FY08 RESULTS ANNOUNCEMENT PRESENTATION 4 MARCH 2009 · 2014-05-13 · FY08 RESULTS ANNOUNCEMENT...
Transcript of FY08 RESULTS ANNOUNCEMENT PRESENTATION 4 MARCH 2009 · 2014-05-13 · FY08 RESULTS ANNOUNCEMENT...
0
FY08 RESULTS ANNOUNCEMENT PRESENTATION
4 MARCH 2009
1
DISCLAIMER
This presentation contains forward looking information, including statements which constitute forward looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and
assumptions of our management and on information available to management only as of the date such statements were made.
Forward-looking statements include
(a) information concerning strategy, possible or assumed future results of our operations, earnings, industry conditions, demand and
pricing for our products and other aspects of our business, possible or future payment of dividends and share buy back program;
and
(b) statements that are preceded by, followed by or include the words “believes”, “expects”, “anticipates”, “intends”, “is confident”,
“plans”, “estimates”, “may”, “might”, “could”, “would”, and the negatives of such terms or similar expressions.
These statements are not guarantees of future performance and are subject to factors, risks and uncertainties that could cause the
assumptions and beliefs upon which the forwarding looking statements were based to substantially differ from the expectation
predicted herein. These factors, risks and uncertainties include, but are not limited to, changes in demand for the company’s
services, technological changes, the effects of competition, telecommunications sector conditions, changes in regulation and
economic conditions. Further, certain forward looking statements are based upon assumptions as to future events that may not
prove to be accurate. Therefore, actual outcomes and results may differ materially from the plans, strategy, objectives, expectations,
estimates and intentions expressed or implied in such forward-looking statements. Additionally, some of these statements refer to
board proposals to be submitted to ZON - Multimédia – Serviços de Telecomunicações e Multimédia, SGPS, S.A. (“Multimedia” or
“ZON”) AGM and subject to (i) its approval by Multimedia’s shareholders, (ii) the market conditions and (iii) the ZON’s financial and
accounting position as revealed in the financial statements approved by Multimedia’s AGM.
Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light
of new information or future developments or to provide reasons why actual results may differ. You are cautioned not to place undue
reliance on any forward-looking statements.
ZON Multimedia is exempt from filing periodic reports with the United States Securities and Exchange Commission (“SEC”)
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934, as amended. The SEC file number for PT Multimedia’s
exemption is No. 82-5059. Under this exemption, ZON Multimedia is required to post on its website English language translations,
versions or summaries of certain information that it has made or is required to make public in Portugal, has filed or is required to file
with the regulated market Eurolist by Euronext Lisbon or has distributed or is required to distribute to its security holders.
This presentation is not an offer to sell or a solicitation of an offer to buy any securities.
2
KEY HIGHLIGHTS
Total Operating Revenues
Revenues from Pay TV, Broadband and Voice
EBITDA
EBIT
Net Income
Δ % 2008/2007 2008 Consensus
776.6 Million Euros
244.5 Million Euros
100 Million Euros
47.9 Million Euros
+8.5%
+9.3%
+11%
+35%
(2.8)%
775 Million Euros
242 Million Euros
47 Million Euros
688.2 Million Euros n.a.
n.a.
2
3
KEY HIGHLIGHTS
RGUs
3P Customers
ARPU
Digital Subscribers
» 100 Thousand ZON BOXES installed
Record Broadband Growth
Record Voice Growth
Δ % 2008/2007 2008
+17.5%
+16.4 pp
+4.2%
+29.8%
+19.7%
3x
2834.3 thousand
23%
€32
495.8 thousand
479 thousand
327.1 thousand
3
4
I. Executing our Strategy Lead in 3Play
Deliver Excellence in Customer Service
Capture New Growth Opportunities
II. Delivering Results
5
6%
10%
14%
18%
23%
4Q07 1Q08 2Q08 3Q08 4Q08
ZON POSTED THE STRONGEST LIKE-FOR-LIKE GROWTH OF THE PAST 5 YEARS
1,561,61
1,68
1,75
1,85
4Q07 1Q08 2Q08 3Q08 4Q08
31,0
31,631,8
32,0
32,7
4Q07 1Q08 2Q08 3Q08 4Q08
2.413
2.515
2.608
2.690
2.834
4Q07 1Q08 2Q08 3Q08 4Q08
RGU [Total EOP - Thousands]
+17.5%
RGUs per Subscriber
+18.7%
Blended ARPU [Euros]
+5.6%
Triple Play Penetration [%]
+16.4pp
I. Executing our Strategy Lead in 3Play
5
6
62%
32%
6%
Single Play Double Play Triple Play
47%
30%
23%
Single Play Double Play Triple Play
OVER 23% OF ZON CABLE CUSTOMERS ARE 3 PLAY
53% SUBSCRIBE TO 2 OR MORE SERVICES, COMPARED WITH 38% IN 2007
2008
PAY TV
APR 08
ZON 3
ZON BOX
PVR + HD
CAÇA
E PESCA
MAY 08 JUL 08
MOV HD
JUN 08
RTP HD
SPORT TV
AFRICA
AGO 08
TV CINE 4 HD
DISNEY
CINEMAGIC
OCT 08
EUROSPORT HD
SPORT TV HD
DISNEY CINEMAGIC HD
DEC 08
ZON BOX HD +
VOD
JAN 09
TVI24
FEB 09
ZON BOX
SATELLITE
I. Executing our Strategy Lead in 3Play
SEP 08
2007
6
7
TV DIGITALIZED SERVICES (“FUNTASTIC”)
STRONG UPTAKE OF ZON BOXES IN JUST 2 QUARTERS
382400
417
446
496
4Q07 1Q08 2Q08 3Q08 4Q08
Digital Extended Basic Subscribers
[thousands]
26
18 17
29
50
4Q07 1Q08 2Q08 3Q08 4Q08
Digital Extended Basic Net Adds
[thousands]
24,7%25,6%
26,8%
29,0%
32,5%
4Q07 1Q08 2Q08 3Q08 4Q08
Digital Extended Basic Penetration of
Customer Base
[%]
53
91
3Q08 4Q08
ZON Box Subs QoQ
[thousands]
ZON Box Penetration of Customer Base
[%]
3,4%
6,0%
3Q08 4Q08
+29.8% +94.2%
+7.8 pp
+72.3% +2.5 pp
I. Executing our Strategy Lead in 3Play
7
8
26,5%
40,4%
16,4%
16,7%
ZON PT SONAECOM OTHERS
BROADBAND GROWTH - STRONGEST OF PAST 5 YEARS
400416
431
451
479
4Q07 1Q08 2Q08 3Q08 4Q08
1316 15
20
28
4Q07 1Q08 2Q08 3Q08 4Q08
BROADBAND
Broadband Subscribers
[thousands]
Broadband Net Adds
[thousands]
Broadband Market Shares
[%]
Source: Anacom 4Q08
Statistic Report
+19.7% +117.1%
SPEED
UPGRADES
30 Mbps 100 Mbps 2 Mbps
€14.99
UNLIMITED
DOWNLOADS UPGRADE
EURODOCSIS 3.0
JAN 08
ZON 3
MAY 08 JUL 08 MAY 08 SEP 08 SEP 08 OCT 08 JAN 09 JAN 08
NET
ADSL
ZON@FON E-
ESCOLINHAS
ZON WAS THE BB OPERATOR THAT CAPTURED
MOST GROWTH IN MARKET SHARE IN 2008
I. Executing our Strategy Lead in 3Play
28,9%
41,6%
12,5%
14,6%
2,4%
ZON PT SONAECOM OTHERS ZON ACQUISITIONS
2007
2008
8
9
2,5%
66,8%
20,9%
9,7%
ZON PT SONAECOM OTHERS
10,5%
60,6%
18,1%
10,9%
ZON PT SONAECOM OTHERS
200K CUSTOMERS
30
55
65
50
73
4Q07 1Q08 2Q08 3Q08 4Q08
VOICE – 327 THOUSAND CUSTOMERS ONLY 18 MONTHS AFTER LAUNCH
ACCELERATING GROWTH MOMENTUM WITH OVER 20 THOUSAND MONTHLY NET
ADDS IN 4Q08
VOICE
JAN 08
PORTABILITY
ZON 3
83
139
204
254
327
4Q07 1Q08 2Q08 3Q08 4Q08
Voice Subscribers
[thousands]
Voice Net Adds
[thousands]
Voice Market Shares
[%]
Source: Anacom 4Q08 Statistic Report,
Company Analysis
+291.8% +146.9%
JUN 08
UNLIMITED CALLS
MAY 08 NOV 08
I. Executing our Strategy Lead in 3Play
2007
2008
9
10
1,56
1,61
1,68
1,75
1,85
6%
10%
14%
18%
23%
0%
5%
10%
15%
20%
25%
1,4
1,45
1,5
1,55
1,6
1,65
1,7
1,75
1,8
1,85
1,9
4Q07 1Q08 2Q08 3Q08 4Q08
31,0
31,631,8
32,0
32,7
4Q07 1Q08 2Q08 3Q08 4Q08
100%89,5%
42,1%52,6%
1P TV +
Internet
TV + Voice 3P
RGUs per Sub and Triple Play
Penetration
[units, %]
Blended ARPU
[euros]
Churn and Customer Profile
[%]
+18.7% +5.6%
Churn Reduction
ARPU growth
Increase in RGUs per Sub
I. Executing our Strategy Lead in 3Play
10
11
68
30
819
20
9
26 9
85
37 342840
17 19 21
17
6
186
56
22
37
27
“ZON” LEADING BRAND AWARENESS 1 YEAR AFTER LAUNCH
(GfK BRAND AWARENESS SURVEY)
ZON leads in terms of brand awareness for Triple Play and Pay TV, and is well placed in Internet,
and Fixed Voice;
Key brand attributes were surveyed in areas such as service quality, concern for customer well-
being, innovation, good pricing.
Brand:
TV Publicity:
Other References
Other References
Top of Mind
Top of Mind
Triple Play Services TV Broadband Voice
Source: GFK
I. Executing our Strategy Lead in 3Play
147
2820
6 2
19
6
22
8
16
3
32
13
50
27
23
5
4 3
76
1911 2
13
215
5
88
21
11
12
Improvement in problem solving ability
Faster service
Better rates of customer satisfaction
New customer care free access number
Higher worker satisfaction, leading to lower rate of turnover
Zon.pt’s customer area and myzon.pt were redesigned; selfcare contacts more than doubled and
by the end of 2008 myzon.pt had 274 thousand registered users
Decrease in the number of complaints received from Consumer Associations
I. Executing our Strategy Excelence in Customer Service + Operational Efficiency
12
13
I. Executing our Strategy Clear Improvement in Customer Service
SIGNIFICANT REDUCTION IN THE NUMBER OF CUSTOMER COMPLAINTS
0,270,21
0,07
0,05
0,11
0,08
0,45
0,34
2007 2008DECO PROTESTE CIAC
Number of Customer Complaints by 1000 services
[units]
(24.4)%
13
14
I. Executing our Strategy New Growth Opportunities
LAUNCH MVNO
• 7 Thousand Customers 4Q08
• Voice Only So Far
• Launch broadband + Homezoning 1H09
ACQUISITION TV TEL & PARFITEL COMPLETED SUCCESSFULLY
+ RGUs
+ TV
+ Broadband
+ Voice
147.9 Thousand
88.5 Thousand
40 Thousand
19.4 Thousand
POTENTIAL TO LEVER 3P SUCCESS + ACHIEVE SIGNIFICANT COST SYNERGIES
14
15
I. Executing our Strategy Exceeding Growth Targets
ACHIEVED 2008
TARGET
WHAT WE HAVE ALREADY ACHIEVED IN 1 YEAR OF ZON
RGU / sub
BROADBAND
VOICE
RGU
% 3PLAY
PAY TV ≈ 60
≈ 60
≈ 180
≈ 360
≈ 8 p.p.
≈ 0.2
66
119
263
569
17 pp
0.3
(22)
79
244
421
17 pp
0.3
With Acquisitions Without Acquisitions
15
16
II. Delivering Results
17
61,8 63,7
2007 2008
715,7
776,6
2007 2008
629,5
688,2
2007 2008
REVENUE GROWTH
Operating Revenues
[millions of euros]
Pay TV, Broadband and Voice Revenues
[millions of euros]
+8.5%
+9.3%
II. Delivering Results Strongest Growth in the Market
Audiovisuals Revenues
[millions of euros]
+3.0%
46,249,2
2007 2008
Cinema Revenues
[millions of euros]
+6.6%
Note: the 2008 accounts include consolidation of acquisitions of TVTel and Parfitel operations as from November 2008; 17
18
15,414,7
2007 2008
168,3 171,1
2007 2008
221,9239,2
2007 2008
61,069,1
2007 2008
44,3
52,7
2007 2008
II. Delivering Results Margin Performance Supported by Cost Control
OPERATING COSTS GROWING ON THE BACK OF COMMERCIAL ACTIVITY,
BUT LESS THAN REVENUES
+19.1%
W&S
[millions of euros]
+7.8%
Direct Costs
[millions of euros]
+13.3%
Commercial Costs
[millions of euros]
+1.7%
Other Operating Costs
[millions of euros]
Average Monthly Costs per RGU
[euros]
(4.6)%
Note: the 2008 accounts include consolidation of acquisitions of TVTel and Parfitel operations as from November 2008; 18
19
74,1
100,0
2007 2008
70,2
83,6
2007 2008
220,2244,5
2007 2008
30,8%31,5%
2007 2008
EBITDA
[millions of euros]
+11.0%
EBITDA Margin
[%]
+0.7pp
EBITDA - CAPEX
[millions of euros]
+19.0%
II. Delivering Results Strongest Growth in the Market
EBIT
[millions of euros]
+35.0%
Note: the 2008 accounts include consolidation of acquisitions of TVTel and Parfitel operations as from November 2008; 19
20
-3,0%
-16,5%
-6,0%
11,0%
FINANCIAL PERFORMANCE 2008
Revenue Growth of 8.5% yoy
EBITDA Growth of 11% yoy
OUTPERFORMING PEERS IN A TOUGHER COMPETITIVE ENVIRONMENT
Source: Company Reports, ZON Analysis
Revenue Growth EBITDA Growth
Wireline
Wireline excl PRB
(9M08) (9M08)
9,0%
-1,6%
8,5%
Wireline
II. Delivering Results Strongest Growth in the Market
Note: ZON’s 2008 accounts include consolidation of acquisitions of TVTel and Parfitel operations as from November 2008; 20
21
49,347,9
2007 2008
II. Delivering Results Net Results
INFLUENCED BY HIGHER D&A, FINANCIAL CHARGES, IMPAIRMENT FROM
ACQUISITIONS
Net Income
[millions of euros]
(2.8)%
NET RESULTS BEFORE IMPAIRMENT CHARGE IN 4Q08
WOULD HAVE INCREASED BY 1.5% TO 50.1 MILLION EUROS
NET FINANCIAL EXPENSES INCREASED BY 22.2 MILLION EUROS
TO 25.9 MILLION EUROS LED BY HIGHER AVERAGE GROSS DEBT AND HIGHER INTEREST RATE ENVIRONMENT
DEPRECIATION INCREASED 15% TO 140.4 MILLION EUROS
DRIVEN BY HIGHER INVESTMENT IN TERMINAL EQUIPMENT AND LONG TERM CONTRACTS
TOTAL NET RESULTS OF 47.9 MILLION EUROS
Note: the 2008 accounts include consolidation of acquisitions of TVTel and Parfitel operations as from November 2008; 21
22
99,4
145,5
50,6
15,4150,0
160,8
2007 2008
"Baseline" CAPEX Non-Recurrent CAPEX
14,3
53,116,6
16,468,5
76,099,4
145,5
2007 2008
Terminal Equipment Other Pay TV, Broadband and Voice Infrastructure
II. Delivering Results Strong Commercial Activity Leading to Higher CAPEX
+46.4%
Baseline CAPEX
[millions of euros]
+7.2%
Total CAPEX
[millions of euros]
Note: The 2008 accounts include consolidation of acquisitions of TVTel and Parfitel operations as from November 2008; 22
23
23,5
59,0
83,6
89,6
148,2
153,2
119,9
28,9
13,8
552,5
2007
Working Capital
EBITDA - CAPEX
Acq of Own Shares
Acq of Fin Investments
Dividends
Long Term Contracts
Acquisitions' Debt
Other items
2008
II. Delivering Results Strong Growth
SUPPORTED BY SOUND CAPITAL STRUCTURE & ADEQUATE DEBT MATURITY
0,1
2,3
2007
2008
Net Financial Debt
[millions of euros]
Net Financial Debt / EBITDA
[x]
Note: the 2008 accounts include consolidation of acquisitions of TVTel and Parfitel operations as from November 2008; 23
24
II. Delivering Results Commitment to Shareholder Remuneration
PROPOSAL TO DISTRIBUTE 16 CENTS PER SHARE, REPRESENTING A CLOSE
TO 100% PAYOUT RATIO, CLEARLY AT A PREMIUM TO PEER GROUP, TO BE
APPROVED BY THE GENERAL SHAREHOLDERS MEETING ON 28 APRIL
4,4%3,9%
2,7%
0% 0%
3,8%
2,1%
1,2%
0% 0%
ZO
N
Tele
ne
t
VM
ED
MM
P
LG
I
Ro
ge
rs
Co
mca
st
Ca
ble
vis
ion
TW
C
Me
dia
co
m
Dividend Yield (1)
[%]
100%
0%
49%
0% 0%
54%
26% 29%
0% 0%
ZO
N
Tele
ne
t
VM
ED
MM
P
LG
I
Ro
ge
rs
Co
mca
st
Ca
ble
vis
ion
TW
C
Me
dia
co
m
Payout Ratio
[%]
(1) Defined as cash dividend per share divided by current share price.
Source: Broker Consensus 24
25
Operating Revenues
EBITDA (1)
EBITDA margin
Operating Profit (EBIT) (2)
Net Income
“Baseline” CAPEX
Earnings Per Share (Euro Cent)
Net Financial Debt
II. Delivering Results
Financial Highlights
[millions of euros]
715.7
30.8%
74.1
49.3
99.4
776.6
244.5
31.5%
100.0
47.9
145.5
8.5%
0.7 pp
46.4%
2007 2008 Δ % Y.o.Y.
11.0%
35.0%
(2.8)%
220.2
15.96
23.5
16.26
552.5
1.9%
n.a.
(1) EBITDA = Income From Operations + Depreciation and Amortization;
(2) EBIT = Income Before Financials and Income Taxes
Note: the 2008 accounts include consolidation of acquisitions of TVTel and Parfitel operations as from November 2008; 25