Telio Holding ASA Second Quarter Eirik Lunde, CEO. Oslo, 18 August 2011

Transcription

1 Telio Holding ASA Second Quarter 211 Eirik Lunde, CEO Oslo, 18 August 211

2 Company facts Leading European access independent 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 Second quarter 211 2

3 Agenda Q2 211 highlights Key figures Customer development Segment reporting Technology/services update Second quarter 211 3

4 Q18 Q2 8 Q3 8 Q4 8 Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 NOK Million Q2 211: Highlights Net customer growth with1,695 net new customers Revenues and EBITDA margin Continued growth in the SME segment 15 4 % Net loss of only 17 lines in Norway 35 % Revenue growth 3 % NOK 97.2 million % Strong gross margin at 65.5% 2 % 9 15 % Continued strong financial performance EBITDA margin 34.2% EBIT NOK 23.5 million 85 1 % 5 % Products/services 8 % Wholesale agreement with Call Norwegian New price plans introduced in Norway Goji Turnover EBITDA margin Second quarter 211 4

5 Key figures for the period NOK millions8 Q2 11 Q2 1 H1 11 H1 1 Revenue growth Increased gross margin Strong earnings despite extraordinary opex (legal fees, stock option plans and TV commercials) Strong cash flow Total revenues Gross profit EBITDA Operating profit (EBIT) Ordinary profit before tax Profit for the period *) EPS (fully diluted) *) *) 21 figures include NOK 1.8 million in positive acquisition effect from the acquisition of Bellit AS Gross margin 65.5% 62.9% 64.6% 63.5% EBITDA margin 34.2% 35.8% 34.1% 35.3% EBIT margin 24.2% 25.2% 23.8% 24.5% Net cash flow operations Change in net WC CAPEX (ex financial lease) Equity ratio 31.% 32.% Cash and cash equivalents Second quarter 211 5

6 Balance sheets Assets (NOK million) Equity and liability (NOK million) Jun Jun 21 3 Jun Jun 21 Other current Assets Shareholders equity Cash and Cash equivalent Interest bearing liabilities Non Current Assets Non interest bearing liabilities Second quarter 211 6

7 ' customers Total customer development 2 Customer development 1) , Q19 Q29 Q39 Q49 Q11 Q21 Q31 Q41 Q111 Q211 1 ) Including VoIP and mobile Total customer base Second quarter 211 7

8 Key customer development ARPU versus Gross profit per subscriber Decreasing ARPU due to increase in wholesale customer base Stable margin development due to COGS optimalization Continuous improvement of opex Second quarter Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 ARPU Gross profit per subsctiber ARPU versus OPEX *) per subscriber Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 ARPU OPEX per subscriber *) Excl sales & marketing, share based and one-off costs

9 Norway: Market update Increased VoIP gross profit per subscriber Decreased COGS in Norway and to international destinations NOK millions Q2 11 Q2 1 H1 11 H1 1 Total revenue Gross profit Gross margin 7% 67% 69% 67% Increased value proposition Decreased international traffic prices Introduced new and more attractive price plans ARPU versus Gross Profit per subscriber Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 ARPU Gross profit per subscriber Second quarter 211 9

10 ' customers Norway: Customer development Customer development in Norway Strong development in SME segment with all-time-high customer intake in June New residential priceplans launched in May Targeting Telio s domestic and international customer segments Includes «All Inclusive» subscriptions Telio Touch at NOK,- 12 months instalments ,3 9,3 86,6 Q1 9Q2 9Q3 9Q4 9Q1 1Q2 1Q3 1Q4 1Q1 11Q2 11 Norway residential Norway SMB (lines) GSM mobile Second quarter 211 1

11 Norway: Residential segment outlook Telio has a unique base of customers who utilizes our current services Usage market share is more than 2x Telio s subscription market share From one service to multiple services per customer Fixed telephony Mobile telephony Fixed broadband Mobile broadband NPT statistics 21 Second quarter

12 Norway: Business segment outlook Full service provider offering broader range of products to widen scope of business attracting more business and larger distribution. Web based switchboard solution Mobile + VoIP Demanded in up to 5% - 7% of all sales in SME VoIP ISDN replacement (PRI/BRI CPE & SIP Trunk) Enables entry into new customer segments in B2B Telio MVNO (mvoip) Increased margins Full presence information connects with switchboard solution. Possible to route traffic between GSM and Telio VoIP increasing margins. Unique cross sale opportunities to existing VoIP customers Second quarter

13 customers Denmark: Market update Revenues negatively affected by currency NOK millions Q2 11 Q2 1 H1 11 H1 1 Total revenue Gross profit Gross margin 61% 52% 62% 54% Optimizing profitability 25 Customer development in Denmark ARPU versus Gross Profit per subscriber (DKK) 2 19, Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 ARPU Gross profit per subsciber Second quarter Denmark residential (Tellio)

14 customers Netherlands: Market update Increase in customer base Q2 y/y of 1,876 customers Revenues negatively affected by currency 12, 1, 8, 6, 4, 2, ARPU versus Gross Profit per subscriber (EUR) NOK millions Q2 11 Q2 1 H1 11 H1 1 Total revenue Gross profit Gross margin 4% 35% 38% 38% Customer development in Netherlands 5 45, , Q1 9 Q2 9 Q3 9 ARPU Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Gross profit per subsciber Q1 11 Q2 11 Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Netherlands Q3 1 Q4 1 Q1 11 Q2 11 Second quarter

15 customers Switzerland: Market update NOK millions Q2 11 Q2 1 H1 11 H1 1 Total revenue Q1 restructuring initiatives to reduce opex and capex gave break-even EBITDA in 1H Focus on profitable growth Gross profit Gross margin 51% 5% 5% 5% Customer development in Switzerland 5, 4,61 4,5 4, 3,5 3, 2,5 2, 1,5 1,,5, Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 Switzerland Second quarter

16 Technology/services update MVNO agreement signed with NetCom Silent launch of the new mobile VoIP technology platform Gojiapp.com Includes multimedia messaging in addition to mobile video/voip iphone based client from the beginning of July and Android client from 17AUG211 Fantastic take-up rate in over 8 countries worldwide Platform is enabler for new White Label initiatives Combination of MVNO agreement and new technology platform will enable new business opportunities Goji downloads Week 27 Week 28 Week 29 Week 3 Week 31 Second quarter

17 Q18 Q2 8 Q3 8 Q4 8 Q1 9 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 Q3 1 Q4 1 Q1 11 Q2 11 NOK Million Q2 211: Highlights Net customer growth with1,695 net new customers Revenues and EBITDA margin Continued growth in the SME segment 15 4 % Net loss of only 17 lines in Norway 35 % Revenue growth 3 % NOK 97.2 million % Strong gross margin at 65.5% 2 % 9 15 % Continued strong financial performance EBITDA margin 34.2% EBIT NOK 23.5 million 85 1 % 5 % Products/services 8 % Wholesale agreement with Call Norwegian New price plans introduced in Norway Goji Turnover EBITDA margin Second quarter