Tpg Telecom Limited · ASX:TPG
Tpg Telecom — FY2013 Earnings Presentation
23 slides from Tpg Telecom's earnings presentation, Sep 17, 2013
Slide 1: 2013 TPG Annual Results Presentation
2O13 IPG ANNUAL RESULTS PRESENTATION 17 SEPTEMBER 2013
Slide 2: Highlights
HIGHLIGHTS EBITDA up 12% to $293.1m Reported NPAT up 64% to $149.2m both up 31% excluding impact of tax legislation change on Reported EPS up 63% to 18.8 cents prior year results Consumer division EBITDA of $180.6m up $31.1m, driven by net increase of 76,000 broadband subscribers and 105,000 mobile
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS $M FY13 FY12 Growth Revenue 724.5 663.1 9% EBITDA 293.1 261.4 12% Reported NPAT 149.2 91.0 64% Reported EPS (cents) 18.8 11.5 63% NPAT excluding FY12 one-off tax expense 149.2 114.2 31% - adjusted EPS (cents) 18.8 14.4 31% NPAT excluding amortisation* & one-off tax 165.9 137.9 2
Slide 4: Financials: Consecutive Years of Strong Growth
FINANCIALS: 5 CONSECUTIVE YEARS OF STRONG GROWTH $M $M ¢ $M ¢ * Note FY12 NPAT and EPS exclude the $23m one-off tax expense that arose from the retrospective change in rights to future income tax legislation that occurred in that year. -4-
Slide 5: Financials: EBITDA Growth
FINANCIALS: EBITDA GROWTH EBITDA $M -5-
Slide 6: Financials: Free Cash Flow
FINANCIALS: FREE CASH FLOW $M FY13 FY12 Operating Cash Flow 318.0 277.2 Tax (79.2) (47.7) Interest (6.0) (14.9) Capex (58.3) (64.6) Free Cash Flow 174.5 150.0 -6-
Slide 7: Financials: Free Cash Flow Utilisation
FINANCIALS: FREE CASH FLOW UTILISATION $M FY13 FY12 Free Cash Flow 174.5 150.0 Utilisation of cash: Debt repayments 107.0 84.5 Investment in data security business 10.0 - Prior year investments - 33.8 Dividend payments (net of DRP in FY12) 49.6 26.0 Other (4.5) 1.4 Increase in cash at hand 12.4 4.3
Slide 8: Financials: Bank Debt
FINANCIALS: BANK DEBT $M Group debt balance at 31 July 2012 149.0 Repayments made during FY13 (107.0) Group debt balance at 31 July 2013 42.0 Net debt as at 31 July 2013: $15.9m (net of $26.1m cash) -8-
Slide 9: Financials: Segment & Product Analysis
FINANCIALS: SEGMENT & PRODUCT ANALYSIS $M TPG TPG Other Consumer REVENUE Corporate Unalloc. Total Broadband Mobile Consumer Total FY12 347.2 52.0 13.5 412.7 250.4 - 663.1 FY13 403.1 68.6 8.6 480.3 244.2 - 724.5 TPG TPG Other Consumer EBITDA Corporate Unalloc. Total Broadband Mobile Consumer Total FY
Slide 10: Corporate: Financials
CORPORATE: FINANCIALS FY12 EBITDA included a $2.0m one-off benefit. Excluding this and the IRU gains, FY13 EBITDA is up by 13% on an underlying basis relative to FY12. Underlying EBITDA margin % increased from 38% in FY12 to 43% in FY13. -10-
Slide 11: Consumer: Broadband Subscribers
CONSUMER: BROADBAND SUBSCRIBERS Overall growth of 76k in FY13, compared to 47k in FY12 Award Winning ADSL2+ with Home Phone: 130k growth in FY13 Subscriber growth is 100% organic On Net churn rate 1.4% in FY13 -11-
Slide 12: Consumer: Broadband ARPU
CONSUMER: BROADBAND ARPU Overall Broadband ARPU Trend Overall ARPU continuing to trend higher as bundle plans form a larger proportion of the customer base (up to 52% of the base at July 13). The bundle also generates monthly call charge revenue not included in these charts; current average steady a
Slide 13: Consumer: Home Phone Subscribers
CONSUMER: HOME PHONE SUBSCRIBERS Over 350,000 customers added since launch in mid 2010 -13-
Slide 14: Consumer: Mobile Subscribers
CONSUMER: MOBILE SUBSCRIBERS 105,000 mobile subscriber growth in FY13, compared to 54,000 in FY12 Canstar Blue - Most Satisfied Customers (3 years in a row) -14-
Slide 15: International Capacity Expansion
INTERNATIONAL CAPACITY EXPANSION -15-
Slide 16: FTTB
FTTB • Leveraging and expanding our existing fibre network • Sydney, Melbourne, Brisbane, Adelaide, Perth • 500k units currently in design -16-
Slide 17: FTTB $69.99
FTTB $69.99 Min charge includes $10 Delivery + $20 Prepayment Outside Included Value + $129.99 Setup on a 24 month contract. Limited coverage area. Only available in selected fibre lit buildings. ~ 100Mbps is a Theoretical Maximum download speed. -17-
Slide 18: LTE Spectrum
LTE SPECTRUM • National 2.5 GHz band – 2 x 10 MHz spectrum • Available October 2014 • Value added service for TPG customers: - FTTB - NBN -18-
Slide 19: Final Dividend
FINAL DIVIDEND 4.0 cents per share final FY13 dividend Payable 19 November 2013 Record date 15 October 2013 Total FY13 dividends = 7.5 cents per share 36% increase on prior year -19-
Slide 20: Guidance
GUIDANCE $M FY13 FY14 Actual Guidance Regular EBITDA 273 290 - 300 IRU gains 10 - One-off credits 10 - Total EBITDA 293 290 - 300 -20-
Slide 21: Appendix
APPENDIX The Group's accounts currently include substantial intangible amortisation charges which predominantly arise from the accounting for the acquisitions of TPG and PIPE Networks. These are non-cash items. The table below shows the expected ongoing amortisation schedule. Expected Amortisation S
Slide 22: Thank You
THANK YOU Q&A
Slide 23: Disclaimer
DISCLAIMER This presentation contains certain forward-looking and unaudited information. Such information is based on estimates and assumptions that, whilst considered reasonable by the Company, are subject to risks and uncertainties. Actual results and achievements could be significantly different