Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — Q1 2019 Earnings Presentation
26 slides from Hellenic Telecommunications Organization Sa's earnings presentation, May 2019
Slide 1: OTE Hellenic Telecommunications Organization Q1 2019 Results
OTE Hellenic Telecommunications Organization Q1 2019 Results May 2019
Slide 2: Disclaimer
DISCLAIMER This presentation is provided to persons who are entitled to receive it in accordance with the laws and regulations of appropriate jurisdictions. This presentation is provided for information purposes only and does not constitute an offer or an invitation to buy or sell or subscribe to an
Slide 3: OTE Group Overview
OTE Group Overview Revenues Adj. EBITDA Adj. Capex Adj. FCF Market Cap Q1’2019 €909mn €311mn €176mn €29mn €5.4bn Revenues Adj. EBITDA Shareholders* Greece: Greece: DT: 76% 92% 46% Romania: Romania: Hellenic State: 24% 8% 5.7% OTE Group is the largest telecommunications provider in the Greek market a
Slide 4: Our Strategy
Our Strategy The 6 Pillars of our strategic plan Best Customer Revenue Lead in Technology Superiority Experience Transformation Core Business • Data services monetization • • Optical fiber networks: Massive • Digital Transformation COSMOTE brand superiority • Innovative services launch • Enhancement
Slide 5: Digital Transformation
Digital Transformation Simplify, Digitalize, Accelerate for superior Customer Experience & Operational Efficiency Digital @Customer Digitalize Service Digitalize Businesses Digital Interactions Simplify Portfolio Processes & Public Sector One App primary touchpoint Simplify Product & Tariff for
Slide 6: Number 1 in TRI*M in all our markets
Number 1 in TRI*M in all our markets COSMOTE Greece succeeds in remaining #1 in Customer satisfaction (TRI*M index) Strong BRAND “One world better for all” new brand promise Innovative “UFixIt app”: innovative digital care based on devices as interactive service tools with video CUSTOMER CARE co
Slide 7: Best Mobile Network in Greece
Best Mobile Network in Greece COSMOTE Fastest Mobile Network for 2018 Speed Score COSMOTE is Greece’s Speedtest Awards Winner for mobile network speed. 44.02 Carrier By OOKLA in recognition of providing the Fastest speeds for the Q3-Q4 award period Download Speed (Mbps) Upload Speed (Mbps) COSMOTE 1
Slide 8: Capex
Capex Adjusted Capex (€ mn) 900 782 26.0% 250 226 800 706 700 250 650 226 26.0% 200 167 26.0% 176 600 21.0% 165 200 167 176 148 23.2% 21.0% 165 500 20.6% 148 150 23.2% 21.0% 400 18.6% 150 16.0% 19.4% 100 18.2% 17.7%19.4% 16.0% 18.2% 300 16.0% 100 17.7% 15.2% 200 11.0% 11.0% 15.2% 50 100 11.0% 50 0 6
Slide 9: Cash Flow
Cash Flow Adjusted FCF (€ mn) Q1’19: +€22mn yoy 1,051 1,100 337 275 277 502 450 308 212 345 273 179 92 107 129 111 174 148 175 36 14 95 50 9 (11) (28) (410) (148) (165) (167) (176) (706) (650) (226) FY 2017 FY 2018 FY 2019 (185) (176) (167) Guidance (223) Q1'18 (213) Q2'18 Q3'18 Q4'18 Q1'19 Q1'17 Q2
Slide 10: Debt and Liquidity Profile
Debt and Liquidity Profile 0.8x Leverage (€ mn) 0.7x 0.6x 0.5x 0.4x 0.3x 0.2x 0.6x 0.5x 0.6x 0.6x 0.6x Net Debt/EBITDA 0.1x 0.0x 1,825 1,829 1,733 1,514 1,515 748 692 808 739 732 (766) (823) (1,018) (1,090) (1,001) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Gross Debt Cash and other financial assets Adj. Net Deb
Slide 11: Shareholder Remuneration Policy
Shareholder Remuneration Policy Dividend per Share (€) Estimated 2019 Payout (€mn) 0.50 0.46 Total 0.45 350 0.40 0.35 Remuneration 0.35 0.30 0.25 Extraordinary dividend of Share Buy Back 129 0.20 €0.06 deriving from the net 0.15 +31% proceeds of Albania disposal 0.10 Dividends 221 0.05 0.00 FY 2017
Slide 12: Greece
Greece OTE | Q1 2019 Results| 12
Slide 13: Greece – Financial Overview
Greece – Financial Overview Total Revenues (€ mn) Adj. EBITDA before IFRS 16 (€ mn) 50.0% 48.0% 1,000 46.0% 42.5% 44.0% 40.9% 40.8% 40.8% 900 35.0% 42.0% 39.2% 754 736 40.0% 800 686 711 697 38.0% 25.0% 700 36.0% 450 600 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 35.0% 15.0% 400 500 500 450 266 273 303 293 280 80
Slide 14: Greece – Financial Overview
Greece – Financial Overview Retail Fixed Revenues (€ mn) Mobile Service Revenues (€ mn) 350 35.0% 350 35.0% 300 300 25.0% 257 225 227 233 231 231 234 25.0% 250 250 213 222 215 15.0% 200 15.0% 200 1.2% 2.6% 1.2% 2.8% 150 0.5% 5.0% 150 -0.8% 0.8% -0.7% 1.2% 5.0% 100 100 -5.8% -5.0% -5.0% 50 50 0 -15.0
Slide 15: Greece – Fixed KPIs
Greece – Fixed KPIs Fixed-Line Market Evolution (000) OTE Fixed Lines at 2,647k 4,766 4,766 4,759 4,779 4,785 45% 44% 44% 45% 45% Retail Customers +0.1% y-o-y 55% 56% 56% 55% 55% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 OTE Market Share Competitors Market Share Net Additions (000) Total market +6k lines OTE |
Slide 16: Greece – Broadband KPIs
Greece – Broadband KPIs Broadband Market Evolution (000) Market Penetration OTE Broadband Lines at 1,920k 120% 100% 81% 81% 82% 83% 83% 3,841 3,865 3,887 3,955 3,987 80% 60% 68% 69% 70% 72% 73% 53% 53% 52% 52% 52% 40% 20% 47% 47% 48% 48% 48% 0% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q
Slide 17: Greece – Fiber Services
Greece – Fiber Services Fiber Subscribers (000) 586 Penetration of high-speed Fiber Broadband service at 600 531 483 100.0% 30.5% of retail broadband base 500 449 405 At March 31, total number of VDSL/Vectoring activated 80.0% 400 60.0% 300 60.6% 60.5% cabinets amounted to 14.4k up by over 600 u
Slide 18: Greece – COSMOTE TV
Greece – COSMOTE TV TV Subscribers (000) 700 100 600 528 526 534 542 540 80 +2.4% y-o-y Increase in Customer base 500 60 400 40 300 20 Champions League & Europa League 2018-2021 200 0 8 8 100 3 (2) (2) -20 English Premier League for 3 years 0 -40 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 TV Subscribers TV net a
Slide 19: Greece – Mobile KPIs
Greece – Mobile KPIs Data Revenues (€ mn) Avg.Data usage* (GB) 34% of Service Revenues 90 45.0% 79 80 74 75 40.0% 2.5 2.3 70 2.1 70 64 35.0% 2.0 2.0 1.8 60 30.0% 1.7 50 25.0% 1.5 40 20.0% 20.4% 1.0 30 15.0% 18.6% 17.8% 18.5% +24% 20 15.9% 10.0% 0.5 10 5.0% 0 0.0% 0.0 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1
Slide 20: Greece – Digitalization
Greece – Digitalization Smartphone penetration (%) COSMOTE Apps Active users penetration* (mn) 90% 80% 70% 64% 65% 60% 56% 50% 50% 47% 40% 30% +18pp 20% 10% 0% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Approx. 2.4 million App Active users Digital app has already attracted approx. 2.4 million users, taking advan
Slide 21: Romania
Romania OTE | Q1 2019 Results| 21
Slide 22: Romania – Financial Overview
Romania – Financial Overview Total Revenues (€ mn) Adj. EBITDA before IFRS 16 (€ mn) 300 100.0% 20.0% 14.6% 15.7% 18.2% 18.0% 242 16.0% 12.1% 238 80.0% 10.2% 227 227 14.0% 250 217 60.0% 12.0% 10.0% 60 8.0% 160.0% 200 40.0% 6.0% 4.0% 50 -1.7% 0.8% 20.0% 2.0% 41 150 -5.3% -9.0% -4.4% 0.0% 37 110.0% Q1
Slide 23: Romania – Financial Overview
Romania – Financial Overview Retail Fixed Revenues (€ mn) Mobile Service Revenues (€ mn) 120 120 120.0% 120.0% 100 100.0% 100 100.0% 80.0% 82 82 82 80 80 76 76 80.0% 66 63 60.0% 60.0% 60 59 58 40.0% 40.0% 60 60 5.4% 3.1% 20.0% -3.8% -6.6% 20.0% 40 -11.6% -14.0% -16.0% -15.7% -12.2% 0.0% 40 -18.1% 0.
Slide 24: Romania – Fixed KPIs
Romania – Fixed KPIs Voice Lines* (000) Broadband Lines* (000) TV Subscribers (000) Broadband lines Q1’19: +2.1% yoy 3,000 Q1’19: -4.5% yoy 3,000 Q1’19: -3.7% yoy TV Subscribers 2,500 3,000 2,500 2,500 2,000 2,094 2,097 2,112 2,142 2,137 2,000 2,000 1,464 1,463 1,454 1,443 1,409 1,170 1,500 1,161 1,
Slide 25: Romania – Mobile KPIs
Romania – Mobile KPIs Data Revenues (€ mn) Data Revenues as % of Service Revenues 30 80.0% 25 60% Data Revenues 20 19 19 60.0% 20 17 18 50% 40% 40.0% 15 28% 29% 29% 41.5% 30% 24% 24% 34.8% 20.0% 10 20% 5 9.3% 10.6% 0.0% 10% 5.9% 0% 0 -20.0% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19
Slide 26: Thank you
Thank you For more information please contact OTE Group Investor Relations: Tel: +30 210 611 1574 Fax: +30 210 611 1030 E-mail: iroffice@ote.gr or visit: https://www.cosmote.gr/fixed/en/corporate/ir OTE | Q1 2019 Results| 26
Hellenic Telecommunications Organization (OTE) — Q1 2019 Earnings Presentation on 6ix