Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan Outline    Telecom Italia – Telecom Arge...
Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineSafe HarbourThese presentations c...
Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineAgenda                  BU Argen...
Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan Outline2011 Main Results                ...
Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineMobile Business                  ...
Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineFixed Business                   ...
Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineAgenda                  BU Argen...
Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineBusiness Environment             ...
Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineMobile Business: Main Goals and A...
Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineFixed Business: Main Goals and Ac...
Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineCAPEX Plan                Capex (...
Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan Outline                  BU Argentina 2...
Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineTake-aways on main Telecom Argent...
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Telecom Argentina - Full Year 2011 Preliminary Results & 2012-14 Plan Outline - F. Bertone

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Telecom Argentina - Full Year 2011 Preliminary Results & 2012-14 Plan Outline - F. Bertone

  1. 1. Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan Outline Telecom Italia – Telecom Argentina Full‐Year 2011 Preliminary Results and 2012‐14  Plan Outline FRANCO BERTONE
  2. 2. Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineSafe HarbourThese presentations contain statements that constitute forward‐looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995. These statements appear in a number of places in this presentation and includestatements regarding the intent, belief or current expectations of the customer base, estimates regarding future growthin the different business lines and the global business, market share, financial results and other aspects of the activitiesand situation relating to the Company and the Group.Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, andactual results may differ materially from those projected or implied in the forward looking statements as a result ofvarious factors. As a result thereof, Telecom Italia S.p.A. makes no representation, whether express or implied, as to theconformity of the actual results with those projected in the forward looking statement.Forward‐looking information is based on certain key assumptions which we believe to be reasonable as of the datehereof, but forward looking information by its nature involves risks and uncertainties, which are outside our control, andcould significantly affect expected results.Analysts are cautioned not to place undue reliance on those forward looking statements, which speak only as of the dateof this presentation. Telecom Italia S.p.A. undertakes no obligation to release publicly the results of any revisions tothese forward looking statements which may be made to reflect events and circumstances after the date of thispresentation, including, without limitation, changes in Telecom Italia S.p.A. business or acquisition strategy or plannedcapital expenditures or to reflect the occurrence of unanticipated events. Analysts and investors are encouraged toconsult the Companys Annual Report on Form 20‐F as well as periodic filings made on Form 6‐K, which are on file withthe United States Securities and Exchange Commission. FRANCO BERTONE 1
  3. 3. Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineAgenda  BU Argentina 2011 Results (IFRS)  Telecom Argentina Plan  Take-Aways FRANCO BERTONE 2
  4. 4. Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan Outline2011 Main Results Revenues EBITDAOrganic € mln Organic € mln +674M€ +26.5% 3,220 +201M€ 1,035 2,546 834 +24.1% 896 276 4Q 722 +24.1% 4Q 221 +24.8% +19.2% excl. PPA 9M 2,324 9M +23.8% 759 1,824 +27.4% 613 0 FY10 FY11 FY10 FY11 Key Highlights OFCF-CAPEX-NFP (FY10 vs. FY11) Reported € mln  Strong operating performance in 2011 fostered revenues 582 578 and profits 556 493  #1 Revenue share & #2 Market share in Mobile 417  Bundling fixed voice +ADSL +mobile internet  Flat pricing & bundling add value to fixed clients 86  Paraguayan unit back on a growth track  Solid financial position OFCF CAPEX NFP OFCF CAPEX NFP (cash) (cash) FY10 FY11 FRANCO BERTONE 3
  5. 5. Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineMobile Business Mobile Customers(1) 2011 Highlights mln, %  Outstanding performance in postpaid segment 17.8 18.2  ~ 2/3 net adds where post-paid in 4Q11 16.9 17.4 Market 16.3 Share(2)  Smartphone leadership retained 14.5  ~57% share of YoY net adds 12.6 33.5% 33.6% 32.1% 32.9% 33.2%  16% ARPU growth YoY 30.6% 29.4%  3G devices represent 17% of base  VAS reached 50% of service revenues in 4Q11 2008 2009 2010 1Q11 2Q11 3Q11 4Q11e  Brand restyling timed to introduction MNP KPI’s Service Revenues & VAS(1)(3) 51 Bln, ARS 11.0 +30% +24% 8.5 44 +17% 6.8 5.7 41 5.8 41 5.1 +13% 4.5 +13% 322 4.1 +10% 222 299 125 +55% 5.3 103 101 102 99 +34% 2.3 +46% 3.4 1.7 2008 2009 2010 2011 2008 2009 2010 2011 MOU SMS ARPU (pesos) VAS revenues Non-VAS revenues(1) Argentinean Operation only (2) Estimated data not available for 4Q2011 (3) Net of VAS includes: SMS, MMS, SMS revenue sharing, Contents, Mobile internet & others Intercompany Figures are in Argentina GAAP, with no material difference in terms of growth under IFRS for 2009, 2010 and 2011. FRANCO BERTONE 4
  6. 6. Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineFixed Business Fixed & BB Access 2011 HighlightsTotal Lines in market(In millions) Launch of Video Streaming services 47% 47% 47% 47% 47% 47% Bundling & new serviced reduces churn to a record low Market 47% Share (1) Regulated services down 3 p.p. to 41% of fixed revenues 4.01 4.06 4.11 4.11 4.12 4.13 4.14 Fixed Fixed ARBU up 7% despite frozen tariffs Voice Internet & Data revenues rose 28% & 23% YoY respectively (Arg GAAP) 1.46 1.51 1.55 1.21 1.38 1.41 Customers value flat pricing offers Fixed 1.03 BB Increasing residential bandwidth offers to improve customer 2008 2009 2010 1Q11 2Q11 3Q11 4Q11e experience and provide new services BB ARPU & Churn BB/Fixed Lines 87x 76 67 57 37% 34% 30% 2.0% 1.8% 1.4% 1.2% 26% 2008 2009 2010 2011 2008 2009 2010 2011 CHURN (monthly) ARPU (in Pesos) (1) Estimated, data not available for 4Q11 FRANCO BERTONE 5
  7. 7. Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineAgenda  BU Argentina 2011 Results (IFRS)  Telecom Argentina Plan  Take-Aways FRANCO BERTONE 6
  8. 8. Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineBusiness Environment Macroeconomic Context Competitive & Regulatory Framework Regulatory topics: 9.2% 8.9%  Implementing MNP next March 6.8%  Upcoming Spectrum auction for 850&1.900 Mhz GDP Growth (constant prices) frequencies  Expecting 1.700&2.100Mhz announcement  Launch of Video Streaming services due to legal 0.9% restrictions to offer Pay TV Competitive landscape: 2008 2009 2010 2011e Business Market Share Penetration Source: INDEC MOBILE 34% 135% Among the fastest growing economy in 2011  Private consumption driver of growth  Leaders in post-paid & Smartphone sales  High commodity prices sustained exports  Brand Restyling timed to MNP schedule  Public spending fostered household income but FIXED 35%* 45% reduced fiscal surplus BROADBAND Growth expected to be lower but still positive  Bundling and new products reduce churn  Tight fiscal and monetary policies could slowdown the  Increasing speed for new services and quality economy FIXED 47% 67%  These measures shall probably deliver a healthier VOICE economic environment  Lines in service maintain growth  Customers value Flat Pricing * M/S on top 3 operators FRANCO BERTONE 7
  9. 9. Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineMobile Business: Main Goals and Action Plan Goals Outlook (1) Mobile Lines Consolidate Revenue Share (Millions) Cagr ‘11-’14 ~+4% Promote Mobile Data and Social Networking 18.2 16.3 Improve Customer Experience 2010 2011 2014 Consolidate Leadership of Youth Segment ARPU (ARS per month) Action Plan Cagr ‘11’14 >+10% Upgrade 3G network, capacity, quality and coverage 51 Mobile internet massification through convenient pre-paid 44 packaging offers Bundled data + social network plans 2010 2011 2014 Loyalty targeted customer care programs ahead of mobile number portability (1) Argentinean Operations only FRANCO BERTONE 8
  10. 10. Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineFixed Business: Main Goals and Action Plan Goals Outlook (1) Improve Value of the Household Consumer Fixed BB Lines (Millions) Cagr ‘11-’14 >+5% Develop ICT market 1.6 1.4 Reduce Service Provisioning Time 2010 2011 2014 Upgrade Bandwidth Delivery Capability ARPU (ARS per month) Action Plan Cagr ‘11-’14 >+12% Focus on Bundled Voice, BB+Mobile Internet, Streaming 87 76Integrate Connectivity with Hosting and Cloud Computing Promote Migration to Flat Pricing 2010 2011 2014 Optimize Interconnection with Third Parties (1) Argentina Operation only FRANCO BERTONE 9
  11. 11. Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineCAPEX Plan Capex (ARS, in billions) Key Drivers Manage E2E Service Delivery and Quality Standards Capex as 17% 18% % of Improve Network Capacity and Fault Revenues Tolerance to enhance user experience Deploy FTTC to upgrade Access Bandwidth Deploy low visual impact radiobase sites to 4.0 facilitate extension of mobile access coverage and capacity 3.2 Extend own network reach to reduce costs of domestic roaming 2011 2012 Deploy content delivery capabilities in the core network. FRANCO BERTONE 10
  12. 12. Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan Outline  BU Argentina 2011 Results (IFRS)  Telecom Argentina Plan  Take-Aways FRANCO BERTONE 11
  13. 13. Telecom Italia Conference CallFull‐Year 2011 Preliminary Results and 2012‐14 Plan OutlineTake-aways on main Telecom Argentina Trends Organic  Upselling to the existing Customer Base is a major growth factor. Positive double digit Revenues  Customer Base growth rate shall contract to single digit. yoy trend  Mobile Data and Social Networking are growth key drivers. 2011 2012  Focus on cost efficiencies to mitigate cost inflation effects. Positive double digit Ebitda  Reduce Interconnection and Domestic Roaming costs. yoy trend  Improve Churn Rate to control SAC/SCR 2011 2012 Spending up,  Focus on E2E Quality of Service. Capex on Sales down  Deploy FTTC and Content Delivery Network to upgrade access and Capex core network bandwidth.  SAC/SRC capex impacted by MNP 2011 2014 FRANCO BERTONE 12
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