Download as PDF, PPTX
Uploaded byTele2
CMD Nordic 2009
The Nordic market area represents 36% of Tele2's total revenue in Q2 2009. Tele2 Sweden aims to return to growth by capitalizing on its customer base and building out its own infrastructure in Norway. In Sweden, Tele2 will focus on maintaining its strong prepaid margins while growing its postpaid business to increase long-term revenue and cash flow. Tele2 provides the best deals through competitive pricing and multi-channel distribution to grow its customer base and market share.
CMD Nordic 2009
- 1.
- 2. MARKET AREA NORDIC ThomasEkman Head of Sales & Marketing Residential, Sweden
- 3. INTRODUCTION Market Area Nordic Represents 36 percent of total revenue Q2 2009 Strong cash flow generation – EBITDA SEK 764 million and Capex SEK 110 million in Q2 2009 Short- to medium-term focus & activities: Sweden Back to growth Norway Build-out own infrastructure
- 4.
- 5.
- 6. OPERATIONAL PERFORMANCE Mobile SEK million 4 500 REVENUE Solid development despite negative effects due to MTR cuts 3 000 Broadband Realignment to new infrastructure 1 500 Fixed 0 Capitalize on customer stock 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 SEK million SEK m illion EBITDA - CAPEX* EBITDA 1 000 900 600 500 300 0 0 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 *Purged from LTE licence investments (Q208)
- 7. MOBILE SERVICES TOTAL REVENUE Fixed & Broadband 31% Net sales Q209: 1 969 MSEK EBITDA Q209: 620 MSEK EBITDA margin Q209: 31 percent Mobile Operating Cash-Flow Q209: 570 MSEK 69% SEK million 2 500 Net sales EBITDA EBITDA margin 40% 35% 2 000 30% 1 500 25% 20% 1 000 15% 10% 500 5% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 2008 2008 2008 2008 2009 2009
- 8.
- 9. PREPAID Prepaid shows stable revenue, strong EBITDA and increasing market share In 2006, prepaid accounted for >50 percent of Tele2 Sweden’s mobile revenue Today it accounts for approx. 30 percent and half of the EBITDA contribution Focus Maintain strong margins Keep the big cities and grow in top 20 cities Further strengthen price position SEK million Revenue EBITDA EBITDA % Other 800 60% Telenor 2,6% 700 8,0% 50% 600 40% Comviq 500 400 30% (Tele2) 44,8% 300 20% 200 10% Telia 100 44,6% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Source: PTS H2 2008 2008 2008 2008 2008 2009 2009 Source: PTS
- 10.
- 11. POSTPAID RESIDENTIAL Postpaid share of voice revenue and EBITDA are increasing. Postpaid has a lower margin than prepaid, and thereby affects the overall mobile margin High-end terminals attract high ARPU customers 0 SEK 50 SEK 100 SEK 150 SEK 200 SEK SEK/month 350 339 302 300 Other 3 267 4,2% 10,9% 250 219 206 Tele2 200 Telia 21,7% 40,9% 150 100 Telenor 50 22,4% Source: PTS H2 2008 0 ARPU per customer with terminal installment plan
- 12. POSTPAID RESIDENTIAL Focus: Secure long-term revenue growth and increased cash flow contribution Strengthen price position: provide the Best Deal Revenue EBITDA EBITDA margin 800 SEK million 45% 700 40% 600 35% 30% 500 25% 400 20% 300 15% 200 10% 100 5% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009
- 13. POSTPAID BUSINESS Other 3 2,6% Tele2 4,8% Fastest growing carrier on Swedish Business market for two 18,8% consecutive years Decreasing MoU due to economic downturn affecting corporate customers Focus : Telia Telenor Concentrate sales activities on high ARPU segments, such 52,8% 21,0% as the virtual switchboard market Continue to improve our quality perception Source: PTS H2 2008 Revenue EBITDA EBITDA margin 450 45% 400 40% 350 35% 300 30% SEK million 250 25% 200 20% 150 15% 100 10% 50 5% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009
- 14. MOBILE INTERNET Mobile Internet Prepaid Mobile Internet Postpaid ”Test av bästa mobila bredbandet” ”Snabbaste Turbo-3G nätet” Expressen, 8/7-2009 Aftonbladet, 8/7-2009
- 15. MOBILE INTERNET 48 000 new customers H109 adding up to a 218 000 customer base Mobile Internet GM1 is approx. 50. Grow customer base to gain positive EBITDA ARPU has increased by approx. 12 percent Q209 vs Q208, despite fierce competition Launch of Mobile Internet prepaid in May 09. Intake has been strong and we are the market leader Focus Grow Mobile Internet prepaid and postpaid Increase Mobile Internet profitability Revenue EBITDA EBITDA-margin Other 100 250% 3,5% 3 Tele2 21,2% 80 200% 19,7% 60 150% 40 100% 20 50% 0 0% Telenor -20 -50% 16,8% -40 -100% -60 -150% -80 -200% Telia 38,9% -100 -250% Q1 Q2 Q3 Q4 Q1 Q2 2008 2008 2008 2008 2009 2009 Source: PTS H2 2008
- 16. PRICE POSITION Furtherstrengthen our price position by keeping using Frank The customer price perception is today heavily connected to both tariffs and the deal on the mobile phone We will provide the best deal!
- 17. DISTRIBUTION STRATEGY Comviqis sold in more than 19 000 outlets throughout Sweden We will further develop strong prepaid distribution with Mobile Internet prepaid (ICA, Claes Olsson mm) We will keep developing our multi- channel sales strategy in order to spread the risks
- 18. OUTLOOK Tele2 will continue to target higher market share in the postpaid segment, which in the longer term will lead to: Higher customer intake Improved ARPU Lower churn Resulting in Higher customer lifetime value In the short term, this strategy will lead to higher total acquisition costs Resulting in EBITDA margin towards 30 percent in 2010
- 19.
- 20. SUMMARY Clear price position,deliver expected quality and strong brand – providing the best deal Distribution, multi-channel sales strategy to increase sales and ARPU levels Comviq holds the number one position in the prepaid market Tele2 Sweden will continue to invest in high-value postpaid customers to secure a long-term high cash flow