Tpg Telecom Limited · ASX:TPG
Tpg Telecom — FY2011 Earnings Presentation
20 slides from Tpg Telecom's earnings presentation, Sep 20, 2011
Slide 1: Full Year Results
2011 / “ FULL YEAR RESULTS 4 a “ ; 20 September 2011 WG - EA TELECOM
Slide 2: FY11 Financial Highlights
FY11 Financial Highlights FY11 EBITDA of $234.0m; 37% growth on prior year First full 12 months EBITDA contribution from PIPE Networks of $57.2m Strong organic EBITDA growth across all core continuing business operations Organic broadband subscriber growth for the year of 59k (77k On Net) On Net Bro
Slide 3: FY11 Financial Highlights
FY11 Financial Highlights $m FY11 FY10 Growth Revenue 574.5 508.0 13% EBITDA 234.0 171.1 37% NPAT 78.2 55.7 40% EPS (cents) 10.1 7.6 33% EPS (cents) excl. intangible amortisation* 14.3 11.8 21% * See Appendix for details
Slide 4: FY11 Financials: Consecutive Years of Strong Growth
FY11 Financials: 3 Consecutive Years of Strong Growth 2H09 1H10 1H11
Slide 5: FY11 Financials: EBITDA Growth
FY11 Financials: EBITDA Growth EBITDA Growth ($m) EBITDA Composition ($m) Strong organic EBITDA growth continued
Slide 6: FY11 Financials: Cash Flow
FY11 Financials: Cash Flow $m FY11 FY10 Operating Cash Flow 215.2 189.1 Tax (47.5) (16.8) Interest (23.4) (11.5) Capex (43.3) (68.2) Free Cash Flow 101.0 92.6 $19m delta between EBITDA and operating cashflow attributable to $12m reduction in trade payables and $7m increase in trade debtors (of which
Slide 7: Bank Debt
Bank Debt $m Group debt balance at 31 July 2010 332 Quarterly repayments of $20m (80) Additional voluntary repayments (net of a $10m (20) drawdown made during 1H11) Group debt balance at 31 July 2011 232 $48m undrawn facility available Quarterly repayments of $20m ongoing Debt to annual EBITDA lever
Slide 8: Segment & Product Analysis
Segment & Product Analysis $m TPG TPG Soul Other Consumer Corporate REVENUE Broadband PIPE Unalloc. Total Mobile Mobile Consumer Total Total FY10 258.5 38.4 41.7 28.8 367.4 111.4 29.1 - 508.0 FY11 298.8 49.2 10.7 15.5 374.2 109.0 91.3 - 574.5 TPG TPG Soul Other Consumer Corporate EBITDA Mobile PIPE
Slide 9: Broadband Subscribers
Broadband Subscribers • All subscriber growth is organic • On Net churn rate 1.5% • On Net Bundle key driver of growth • Overall On Net growth of 77k net additions in FY11
Slide 10: Broadband ARPU
Broadband ARPU Overall Broadband ARPU Trend • ARPU now trending higher as the best selling bundled plan ($59.99 incl. GST) forms a larger proportion of the customer base • The bundle also 2H11 Broadband ARPU composition generates monthly call charge revenue not included in these charts; currently ap
Slide 11: Home Phone Subscribers
Home Phone Subscribers Strong growth driven by On Net broadband bundle
Slide 12: Mobile Subscribers
Mobile Subscribers 201,000 total mobile subscribers 36,000 TPG mobile subscriber growth in FY11
Slide 13: IntraPower
IntraPower IntraPower acquisition effective August 2011 Provides secure and reliable “IT-as-a-service” Winner of 2011 Australian Telecommunications Users Group (ATUG) Award for the Best Communications Initiative for Small Business Trusted Cloud Platform Enables on-demand network access to a shared p
Slide 14: PIPE Networks
PIPE Networks Strong organic EBITDA growth, driven by domestic Fibre, Ethernet and IP sales $6.4m net gain on sale of domestic capacity IRU in 2H11 partially off-set by increased duct rental charges arising from network rollouts to service major contract wins FY10 EBITDA (pre acquisition by TPG) inc
Slide 15: PIPE Networks
PIPE Networks Fibre network at 1,847 cable kms at July 2011, with significant growth during FY11 due to VHA, ASX and IRESS dark fibre contracts. Utilisation up to 33% at Jul-11 (29% at Jul-10) as the existing “On-Net” network (lower delivery cost) is utilised, via strong organic growth in PipeFibre,
Slide 16: Guidance
Guidance $m Guidance FY12 EBITDA 250 - 260
Slide 17: Final Dividend
Final Dividend 2.25 cents per share final FY11 dividend Payable 22 November 2011 Record date 18 October 2011 DRP discount 2.0% Total dividends for FY11 = 4.5 cents per share
Slide 18: Appendix
Appendix The Group's accounts currently include substantial intangible amortisation charges which predominantly arise from the accounting for the acquisitions of TPG and PIPE Networks. These are non-cash items. The table below shows the expected ongoing amortisation schedule. Expected Amortisation S
Slide 19: Thank you
Thank you Questions?
Slide 20: Disclaimer
Disclaimer This presentation contains certain forward-looking and unaudited information. Such information is based on estimates and assumptions that whilst considered reasonable by the Company are subject to risks and uncertainties. Actual results and achievements could be significantly different fr