Q1 218 presentation Oslo / 26 April 218 Eirik Lunde, CEO Gaute W. Krekling, CFO
Q1 218 financials in brief CUSTOMERS at 31 Mar 27,6 RGUs Revenue generating units REVENUES Q1 18 378(298*) NOK MILLION 11 7,1 Norway 39, 161,5 consumers Norway businesses International 12 167 2 / Q1 218 * Excluding revenue from sale of customer portfolios, not included in chart
Q1 218 financials in brief REVENUES 377.6 (297.9) NOK MILLION CASH 15. NOK MILLION EBITDA 16.6 (26.8) NOK MILLION EQUITY RATIO 27.8% EBIT 71. (-8.7) NOK MILLION NET DEBT /EBITDA.65 (1.2) * Figures in parenthesis are excluding proceeds from sale of customer portfolios 3 / Q1 218
Highlights Q1 218 Revenue Cost Revenue of NOK 79.8 million related to sale of consumer mobile portfolio and a smaller broadband customer portfolio recognized in Q1. Underlying revenue development negatively affected by the related reduction in mobile customers during March Consumer high-speed broadband subscriptions increased to 46,1 42.5% of total consumer broadband base Effect from FTE reduction according to plan. Negative opex effect from lower capitalization and implementation of IFRS 15 Continued focus on automation to increase efficiency and reduce cost Net Debt Significantly lower net debt after receiving proceeds related to consumer mobile portfolio 4 / Q1 218
Financial results (Figures in NOKm) Q1 218 Q4 217 Q1 217 Revenues 377.6 316.2 318.3 Gross margin 53.7% 41.6% 45.% EBITDA 16.6 33.3 44.5 EBIT 71. (16.5) (.1) Cash flow from operations 93.4 2.3 26.2 Free cash flow per share 3.52 (.82).19 All figures for 217 have been restated to be comparable to 218 after implementation of IFRS 15 Financial results for Q1 18 includes: Profit from sale of consumer mobile customers of NOK 75 million. Potential for up to NOK 2 million in Q2 depending on the final outcome of the customer migration Profit from sale of selected fiber customers of NOK 4.75 million Cash and cash equivalents at end of quarter 15. 11.5 66.6 5 / Q1 218
NOKm CAPEX development Lower capex key to improve cash flow 3 25 2 8, % 25 7,6 % 24 5,8 % 6,9 % 22 9% 8% 7% 6% Capex spending has been gradually reduced to target of 7% capex/sales 15 19 4, % 5% 4% 1 12 3% 5 2% 1% % CAPEX CAPEX/sales 6 / Q1 218
Product mix share of revenues Q1 218 Q1 217,8 % 22,4 % 13,3 % 9,7 % VoIP/fixed Mobile 1% 2% 14% 15% 53,7 % Broadband (incl TV) Wholesale Other 68% Other revenues in Q1 18 includes proceeds for sale of customer portfolios 7 / Q1 218
Consumer broadband Churn related to xdsl is partly compensated by figer growth of 1,6 subscriptions High-speed subscriptions now amounts to 46,1 SUBSCRIPTIONS ( ) REVENUES (MNOK) ARPU (NOK/MONTH) 15 14 13 12 11 1 9 8 7 6 5 116 115 112 18 15 15 125 1 75 5 123 12 117 117 111 45 4 35 3 25 2 15 1 5 344 346 345 356 349 8 / Q1 218
Consumer TV Continued positive revenue and ARPU effect from price increases late 217 SUBSCRIPTIONS ( ) REVENUES (MNOK) ARPU (NOK/MONTH) 25 2 2 15 16,3 16,5 16, 17,9 18,5 4 3 299 3 297 338 349 15 1 18,3 18,3 17,7 17,7 17,6 1 2 5 5 1-9 / Q1 218
Consumer mobile Main part of subscriptions migrated to Telia during March 218 SUBSCRIPTIONS ( ) REVENUES (MNOK) ARPU (NOK/MONTH) 5 35 3 4 3 2 1 39, 38,5 38,1 36,5 2,9 3 25 2 15 1 5 28,2 28,4 27,2 25,4 21,1 2 1 237 244 236 227 229 1 / Q1 218
Consumer VoIP Subscriber base following the long term trend of VoIP being replaced by mobile SUBSCRIPTIONS ( ) REVENUES (MNOK) ARPU (NOK/MONTH) 75 3 2 5 25 48,6 44,3 42,6 39,1 36,3 2 1 21,4 19,8 17,9 16,8 15,2 15 1 5 141 142 137 137 135-11 / Q1 218
Business datacom Increased revenue from Internet and Datanet positively affected in Q1 by one-offs SUBSCRIPTIONS ( ) REVENUES (MNOK) ARPU (NOK/MONTH) 25 6 2 5,7,8,7 4 1,7 1,6,6 1,6 1,4 1,4 15,4 6,8 6,8 6,7 6,6 3 6,5 1 23, 23,1 22,9 23, 23,6 2 5 1, 9,9 9,1 9, 8,4 1 17,1 16,7 15,8 16,4 16,6 1 2 1 8 6 4 2 1 13 1 131 1 131 1 154 1 195 567 562 553 63 626-12 / Q1 218 Internet Datanet Ethernet
Business mobile Positive ARPU development during Q1 after implementing new tariffs for data roll-over SUBSCRIPTIONS ( ) REVENUES (MNOK) ARPU (NOK/MONTH) 18 16 14 12 16,6 16,6 16,4 16, 15,8 18 16 14 12 16,8 17,2 15,4 15, 14,9 4 3 34 345 311 39 312 1 8 1 8 2 6 4 6 4 1 2 2 13 / Q1 218
Subscriptions ( ) Financial results NextGenTel (B2C) (Figures in NOKm) Q1 218 Q1 217 FY 217 Revenues 176.7 21.7 779 Gross margin 37.3% 4.8% 41.% EBITDA 13 22 91 Figures for 217 are pro forma and based on certain assumptions. Figures for 218 are ex. proceeds from customer portfolio sales 25 2 15 1 5 49 44 43 39 39 38 39 36 36 18 18 18 18 18 116 115 112 18 15 Broadband TV Mobile VoIP Mobile subscribers migrated to Telia during Q1 18 14 / Q1 218
Subscriptions Proximo ( ) Financial results Fiber Norge (B2B) (Figures in NOKm) Q1 218 Q1 217 FY 217 Revenues 138.1 116.7 49 Gross margin 37.9% 48.1% 42.2% EBITDA 8.7 17.7 57 * Figures for 217 are pro forma and based on certain assumptions 5 45 4 35 3 25 2 15 1 5 1 9 9 9 8 17 17 16 16 16,7,8,7,6,4 7 7 7 7 7 1 1 9 9 8 Internet Std. DataNet Ethernet Mobile VoIP In addition comes approximately 6, RGUs in Kvantel as of Q1 18 15 / Q1 218
Financial calendar 218 Q4 216 Q1 217 Q2 218 Thursday 4 May at 9: Wednesday 15 February at 9: Q2 217 Wednesday 16 August at 9: Thursday 16 August 218 at 9: 16 / Q1 218
Thank you! 17 / Q1 218
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