Com Hem reports second quarter results – Revenue up 8 percent. Revenue totaled SEK 1,198m (1,108), an increase by 8.1% versus second quarter 2013. Underlying EBITDA was SEK 566m (547), an increase of 3.5% versus second quarter of 2013. Operating free cash flow was SEK 327m (344). Net result for the period was SEK -718m (-279) affected by one-off costs of SEK 680m associated with the IPO and refinancing of debt. Earnings per share were SEK -6.53 (-2.79). Pro forma earnings per share(1) were SEK -0.90 (-1.34)
Com Hem - Interim Report Q3 2014 - Presentationcomhemgroup
Increased customer intake – delivering on the plan. Third quarter summary. Revenue totaled SEK 1,210m (1,104), an increase of 9.6% over the third quarter of 2013. Underlying EBITDA was SEK 576m (569), an increase of 1.1% over the third quarter of 2013. Operating free cash flow was SEK 318m (302), an increase of 5.3% over the third quarter of 2013. Net result for the period was SEK 7m (-82). Earnings per share were SEK 0.03 (-0.82). Pro forma earnings per share were1) SEK 0.02 (-0.39).
Financial results for the 1st quarter of the fiscal year ending march 2017KDDI
The figures included in the following brief, including the business performance target and the target for the number of subscribers are all projected data based on the information currently available to the KDDI Group, and are subject to variable factors such as economic conditions, a competitive environment and the future prospects for newly introduced services.
Accordingly, please be advised that the actual results of business performance or of the number of subscribers may differ substantially from the projections described here.
Com Hem - Interim Report Q3 2014 - Presentationcomhemgroup
Increased customer intake – delivering on the plan. Third quarter summary. Revenue totaled SEK 1,210m (1,104), an increase of 9.6% over the third quarter of 2013. Underlying EBITDA was SEK 576m (569), an increase of 1.1% over the third quarter of 2013. Operating free cash flow was SEK 318m (302), an increase of 5.3% over the third quarter of 2013. Net result for the period was SEK 7m (-82). Earnings per share were SEK 0.03 (-0.82). Pro forma earnings per share were1) SEK 0.02 (-0.39).
Financial results for the 1st quarter of the fiscal year ending march 2017KDDI
The figures included in the following brief, including the business performance target and the target for the number of subscribers are all projected data based on the information currently available to the KDDI Group, and are subject to variable factors such as economic conditions, a competitive environment and the future prospects for newly introduced services.
Accordingly, please be advised that the actual results of business performance or of the number of subscribers may differ substantially from the projections described here.
This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
Il 9 novembre 2023 il management di TIM ha presentato in conference call i risultati del Q3 2023 approvati dal Consiglio di Amministrazione.
On November 9, 2023, TIM management has presented in conference call its Q3 2023 results approved by the Board of Directors.
Financial Results for the First Half of the Fiscal Year Ending March 2024KDDI
Statements made in these documents with respect to the KDDI Group‘s performance targets, projected subscriber numbers, future forecasts and strategies that are not historical facts are forward-looking statements about the future performance of the KDDI Group, based on company’s assumptions and beliefs in light of the information available at the time they were made. They therefore include certain risks and uncertainties. Actual results can differ from these statements due to reasons including, but not limited to, domestic and overseas situation, economic trends, competitive position, formulation, revision or abolition of laws and ordinances, regulations or systems, government actions or intervention and the success or lack thereof of new services.
Consequently, please understand that there is a possibility that actual performance, subscriber numbers, strategies and other information may differ significantly from the forecast information contained in these materials or other envisaged situations.
TIM GROUP FY '23 Preliminary Results.pdfGruppo TIM
On February 15, 2024, TIM management has presented in conference call its FY 2023 preliminary results approved by the Board of Directors.
Il 15 febbraio 2024 il management di TIM ha presentato in conference call i risultati preliminari del FY 2023 approvati dal Consiglio di Amministrazione.
1. Andrew Barron, Chairman
Anders Nilsson, CEO Joachim Jaginder, CFO Stockholm, July 15, 2014
Com Hem
Q2 2014 Results
2. Disclosure Regarding Forward-Looking Statements
This presentation includes forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology, including words such as “believes,” “estimates,” “anticipates,” “expects,” “intends,” “may,” “will”, “could” or “should” or, in each case, their negative or other variations thereof or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this presentation and include statements regarding, or based upon, our Management’s current intentions, beliefs or expectations concerning, among other things, our future results of operations, financial condition, liquidity, prospects, growth, strategies, potential acquisitions, or developments in the industry in which we operate.
Forward-looking statements are based upon assumptions and estimates about future events or circumstances, and are subject to risks and uncertainties. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will materialize. Accordingly, our actual results may differ materially from those expressed or implied thereby.
Unless otherwise specified, forward-looking statements herein speak only as of the date of this presentation. We undertake no obligation, and do not intend, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements referred to above. Readers are cautioned not to place undue reliance on any forward-looking statements.
Disclaimer
2
3. Today’s outline
Second quarter in brief First steps back to cash flow growth are taken
Operational and financial performance Delivering on the plan
Going forward Key focus areas
Q2
3
4. Second quarter in brief First phase of refinancing completed
Key dates
On June 17 - Com Hem was listed on NASDAQ OMX Stockholm Large Cap
Adding gross proceeds of SEK 5.7 billion
On June 20 - Moody´s upgrade Com Hem from B2 to B1, and Outlook to Positive
On June 26 – Senior Bank debt was refinansed
On July 4 – First phase of the refinancing was completed
Senior PIK notes and 35% of Senior Notes was repaid
Over-allotment option fully exercised adding gross proceeds of SEK 567 millon
On July 4 – Standard & Poor’s upgrade Com Hem from B to BB-, and Outlook to Stable
Increased financial flexibility with
Debt reduced with approximately SEK 5.5 billion
Net Debt/underlying EBITDA LTM decreased from 6.4x to 3.9x
Improved average interest rates by 1.7 p.p. to approximately 6.7%
4
5. Second quarter in brief The first steps back to cash flow growth are taken
Drive DTV penetration with Superior DTV product
Digital-TV returned to RGU growth for the first time since the first quarter of 2013
2
Leverage our network and speed advantage
Broadband growth continued, reaching 577,000 broadband RGUs - a new all-time high
1
Exploit bundle opportunity
Bundles to be redesigned and launched
Increased marketing activities
4
Continue to grow universe and unique subs.
Homes connected increased by 2,000 HH
Unique consumer subscriber base grow by 8,000 to a total of 846,000 subscribers
3
Improve financial flexibility
First phase of refinancing now completed
6
Leverage B2B opportunity
Increased focus on B2B segment as Phonera is now a part of the Com Hem Group
5
5
6. Revenue (SEKm)
Underlying EBITDA (SEKm)
OFCF* (SEKm)
Capex (SEKm)
1,108
1,198
Q2 13
Q2 14
547
566
Q2 13
Q2 14
344
327
Q2 13
Q2 14
203
239
Q2 13
Q2 14
Second quarter key financial highlights Strong revenue and underlying EBITDA growth supported by Phonera
* Defined as Underlying EBITDA - Capex
+8.1%
+3.5%
Phonera revenue contribution of SEK 65m
Consumer revenue up by 2.8% driven by DTV and BB
Growth in both consumer and business underlying EBITDA
Increase driven by success-based CPE and capitalized sales costs capex
OFCF decrease due to increased success-based capex
70 mSEK B2B revenue
6
7. Landlord business
Revenue and ARPU development in line with strategy
Landlord ARPU (SEK)
38
38
37
36
37
35
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Landlord Revenue (SEKm)
203
201
198
196
201
196
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Decrease in Q2 vs. Q1 due to contract renegotiation effects and migration of customers to B2B services
Decrease in Q2 vs. Q1 due to seasonality effects in revenue, contract renegotiation effects and migration of customers to B2B services
+0,1%
-1,2%
-2,2%
-2,3%
+1,6%
-3,5%
-2,3%
-2,2%
-2,3%
-2,3%
-1,0%
-2,3%
7
Change (YoY)
Change (QoQ)
Homes connected (000’)
1 777
1 777
1 789
1 817
1 830
1 832
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Growth in homes connected due to increase of open network households and stable coax universe
+28
+0
+12
+28
+13
+2
Change (QoQ)
8. Operational overview Continued increase in unique subscribers and number of RGUs
Unique consumer subscribers (000’)
823
822
829
830
838
846
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Increase in consumer subcribers mainly driven by new broadband subscribers
Consumer churn rate
(%)
Consumer churn rate at 16.4% reflects the impact of our May price rise
Underlying churn rate stable at 15-16%
TiVo from 149: -
-2
+8
+1
+8
+8
8
Change (QoQ)
16.3
16.4
16.3
16.3
15.2
16.4
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
RGUs per service (000’)
613
606
603
597
595
599
542
543
551
558
570
577
339
334
330
327
327
326
1495
1483
1484
1482
1492
1503
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Total RGUs increase as DTV RGUs increase by 4,000 and Broadband RGUs increase by 7,000
DTV
Broadband
Telephony
Change (QoQ)
-7
-12
+1
-2
+10
+11
9. Consumer Business Continued growth in KPIs
TiVo customers (000’)
6
38
74
103
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Broadband speeds (%)
54%
52%
48%
45%
43%
41%
20%
20%
19%
20%
20%
20%
26%
28%
33%
35%
37%
39%
100%
100%
100%
100%
100%
100%
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Over 100,000 TiVo customers since commercial launch in Q3 2013 translates to a TiVo penetration of 17.1%
Continued demand for higher speeds from both new and existing broadband customers
39% of customer base subscribe to Com Hem´s 100 – 1 000 Mbit/s services
≤ 10
20 - 50
100 - 1000
9
10. Consumer Business
KPI growth translates into revenue and ARPU growth
359
356
354
355
359
360
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Consumer ARPU (SEK)
Consumer Revenue (SEKm)
866
854
847
856
866
877
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Consumer revenue up by over 1.0% for the third consecutive quarter, supported by growth in both DTV and Broadband revenue
Consumer ARPU increase by 1 SEK compared with Q1 2014 supported by price rise and improvements in the tier mix for both DTV and Broadband
-1,7%
-0,8%
-0,7%
+0,3%
+1,2%
+0,3%
-2,2%
-4,5%
-3,9%
-3,1%
0,0%
2,8%
10
Change (YoY)
Change (QoQ)
Unique consumer subscribers (000’)
823
822
829
830
838
846
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Increase in consumers mainly driven by new broadband subscribers
-2
+8
+1
+8
+8
Change (QoQ)
12. P&L Statement Revenue growth supported by Phonera and increased consumer revenue
SEKm
Q2 14
Q2 13
Change
Revenue
1,198
1,108
90
+8.1%
Production costs
(348)
(314)
(34)
Gross profit
850
794
56
+7.0%
Gross margin
70.9%
71.7%
(0.7p.p.)
Operating costs
(284)
(247)
(37)
Underlying EBITDA
566
547
19
+3.5%
Underlying EBITDA margin
47.2%
49.4%
(2.1p.p.)
Non-recurring items
(142)
(32)
(110)
- Of which IPO related costs
(107)
-
(107)
Operating currency loss/gain
(3)
1
(3)
Write-downs
(4)
(0)
(4)
Depreciation and amortization
(357)
(333)
(24)
Operating Profit (EBIT)
60
182
(122)
n/m
Net Financial Income and Expenses
(983)
(540)
(443)
- Of which refinancing related costs
(573)
-
(573)
Income tax benefit (expense)
204
79
126
Net profit (loss) for the period
(718)
(279)
(439)
n/m
Revenue growth driven by the consolidation of Phonera as well as DTV and Broadband growth
Slight pressure on Gross margin due to consolidation of Phonera
Increase in Underlying EBITDA on back of revenue growth
Slight pressure on Underlying EBITDA margin primarily due to consolidation of Phonera
Operating profit affected by IPO related costs of SEK 107 m and increased D&A due to higher amortizatoin due to Phonera, TiVo investments and Capitalized sales costs
Net result heavily effected by one-off costs for IPO and refinancing of 680 mSEK
12
13. Capital Expenditure Increase in Q2 driven by success-based CPE and Sales Costs capex
SEKm
Q2 14
Q2 13
Change
Network related
75
82
(6)
(7.6%)
CPE and capitalized sales costs
112
70
42
59.9%
IS development
39
39
(0)
(0.1%)
Other Capex
12
12
0
0.7%
Total Capex
239
203
36
17.7%
CPE and Sales Costs increase due to higher sales and migration volumes
Network related decrease due to reduced TiVo infrastucture spending
IS Development in line with previous year
Other Capex according with previous year
13
14. Cash flow Exceptional items in Q2 2014
SEKm
Q2 14
Q2 13
Change
Underlying EBITDA
566
547
19
+3.5%
Non-recurring items and operating currency loss/gain
(145)
(31)
- Of which IPO related costs
(107)
-
Change in net working capital
31
(52)
Interest payments on borrowings etc.
(522)
(407)
Adjustments for non-cash items
1
(1)
Net cash from operating activities
(69)
55
(124)
n/m
Capital expenditures
(239)
(203)
Acquisition of subsidiaries
(11)
(1)
Net cash used in investing activities
(248)
(205)
(44)
(21.4)%
New share issue
5,672
-
Borrowings from new Senior Facilities
4,500
-
Borrowings (Capex Facility)
300
100
Amortization of borrowings
(6,252)
(34)
Payment of borrowing costs
(56)
-
Other financial activities
5
-
Cash flow from financing activities
4,169
66
4,103
n/m
Net Cash generated (used)
3,852
(83)
3,935
n/m
Cash Balance BoP
789
742
47
Cash balance EoP
4,640
658
3,982
n/m
One-off IPO-costs
Change in NWC positive affected by non paid IPO-costs.
All accrued interest paid due to refinancing vs. historically only quarterly payments afterwards, cost for termination of interest and currency hedges included.
Increased Capex due to CPE’s and Sales costs.
Acquisition of subsidiaries relates to final payment for Phonera.
Gross proceeds from New share issues of SEK 5,672m.
Borrowings from new Senior Facilities of SEK 4,500m drawn on June 26, 2014.
Paid borrowing costs for new Senior Facilities
14
15. Net Debt
Leverage ratio of 4.0x end of June and 3.9x after greenshoe
Pre-IPO
SEKm
Senior bank debt
Term Loans incl. Capex facility
6,252
RCF
-
Finance leases
51
Other short-term debt
-
Total senior bank debt
6,303
Bond instruments
Senior Secured Notes
3,492
Senior Notes
2,640
Senior PIK Notes
2,791
Gross Debt
15,226
Cash Balance EoP
(789)
Net Debt
14,437
Leverage
6.4x
Average interest approx.
8,4%
1
June 30, 2014
SEKm
Senior bank debt
New Term Loans
3,500
New RCF
1,000
Finance leases
51
Other short-term debt
5
Total senior bank debt
4,556
Bond instruments
Senior Secured Notes
3,492
Senior Notes*
2,739
Senior PIK Notes*
2,963
Gross Debt
13,751
Cash Balance EoP
(4,640)
Net Debt
9,110
Leverage end of june
4.0x
Leverage if IPO-costs paid
4,1x
2
Pro Forma June 30, 2014**
SEKm
Senior bank debt
New Term Loans
3,500
New RCF
1,000
Finance leases
51
Other short-term debt
5
Total senior bank debt
4,556
Bond instruments
Senior Secured Notes
3,492
Senior Notes*
1,716
Senior PIK Notes
-
Gross Debt
9,765
Cash Balance EoP
(655)
Net Debt
9,110
Proceeds from greenshoe
(567)
Paid IPO and greenshoe costs
220
Net Debt post greenshoe
8,763
Leverage post greenshoe
3.9x
Average interest approx.
6,7%
3
* The exchange rate 9.197 is used to convert EUR debt to SEK debt. ** Pro forma calculations as if notes were redeemed, IPO-costs were paid and full greenshoe exercised as of June 30, 2014
15
17. Strong focus on customer experience Our no.1 operational priority
New Customer Experience Director Appointed in April 2014
Creation of dedicated customer marketing and loyalty programmes in Q2 and Q3 2014
Fundamental redesign of the install experience in Q3 2014
Redesign of propositions and bundling to reduce complexity
Tight focus on improving system stability and network uptime
17
18. Key focus areas in H2 2014
Key focus areas in H2
Continued execution of growth strategy capitalizing on our strengths:
Fastest broadband service
Leading DTV product
Bundling upside
Significant B2B opportunity through Phonera
Bundling initiatives and increased marketing activities
Continued focus on improved customer experience
Refinancing to further reduce debt
Revenue expectations and medium term financial targets
Mid single digit revenue growth expected 2014
Medium term underlying EBITDA margin expected to slightly soften due to shift in business mix
Medium term leverage target of 3.5x-4.0x LTM EBITDA
Medium term Capex as % of revenue to decline in line with industry level
2015 target to return at least 50% of 2014 equity free cash flow in dividends or other capital distributions
Upcoming possible re-financing events;
Senior Secured Notes in November 2014
Senior Notes in November 2015
18
22. Scope and timing uncertain given legislative process
Legislative process to follow, process of consultation first step
Swedish general elections on September 14, 2014 The proposed recommendation in brief
Net financials in a group will not be tax deductible
Introduction of a ”financing deduction” of 25% of taxable profit (at company level)
Financing deduction and current corporate tax rate of 22% would result in an efficient tax rate of 16.5%
Proposed reduction of companys NOLs balance outstanding as of 31 Dec. 2015 by 50%, as a one-off event.
Proposed time of implementation: from January 1, 2016
Swedish tax law reform recommendation Proposal presented on 12 June, 2014
22