Hutchison Telecommunications (Australia) Ltd
Hutchison Telecommunications (Australia) — FY2004 Earnings Presentation
13 slides from Hutchison Telecommunications (Australia)'s earnings presentation, Feb 15, 2005
Slide 1: Hutchison Telecommunications (Australia) Limited 2004 Annual Results
Hutchison Telecommunications (Australia) Limited 2004 Annual Results For the year ended 31 December 2004 Kevin Russell Chief Executive Officer 15 February 2005
Slide 2: 2004 Highlights
2004 Highlights • Mobile base increased to 879,000 customers • Service revenue more than doubled • Strong operational performance across the business • Annual losses within guidance and expected to have peaked • Industry leading postpaid customer growth • ARPU significantly above industry averages •
Slide 3: Key Financial Results
Key Financial Results 2004 2003 Growth $million Service Revenue 523.1 240.9 117% Equipment Revenue 244.8 99.3 147% Operating Revenue (1) 767.9 340.2 126% EBITDA (2) -235.5 -223.4 -5% NPAT (3) -552.0 -409.8 -35% CAPEX (4) -307.4 -361.9 -15% (1) Operating Revenue excludes interest income and other non
Slide 4: Strong Uplift in Mobile Customer Base
Strong Uplift in Mobile Customer Base (Customers `000) 879 879 113% 453 802 412 412 87 325 426 397 15 77 2003 2004 2003 2004 3 Orange Postpaid Prepaid Market leading growth in postpaid customers 4
Slide 5: Strong Growth Throughout 2004
Strong Growth Throughout 2004 (Customers `000) (Service Revenue) 879 $312m 626 $211m +253 +$101m 412 $139m +214 +$72m 2H03 1H04 2H04 2H03 1H04 2H04 Growth accelerating in face of increasing competition 5
Slide 6: Ongoing Increase in Average Revenue Per User
Ongoing Increase in Average Revenue Per User Non-voice $88 ARPU $80 $11 $10 $2.8 $68 $11.4 $10 $56 $55 $52 22% 10% 5% 03 04 03 04 03 04 Hutchison 3 Orange 6
Slide 7: Acquisition Costs Declining in 3 and Orange
Acquisition Costs Declining in 3 and Orange $464 $416 $337 $299 13% 10% $187 $177 5% 03 04 03 04 03 04 Hutchison 3 Orange 7
Slide 8: Revenue Market Share Growth
Revenue Market Share Growth 12 months ago Today 3.5 % 7.0 % 2003 2004 Share of total market service revenue estimated to have doubled in 12 months Source: company reports and internal estimates 8
Slide 9: Delivering Results With Unmatched Product Offering in 3
Delivering Results With Unmatched Product Offering in 3 • 58% of base actively using 3G services • 44% of base regularly using content services • 200,000 content subscription services sold since September 2004 • 7 out of every 10 new postpaid customers subscribe to one or more content products in re
Slide 10: Path to Profitability
Path to Profitability • Revenue and margin scale starting to flow through • 3G network share agreement will deliver ongoing capex and opex savings versus a stand alone operation • New national roaming arrangement for 3 commences mid 2005 with lower tariffs • Handset costs continuing to decline • Bus
Slide 11: 3G Network Update
3G Network Update • Network and system stability – approx. 1,900 cell sites operational today – dropped call rate down to 1.3 % • Network share and roaming arrangements ensuring best of class W-CDMA network – network coverage expansion into Canberra by end 2005 – access to Telstra infrastructure fac
Slide 12: What's in store for 2005?
What’s in store for 2005? • Continuing to out-perform in revenue and market share growth • Target to exit 2005 with positive monthly EBITDA • Capitalising on established market presence, product and network leadership as competitors launch 3G • Continuing focus on revenue growth – non-voice revenue
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