Željko Lukač, Metronet @ TMT.Ventures'08 Zagreb

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Željko Lukač, Metronet - presentation from TMT.Ventures'08 Zagreb (http://tmtevents.eu by New Europe Events)

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Željko Lukač, Metronet @ TMT.Ventures'08 Zagreb

  1. 1. page Investing in Video, Data and Voice services in Croatia
  2. 2. Content <ul><li>Market overview </li></ul><ul><li>Metronet at glance </li></ul><ul><li>Key success factors </li></ul><ul><li>Investment opportunities </li></ul>strana
  3. 3. Market overview <ul><li>Video </li></ul><ul><li>Video market in Croatia has low level of penetration and is dominated by two major providers. </li></ul><ul><li>Video penetration is relatively low - only 10%, compared with CEE average of 32% </li></ul><ul><li>Data (Internet) </li></ul><ul><li>Broadband Internet and corporate VPN penetration still significantly lag behind EU counterparts. </li></ul><ul><li>Broadband penetration stands at 10%, compared to EU average of over 50% </li></ul><ul><li>Voice </li></ul><ul><ul><li>Both fixed and mobile penetrations in Croatia are relatively high and currently stand at: </li></ul></ul><ul><ul><li>119% Mobile </li></ul></ul><ul><ul><li>38% Fixed </li></ul></ul>page Broadband Internet % Households CATV Penetration: % Households <ul><li>Market overview </li></ul>strana
  4. 4. Video, Data and Voice market overview <ul><li>Video </li></ul><ul><li>Video market in Croatia has low level of penetration and is dominated by two major providers. </li></ul><ul><li>Video penetration is relatively low - only 10%, compared with CEE average of 32% </li></ul><ul><li>Data (Internet) </li></ul><ul><li>Broadband Internet and corporate VPN penetration still significantly lag behind EU counterparts. </li></ul><ul><li>Broadband penetration stands at 10%, compared to EU average of over 50% </li></ul><ul><li>Voice </li></ul><ul><ul><li>Both fixed and mobile penetrations in Croatia are relatively high and currently stand at: </li></ul></ul><ul><ul><li>119% Mobile </li></ul></ul><ul><ul><li>38% Fixed </li></ul></ul>page Broadband Internet % Households CATV Penetration: % Households
  5. 5. The Croatian T elecom M arket in Brief Croatian Annual TLC Fixed Spending (HRK Mln) 2006-2012 CAG R % Source: Metronet estimates based on industry data <ul><li>Video and Internet services are expected to grow the fastest </li></ul><ul><li>Internet services include new L2 MetroEthernet Services and L3 MPLS VPN services </li></ul><ul><li>Traditional data is expected to remain on the same level, with further decline expected following presented period. Traditional data includes legacy TDM, ATM and FR technologies. </li></ul><ul><li>Fixed voice is also expected to decline due to fixed to mobile substitution and decreasing prices </li></ul><ul><li>Total market is expected to grow by 21% between 2006 and 2012 and is expected to reach € 1 bn in annual spending </li></ul>CATV: 13% Wholesale: 7% Internet: 22% Traditional data: 0% Fixed voice: - 4% Croatian telecom market
  6. 6. Competitive environment page <ul><li>T-Com dominates the competitive environment </li></ul><ul><li>Real competition is coming from infrastructure based operators in Data (Internet) and video services, as these operators can compete on quality and not only price </li></ul><ul><li>CpS (carrier pre selection) operators cannot be viewed as a great threat to T-Com dominance as they achieve low margins in declining business (fixed telephony) and only serve a purpose of increasing T-Com wholesale business </li></ul><ul><li>Video (CATV) market is dominated by cable operators, but incumbent with its IPTV offering is rapidly closing a gap </li></ul><ul><li>Metronet, positioned as a business broadband provider, is taking sizable market share from T-Com in Data (Internet) services from corporate customers </li></ul>
  7. 7. Market overview <ul><li>Video </li></ul><ul><li>Video market in Croatia has low level of penetration and is dominated by two major providers. </li></ul><ul><li>Video penetration is relatively low - only 10%, compared with CEE average of 32% </li></ul><ul><li>Data (Internet) </li></ul><ul><li>Broadband Internet and corporate VPN penetration still significantly lag behind EU counterparts. </li></ul><ul><li>Broadband penetration stands at 10%, compared to EU average of over 50% </li></ul><ul><li>Voice </li></ul><ul><ul><li>Both fixed and mobile penetrations in Croatia are relatively high and currently stand at: </li></ul></ul><ul><ul><li>119% Mobile </li></ul></ul><ul><ul><li>38% Fixed </li></ul></ul>page Broadband Internet % Households CATV Penetration: % Households 2. Metronet at glance strana
  8. 8. Metronet – At a g lance page <ul><li>Metronet is the leading business broadband service provider on the Croatian market </li></ul><ul><li>IP-based network totally independent from the incumbent </li></ul><ul><li>Metronet was incorporated in May 2005. </li></ul>Achievements and current results <ul><li>Metronet has its own network in 36 cities ; h as build more than 2.600 kilometers of own fiber optic network; direct link through own DWDM to Vienna </li></ul><ul><li>Total revenues in 2008. will be over €31mn (kn 225million) - growth of almost 100% from 2007.) </li></ul><ul><li>EBITDA positive on monthly basis since April; expected EBITDA result for y 2008. is over €2 million. </li></ul><ul><li>More than 2.100 business customers and over 20.000 residential customers. </li></ul>Mission and Vision <ul><li>Become the leading business broadband solution provider </li></ul><ul><li>B uild a relationship with our customers by understanding their needs and delivering broadband solutions that they truly value , and improve their business operations </li></ul><ul><li>Become #2 wire-line operator on the market (behind the incumbent) </li></ul>Metronet
  9. 9. Investors – Key Success Factor, Instant credibility to Start-up Top 20 customers page
  10. 10. Market overview <ul><li>Video </li></ul><ul><li>Video market in Croatia has low level of penetration and is dominated by two major providers. </li></ul><ul><li>Video penetration is relatively low - only 10%, compared with CEE average of 32% </li></ul><ul><li>Data (Internet) </li></ul><ul><li>Broadband Internet and corporate VPN penetration still significantly lag behind EU counterparts. </li></ul><ul><li>Broadband penetration stands at 10%, compared to EU average of over 50% </li></ul><ul><li>Voice </li></ul><ul><ul><li>Both fixed and mobile penetrations in Croatia are relatively high and currently stand at: </li></ul></ul><ul><ul><li>119% Mobile </li></ul></ul><ul><ul><li>38% Fixed </li></ul></ul>page Broadband Internet % Households CATV Penetration: % Households 3. Key success factors strana
  11. 11. <ul><li>Quaestus Private Equity Kapital fund is main investor in Metronet. The Fund is comprised of 9 blue-chip Croatian companies and they are as follows: </li></ul><ul><li>General industry </li></ul><ul><li>1. M San Grupa - #1 IT supplier and System integrator in Croatia. Strategic partner with Metronet. </li></ul><ul><li>2. Jamnica d.d. – a member of Agrokor group, #1 Water and juices in Croatia </li></ul><ul><li>F inancial services </li></ul><ul><li>3. Croatia Osiguranje d.d. - #1 Insurance in Croatia </li></ul><ul><li>4. PBZ d.d. - #2 Bank in Croatia </li></ul><ul><li>5. FIMA d.d. - leading financial advisor in Croatia </li></ul><ul><li>Construction </li></ul><ul><li>6. Dalekovod d.d. </li></ul><ul><li>7. IGH d.d. </li></ul><ul><li>8. Konstruktor d.d. </li></ul><ul><li>9. Nexe Grupa </li></ul><ul><li>Investors – recognition and support of investors from the beginning of the project was exceptional! </li></ul>Investors – Key Success Factor, Instant credibility to Start-up Key success factors of this Start-up: investors, business focus and infrastructure model are page
  12. 12. <ul><li>Business focus – ability to specialize and provide services and products that matter to this segment </li></ul><ul><ul><li>Quality of service and expertize is important to business customers </li></ul></ul><ul><ul><li>No distraction from residential sector – new technology </li></ul></ul><ul><ul><li>Less financially demanding </li></ul></ul><ul><li>Infrastructure based model – IP-based network totally independent from the incumbent </li></ul><ul><ul><li>No delays in project completion and connections </li></ul></ul><ul><ul><li>Quality of service </li></ul></ul><ul><ul><li>Ability to be flexible and provide quick response </li></ul></ul><ul><ul><li>Future technology </li></ul></ul>Investors – Key Success Factor, Instant credibility to Start-up Key success factors of this Start-up: investors, business focus and infrastructure model are page
  13. 13. Market overview <ul><li>Video </li></ul><ul><li>Video market in Croatia has low level of penetration and is dominated by two major providers. </li></ul><ul><li>Video penetration is relatively low - only 10%, compared with CEE average of 32% </li></ul><ul><li>Data (Internet) </li></ul><ul><li>Broadband Internet and corporate VPN penetration still significantly lag behind EU counterparts. </li></ul><ul><li>Broadband penetration stands at 10%, compared to EU average of over 50% </li></ul><ul><li>Voice </li></ul><ul><ul><li>Both fixed and mobile penetrations in Croatia are relatively high and currently stand at: </li></ul></ul><ul><ul><li>119% Mobile </li></ul></ul><ul><ul><li>38% Fixed </li></ul></ul>page Broadband Internet % Households CATV Penetration: % Households 4. Investment opportunities strana
  14. 14. Investment opportunities page <ul><li>Drivers of demand are evident </li></ul><ul><ul><li>Low levels of video penetration </li></ul></ul><ul><ul><li>Low level of Internet penetration </li></ul></ul><ul><ul><li>Expanding corporate requirements for secure VPN connections </li></ul></ul><ul><li>Significant market growth expected a over a coming period </li></ul><ul><li>Infrastructure based business models will prevail and will offer a significant investment opportunities and returns to potential investors </li></ul>
  15. 15. page Metronet telekomunikacije d.d. Ulica grada Vukovara 269d, HR-10000 Zagreb, Croatia, T + 385 1 6327 0 00 , F + 385 1 6327 0 11 , E info@metronet.hr

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