Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Q1 2014 Earnings Presentation
19 slides from Telecom Argentina Sa Class B's earnings presentation, 2014
Slide 1: 1Q14 Earnings Release Conference Call Presentation
Telecom Argentina 1Q14 Earnings Release Conference Call Presentation
Slide 2: Disclaimer
Disclaimer This presentation is based on audited financial statements and may include statements that could constitute forward-looking statements, including, but not limited to, the Company’s expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividen
Slide 3: Agenda
Agenda Market Overview Business Highlights Financials Q&A 2
Slide 4: Market Overview: In a challenging context, new macro policies were implemented
Market Overview: In a challenging context, new macro policies were implemented Real GDP* CCI & Wages Trade Balance & Central Bank Reserves ∆ YoY - constant prices Consumer Confidence Index of Durable Goods Trade Balance (Billion U$S) Last 12 months National Wages - ∆ % YoY Central Bank Reserves (Bil
Slide 5: Agenda
Agenda Market Overview Business Highlights Financials Q&A 4
Slide 6: Business Highlights
Business Highlights Revenues up +23% driven by: 3G Customers - Mobile internet (+56%) 6.0 6.8 8.1 8.9 9.2 1Q13 2Q13 3Q13 4Q13 1Q14 - Strong increase in Data (+50%) and Broadband (26%) in 3G subs/ Customer base 32% 35% 41% 44% 46% the Fixed Business Non regulated fixed revenues grew +29% Handset Reve
Slide 7: Mobile: Continuous improvement in value proposition
Mobile: Continuous improvement in value proposition Mobile Customer Evolution Million of lines / Month/million of customers AR$/Month ARPU & Mob. Internet Unique User +10% 68.3 +16% 62.1 6.9 YoY var 6.3 6.7 5.5 5.8 27.7 Mobile Unique 26.8 +3% Internet User Voice +4% 66.8 19.1 19.3 19.9 20.1 19.9 57.
Slide 8: Positive results on smartphone strategy: Higher penetration of VAS
Positive results on smartphone strategy: Higher penetration of VAS with improved sellout return Million AR$ – Argentine Market Handset Revenues – Costs in million of AR$ Revenue SAC/ARPU & Breakdown Handset Subsidy 19,129 4.0 3.1 3.6 +26% SAC/ARPU 3.0 3,126 15,227 +63% 116 Handsets 1,915 +67% 2,088
Slide 9: Mobile Revenues: Browsing and non-P2P SMS VAS contribute to revenue growth
Mobile Revenues: Browsing and non non--P2P SMS VAS contribute to revenue growth Evolution of revenues 1Q13 – 1Q14 IFRS, Million of ARS, Percentage +1,053; +24% 361 96 5,501 190 232 4,448 134 40 YoY Variation +11% +9% +12% +56% +70% +37% 1Q13 Retail Wholesale Data Internet Handsets Paraguay* 1Q14 Rev
Slide 10: Fixed Broadband: Improved speed/value proposition to recapture flow share
Fixed Broadband: Improved speed/value proposition to recapture flow share Evolution of BB Thousand of broadband accesses, thousand of net adds ARPU & AR$/Month Accesses Churn Evolution +88k; +5% +20% 134.0 138.0 123.6 125.5 114.9 1,669 1,707 1,714 1.6% 1.5% 1.4% 1.3% 1.3% 1,626 1,634 1Q13 2Q13 3Q13
Slide 11: Fixed Voice & Data: ICT+Data are drivers of growth
Fixed Voice & Data: ICT+Data are drivers of growth IFRS Million of ARS Basic Services (excluding broadband and data) Data Revenues ARBU evolution +10% +31% 54.4 54.6 52.8 53.1 49.5 963 0.6% 0.6% 0.5% 0.5% 0.5% 735 +50% 1Q13 2Q13 3Q13 4Q13 1Q14 213 319 Evolution of Thousand of lines in service Lines
Slide 12: Fixed Services: BB + Data services continue to be key drivers
Fixed Services: BB + Data services continue to be key drivers Evolution of revenues 1Q13 – 1Q14 IFRS, Million of ARS, Percentage +349; +22% YoY var 1,965 106 151 -1 Regulated 1,616 40 +7% 53 30% Regulated 34% YoY Variation +8% +22% +50% +26% -7% Non Regulated 70% +29% Non Regulated 66% Revenues Reta
Slide 13: Capex: Outstanding performance in PP&E capex execution
Capex: Outstanding performance in PP&E capex execution with Capex: focus in Quality Upgrade Capex Evolution Million of ARS FTTC Rollout 4,851 +4x +49% 887 3,257 +5% Intangible Assets 842 +43% 1,062 1Q13 2Q13 3Q13 4Q13 1Q14 3,964 741 182 +64% -18% PP&E PP&E 2,415 222 Capex breakdown 880 +70% 519 Othe
Slide 14: Agenda
Agenda Market Overview Business Highlights Financials Q&A 13
Slide 15: TEO Group: Consolidated Results
TEO Group: Consolidated Results IFRS, Million of ARS, Percentage IFRS, Million of ARS, Percentage Revenues OIBDA* % of Revenues YoY Growth of OIBDA Pre-SAC22.2% Personal - Mobile 69% Capitalization +23% Fixed Business 16% +15% 8.8% 7.9% Broadband 10% Nucleo - Mobile 5% 1Q13 4Q13 1Q14 7,564 27,287 6,
Slide 16: TEO Group: Consolidated costs and OIBDA evolution
TEO Group: Consolidated costs and OIBDA evolution Operating Income Before Depreciation and Amortization 1Q13 – 1Q14 IFRS, Million of ARS YoY +313; +17% Variation 217 31 315 153 362 49 60 199 66 1,041 66% 46% 39% 36% 36% 2,112 25% 1,799 19% 6% 7% 16% OIBDA 1Q13 Ss. Revenues & Handsets Handsets Costs
Slide 17: TEO Group: Consolidated Results
TEO Group: Consolidated Results Net Income Operating Income attributable to IFRS, Million of ARS, Percentage IFRS, Million of ARS, Percentage Telecom 1Q13 1Q14 Net Interests $ 116 $ 190 FX results $ 13 -$ 280 Others $ 6 $ 58 +14% Total $ 135 -$ 32 +19% 4,518 3,966 3,202 +23% 2,685 +24% 992* 103* 1,1
Slide 18: TEO Group: FCF, Net Financial Position & Hedging Strategy
TEO Group: FCF, Net Financial Position & Hedging Strategy IFRS, Million of ARS - Last 12 months Free Cash Flow Operating free Cash Flow 1,649 359 1,033 7,877 5,172 283 856 461 2,988 OIBDA Capex Δ WK & others 4,020 5,080 Net Financial Position Net Financial Net Financial Telecom Argentina 1,571(1) Op
Slide 19: Agenda
Agenda Market Overview Business Highlights Financials Q&A 18