02 MARCH 2010 2009 RESULTS ANNOUNCEMENT PRESENTATION
2009 RESULTS ANNOUNCEMENT PRESENTATION 02 MARCH 2010 DISCLA - - PowerPoint PPT Presentation
2009 RESULTS ANNOUNCEMENT PRESENTATION 02 MARCH 2010 DISCLA - - PowerPoint PPT Presentation
2009 RESULTS ANNOUNCEMENT PRESENTATION 02 MARCH 2010 DISCLA SCLAIMER IMER This presentation contains forward looking information, including statements which constitute forward looking statements within the meaning of the U.S. Private Securities
DISCLA SCLAIMER IMER
This presentation contains forward looking information, including statements which constitute forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and assumptions of our management and on information available to management only as of the date such statements were made. Forward-looking statements include (a) information concerning strategy, possible or assumed future results of our operations, earnings, industry conditions, demand and pricing for our products and other aspects of our business, possible or future payment of dividends and share buy back program; and (b) statements that are preceded by, followed by or include the words “believes”, “expects”, “anticipates”, “intends”, “is confident”, “plans”, “estimates”, “may”, “might”, “could”, “would”, and the negatives of such terms or similar expressions. These statements are not guarantees of future performance and are subject to factors, risks and uncertainties that could cause the assumptions and beliefs upon which the forwarding looking statements were based to substantially differ from the expectation predicted herein. These factors, risks and uncertainties include, but are not limited to, changes in demand for the company’s services, technological changes, the effects of competition, telecommunications sector conditions, changes in regulation and economic conditions. Further, certain forward looking statements are based upon assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from the plans, strategy, objectives, expectations, estimates and intentions expressed or implied in such forward-looking statements. Additionally, some of these statements refer to board proposals to be submitted to ZON - Multimédia – Serviços de Telecomunicações e Multimédia, SGPS, S.A. (“Multimedia” or “ZON”) AGM and subject to (i) its approval by Multimedia’s shareholders, (ii) the market conditions and (iii) the ZON’s financial and accounting position as revealed in the financial statements approved by Multimedia’s AGM. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to provide reasons why actual results may differ. You are cautioned not to place undue reliance on any forward-looking statements. ZON Multimedia is exempt from filing periodic reports with the United States Securities and Exchange Commission (“SEC”) pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934, as amended. The SEC file number for PT Multimedia’s exemption is No. 82-5059. Under this exemption, ZON Multimedia is required to post on its website English language translations, versions or summaries of certain information that it has made or is required to make public in Portugal, has filed or is required to file with the regulated market Eurolist by Euronext Lisbon or has distributed or is required to distribute to its security holders. This presentation is not an offer to sell or a solicitation of an offer to buy any securities.
2
TÍTULO E DATA DA APRESENTAÇÃO ARIAL 10pt. | 30 09 05
- 1. Continued Strong
Operating Performance
3
2.982 3.116 3.251 3.385 3.507
4Q08 1 Q09 2Q09 3Q09 4Q09
4
RGU U – Reven enue ue Generat neratin ing Unit its
[thousands]
+17.6% +144.4 +134.2 +134.4 +134.5 +121.3
[Net Adds - thousands]
Str tron
- ng
g Operatio rational nal Mom
- mentum
tum
RGU Growth Remains Strong
4
3Play ay Penetratio tration n Over r 40% of
- f Cabl
ble e Subscribe scriber r Base se
1,85 1,95 2,02 2,10 2,17
4Q08 1 Q09 2Q09 3Q09 4Q09
23% 29% 33% 37% 41%
4Q08 1 Q09 2Q09 3Q09 4Q09
275 340 391 436 484
4Q08 1 Q09 2Q09 3Q09 4Q09
RGUs Us per Subscrib criber er
[units]
Triple e Play Subscrib cribers ers Penet etrat ration ion of Cable e Base
+17. 7.3% 3% +17. 7.6p 6pp
Triple e Play Subscrib cribers ers
[thousands]
+64. 4.2 2 +64. 4.5 5 +51. 1.1 1 +44.9 9 +49. 9.3
[Net Adds thousands]
2010 objective of 30% Triple Play Penetration achieved well ahead of schedule; ZON is the fastest growing Triple Play operator in Europe Each customer now subscribes to 2.17 services, on average, compared with 1.85 a year ago 5
+75. 5.9% 9%
438 419 412 413 414
4Q08 1 Q09 2Q09 3Q09 4Q09
1.176 1.176 1.179 1.181 1.180
4Q08 1 Q09 2Q09 3Q09 4Q09
1.614 1.595 1.591 1.595 1.595
4Q08 1 Q09 2Q09 3Q09 4Q09
Pay Pay TV – improvi
- ving
ng tr trends ds th throu
- ugho
ghout ut 2009 2009
Basic ic Subscrib cribers ers
[thousands]
(1.2%) 2%) (14.0) 0) (18.2) 2) (3.9) 9) +3.3 3 +0.1
Cable e Sub ubscri cribers ers
[thousands]
+0.4% 4% +4.6 6 +0.2 2 +3.1 1 +2.4 4 (1.0) 0)
DTH Subscrib cribers ers
[thousands]
(5.3) 3)% (18.5) 5) (18.4) 4) (7.0) 0) +0.8 8 +1.2
Basic Customers showing positive net adds of 0.1 thousand in 4Q09 Cable base stable Strong reduction in DTH disconnections in 2Q09, positive net adds of 0.8 thousand in 3Q09 and 1.2 in 4Q09
[Net Adds thousands] Note: 4Q08 Net Adds are adjusted for the impact of the acquisition of TVTel and Parfitel operations.
6
91 184 292 418 545
4Q08 1 Q09 2Q09 3Q09 4Q09
496 540 575 613 648
4Q08 1 Q09 2Q09 3Q09 4Q09
Str tron
- ng ta
take-up up of
- f highe
gher value lue digi gital tal servic vices es
“Funtastic” Digital Subscribers
[thousands]
ZON Boxes es Instal alled ed
[thousands]
+30. 0.7% 7% +50. 0.0 0 +43. 3.7 7 +35.3 3 +38. 8.2 2 +35.0 +6.0x 0x
> > 50% withou
- ut PVR
[Net Adds thousands]
Take-up of higher value digital services driving ARPU growth High penetration of HD ZON Boxes, enabling new TV viewing experiences – VoD, HD, EPG, PVR, Pause live TV… ZON today has the broadest range of HD channels which have been instrumental in containing churn in Pay TV 7
7 16 33 54 69
4Q08 1 Q09 2Q09 3Q09 4Q09
347 419 479 529 584
4Q08 1 Q09 2Q09 3Q09 4Q09
519 546 573 594 611
4Q08 1 Q09 2Q09 3Q09 4Q09
8
Broa
- adb
dband and, , Fixed xed Voi
- ice
ce and Mob
- bil
ile
[Net Adds thousands]
Broadb adband and Subscrib cribers ers
[thousands]
+17. 7.7% 7% +28. 8.0 0 +27.0 0 +26.5 5 +21.9 9 +16.3
Fixed ed Voice ice Subscrib cribers ers
[thousands]
+68. 8.5% 5% +73. 3.2 2 +72.8 8 +59.2 2 +50.6 6 +54. 4.9
Mobile e Subscrib cribers ers
[thousands]
+7.2 2 +8.8 8 +17. 7.4 4 +20.5 5 +15.0
In Broadband, the pace of growth remains strong with 16.3k subs per quarter; with ZON being the leading operator in terms of traffic. Importantly, latest operating data reveals that 17% of all broadband gross adds in 4Q09 subscribed to ZON Fibra offers 55k net adds in Fixed Voice during 4Q09, taking the total Fixed Voice customer base to almost 600k subscribers The mobile business continues to show good pace, with 15.0k net adds in the quarter, supported in particular by the take-up of mobile broadband connections
+9.5x 5x
Very Strong Momentum Maintained
1,0 2,15
1 P 3P Premi emium betwee een n Cable e and DTH ARPU
[%]
Multipl iple e Servi rvice ce ARPU U Diff ffere erentia iation ion
[Single Play ARPU = 1]
23,2% 51,4%
4Q08 4Q09 32,4 32,7 33,6 34,0 35,0
4Q08 1 Q09 2Q09 3Q09 4Q09
Drivi iving ng ARPU grow
- wth
th
Blended nded ARPU
[euros]
+8.0% 0%
Cable e & DTH H ARPU U y.o.y. Growt wth in 4Q09
[%]
12,3%
(8,6%) Cable DTH
9
TÍTULO E DATA DA APRESENTAÇÃO ARIAL 10pt. | 30 09 05
- 2. Supported by
Solid Financial Indicators
10
677,6 739,4
2008 2009
176,5 193,2
4Q08 4Q09
+9.1% 1% +9.4% 4% 766,0 823,0
2008 2009
202,6 217,5
4Q08 4Q09
Revenues nues drive iven by by RGU and ARPU U grow
- wth
th
Operat ratin ing Revenu enues es 4Q09 / 4Q08
[millions of euros]
+7.5% 5%
Pay TV, Broad adban and and Voice ce 4Q09 / 4Q08
[millions of euros]
+7.3% 3%
Operat ratin ing Revenu enues es FY09 / FY08
[millions of euros]
Pay TV, Broad adban and and Voice ce FY09 / FY08
[millions of euros]
11
13,3 15,1
4T08 4T09
19,1 18,5
4T08 4T09
63,7 62,0
2008 2009
49,2 54,4
2008 2009
12
Cinem nema a 4Q09 / 4Q08
[millions of euros]
+10, 0,4% 4% (3.4) 4)% (2,7) 7)% +13. 3.9% 9%
Audio diovisu visuals 2009 / 2008
[millions of euros]
Cinem nema a 2009 / 2008
[millions of euros]
Improv
- ving
ing Sequential ential Trends nds in Audi diov
- visua
isuals s and d Cinema ema Revenues nues
Audio diovisu visuals 4Q09 / 4Q08
[millions of euros]
12
Operating Costs (millions of euros) 20 0 9 Δ % Drivers
Impact of internalization of several functions Impact of acquisitions Lower Programming Costs - impact of SIC and other content contracts renegotiation Increase in fixed and mobile traffic and capacity-related costs partially compensating the reduction in Programming Costs Higher sales commission charges, due to high level of commercial activity driving RGU growth Increase in COGS due to growth of Mobile subscriber base and subsequent increase of handsets sold Other Operating Costs 1 84.5 7.8% Higher customer care, maintenance and repair costs, due to increasing number and complexity of services subscribed by customers Total Operating Costs 556.0 6.1 % Commercial Costs 80.5 1 6.5% W&S 58.2 1 0.4% Direct Costs 232.8 0.7% 241,9 267,0
2008 2009 57,5 66,0
4Q08 4Q09
Operatio rational nal Prof
- fitab
itabilit ility – Sol
- lid
id EBITDA DA grow
- wth
th
31.6% 6% 32.4% 4% EBITD ITDA A and EBITD ITDA A Marg rgin in 2008 / 2009
[millions of euros; %]
+14. 4.7% 7% +10. 0.4% 4%
EBITD ITDA A and EBITD ITDA A Marg rgin in 4Q09 / 4Q08
[millions of euros; %]
28.4% 4% 30.3% 3%
13
47,9 44,0
2008 2009
Net Incom
- me
14
Net Incom come e 4Q09 / 4Q08
[millions of euros]
Depreciation increased by 34.3% to 188.6 million euros in 2009, driven by higher investment in terminal equipment and long term contracts Net financial results were negative by 14.9 million euros, with net interest charges amounting to 26.0 million euros
(8,1) 1)%
Net Incom come e 2008 / 2009
[millions of euros]
Total Net Results of 3.1 Million Euros in 4Q09
(2,9) 3,1
4Q08 4Q09
14
1 5,4 7,9 53,1 1 02,6 1 6,4 1 4,7 76,0 88,5
1 60,8 21 3,6
2008 2009
Non-Recurrent CAPEX Terminal Equipment Other Recurrent CAPEX Pay TV, Broadband and Voice Infrastructure
Custom tomer er-Driv Driven CAPE PEX X y.o.
- .y.
. Increase ease
15
Total CAPEX
[millions of euros]
+32, 2,8% 8%
Increase mostly due to upgrade to Eurodocsis 3.0 and cell splitting Increase mostly due to the installation of a greater amount of terminal equipment
15
Sou
- und
nd Capital ital Str truct uctures ures and Adequate uate Debt Matu turity rity
Net Financi nancial al Debt
[millions of euros]
Net Financi nancial al Debt / EBITD ITDA
[x]
2,3x 2,3x 2008 2009
16
552,5 15,5 (53,4) 26,8 45,5 55,3 (12,3) 615,8 2008 Working Capital EBITDA - CAPEX Interest Paid Dividends Long Term Contracts Other items 2009
Att ttractive active Shareho areholder der Remune nerat ratio ion
17
The Board d has approve
- ved
d a divide idend d of 16 cents per share, , subject ect to approval
- val by the Shareholder
holder Meeting. g. Same divide idend nd per share e as in 2008 112% Pay-out ratio io 4.3% divid iden end d yield
TÍTULO E DATA DA APRESENTAÇÃO ARIAL 10pt. | 30 09 05
- 3. Wrap Up
18
Wrap Up Up
19
Leading roll-out of Next Generation Networks and Services: 2.4 million homes covered, 200 Mbps Triple Play bundles Continued focus on profitable growth with EBITDA increasing above Revenues: + 10.4% in FY09 and +14.7% y.o.y. in 4Q09 Rational investment strategy – customer driven growth CAPEX to secure market share with attractive returns on investment, leveraging scalability of HFC network in place while leading in technological innovation Operational KPIs continue to show very strong performance: Pay TV trend continued with positive net adds in the last two quarters, and Triple Play penetration now at 41% (2010 year- end target was 30%) Still one of the highest growth companies of the peer group: +7.3% y.o.y. growth in Revenues, +9.4% in core Pay TV, Broadband and Voice business 19 Attractive Shareholder Remuneration : 16 eurocents per share, 112% pay-out ratio. Dividend yield 4.3%, amongst the highest in peer group.
TÍTULO E DATA DA APRESENTAÇÃO ARIAL 10pt. | 30 09 05
Appendix Financial Highlights Operational Highlights
20
Financi nancial l Highli hlights ghts
21
(Millions of Euros) 4Q08 4Q09 ∆ y.o.y. 2008 2009 ∆ y.o.y. Operating Revenues 20 2.6 21 7.5 7.3% 766.0 8 23.0 7.5 % Pay TV, Broadband and Voice 1 76.5 1 93.2 9.4% 677.6 739.4 9.1 % Audiovisuals 1 9.1 1 8.5 (3.4%) 63.7 62.0 (2.7%) Cinema Exhibition 1 3.3 1 5.1 1 3.9% 49.2 54.4 1 0.4% Other (6.3) (9.2) 47.8% (24.6) (32.7) 33.1 % EBITDA (1 ) 5 7.5 66.0 1 4.7% 241 .9 267.0 1 0 .4% Income from Operations (2) 9.2 1 2.8 39.7% 1 01 .5 78.4 (22.7%) NET INCOME (2.9) 3.1 n.a. 47.9 44.0 (8 .1 %) CAPEX 5 3.2 69.6 30 .8 % 1 60 .8 21 3.6 32.8 % EBITDA minus CAPEX 4.3 (3.6) n.a. 8 1 .1 5 3.4 (34.1 %) Net Financial Debt 5 5 2.5 61 5 .8 1 1 .5 % 5 5 2.5 61 5 .8 1 1 .5 % EBITDA margin (%) 28 .4% 30 .3% 2.0 pp 31 .6% 32.4% 0 .9pp CAPEX as % of Revenues 26.3% 32.0 % 5 .7pp 21 .0 % 26.0 % 5 .0 pp Net Financial Debt / EBITDA 2.3x 2.3x n.a. 2.3x 2.3x n.a.
(1 ) EBITDA = incom e from operations + depreciation and am ortisation. (2) Incom e from operations = incom e before financials and incom e taxes + work force reduction program m e costs + im pairm ent of goodwill + losses (gains) on disposal of fixed assets + other costs/ incom e.
Operatio rational nal Highl ghlig ights hts
22
José Pedro Pereira da Costa CFO Maria João Carrapato Head of Investor Relations ir@zon.pt ZON Multim imedia dia Avenida 5 de Outubro, 208 1069-203 Lisboa, Portugal Tel.: +351 21 782 47 25 Fax: +351 21 782 47 35
Con
- nta
tact cts Con
- nta
tact ct
23