Positive trend confirmed

Transcription

1 Positive trend confirmed H Results August 4, 2009

2 H financial highlights Total Revenues up 5.7% over H to 2,819 million Total Mobile revenues grow 2.6% YoY to 1,880 million Total Fixed-line revenues increase 12.4% over H1 08 to 939 million, including impact of M-link acquisition Service revenues up 4.7% to 2,669 million EBITDA grows 2.4% to 997 million, margin 35.4% EBIT reaches 487 million, up 6.2% over H Net Profit of 170 million, up 15.6% over Net Profit of 147 mln recorded in H

3 Solid operational performance Mobile performance: Strong growth in subscriber base (+9.0% YoY) to 17.5 million ARPU decrease to 17.3 mainly due to decline in incoming revenues as a result of interconnection rate cut 9.3% growth in total Voice traffic, both outgoing and incoming 68.0% Mobile Internet revenue growth YoY Churn rate at 24.5% Fixed-line performance: Direct Voice revenues up 7.6% Broadband revenues +29.1% Indirect voice revenues grow 1.4% as a result of WLR and VoIP more than offsetting reduction in CS and CPS Increase in Voice customer base to 2.74 million (+8.7% YoY) Wind is 2009 leader in customer satisfaction 26.5% increase in Broadband subscribers to 1.52 mln Stable ARPU, with Voice ARPU decrease offset by data ARPU increase 3

4 supported by effective deployment of network National coverage Mobile networks GSM 900/1800: 99.65% population coverage, GPRS/EDGE nationwide coverage HSDPA coverage available on 60.5% of the population Fixed network 1,126 ULL sites for direct population coverage in all major Italian cities Nationwide indirect coverage Backbone 3,860 km of fibre optic MANs in 39 cities 19,300 km fibre optic backbone As of June 30,

5 Mobile performance

6 Strong net adds, solid traffic growth Customer base 17,5 (mln) +9.0% 16,1 Market share of SIMs of approximately 20%, up 2 p.p. YoY Leader in net adds in Q2 09 with 281K net adds Data ARPU at 16.1% as a percentage of total, up from 14.8% in H1 08 Churn rate in H1 09 at 24.5%, a 0.8 p.p. decrease over H1 08 ARPU Double digit growth in outgoing voice traffic Total Voice Traffic ( ) 18,6-7.0% 2,7 17,3 2,8 Data (bln mins) +9.3% 15,7 17,1 15,8 14,5 Voice 6

7 Accelerating growth in Mobile Internet Mobile Internet revenue growth trend YoY (%) 85,3% 51,6% 23,6% 28,8% 38,8% Mobile Internet time-based offerings Mega 100 Ore: 100 hours for 15 /month Mega Ore: 50 hours for 9 /month Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 HSDPA available on all UMTS network (up to 7.2 Mbps) 7

8 Expanding the Noi concept Expand the fixed price bundle concept introduced by the Noi offers beyond the on-net community: toward fixed-line operators (Noi Italy) toward other mobile operators (Noi Tutti, x2, x3) data products (Noi Wind SMS, Wind 6 SMS) 8

9 Stable revenues, growing margins Mobile TLC service revenue Mobile EBITDA / margin ( mln) % ( mln/%) 44,5% 45,0% % 846 H1 08* H1 09 Q2 09 service revenue up 2.0% over Q2 08, growth trend improves over Q1 09 Growth driven by: Solid growth in Internet & Data revenues (+8.7%) driven by impressive growth in mobile Internet (+68.0% YoY) Voice growth driven by outgoing revenues partially offset by decline in incoming revenues as a result of interconnection rate decline and international roaming Mobile EBITDA margin grows to 45% as a result of improved revenue mix and cost control * New VAS contractual form impact on H1 2008; Mobile service revenues reported in H were 1,769 million 9

10 Fixed-line performance

11 Solid increase in subscribers, stable ARPU ('000) Voice subscribers +8.7% Direct Voice net adds of 74K in Q2 43K net adds in WLR in the quarter % Direct WLR Indirect Total Fixed-line ARPU substantially stable with decline in voice offset by increase in data 7.8% growth in total voice traffic driven by double digit increase in incoming off-net traffic Fixed-line ARPU ( ) 37,0-1.1% 36,6 Data 10,9 11,4 Pure ULL Q share of net adds WLR Voice 26,1 25,2 OLOs 42% 41% OLOs Internal elaboration on Deutsche Bank data 11

12 Broadband subscriber growth continues Broadband Subscribers ('000) +26.5% % 90.4% Flat Telecom Italia increased the monthly fee. Infostrada did not! Pay x use 65K broadband net adds in Q ( ) Broadband ARPU 18,8 18,8 Broadband ARPU trend now stabilised at 18.8 Strong increase in dual-play subscribers, 67K net adds in the quarter Dual-play CB ('000) % % 64.6% % 2P on ULL CB 12

13 Preserving the value of the market C O R E VOICE * Unlimited fixed-line calls, for per month BROADBAND * Unlimited 7Mbps ADSL, for per month O F F E R I N G Unlimited fixed-line calls and Broadband Internet access at speeds up to 8Mbps, for per month. Unlimited fixed-line calls, with a set up charge of 12 cent, for 9.95 per month DUAL-PLAY * Unlimited fixed-line calls with a flat connection charge of 0.12 and Broadband Internet access at speeds up to 8Mbps, for per month. Unlimited 20Mbps ADSL, for per month Pay per use 1.2Mbps ADSL, with 6 hours included, for 9.95 per month Rational approach to value preservation through stable retail prices and selective use of promotions. Maximize market growth opportunities through further segmentation of market coupled with tailored offerings. * All retail prices include VAT 13

14 Good revenue trend Fixed TLC service revenue Fixed EBITDA / margin ( mln) % 890 ( mln/%) 18,9% 16,2% H1 08* H1 09 Growth in fixed revenues driven by Direct Voice (+7.6% YoY), Broadband (+29.1% YoY), and Indirect Voice as a result of WLR growth more than offsetting reduction in CS and CPS. Revenue growth includes also M-link acquisition. H1 09 EBITDA slight decline mainly due to ULL and WLR monthly fee increases which offset increase in revenues Lower marginality in H1 09 due to inclusion of M-link, which adds revenues with low marginality; Q2 09 EBITDA marginality improving over Q1 * New VAS contractual form impact on H1 2008; Fixed-line service revenues reported in H were 807 million 14

15 Financial Review

16 ( mln) Solid revenue performance, positive EBITDA trend Total Revenues +5.7% ( mln/%) 36,5% 35,4% 974 EBITDA / margin +2.4% 997 H1 08* H1 09 * New VAS contractual form impact on H

17 EBT growth drives net profit Operating Income Earnings Before Taxes Net Result ( mln) % 487 ( mln) % 285 ( mln) %

18 P&L Highlights ( mln) H H Change % Revenue ,2% Other revenue ,3% Total Revenue * 5,7% EBITDA ,4% D&A (511) (516) (1,0)% EBIT ,2% Financial Income and Expenses (202) (231) (12,4)% EBT ,1% Income Tax (115) (81) 42,3% Net Result ,6% * New VAS contractual form impact on H

19 Capitalisation ( mln) As of December 31, 2007 As of December 31, 2008 As of March 31, 2009 As of June 30, 2009 June 30, 2008/ LTM EBITDA Cash and Equivalents (195) (379) (356) (576) (0,3x) Other Net Debt Senior Debt ,0x Total Senior Debt ,8x Second Lien ,3x Total Senior + Second Lien ,1x Senior Notes ,7x Derivatives (79) ,2x Net Debt ,9x of which Cash Net Debt Interest Accrued Fees to be amortized (118) (97) (94) (90) Derivatives MTM (79) H LTM EBITDA 19 Including W.A.H.F. S.p.a. PIK loan of 1,98 million Net Debt / EBITDA is 3.9x 2,033 mln

20 Appendix

21 Q2 P&L Highlights ( mln) Q Q Change % Revenue ,3% Other revenue ,6% Total Revenue * 5,1% EBITDA ,1% D&A (254) (257) (1,4)% EBIT ,6% Financial Income and Expenses (97) (111) (12,4)% EBT ,9% Income Tax (69) (43) 58,0% Net Result ,0% * New VAS contractual form impact on Q

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