Telio Holding ASA Q2 08 presentation. Eirik Lunde, CEO Oslo, 14 August 2008

Transcription

1 Telio Holding ASA 08 presentation Eirik Lunde, CEO Oslo, 14 August 2008

2 Telio Holding ASA Leading European broadband telephony provider Committed to improving user experience and reducing cost to subscribers Innovative products and services based on scalable, access independent technology platform World renowned technology experts Headquartered in Oslo, listed on OSE with ticker telio

3 08 Highlights Financials All-time-high revenues: NOK 96.7 million 61% gross margin 31% EBITDA margin Strongest operating profit ever of NOK 20.2 million, an increase of 568% ( : NOK 3 million) Continued economies of scale (reduced opex) Cash position: NOK 97.4 million Continued customer growth Subscribers: total increase of 2,972 net VoIP customers during 1,600 new SMB lines during Customers & distribution Successful distribution model in the SMB market Healthy customer growth in Denmark

4 Average monthly gross profit per subscriber for VoIP Norway NOK Subscription fee Traffic and termination margin Margin per subscriber Q3 Q

5 Development in EBITDA/EBIT significant shift in profitability from 2008 Healthy revenue growth despite a more mature residential market and regulatory issues (pricing) Continuously COGS optimizing 70 (vendor agreements etc.) results in 60 increased gross margin 50 Focus on profitable customer growth 40 at reduced acquisition cost 30 Continuous focus on reducing opex 20 (economies of scale) 10 0 Potential for further improvements NOK million H 08 EBITDA EBIT

6 Strong cash flow in first half year H Cash flow from operations 46,146 29,620 16,525 49,958 Investment activities (5,200) (2,333) (2,867) (15,810) Cash flow after investments 40,946 27,287 13,658 34,148 Financing activities (66,110) (1,732) (64,378) (21,202) Net cash flow (25,164) 25,555 (50,720) 12,946 Repayment of bond loan of NOK 60 million in NOK 97.4 million in cash 30 June 2008

7 Growth opportunities Expecting continued growth in the residential market Implement more efficient and cost effective sales channels for the residential market (not traditional telesales) Continue to scale the distribution model in the SMB market Q Q3 Q Norway Denmark Netherlands Mobile

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10 Status SMB YTD above 3,000 active lines in the SMB market Successful implementation of direct sales strategy Few competitors in the SOHO-segment Excellent value proposition for the SMB segment (price plan, installation, quality of service etc.)

11 SMB - posed for strong growth until 2012 According to results of Canalys analysts research (April 2008): SMB VoIP take-up so far has been very slow compared to Medium and Big enterprises By 2012 it is expected that total share of SMB lines on VoIP will be 70 pct throughout EMEA Current number of SMB VoIP lines is just a few pct of total SMB lines in Norway and most of EU countries, so it will be growing in the order of magnitude Telio has a great value proposition, strong technological platform and newly established channels for effective SMB distribution

12 International Healthy growth DK 76% compared to NL 19% compared to Denmark Reuse the distribution model from Norway in the SMB market Success in online sales 5th largest provider of fixed international traffic 3,2 000 subscribers 9,5 8,4 7,8 7,2 5,8 5,3 4,6 3,8 3,2 12,7 11,4 10,5 10,6 10,8 10,0 14,8 11,3 1,6 0,4 1,0 1,7 05 Q3 Q Denmark (Tellio) Netherlands

13 Free online storage Improved value proposition 20GB of online storage included in IP subscription Increase stickiness and reduce churn Approx. 25 existing customers sign up every day

14 08 Summary Financials All-time-high revenues: NOK 96.7 million 61% gross margin 31% EBITDA margin Strongest operating profit ever of NOK 20.2 million, an increase of 568% ( : NOK 3 million) Continued economies of scale (reduced opex) Cash position: NOK 97.4 million Continued customer growth Subscribers: total increase of 2,972 net VoIP customers during 1,600 new SMB lines during Customers & distribution Successful distribution model in the SMB market Healthy customer growth in Denmark

15 Enclosures

16 Overall subscriptions per subscribers Q Q3 Q Norway Denmark Netherlands Mobile

17 7% revenue growth compared to NOK mill Q Q3 Q

18 Average monthly revenue per subscriber for VoIP Norway NOK Q Q3 Q

19 Average monthly gross profit per subscriber for VoIP Norway NOK Subscription fee Traffic and termination margin Margin per subscriber Q3 Q

20 Economies of scale improved quarterly opex* per subscriber** NOK Q3 Q * Opex excludes sales & marketing, amortization of subscriber acquisition cost, share based payment and one-off costs ** Billable subscriber (Musimi includes number of customers that used the account during the quarter)

21 Profit & loss statement NOK var 1H 08 1H var FY 20 Sales % % Other revenues % % Total revenue % % Cost of connections and traffic charges (37 733) (38 367) -2 % (74 651) (75 775) -1 % ( ) Salaries & personnel costs (9 336) (8 620) 8 % (21 818) (18 775) 16 % (43 543) Selling & marketing costs (8 634) (14 994) -42 % (19 340) (27 185) -29 % (58 809) Other expenses (10 949) (12 112) -10 % (22 392) (25 267) -11 % (47 792) Depreciation and amortisation (9 848) (13 345) -26 % (20 532) (24 739) -17 % (49 441) Operating profit Finance costs 430 (809) (677) (1 241) (2 949) Profit before tax