June 30, Dec 31, EUR million Change 2001 2000 Fixed assets 1,393 1,381 12 Long-term investments 5,914 4,779 1,135 Inventories and current receivables 739 3,458 (2,719) Short-term investments 1,915 68 1,847 Cash and cash equivalents 84 88 (4) Total 10,045 9,774 271 Shareholders’ equity
Slide 17: Financial position
Financial position • Sale of VoiceStream and Powertel completed according to plan on May 31 • Of the EUR 3.25 billion bridge loan, EUR 1.1 billion has been repaid by asset sales, and EUR 1.3 billion by a long-term loan facility; the remaining EUR 0.9 billion will be repaid by October 2001 • Equity-t