Q3 2015 FINANCIAL RESULTS - Orange Belgium - Free Download PDF

14d ago
4.13 MB
46 Pages

Q3 2015 FINANCIALRESULTSAnalysts & Investors Presentation20 October 2015

UPDATE“Return to growthachieved in the thirdquarter of 2015”2MOBISTAR - FINANCIAL RESULTS Q3 2015

our main business achievements in Q3 2015 Growing postpaid customer base on the back of healthy gross addsand continuous churn rate improvement Mobistar’s YTD total data traffic increased 106 % vs 9M 2014 4G traffic now represents more than 50 % of total monthly traffic 4G network coverage stood at 97 % for outdoor coverage and 83 % forindoor coverage 4G technical trial in 6 cities and more to come Postpaid ARPU continues its positive trend driven by mobile data Service revenues showed renewed growth Loyalty program running at full speed and enriched services launched Service revenues, EBITDA and cash flow are all growing YoY and QoQ Financial results now expected to exceed full year 2015 guidance3MOBISTAR - FINANCIAL RESULTS Q3 2015


Our 5 strategic priorities and ambitionsLeadership inMobileBest 4G network in BelgiumPioneer inDisruptiveConvergenceN 1 convergent challenger on the consumer marketBest CustomerExperienceBest IndustryEfficiencyTeam Member’sEngagement5MOBISTAR - FINANCIAL RESULTS Q3 2015N 1 in network shareN 1 convergent challenger on the enterprise marketBest Telco customer experienceN 1 NPS in all customer touch pointsBest in class Telco in outsourcing modelSelf finance innovation thanks to efficiency gainsCreate a digital and open working environmentBest in Class in offering career opportunities



facilitating 4G access for our customersFrom network and tariff plans to devices and services8NETWORKTARIFFSDEVICESlargest 3Gand 4Gcoveragemostattractive4G tariffplansrichestdevicesportfolioMOBISTAR - FINANCIAL RESULTS Q3 2015SERVICES&FINANCINGbest services

customers benefit from an excellent 4G experiencethrough our upgraded networkNETWORKLast July 2015 Commsquare benchmarkhas been the best ever achieved:1st in 4G indoor coverage.1st Ex-Aequo in 3G and 2G coverage.1st in Voice performance and quality.1st in data performance.9MOBISTAR - FINANCIAL RESULTS Q3 2015TARIFFSDEVICESSERVICES&FINANCING

most attractive 4G tariff planshighlighted by summer- and back to school campaignsNETWORKTARIFFSSummer- & Back to school campaignsbannerTV10MOBISTAR - FINANCIAL RESULTS Q3 2015DEVICESSERVICES&FINANCING

digitalisation leading to better customer experiencetowards a more engaged and loyal customer baseNETWORKVirtual shelf in our shopsTARIFFSDEVICESSERVICES&FINANCINGtouchscreens in @Mobistar shops to compareor choose a handset11MOBISTAR - FINANCIAL RESULTS Q3 2015

the best services available for our customersthanks to Mobistar’s enriched services strategyNETWORKTARIFFSDEVICESSERVICES&FINANCINGNew Buy Back programYour old device has a value12MOBISTAR - FINANCIAL RESULTS Q3 2015

loyalty program drives customer engagementand churn reduction through four types of rewards CinemaEvents Buy one ticket getone free onTuesdays Concerts Sport events Avant-Première 800,000(since April 2014) TelcoLoyaltyChurn Free minutes Free SMS / MB Roaming & Nat13MOBISTAR - FINANCIAL RESULTS Q3 2015 Partners

exclusive events created by Mobistarencourage consumers to become part of the Mobistar family201414201518/09Mika22/09Lady Gaga11/02Goose12/07Color Run12/10Stan AR - FINANCIAL RESULTS Q3 2015

enriched customer experience leads to churnreductionback to early 2012 levelsPostpaid Mobile churn20122015Mobistar postpaid customers excl. M2M & MVNO15MOBISTAR - FINANCIAL RESULTS Q3 2015

postpaid customer base continues to growdriven by solid gross adds and a significant churn improvementPostpaid quarterly net adds in Belgium (‘k)798Q2 2015Q3 20151-5-20-42Q1 201416Q2 2014MOBISTAR - FINANCIAL RESULTS Q3 2015Q3 2014Q4 2014Q1 2015Mobistar active customers excl. M2M & MVNOQ3 2014 prepaid excl. Colruyt MVNO internalistation


Mobistar keeps investing in 4GcoverageOutdoor 4G population coverage evolution (%)(800 1800 MHz)81889295975416Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3Q3 20152015Source:Mobistar internal simulations18MOBISTAR - FINANCIAL RESULTS Q3 2015

strong outdoor & indoor 4G coveragePopulation coverage elsSource:Mobistar internal simulations19MOBISTAR - FINANCIAL RESULTS Q3 2015

ahead of competition in terms of 4G coverageCoverage (%) - Driven routes (6 500 km)DEEP & SOFT 0MOBISTAR - FINANCIAL RESULTS Q3 2015Drive tests performed in June-July 2015

4G technical testing in progress Already 6 cities opened and otherswill progressively follow A better experience for all customers21MOBISTAR - FINANCIAL RESULTS Q3 2015

4G customer base is growing fastgrowing customer appetite for 4G smartphones & servicesActive 4G users* share of Mobistar totalsubscriber base800 0004G users26%23%19%16%11%8%0%Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015*Mobistar active 4G users excl. M2M & MVNO22MOBISTAR - FINANCIAL RESULTS Q3 2015

4G more than 50% of total data consumption1 out of every 4 Mobistar customers is using 4GMobile data consumptionper 23MOBISTAR - FINANCIAL RESULTS Q3 2015Mobistar prepaid & postpaid customer base excl. M2M & MVNO,monthly change from January 2014 to September 201526%3G trafficper usercontinuesto increase

smartphone penetration is acceleratingand is quickly moving towards European levelsSmartphone penetration45%201355%58%20142015 YTDOut of a total customer base of 3.03 million active Mobistar customers24MOBISTAR - FINANCIAL RESULTS Q3 2015

mobile data usage is growing exponentiallyas customers fully embrace the benefits in their daily lives and workAverage data consumption per month in MB79055044025029011020132014Mobistar total users base25MOBISTAR - FINANCIAL RESULTS Q3 2015YTD 2015Mobistar data users baseMobistar prepaid & postpaid data users base excl. M2M & MVNO,monthly change from December 2013 to September 2015

bridging the gap between mobile & fixedleveraging Mobistar excellent 4G network with Easy Internet @HomeSubscriptionModem (Mandatory)15 /month15GB then119 throttling to 256KbpsTop-ups:5 - 5GB10 - 10GBLimited edition26MOBISTAR - FINANCIAL RESULTS Q3 2015or29 (w. 12-month commitment)Plug & Play: No set-upSimple: Place it where you want in your homeAffordable: Covers a basic internet usage at best priceGood performance: 25MbpsDesigned for Home: Ethernet Port, WiFi range, up to 30devicesNomad: Use it in locations where there is a 4G coverage

increased data top-ups and data users4G drives customer appetite for mobile dataSignificant increase of data top-upsUser per tariff plan2014 & 2015 comparisonNumber of usersx 2.51GB500MB9M 2014279M 2015MOBISTAR - FINANCIAL RESULTS Q3 2015x2x25GBx24GBx 2.53GBx 1.52GBx1

4G and data usage driving postpaid ARPU growthAbility to monetize mobile data confirmedPostpaid ARPU increased YoY in Q3 2015: 3.6%3.6%0.6%-1.1%Q1 2015Q2 2015Q3 2015Postpaid ARPU, annual rolling (incl. visitor roaming)28MOBISTAR - FINANCIAL RESULTS Q3 2015


progresses on cable network regulation End May, a new proposal of price conditions has been published for market consultationuntil mid July Mobistar understands some regulators decided upon the outcome of the consultation, butnot all yet. Regulators may decide to move forward one by one (after consultation viaCRC) to the EC. Feedback EU is publicly known around 30 days after submission of the notification. Final regulatory decision can than be taken in around 2-3 weeks afterwards.JUNEJULYConsultation periodAUGSEPTOCTNOVDraft decision for EC (CRC)EC ConsultationECnotificationCRC newpricingconditionsproposal30MOBISTAR - FINANCIAL RESULTS Q3 2015ECdecision(publicversion)Estimated timing if regulatorsmove forward one by oneDECCRCpricingfinaldecision

cable wholesale prices proposal drop 30 %but still 25 % above French benchmarkRegulators Draft Decisions (May 2015)Monthly regulated fee- 20 to- 30 % 25%Former wholesale prices31MOBISTAR - FINANCIAL RESULTS Q3 2015New wholesale pricesFrance (Numericable)

Mobistar working on quality with 1,250 testers 1,250 friendlytesters activatedSatisfaction Half are externaltesters 55/45 onVOO/Telenetnetwork32MOBISTAR - FINANCIAL RESULTS Q3 2015Recommendation

4.8m households addressable via wholesalecable regulationHouseholds in Belgium*Belgium residential fixed market**In EUR bnFixed VoiceTV0.81.01.2Fixed Internet33MOBISTAR - FINANCIAL RESULTS Q3 2015* Federal Plan Office** Internal analysis based on published information by other operators

Q3 2015financial results34MOBISTAR - FINANCIAL RESULTS Q3 2015

Mobistar key financialsEBITDA improvement with positive impact on cash flow profilein m9M 20159M 2014Var. (%)Service revenues813.9826.5-1.5%Total turnover912.8933.4Restated EBITDA228.1217.7(in % of service 138.313.8%16.7%112.569.4Insight Return to growth in Q3 2015 with 0.9 % yoy Driven by postpaid ARPU & customer growth-2.2% Lower handset sales4.8% Positive topline impact Continuous decrease of direct costs proving therelevance of the new distribution model Labour & indirect costs contained Lower restructuring costs (less redundancy anddistribution contract termination vs last year)EBITDA closer to restated EBITDA8.1% (in % of service revenues)CAPEX-19.0% (in % of service revenues)Operational Cash Flow(EBITDA - CAPEX)35MOBISTAR - FINANCIAL RESULTS Q3 201562.1% Progressive normalization of CAPEX after peak lastyear due to 4G accelerated roll-out97 % outdoor and 83 % indoor coverageEBITDA increase combined with CAPEX decreaseimproving operational cash flow profile

regulatory impactQ3 2015 first quarter without y-o-y regulatory impact12.119.7Revenuesimpact0.712.78.0 Belgium : 10.0m Luxembourg : 2.1mMTR 27.7YTD 2014EU RoamingLuxembourg : 0.7mYTD 20159.3EBITDAimpact14. Roaming36MTRMOBISTAR - FINANCIAL RESULTS Q3 2015EU Roaming Belgium : 8.1m OLU : 1.1mMTR Luxembourg : 0.4m

consolidated service revenuesback to growth in Q3 2015Service revenues yearyear-onon-year evolutionService revenues growthin % of growthService revenues growth excl. regulation2.1%0.1%0.9%0.4%-1.9%-3.1%-4.5% -6.5%-11.1%-4.5%-9.6% 201237Q22012Q32012Q42012Q12013MOBISTAR - FINANCIAL RESULTS Q3 15Q22015Q32015

Mobistar cost structure evolutioncost reduction reallocated to growth opportunities with net opex savingsDirect costsIndirect costsincluding laborin million euros-0.8%-7.0%411YTD 2014 38382YTD 2015Reaping the benefits of thedistribution overhaulMOBISTAR - FINANCIAL RESULTS Q3 2015305302YTD 2014YTD 2015 Net decrease beside shop-inshop integration Including 4.4 % labor costsdecrease

consolidated restated EBITDAnine-month 2015 restated EBITDA jumped by 4.8 % year-on-yearrestated EBITDA yearyear-onon-year evolutionRestated EBITDA-marginin % of growthRestated EBITDA growthRestated EBITDA growth excl.regulation38%32%34%35%30%27%30%21%24%26%-5% MOBISTAR - FINANCIAL RESULTS Q3 15

consolidated capital expensesdecrease in capex with adjusted phasing in 2015 between H1 and H2total CAPEXin million euros, excl. licenses% of total service revenues-19.0%13816.7%11213.8%YTD 201440MOBISTAR - FINANCIAL RESULTS Q3 2015YTD 2015 71 % of total CAPEX allocated tonetwork 97 % 4G outdoor coverage progressive normalization ofinvestments below 13% ofservice revenues

operational cash flow generation picks upEBITDA & CAPEX trend translating into improved cash flow profileOperational cash flowin million 3Q4Q1Q2Q3Q4Q1Q2Q32012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 201541MOBISTAR - FINANCIAL RESULTS Q3 2015Operational cash flow: EBITDA - CAPEX

consolidated net income and financial debtdebt refinanced and improved cash flow generation profilein m9M 20159M 2014Var. (%)224.6207.78.1%27.6%25.1%Net income47.836.530.9%Net profit per share0.800.61-Net financial debt457.0523.7-12.7%1.72.1Operational cash flow112.569.462.1%Organic cash flow81.038.9107.9%EBITDA(in % of service revenues)Net financial debt / EBITDA42MOBISTAR - FINANCIAL RESULTS Q3 2015Insight Lower restructuring costs (less redundancy anddistribution contract termination vs last year) Improving trend

Mobistar outlook2015 full year guidance upgradedin m9M 2015Service revenues813.9year-on-year-1.5%Restated EBITDA228.1Restated EBITDA margin28.0%Net Investments112.1* before any impact related to the cable opportunity43MOBISTAR - FINANCIAL RESULTS Q3 2015Old 2015 guidanceNew 2015 guidance260260-280* 280* 190* 190*


Q3 2015 Roadshow ScheduleDATE45LOCATIONBROKERROADSHOW / CONF.27 Oct. 2015BostonNomuraManagement roadshow28/29 Oct. 2015New YorkESN NYManagement roadshow5 Nov. 2015ParisHSBCManagement roadshow12/13 Nov. 2015BarcelonaMorgan StanleyTMT Conference17 Nov. 2015LondonKBCManagement roadshow19 Nov. 2015FrankfurtCredit SuisseManagement roadshow25 NovBeijngING/EuronextPan-European Days Asia26 NovHong KongING/EuronextPan-European Days Asia1 Dec. 2015LondonBerenbergConferenceMOBISTAR - FINANCIAL RESULTS Q3 2015

Investor Relations contact:[email protected] 32 2 745 80 92IR 6MOBISTAR - FINANCIAL RESULTS Q3 2015

N°1 convergent challenger on the enterprise market Best Customer Experience Best Telco customer experience ... 2929 MOBISTAR -FINANCIAL RESULTS Q3 2015MOBISTAR -FINANCIAL RESULTS H1 2015. 30 MOBISTAR ... iinn in €in €€€mmmm 9M 2015 9M 20159M 2015 9M 99MM 9M 201420142014 Var. (%) Var. (%)Var.