Third Quarter Report, Jan-Sep 2001 - Telia Company · 2015-09-29 · 6 Telia AB, IR, 020-2001, eng...

Third Quarter Report, Jan-Sep 2001

Stockholm, 7 November 2001

www.telia.com

2

Telia AB, IR, 020-2001, eng

Higher growth

Growth in core businesses +13%

Telia Mobile +21%

Telia Internet Services +33%

Telia International Carrier +37%

Telia Networks +1%

3


Improved profitability

! Underlying EBITDA increased 8% —the margin totaled 24%

Q3 2000 Q3 2001Mobile 23% 30%

Networks 30% 35%

4


Mobile

Finland• UMTS license• GPRS launched

Sweden• UMTS license• GPRS launched

Norway• UMTS license• GPRS launched

Denmark• UMTS license• GPRS planned launch

" Sales growth 21%

" Underlying EBITDA margin upfrom 23% to 30%

" Nordic synergies

" Ground laid for mobile datagrowth

" Sales growth 21%

" Underlying EBITDA margin upfrom 23% to 30%

" Nordic synergies

" Ground laid for mobile datagrowth

5


Mobile

Growth Jan-Sep 2001

Telia Mobile Finland 186,000+37,000

Finland

Telia Mobile Denmark 351,000+54,000

Denmark

Total proportional numberof customers 5.4 million 3

Customers, 1,617,000Baltic states/Russia +458,000

NetCom ASA 905,000+55,000

Norway1

Sweden

Telia Mobile Sweden 3,395,000+138,000

2

MegaFon (17.8%)North West GSM (12.7%+11,3%)through Telecominvest 460,000

+207,000

Russia

**

Eesti Mobiililtelefon (24.5%)376,000+49,000

Estonia

**

Latvijas Mobilais (24.5%)319,000+49,000

Latvia

**

Omnitel (27.5%)462,000

+153,000

Lithuania

**

1 Excl. 121,000 SP customers 2 Excl. 83,000 SP customers 3Incl. SP customers ** total customers

Customers, Nordic countries 4,837,000 +284,000

6


MobileSweden

Subscription

Total

Cash

ARPU (SEK)

121 119 108 96 109 123 106 101 108 125

330 348 331 333 314 306 304 303273 280 303

375419 426 446 436 426 418 432

394 415 439

1010

100

200

300

400

500

Q31999

Q32000

Q32001

Subscription

Total

Cash

Churn 7%

MoU (minutes)

61 58 50 49 58 64 54 52 62 68

115 121 125 126 117 126 123 124 117128 129

126141 150

164 155167 160 170 162

175 176

64

0

100

200

Q31999

Q32000

Q32001

Growth both in use and revenue per customer

7


Mobile

Subscription

Total

Cash

Subscription

Total

Cash

MoU (minutes)

75 79 71 63 66 66 62 56 57 60

134 141 146 134 130143 145 136 131 141 147

161182 196 190 198

223 225209 210

231 238

84

0

50

100

150

200

250

Q31999

Q32000

Q32001Churn 34%

Norway

ARPU (NOK)

136 142 147 118 124 127 119 107 115 128

320 325 337 305 289 301 327 308 292 317 341

406444

486444 460 485

528 496 487534

567

1520

100

200

300

400

500

600

Q31999

Q32000

Q32001

Growth both in use and revenue per customer

8


Continued growth for SMS

Mobile

0

350

700

Norway 2001

Norway 2000

Sweden 2001

Sweden 2000

Share of sales Q3 2001Sweden 4%, Norway 15%Share of sales Q3 2001

Sweden 4%, Norway 15%

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

(million messages)

9


Mobile

New data services launchedSMS! MobileQuiz! InfoBrain! QuickDeal

GPRS! Telia Mobile OnLine! Telia Mobile Access! Telia Mobile InTouch! NetCom MobiMail

W-LAN! HomeRun “hot-spots”

Ongoing testing of MMS

10


Strong growth in broadband customers

Internet Services

(‘000)

0

30

60

90

120

150

180

1999 2000 Q1 2001 Q2 2001 Q3 2001

ADSL/LAN Sweden DenmarkHigh-speed Internet via cableSkanova

11


Internet Services

Sales growth +33%

! Sales growth for access services +51%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1997 1998 1999 2000 200130 Sept

Narrowband Internet access:37% market share in SwedenNarrowband Internet access:37% market share in Sweden

Broadband:55% market share in Sweden

Broadband:55% market share in Sweden

(customers)

12


Sales growth +37%

International Carrier

! Robust sales growth in

! capacity +185%

! IP traffic +228%

! infrastructure +271%

! voice -1%

13



Earnings weakened Actions

! Continued market turbulence

! Additional reserves for baddebt expense

! Increased costs for leasedcapacity for new customers

! Increased costs for operation& maintenance

! Reinforcing sales andmarketing resources

! Further tightening of thecredit policy

! Replacing leased lineswith own infrastructure

! Renegotiating operatingagreements with asmaller number of majorvendors

! New organization

14


Scope of the network:Infrastructure buildout 30 Sep 2001Total fiber-optics in km (in use) 29,500Ducts km (Europe) 8,000PoPs (total) 81

Scope of the network:Infrastructure buildout 30 Sep 2001Total fiber-optics in km (in use) 29,500Ducts km (Europe) 8,000PoPs (total) 81

Rapid network buildoutRapid network buildout


15


Networks

! Mature fixed network operations show +1% sales growth

! Good improvement in profitability — underlying EBITDA +15%

! Margin strengthened from 30% to 35%

! More stable prices

16


Networks

Retail market

Residential customers

! Subscription fees raisedfrom March 1

! Cost management andincreased efficiency

! Development of value-added services

! Streamlining of customerservices

Business customers

! Increased sales for value-addedservices +11%

! New service - Telia City Connect

! Maintained prices and increasedefficiency

17


Networks

Wholesale market

! Sales growth +17%

! Demand for leased capacity +25%

! Powercom supplements Telia’s business and network

! Telehost

18


Networks

Continued streamlining

! Product portfolio

! Sales costs

! Capital productivity

! Quality improvements

Stable market shares andimproved profitability

19


Telia IPO

ScandinaviaOnline (listed)

Altitun

IN good company ABStarman Kaabel-televisiooni ASSvefo ABTelia ContractingTelia KompetensTelia Konferens

SmålandsbörsenData AB

Telia Academy ABSystem &

Service A/SEniro (listed)

Eniro sharesTelia Real

EstateTelia IberiaProvision,TII + Satellit

Eircom (Eircell)Combinator IT ABTelia Trading ABSi.Mobil

51% of Telefoscompanies

DRSTessTelia FinlandPanorama Polska

Divestitures/partial divestitures 2000-2001

Refine and focus strategy

OrbiantEircom

Q1-Q2 Q3 Q4 Q1 Q2 Q3 Q42000 2000 2000 2001 2001 2001 2001

Capital gain GSEK 6.4 Capital gain GSEK 3.2Cap.gainGSEK 2.6

No. of employees32,000




20


The Telia Group

Net salesGrowth +7%,

Core business +13%Growth +7%,

Core business +13%

0

4,000

8,000

12,000

16,000

42,000

46,000

50,000

54,000

58,000Quarter (MSEK)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q399 99 99 99 00 00 00 00 01 01 01

Rolling 12 month (MSEK)

13,48714,431

21


Underlying EBITDAGrowth +8%,

Core business +15%Growth +8%,

Core business +15%

The Telia Group

0

1,000

2,000

3,000

4,000

Q199

Q299

Q399

Q499

Q100

Q200

Q300

Q400

Q101

Q201

Q301

11,500

12,000

12,500

13,000

13,500

14,000

14,500Quarter (MSEK) Rolling 12 month (MSEK)

3,1803,420

22


Underlying EBITDA margin

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q31999 1999 2000 2000 2000 2000 2001 2001 2001

20%

22%

24%

26%

28%

Rolling 12 month

The Telia Group

23


(Equity)

188

1,046

254

0

1,000

2,000

3,000

4,000

5,000

9m 2000 9m 2001 31/10 2001

(MSEK) Sales

*) Excluding the Orbiant group

2,392

4,487

668

0

1,000

2,000

3,000

4,000

5,000

9m 2000 9m 2001 31/10 2001retainedcompanies

*)

(MSEK) Underlying EBITDA

retainedcompanies

*)

Effects of the refine and focus strategy

24


Sales

Financial overviewGrowth Q3 00 # Q3 01

21%Growth Q3 00 # Q3 01

21%

Mobile

Quarter (MSEK)

0

1,000

2,000

3,000

4,000

5,000

Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01

3,664

4,439

25


Underlying EBITDAGrowth Q3 00 # Q3 01

53%Growth Q3 00 # Q3 01

53%

Mobile

Quarter (MSEK)

0

200

400

600

800

1,000

1,200

1,400

1,600

Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 010%

5%

10%

15%

20%

25%

30%

35%

944

1,448

Margin

26


SalesGrowth Q3 00 # Q3 01

33%Growth Q3 00 # Q3 01

33%

Internet Services

Quarter (MSEK)

0

200

400

600

800

1,000

Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01

601

797

27


Underlying EBITDAImprovement Q3 00 # Q3 01

24%Improvement Q3 00 # Q3 01

24%

Internet Services

Quarter (MSEK)

-450

-400

-350

-300

-250

-200

-150

-100

-50

0

Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

Margin

-303

-229

28



37%Growth Q3 00 # Q3 01

37%


Quarter (MSEK)

0

200

400

600

800

1,000

Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01

710

976

29


Underlying EBITDA


Quarter (MSEK)

-700

-600

-500

-400

-300

-200

-100

0

100

Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

-87

-614

Margin

30



6% *) Growth Q3 00 # Q3 01

6% *)

Networks

Quarter (MSEK)

0

2,000

4,000

6,000

8,000

Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01*) For comparable units growth was 1%

7,1997,601

31


Underlying EBITDAGrowth Q3 00 # Q3 01

15%Growth Q3 00 # Q3 01

15%

Networks

Quarter (MSEK)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 010%

5%

10%

15%

20%

25%

30%

35%

40%

2,655

3,052

Margin

32


Growth

Increasing share of revenue from growth areas

Networks61%

Equity13%

Mobile17%

1999

Internet Services

4%


5%

Q3 2001

Mobile31%

Networks52%

InternetServices

6%


7%

4% Equity

33


Share of earnings

Share of earnings in associated companies(MSEK)

-1,000

-500

0

500

1,000

1,500

2,000

2,500

Q31999

Q41999

Q12000

Q22000

Q32000

Q42000

Q12001

Q22001

Q32001

-759

2,339

34


Associated companies

Participation Book Marketin percent value value

(MSEK) at 30 Sep at 30 Sep

Eniro AB (Sweden) 25.5 402 3,218Scandinavia Online AB (Sweden) 24.6 95 30AS Eesti Telekom (Estonia) 24.5 537 1,168AB Lietuvos Telekomas (Lithuania) 30.0 2,374 797Netia Holdings S.A. (Poland) 48.1 0 118Infonet Services Corp. (USA) 20.0 2,159 2,166Eircom plc 14.0 2,837 4,287

Total 8,404 11,784

*) Incl. Loans of MSEK 3,258

*)

35


Investments

(MSEK)

0

3,000

6,000

9,000

12,000

15,000

18,000

Q31999

Q41999

Q12000

Q22000

Q32000

Q42000

Q12001

Q22001

Q32001

of which CAPEX

16,745

5,965

36


Non-recurring items

(MSEK)

-500

2,000

4,500

7,000

Q31999

Q41999

Q12000

Q22000

Q32000

Q42000

Q12001

Q22001

Q32001

-116 -239

37


Income after financial items

(MSEK)

1,244

2,491

909

7,658

267 502356

3,436

2,445

0

2,500

5,000

7,500

Q31999

Q41999

Q12000

Q22000

Q32000

Q42000

Q12001

Q22001

Q32001

38


Net debt

20,235

Change in net debt

0

10,000

20,000

30,000

40,000

Under-lyingEBITDA

Netinvest-ments

30 Sep2001

1 Jan2001

Divest-itures

Tax

1,655

14,308 12,766

9,782

618 15,769

(MSEK)

OtherDividend

1,501

39


Strong financial position

(GSEK)

61.9

15.80

10

20

30

40

50

60

70

Equity Net interest-bearing liability

Debt/equity ratio 0.26Debt/equity ratio 0.26

Financial position

40


through

" revenue growth

" improved margins

" reduced CAPEX

Overall goals

Improved free cash flow

Third Quarter Report, Jan-Sep 2001 - Telia Company · 2015-09-29 · 6 Telia AB, IR, 020-2001, eng...

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