C.a. Nacional Telefonos De Venezuela Class D · BVCV:TDV.D
C.a. Nacional Telefonos De Venezuela Class D — Compañía Anónima Nacional Teléfonos de Venezuela (CANTV) — Q1 2006 Earnings Presentation
16 slides from C.a. Nacional Telefonos De Venezuela Class D's earnings presentation, Apr 28, 2006
Slide 1: First Quarter 2006 Conference Call
First Quarter 2006 Conference Call 1Q06 Earnings Release April 28, 2006 Compañía Anónima Nacional Teléfonos de Venezuela (NYSE:VNT ; BVC: TDV.d)
Slide 2: Safe Harbor Statement
“Safe Harbor” Statement This document contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Actual results could differ materially from those predicted in such forward-looking statements. Factors which may cause actual
Slide 3: Initial Notes
Initial Notes • This presentation includes certain Non-GAAP financial Non-GAAP Non-GAAP data. Consequently, we are providing a reconciliation of measures measures such information to comparable GAAP measures included in this presentation and in our Earnings Press Release Bolivars Bolivars • Variance
Slide 4: Performance summary
Performance summary Compared to same period last year, first quarter 2006 represented for Cantv: 9 A four-fold increase of mobile subscribers net adds, bringing mobile customer base to nearly 5.6 million 9 A 75.4% growth in ABA (ADSL) lines 9 A 2.3% decline on EBITDA driven by growth related costs,
Slide 5: Revenues
Revenues Quarter-over-quarter growth Billions of Bs. ( ) % of total revenues 1,441 32.3% 1,089 654 72.5% (45%) Mobile 379 (35%) Broadband 188 45.8% 129 (13%) (12%) Fixed line 10.8% Switched segment access lines 599 3.0% 581 (42%) (55%) (53%) 1Q05 1Q06 While sustaining traditional Fixed service reven
Slide 6: Fixed business - Switched access lines
Fixed business - Switched access lines Quarter-over-quarter growth Switched access lines in service Revenues Thousands Billions of bolivars 3.0% (9) 31 3.222 599 (1) (3) 6.6% 3.114 581 3.098 3.043 2.971 1Q05 Local LD IX Others 1Q06 2.923 1Q06/1Q05 variations Net Adds 1Q06 Thousands (9) 24 2 17 Prepa
Slide 7: Fixed business - Broadband
Fixed business - Broadband Quarter-over-quarter growth Subscribers Revenues Thousands Billions of Bs. 188 ABA (ADSL) 45.8% Private Circuits 415 ABA 129 75.7% 93 75.4% (ADSL) 53 327 Private 95 25.0% Circuits 76 290 245 1Q05 1Q06 212 Broadband ARPU 186 Thousands of Bs. 30.8% 5,640 (3.6%) 17.7 16.5 16.
Slide 8: Mobile business
Mobile business Quarter-over-quarter growth Subscribers Revenues Thousands Billions of Bs. 7,750 72.5% 654 379 75.1% 5,588 5,188 1Q05 1Q06 1Q06 Average revenue per user (ARPU) Thousands of Bs. 4,004 9.1% 3,599 3,191 174 (1.6%) (5.4%) 36 43 1Q05 2Q05 3Q05 4Q05 1Q06 2006G* Prepaid Postpaid Blended Str
Slide 9: EBITDA variation 1Q06/1Q05
EBITDA variation 1Q06/1Q05 Billions of Bs. EBITDA Margin Normalized figures excluding pension increase in ’06 and (82) INTELSAT sale in ‘05 Favorable / (Unfavorable) (27) 352 (98) 34% 33% Includes Bs. 44.6 billion (26) increase in pension (129) 41% 30% expenses related to the July 26th 2005, Supreme
Slide 10: Cash flow
Cash flow Billions of Bs. 1Q06 1Q06 (167) 432 (77) Free cash flow (26) (6) Bs. 188 billion 1,255 1,099 Beginning cash EBITDA CAPEX Other FCF Net debt increase Other Ending cash 1Q05 1Q05 (120) 442 (212) 27 20 Free cash flow 1,125 Bs. 110 billion 968 Beginning cash EBITDA CAPEX Other FCF Net debt Oth
Slide 11: Balance sheet summary
Balance sheet summary Quarter-over-quarter growth Billions of Bs. Balance sheet structure Net cash As of March 31, 2005 14.5% 7,489 215 Total Assets 6,539 85 4,186 50.1% 1.125 2,789 Total 825 Liabilities Post-retirement 729 124.4% 1.635 benefit obligations Cash ST Debt LT Debt Net Cash Shareholder’s
Slide 12: 2006 Guidance - Revision
2006 Guidance - Revision Financial and operating indicators Year-Over-Year growth rates Original Revised Fixed services Switched access lines 3–5 3–5 ABA (ADSL) subscribers 38 – 48 38 – 48 Mobile services subscribers 21 – 23 45 – 54 Revenues 30 – 32 35 – 40 Cash operating expenses 29 – 26 34 – 34 EB
Slide 13: In closing…
In closing… 9 Revenue and free cash flow increased 32.3% and 72.1% respectively 9 Nearly 400 thousand net additions positioned our mobile customer base near to 5.6 million subscribers 9 Continued strong ABA (ADSL) sales increased our customer base to nearly 327 thousand subscribers, a 75.4% quarter-
Slide 14: Reconciliation of Non-GAAP financial measures
Reconciliation of Non-GAAP financial measures Billions of Bs. For the quarters ended March 31, 2006 and 2005 Bs. Bs. US$ US$ 2006 2005 2006 2005 EBITDA Net Income 183,882 294,907 86 137 Plus / (minus): Total income tax 64,068 (16,126) 29 (7) Interest income and exchange gain, net (20,308) (46,816) (
Slide 15: Reconciliation of Non-GAAP financial measures
Reconciliation of Non-GAAP financial measures Billions of Bs. For the quarters ended March 31, 2006 and 2005 Bs. Bs. US$ US$ 2006 2005 2006 2005 Free Cash Flow Net cash provided by operating activities 355,183 229,884 165 107 Minus: Net cash used in investing activities (166,810) (120,381) (77) (56)
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