Macquarie Technology Group Limited · ASX:MAQ
Macquarie Technology — Macquarie Telecom — H1 2005 Earnings Presentation
21 slides from Macquarie Technology's earnings presentation, 2005
Slide 1: First Half Results 2005
First Half Results 2005 Macquarie Telecom delivering for business and government
Slide 2: Agenda
Agenda 1. Year in Review 2. Financial Summary 3. Full Year Guidance 4. Australian Data Business 5. Australian Voice Business 6. Mobile Business 7. Singapore Business 8. Financials 9. Regulatory delivering for business and government
Slide 3: Year in Review
Year in Review Macquarie is executing its strategy through investments in Metro Access Network, Security, Branding, Data IP expertise & expansion of regional capabilities Trend of improving revenue mix continues – data up 19.2% on pcp EBITDA loss of $0.9 million, within guidance, reflects investment
Slide 4: Macquarie Telecom - Convergence
Macquarie Telecom - Convergence needs solutions interaction integration Communicate Voice security accountable service voice Information Voice Mobile Mobile mobile data convergence Access Data Hosting Data hosting Storage Hosting
Slide 5: Financial Summary
Financial Summary 40 35 H104 H204 30 H105 25 20 15 10 5 0 -5 EBITDA ($m) Operating Cash Gross Profit (%) Data Services Flow ($m) Revenue ($m) Within expectations due to investments delivering for business and government
Slide 6: Full Year Guidance
Full Year Guidance Return to EBITDA profitability for 2nd Half 2005, positioning earnings back on a growth path Full year EBITDA will be within AGM guidance range at around breakeven. Investments to extend to the second half of FY05 delivering for business and government
Slide 7: Revenue base
Revenue base Data business revenue grows 19.2% to $28.5 million on pcp Mobile revenue grows 281% to $5.0 million on pcp Voice revenue reduction slows on previous period Singapore holds ground despite aggressive price reductions An evolving revenue base – from voice to data delivering for business an
Slide 8: Australian Data Business
Australian Data Business Strong revenue growth up 19.2% on pcp to $28.5 million All growth is organic, momentum in IP products Data 25% of total revenue in first half of year Data services revenue %of Data services revenue total revenue $m 30 25 81.0% 79.4% 75.5% 75.0% 20 15 22.1 23.9 27.2 28.5 10 1
Slide 9: Australian Data Business EBITDA
Australian Data Business EBITDA Data EBITDA loss of $0.9m down from profit of $3.5 for previous period Data profitability impacted by: - Investments in IP based products and service - Investment in enhancing depth and level of IP expertise Investments crucial to meet customers increasingly sophistic
Slide 10: Convergence
Convergence An IP based Metro Access Network Meeting customers growing bandwidth needs The next stage of Macquarie Telecom’s evolution Platform to leverage the increasing convergence of data and voice Enhance capacity for product development Improve service delivery, security and end to end customer
Slide 11: Australian Voice Business Revenue
Australian Voice Business Revenue • Voice service revenue of $75.1 million down 12.0% on pcp slowing to 1.5% reduction in comparison to prior period $m $36.6 $35.8 Access $32.6 $34.1 and Other $27.7 $26.2 Local & $22.3 $21.9 Fixed to Mobile $24.1 $23.3 $21.3 $19.0 Long Distance 2H03 1H04 2H04 1H05 V
Slide 12: Australian Voice Business EBITDA
Australian Voice Business EBITDA • Voice EBITDA of $4.0 million down 46% on pcp • Industry wide price pressure impacts voice profitability • ACCC decision on FTM access needs to be fully implemented to level competitive playing field Voice EBITDA Voice Carrier Cost Voice Carrier costs $m $m Voice Ca
Slide 13: Macquarie Mobile
Macquarie Mobile Revenues grow to $5.0 million up 281% on pcp Competitive necessity for bundled solutions Integrated mobile billing and real time reporting EBITDA loss improves to $0.6 million with evolving revenue base Mobile services combats competitor’s bundling delivering for business and govern
Slide 14: Singapore Business
Singapore Business Revenue up 2.6% on pcp to $5.4 million Revenue growth despite aggressive price reductions and SGD depreciation against AUD Revenue up 5.7% on pcp in local currency New IP based data and voice capabilities to support Multi National Clients in Asia Singapore revenue in AUD SGD 6 5 4
Slide 15: Financials
Financials Half on Half ($ millions except customer numbers) 1H03 2H03 1H04 2H04 1H05 Revenue from services 118.1 116.4 115.8 111.1 113.9 Carrier Costs 89.8 83.4 81.2 75.2 78.8 Personnel Costs 19.5 20.2 20.8 22.5 24.7 Other Operating Costs 8.1 10.7 10.1 9.1 11.3 Total Costs 117.4 114.3 112.2 106.7 1
Slide 16: Gross Profit
Gross Profit $millions 33.8% 40 31.7% 30.4% 35 28.8% Gross Profit GP% 24.5% 30 25 19.1% 19.4% 12.8% 15.9% 20 12.8% 15 11.0% 10 5 0 1H00 2H00 1H01 2H01 1H02 2H02 1H03 2H03 1H04 2H04 1H05 Gross profit impacted by price pressure in voice business delivering for business and government
Slide 17: EBITDA
EBITDA 10 8 6 4 $ millions 2 0 (2) (4) (6) (8) (10) (12) 00 00 01 01 02 02 03 03 04 04 05 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H EBITDA within guidance delivering for business and government
Slide 18: Solid balance sheet
Solid balance sheet Healthy cash position of $26.3 million at 31 December 2004 No debt Breakeven operating cash flow in 1H05, due to increased investment in operating activities Net cash outflow of $5.5m due to capital investments Well established fundamentals delivering for business and government
Slide 19: Capital investments
Capital investments Laying the foundations for the future Metro Access Network Further investment in security and hosting New IP based data and voice capabilities to support Multi National Clients in Asia The road-map for long-term growth delivering for business and government
Slide 20: Regulatory priorities in 2005
Regulatory priorities in 2005 T3 – A catalyst for regulatory and industry change Mobile Terminating Access Disputes DSL Competition Notice ABA/ACA Merger and ACMA Healthy competition delivering for business and government
Slide 21: Macquarie Telecom First Half Results 2005
First Half Results 2005 Macquarie Telecom delivering for business and government