Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Q1 2009 Earnings Presentation
19 slides from Telecom Argentina Sa Class B's earnings presentation, 2009
Slide 1: First Quarter 2009 Earnings Results Conference Call Presentation
First Quarter 2009 Earnings Results Conference Call Presentation UNAUDITED DATA
Slide 2: Disclaimer
Disclaimer This presentation may include statements that could constitute forward-looking statements, including, but not limited to, the Company’s expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; the impa
Slide 3: Agenda
Agenda • Market Overview • Business Highlights • Financials • Q&A Session 2
Slide 4: Argentine macroeconomic evolution - The economy continued to slow down
Argentine macroeconomic evolution - The economy continued to slow down. Real GDP Consumption Trade & Fiscal Balance Billions ARS, 1993 based (Last 12 months) Billions ARS, 1993 based (Last 12 months) Quarterly Fiscal Balance (Last 12 Months) ∆ YoY ∆ YoY as % of GDP 8,9% 7,8% 9,0% Trade Balance (Bill
Slide 5: Agenda
Agenda • Market Overview • Business Highlights • Financials • Q&A Session 4
Slide 6: Fixed Line: TEO continues to grow
Fixed Line: TEO continues to grow Thousand of lines in service • Despite the expansion of the cellular market, fixed lines continued to grow at a moderate pace, outperforming the market (+1% vs. 1Q08). Evolution of Lines in Service • In a scenario of frozen regulated tariffs, ARPU was stable through
Slide 7: Broadband: The door to growth in the fixed line business
Broadband: The door to growth in the fixed line business Thousand of broadband accesses • In 1Q09 broadband connections represent 25% of LIS. 9 - 1Q0 +26% 3.045 • TEO benefits from steady demand of 4Q0 8 +34% 2.993 broadband services through: Share w Flo ed 54% • Improved network coverage. h 2.421 r
Slide 8: Fixed line: Revenues comparison: 1Q09 – 1Q08
Fixed line: Revenues comparison: 1Q09 – 1Q08 Argentine GAAP, Millions of ARS, Percentage YoY Variation 116 (+13%) 6 15 1 979 77 11 14 -8 863 Non 49% Regulated Non Regulated 43% 6% 5% -31% 49% 11% 16% 2% 51% Regulated Regulated 57% Revenues Monthly Fee Voice Public Internet Data Interconnection Other
Slide 9: Mobile: Strong subscriber growth above competition
Mobile: Strong subscriber growth above competition Million of lines • TEO continued to focus in network performance and value added services availability and capillarity (mainly in mobile TEO vs. Market Growth Internet and 3G services). • Additional customer retention actions and enhancements in cus
Slide 10: Mobile: Growth without Dilution in Customer Value
Mobile: Growth without Dilution in Customer Value Net additions VAS relative participation over service revenues Thousand subs +390M Millions of ARS 1Q09 Vs. 1Q08 1.508 1.596 1.596 623 1.358 1.388 17% d aine 607 1.361 1.388 562 Sust th with 497 growalue 1.118 1.094 13% v n Voice 1.041 en e ratio 969
Slide 11: Mobile: Evolution of revenues: 1Q08 - 1Q09
Mobile: Evolution of revenues: 1Q08 - 1Q09 Argentine GAAP, Millions of ARS, Percentage YoY Variation 233 (+14%) -6 -14 12 1.850 43 11 110 77 1.617 24% 20% 3% 28% -5% 8% -13% Revenues 1Q08 Monthly Fees Prepaid Traffic TLRD & CPP VAS Others Handset Sales Nucleo Revenues 1Q09 Argentine Service Revenues
Slide 12: Evolution of CAPEX
Evolution of CAPEX Argentine GAAP, Millions of ARS (excluding materials) 1Q09 Mobile Capex breakdown % Revenues 14% 15% 10% 8% IT 1.597 19% 3G 1.302 248 234 38% 2G 16% 763 14% 13% Mobile * 613 104 108 Quality Capacity & Innovation 13% Fixed 23% 13% 834 144 689 126 1Q09 Fixed Line Capex breakdown 51%
Slide 13: Agenda
Agenda • Market Overview • Business Highlights • Financials • Q&A Session 12
Slide 14: TEO Group: Consolidated Results /1
TEO Group: Consolidated Results /1 Argentine GAAP, Millions of ARS, Percentage YoY Variation Revenues OPBDA * 10.608 +17% 9% 9.074 8.559 7.033 Non Regulated 3.330 3.052 78% 81% +14% 2.829 4% 2.480 2.328 917 2.041 2.049 1.991 80% 82% 879 Regulated 22% 19% 20% 18% 489 501 2007 2008 1Q08 1Q09 2007 2008
Slide 15: TEO Group: Consolidated Results /2
TEO Group: Consolidated Results /2 Argentine GAAP, Millions of ARS, Percentage YoY Variation Operating Profit Net Income +25% Results of sale of Publicom FX Results 1Q08 1Q09 +9% Assets 13 49 Liabilities (24) (142) 2.041 102 Total (11) (93) 1.636 +17% +23% 961 782 +21% 534 625 272 329 2007 2008 1Q08
Slide 16: TEO Group: Operating FCF and Net Debt
TEO Group: Operating FCF and Net Debt ¾ Year to Date: Argentine GAAP, Millions of ARS 1.690 Telecom Argentina made principal prepayment in an amount equivalent to U$S 29.5 million. Debt buybacks: - Telecom Argentina: € 6.97 million. 3.368 217 - Telecom Personal: U$S 8.77 million. 1.461 ¾ Next pr
Slide 17: Fixed Line: Telecom Argentina Unconsolidated P&L
Fixed Line: Telecom Argentina Unconsolidated P&L Argentine GAAP, Million of ARS, Percentage Mar-31 1Q09 ∆ 1 Q0 8 ∆% Labor costs 245 38 18% Materials and supplies 94 15 19% Advertising 28 15 115% 1Q09 1Q08 $ Var. % Var. Network costs & interconn. 109 22 25% Net Revenues 1.142 996 146 15% Taxes 59 (1)
Slide 18: Mobile: Personal Unconsolidated P&L
Mobile: Personal Unconsolidated P&L Argentine GAAP, Million of ARS, Percentage 1Q09 1Q08 $ Var. % Var. 1Q09 1Q08 Net Revenues 1.766 1.518 248 16% Service Revenues 1.605 1.369 Operating Costs (1.318) (1.095) (223) 20% Pre SAC & SRC OPBDA 707 613 OPBDA 448 423 25 6% Margin 44% 45% Margin 25% 28% SAC &
Slide 19: Agenda
Agenda • Market Overview • Business Highlights • Financials • Q&A Session 18