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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, 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.
1
I. EXECUTING OUR STRATEGY
Leadership in Triple Play
New Growth Opportunities
Superior Network
1
2
3
Excellence in Customer Service
Focus on Efficiency
4
5
4
LEADERSHIP IN TRIPLE PLAYTHE BEST TV OFFER WITH ENHANCED FEATURES & CONTENT
ZON Box
Launched2Q08
Pause Live TV
High Definition
Electronic Programming Guide
Cable &Satelite
Personal Video Recorder
Multiroom Viewing
Over 500 installations / day since launch
GRAVAÇÃO DIGITAL ATÉ 200 HORAS
5
Exclusive HDContent
EXECUTING OUR STRATEGYLEADERSHIP IN TRIPLE PLAY – TV CONTENT
� Funtastic Life: 80 Channels – € 28.24/month
� Clássico: 40 Channels – € 23.30/month
� Selecção: 16 Channels – € 15.85/month
3 Basic TV offers
Broad Selectionof Channels
6
Recent increase in speed Leading internet speed in the market
30Mbps
24Mbps
30Mbps
24Mbps�
24 Mbps
30 Mbps�
12 Mbps
18 Mbps�
4 Mbps
8 Mbps�
2 Mbps
4 Mbps
LEADERSHIP IN TRIPLE PLAYSPEED LEADERSHIP IN THE MARKET
2 Mbps
Unlimited Traffic
Mobile
offers
24Mbps24Mbps
7.2
Mbps
�30 Mbps�18 Mbps�8 Mbps�4 Mbps
7
59,49
Unlimited € 9.91 / month
Nights and Weekends € 6.93 / month
EXECUTING OUR STRATEGYLEADERSHIP IN TRIPLE PLAY–COMPETITIVE VOICE
8
Last update: 02ª September 2008
Unlimited Calls
Unlimited Calls
Unlimited Nights € 4.99 / month(*)
(*) Promotional price valid until 31/12/2008 – Price after promotion – € 5.99
53.69
EXECUTING OUR STRATEGYLEADERSHIP IN TRIPLE PLAY – BUNDLING
9
Last update: 13 November 2008
€ 44.90
€ 66.69
€ 62.88
Homezoning
• Fixed voice service and
HomezoningMobile Broadband
• Broadband internet service (up
Mobile voice
• Pre-paid services and soon to
Mobile Voice
EXECUTING OUR STRATEGYNEW GROWTH OPPORTUNITIES – 4 PLAY
• Fixed voice service and
internet access with limited mobility
• Satellite customer-oriented offers, expanding 3Play services to the whole country
10
• Broadband internet service (up to 7.2 Mbps) and full mobility
• Complementary mobility offer for ZON Netcabo customers
• Pre-paid services and soon to be launched post-paid integrated service
• Available to the whole market and with significant benefits for current ZON customers
Homes Passed (000) 475
Pay TV Customers (000) 92
EXECUTING OUR STRATEGYNEW GROWTH OPPORTUNITIES – ACQUISITIONS
11
Internet Customers (000) 45
Voice Customers (000) 19
Sales 07 (millions of euros) 32
EBITDA 07 (millions of euros) 14
These companies are not consolidated in ZON’s accounts as the acquisitions are still pending approval from the Competition Authority
STRATEGY SUPPORTED BY AN ADVANCED AND SCALABLE NETWORK
• 2.8 million homes passed mainly in the most densely populated and highest income regions of Portugal (56% of total households, estimated 80% of GDP)
–100% digitally enabled, frequency 750 MHz
–99.9% bi-directional, enabling broadband services
–98.8% VoIP compliant
• Network enabled for the roll-out of new services and broadband speed increases with low capex requirements
–Docsis 1.1 in place and upgrade to Eurodocsis 3.0 /
Cable areas
–Docsis 1.1 in place and upgrade to Eurodocsis 3.0 / wideband is being deployed (full roll-out until the end of 2009), with a new 100 Mb Broadband offer to be launched until the end of 2008
–Superior long term broadband capability
–Cell-splitting underway
• Control of key network elements
• Increase in cable footprint: + 300 thousand homes passed by YE2010
Nationwide coverage of TV services through satellite network
• 8 transponders from Hispasat (recently added 1 transponder)
Satellite areas
12
EXECUTING OUR STRATEGYEXCELLENCE IN CUSTOMER SERVICE
SMS service
New Self Care platform MyZON & MyMobile
Free support Number
New Call Centre Platform
SP Cerification
13
FOCUS ON EFFICIENCY
• G&A functions:
– Internalized ProShare activity with separate ERP system from July 2008
• IT:
– New outsourcing contract with Accenture effective from January 2009
• Call Center:
Sucessful completion of the spin-off process
• Call Center:
– New platform and new service providers in place since July 2008
• Acquisition of TVCabo dedicated network equipment in 4Q07;
• Renegotiation of service provider contracts
• Logistics
• Optimization of facilities
Continued focus on cost efficiency initiatives
14
18%
23%
12%
35%
ZON
Telenet
B Sky B
Comhem
OPPORTUNITY TO LEVERAGE LEADING PAY TV MARKET POSITION AND SUPERIOR NETWORK…
Triple Play penetration
41%
54%
29%
30%
50%
20%
96%
128%
ZON
Cabovisão
CableCom
UPC
Telenet
B Sky B
Comhem
Ono
16Source: Company Data, Anacom, Screen Digest, Pyramid Research. Data for charts as reported by companies and is dated 9M08, except Cabovisão (31 Aug 2008) and ONO (1H08).
Broadband penetrationin Pay-TV subscribers
Voice penetrationin Pay-TV subscribers
23%
83%
19%
23%
32%
15%
52%
175%
ZON
Cabovisão
Cablecom
UPC
Telenet
B Sky B
Comhem
Ono
5483
139
204
254
387400
416431
451
1.5211.547 1.561 1.557 1.539
STRONG OPERATING PERFORMANCE IN A MORECOMPETITIVE MARKET
Basic SubscribersBasic SubscribersBasic SubscribersBasic Subscribers[Total EOP [Total EOP [Total EOP [Total EOP ---- Thousands]Thousands]Thousands]Thousands]
+18.1
Broadband InternetBroadband InternetBroadband InternetBroadband Internet[Total EOP [Total EOP [Total EOP [Total EOP ---- Thousands]Thousands]Thousands]Thousands]
VoiceVoiceVoiceVoice[Total EOP [Total EOP [Total EOP [Total EOP ---- Thousands]Thousands]Thousands]Thousands]
+64.0+200.1
2.3182.413
2.5152.608
2.690
3Q07 4Q07 1Q08 2Q08 3Q08
3Q07 4Q07 1Q08 2Q08 3Q083Q07 4Q07 1Q08 2Q08 3Q083Q07 4Q07 1Q08 2Q08 3Q08
RGURGURGURGU[Total EOP [Total EOP [Total EOP [Total EOP ---- Thousands]Thousands]Thousands]Thousands]
356382 400 417
446
3Q07 4Q07 1Q08 2Q08 3Q08
Digital Extended BasicDigital Extended BasicDigital Extended BasicDigital Extended Basic[Total EOP [Total EOP [Total EOP [Total EOP ---- Thousands]Thousands]Thousands]Thousands]
+89.9 +372.0
17
31,0
31,6
31,832,0
1,56
1,61
1,68
1,75
DRIVING TRIPLE PLAY PENETRATION, RGU AND ARPU GROWTH
10%
14%
18%
3 Play Customers3 Play Customers3 Play Customers3 Play Customers[% of Cable Customers][% of Cable Customers][% of Cable Customers][% of Cable Customers]
+14pp
RGUs per SubscriberRGUs per SubscriberRGUs per SubscriberRGUs per Subscriber
+14.7%
Blended ARPUBlended ARPUBlended ARPUBlended ARPU
[Euros][Euros][Euros][Euros]
+3.5%
18% of cable subscribers are now Triple Play customers;
510 thousand customers subscribe to more than one service;
45% of gross adds are Triple Play customers;
Continued growth in RGU per subscriber to 1.75, driving growth in ARPU to 32.0.
30,9 31,0
3Q07 4Q07 1Q08 2Q08 3Q08
1,521,56
3Q07 4Q07 1Q08 2Q08 3Q08
4%6%
3Q07 4Q07 1Q08 2Q08 3Q08
18
155,5 171,2 170,5
508,1
3Q07 2Q08 3Q08 9M08
REVENUE GROWTH DRIVEN BY RGUS AND ARPU
14,5 14,0 15,7
44,6
3Q07 2Q08 3Q08 9M08
AudiovisualsAudiovisualsAudiovisualsAudiovisuals
8.2%
2.6%
y.o.y.
12,49,2
14,0
36,0
3Q07 2Q08 3Q08 9M08
Cinema ExhibitionCinema ExhibitionCinema ExhibitionCinema Exhibition
12.6%
+6.0%
y.o.y.
Pay TV, Broadband and VoicePay TV, Broadband and VoicePay TV, Broadband and VoicePay TV, Broadband and Voice
y.o.y.
9.6%
+9.0%
20
Consolidated Revenue growth of 9.2%. The core Pay TV, Broadband and Voice businesses recorded 9.6% top line growth driven by continued growth in the customer base (+1.2%), combined with higher RGUs per subscriber (+14.7%)
and higher ARPU (+3.5%).
176,9 189,2 193,1
570,4
3Q07 2Q08 3Q08 9M08
Total Operating Total Operating Total Operating Total Operating
RevenuesRevenuesRevenuesRevenues
+9.2%
+8.1%
y.o.y.
15,4 14,5 15,1
42,8
3Q07 2Q08 3Q08 9M08
54,7 58,9 58,4
177,5
3Q07 2Q08 3Q08 9M08
10,3 11,5 13,1
36,1
3Q07 2Q08 3Q08 9M08
COSTS DRIVEN BY INCREASED COMMERCIAL ACTIVITY
W&SW&SW&SW&S
+26.8%
+19.4%
y.o.y.
Direct CostsDirect CostsDirect CostsDirect Costs
+6.8%
+8.8%
y.o.y.
Commercial CostsCommercial CostsCommercial CostsCommercial Costs+5.9%
-2.0%
y.o.y.
Other Operating CostsOther Operating CostsOther Operating CostsOther Operating Costs
+4.1%y.o.y.
Total Operating CostsTotal Operating CostsTotal Operating CostsTotal Operating Costs
+7.7%
y.o.y.
120,0 125,9 129,1
384,2
3Q07 2Q08 3Q08 9M08
39,6 41,0 42,5
127,7
3Q07 2Q08 3Q08 9M08
21
+7.2% +7.5%
+7.7%
• Wages and Salaries increased due to the effects of internalization of several functions previously outsourced and theorganizational changes resulting from the spin-off.
• Higher Direct Costs led by higher Programming Costs due to the launch of new channels and the increase in Premium TVsubscribers; Other Direct Costs recorded a decline as a result of increased operational efficiencies and Interconnection charges.
• Commercial costs remained relatively flat y.o.y. due to a combination of higher commissions and marketing costs led byincreased commercial activity and lower COGS due to capitalization of customer terminal equipment.
• Other Operating Costs grew 4.1% y.o.y.. The most significant changes took place in Supplies and External Services (+12.5%)mostly due to the increase in customer activations and customer care related costs - given that customer care has been identifiedas a strategic priority, which has taken up significant resources and management time.
52,1 50,9171,0186,2
EBITDA AND NET INCOME PERFORMANCE
EBITDA / EBITDA MarginEBITDA / EBITDA MarginEBITDA / EBITDA MarginEBITDA / EBITDA Margin[Euro million / % of revenues][Euro million / % of revenues][Euro million / % of revenues][Euro million / % of revenues]
+12.7%
+8.9%
Net IncomeNet IncomeNet IncomeNet Income[Euro million][Euro million][Euro million][Euro million]
-15.1%
-2.4%
11,5
20,3
9,7
3Q07 2Q08 3Q08 9M07 9M08
56,8 63,3 64,0
3Q07 2Q08 3Q08 9M07 9M08
32.1% 33.5% 33.2%
32.4% 32.6%
22
EBITDA grew 8.9% despite higher costs associated with the launch of new channels, with the launch of a newcorporate brand and image and to improve the level of customer service. EBITDA as a margin of Turnover was 32.6%in 9M08.
Efforts are being made to contain Operating Costs whenever possible, increasing the overall levels of efficiency, namely
in IT, network and customer service.
CAPEX LED BY RGU GROWTH
[Euro million][Euro million][Euro million][Euro million]
CAPEX 3Q07 2Q08 3Q08 ∆ y.o.y. ∆ q.o.q. 9M07 9M08 ∆ y.o.y.
Pay TV, Broadband and Voice Infrastructure 14.6 15.4 21.1 44.0% 36.8% 44.8 49.9 11.2%
Terminal Equipment 4.8 12.3 15.5 219.5% 25.7% 10.5 35.1 233.4%
Other 3.9 3.1 5.2 30.9% 67.6% 8.8 11.6 31.1%
23
Baseline CAPEX in 9M08 reached 107.7 million euros, 18.9% of Operating Revenues, representing an increase of67.7% in relation to 9M07. The higher level of capital expenditure is explained mostly by higher investment in terminalequipment.
Non-Recurrent CAPEX of 11.1 million euros in 9M08 includes a number of non-recurrent items, the most significant ofwhich, 7.5 million euros relating to the acquisition of software licenses.
"Baseline" CAPEX 23.4 30.8 41.7 78.1% 35.4% 64.2 96.5 50.4%
Long Term Contracts 0.0 0.0 0.0 n.a. n.a. 0.0 0.4 n.a.
Other Non-Recurrent Items 0.0 9.6 0.8 n.a. (91.2%) 0.0 10.7 n.a.
Total CAPEX 23.4 40.4 42.5 81.7% 5.4% 64.2 107.7 67.7%
31,9
15,7
4,0
2,6
361,1
Acquisition of Own Shares
Acquisition of Financial
Investments
Long Term Contracts
Other Items
3Q08
60,5%
64,3%
2Q08
3Q08
Net Financial Debt / EBITDA Net Financial Debt / EBITDA Net Financial Debt / EBITDA Net Financial Debt / EBITDA
[X][X][X][X]
Net Financial Debt StructureNet Financial Debt StructureNet Financial Debt StructureNet Financial Debt Structure
[Euro million][Euro million][Euro million][Euro million] +6.4%+6.4%+6.4%+6.4%
NET FINANCIAL DEBT
2
Net Financial Gearing Net Financial Gearing Net Financial Gearing Net Financial Gearing
[%][%][%][%]1
339,5
5,9
21,5
2Q08
Working Capital
EBITDA -CAPEX
1,5
1,5
2Q08
3Q08
Net Debt Financial Gearing = Net Financial Debt / (Net Financial Debt + Total Shareholders’ Equity);24
Net Financial Debt amounted to 361.1 million euros at the end of 9M08 representing an increase of 21.6 million euros explained by the following main cashflow impacts in 9M08:
• Long term contracts (90.5 million euros);
• Acquisition of own shares within the Share Buyback Programme (83.4 million euros, of which 31.9 million euros in 3Q08);
• Dividend payments (153.2 million euros);
• Acquisition of a 20% stake in TVTEL in 1Q08 (16.8 million euros) and of a 20% stake in Parfitel in 3Q08 (15.7 million euros);
• In 3Q08 Operating Cash Flow was positive by 31.2 million euros, partly thanks to the more normalized level of Investment in Working Capital recorded in 3Q08.
2P
4%
26%
70%
20%
32%
48%
1P
3P
Triple Play Penetration
21%
66%
13%
REVENUE GROWTH DRIVEN BY RGUs AND ARPU
RGUs* per subscriberTV Cabo. End of period
ARPU/RGU*TV Cabo. Period average.
Euros
x1.40x0.87
Total RGUs*Thousands
x1.502007 2010E9M08
26* Revenue Generating Units. Includes Pay-TV, Funtastic Life, Broadband and Voice
Blended ARPU TV Cabo. Period average. Euros
30.8
2007 2010 E
36.031.8
1H08
x1.17
1.56
2007 2010 E
2.120.6
2007 2010 E
17.91.75
9M08
x1.40
9M08
x0.87
19.3
x1.50
2413
3,500-3,700
2609
2007 2010 E9M08
LOWER AND ESSENTIALLY REVENUE DRIVEN CAPEX
Capex/revenuesPercentage
23.5%
<15%
Average annual Capex(millions of euros) 156
120
2008-2010 Network CapexMillion euros
New functionalities
IT Systems
Other
Platform upgrade
Network expansion
2005-07 2008-10
27
• Network Capex 2008-2010: between 140 and 180 million euros
• Network Capex decrease from 2004-2006 to 2008-2010: 46%
Network
upgrade Network expansion
Platform
upgradesNew
Functio-
nalities
Total
Expand cable coverage Increase internet speedMillion homes Maximum speed. Mbps
2.8
2007
3.1
2010 2007 2010
100
SIGNIFICANT IMPROVEMENT IN FINANCIAL PERFORMANCE IN 2008-2010
Revenues EBITDA
• 2010E: €950 - €1000 million
• CAGR 07-10: 10% - 12%
• CAGR 04-06: 5% - 6%
• 2010E: €320- €345 million
• CAGR 07-10: 12-15%
• CAGR 04-06: 8%-9%
* Does not include capex related to telecoms contract
** EBITDA – capex - D Net working capital
Operational Free Cash Flow**CAPEX*
• CAGR 04-06: 5% - 6% • CAGR 04-06: 8%-9%
• 2008-2010P: <15% of revenues
• Variation: - 6pp (vs. 2004-06)
• 2008-2010P: €150- €170 million per year
• Variation: +130% to 162% (vs. 2004-06)
28
CONTINUED ATTRACTIVE SHAREHOLDER REMUNERATION POLICY
Ordinary dividend
• 20 cents per shareordinary dividend paid in 2008
Share buyback
• Up to 10% of share capital
•
• 30 cents per share special dividend paid in 2008
Special dividend
paid in 2008
• Progressive dividend policyin following years
pending on cash-flow
generation and non-
organic investment
opportunities
• To be implemented in
2008 and 2009 (an
additional 18 months
were approved at last
AGM held on 21 April
2008)
paid in 2008
29
IN SUMMARY
Leading Market Position in Portugal
• Pay TV (#1) – 1,539 thousand subscribers;
• Broadband (#2) – 451 thousand subscribers;
• Voice (launched 2007) – 254 thousand subscribers;
• Audiovisuals and Cinema (#1) – 213 screens, > 50 % market share.
Well defined growth opportunities
• Portuguese Pay TV and Broadband penetration lower than European average;
• Opportunity to upsell additional services and bundles to underpenetrated Pay TV customer base;opportunities
• Potential to leverage content into Portuguese speaking African countries.
State-of-the-art and scalable network
• 2.8 million homes passed, covering 80% of GDP in Portugal;
• 100% geographic coverage through DTH;
• Superior network speeds (30 Mbps in all cable footprint), increasing to 100 Mbps in 2008 already;
30
Strong FinancialPlatform for growth
• Growing revenues but stable cost base allowing for relevant margin improvement;
• Underleveraged capital structure providing operational, financial and strategic flexibility.