Telio & NextGenTel
NextGenTel Holding ASA
Q1 2015
Presentation
Eirik Lunde, CEO
Felix Konferansesenter
Oslo
7 May 2015
This is NextGenTel Group
Background Telio
 Pioneer in the Norwegian VoIP market – rapid growth after the introduction of VoIP services in
2004
 Listed on Oslo Stock Exchange in June 2006
 76% of revenues generated in Norway, and Telio also has established market positions in
Denmark, Switzerland and the Netherlands.
 Large share of revenues are recurring (subscription based)
Background
NextGenTel
 Founded in 2000 and a frontrunner within broadband technology and services
 Has today a #2 market position within DSL broadband in Norway with 160,000 broadband
subscribers (xDSL and fiber)
 74% of revenues generated within the consumer segment and 26% within the corporate segment
 Large share of revenues are recurring (subscription based)
 Acquired by Telio with effect from 1 February 2013
NextGenTel
Holding ASA
 The parent company - changed name from Telio Holding ASA in May 2015
The NextGenTel Group is a major player in providing fixed and mobile internet communication services to
consumers and businesses with a #2 position within DSL broadband in the Norwegian market. The range of
services covers access independent broadband, data net, Ethernet, VoIP, mobile and TV. In addition, the
Group provides VoIP services to consumers in Denmark, Switzerland and the Netherlands.
www.nextgentel.com
www.nextgentelholding.com
Q1 2015
2
Change of company name and ticker
• After the acquisition of NextGenTel AS, Telio Telecom AS and NextGenTel AS have merged
with NextGenTel AS as the acquirer with effect from 1 January 2015
• NextGenTel has the strongest brand name and the AGM approved 24 April 2015 to change
the name of the parent company from Telio Holding ASA to NextGenTel Holding ASA to
support the identity to the NextGenTel brand in the Norwegian market
• The new ticker at Oslo Stock Exchange is „NGT‟
Q1 2015
3
NextGenTel
Group
Financials
Q1 2015: Highlights
•
•
•
•
Revenues NOK 311.9 million
EBITDA NOK 64.2 million
EBIT NOK 36.4 million 1)
Quarterly dividend of NOK 1.25 per share announced (paid 9 April)
Revenues (NOKm)
EBITDA (NOKm) and EBITDA margin
350
300
90
322
319
317
314
35%
80
312
70
250
60
200
78
80
30%
79
71
24,1 %
25,1 %
64
25,1 %
22,6 %
50
20,6 %
40
150
20%
15%
30
100
25%
10%
20
50
5%
10
0
Q1'14
Q2'14
Q3'14
Q4'14
0
Q1'15
0%
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Note: Reported EBITDA for Q4 14 included NOK 10.7 million in reduced LLUB
cost (copper rental fee) for the period March – Dec 2014. In the chart above,
this has been allocated to each quarter from Q1‟14 and onwards.
Q1 2015
5
Gross profit development
NOK1,000
200 000
60,0 %
180 000
55,0 %
160 000
50,0 %
140 000
120 000
45,0 %
100 000
40,0 %
80 000
35,0 %
60 000
Comments to y-o-y figures
•
Decline in revenues
•
Reduced gross profit (12 mNOK)
•
Change in product mix from high to
lower margin products (5 mNOK)
•
Installation fee increase over the
period (4 mNOK)
•
•
•
30,0 %
40 000
20 000
25,0 %
0
20,0 %
Q1'14
Q2'14
Gross profit
Q3'14
Q4'14
Q1'15
Gross margin
Note: Reported gross profit for Q4 14 included NOK 10.7 million in reduced LLUB
cost (copper rental fee) for the period March – Dec 2014. In the chart above,
this has been allocated to each quarter from Q1‟14 and onwards.
Q1 2015
6
•
Driven by accounting principle
Stabilizes from April 2015
No cash impact
Reduced gross profit in int‟l markets,
mainly Netherlands (3 mNOK)
CAPEX development
NOK1,000
45 000
14,0 %
40 000
Capex will vary on a quarterly basis
•
Q4 2014 included acquisition of
Bofiber customers and new TV
platform
12,0 %
35 000
10,0 %
30 000
25 000
8,0 %
20 000
6,0 %
15 000
4,0 %
10 000
2,0 %
5 000
0
0,0 %
Q1'14
Q2'14
CAPEX
Q1 2015
•
Q3'14
Q4'14
Q1'15
CAPEX/sales
7
Norway
Financials – P&L
NOK million
Q1 2015
Q1 2014
Total revenue
289.7
296.1
Gross profit
147.1
155.4
Gross margin
50.8%
52.5%
Total opex
(89.1)
(85.9)
58.0
69.5
(28.1)
(29.8)
EBIT
29.9
39.7
CAPEX
30.6
30.6
EBITDA
D&A
Q1 2015
8
Customer base development
350
300
„000 RGUs
250
200
150
100
50
0
Q1 14
Q2 14
Q3 14
Q4 14
Broadband consumer
VoIP consumer
TV consumer
Mobile consumer
Internet/datanet/ethernet business
VoIP business
Mobile business
Q1 2015
9
Q1 15
Broadband consumers
•
Access independent broadband with growth
opportunities within fiber (FTTH) and collective
agreements (“Borettslag”)
•
More than 75% of fiber customers choose TV and VoIP
(“triple play”)
Revenues (NOKm)
RGUs
160 000
140 000
160 000
145 481
142 878
139 965
140 000
138 421
120 000
135 519
139 374
139 607
138 997
136 976
Q2'14
Q3'14
Q4'14
Q1'15
120 000
100 000
100 000
80 000
80 000
60 000
60 000
40 000
40 000
20 000
20 000
0
Q1'14
Q1 2015
142 368
Q2'14
Q3'14
Q4'14
0
Q1'15
Q1'14
10
Broadband business
•
Increased focus on high ARPU data net shows growing
volume sales. High success in the retail segment
•
Internet showing stable ARPU levels
Revenues (NOKm)
RGUs
60 000
50 000
25 000
52 048
53 491
52 952
52 799
53 040
20 000
19452
19728
19403
Q1'14
Q2'14
Q3'14
19856
19475
Q4'14
Q1'15
40 000
15 000
30 000
10 000
20 000
5 000
10 000
0
Q1'14
Q1 2015
Q2'14
Q3'14
Q4'14
0
Q1'15
11
VoIP (consumers and business)
•
•
Following the long term trend of VoIP being replaced by
mobile
Launching a brand new communication platform in 2015
integrating IP and mobile telephony with next generation
mobile switchboard (IN/Bedriftsnett), also enabling
unified communication. This move will strengthen the
company’s competitiveness
Revenues (NOKm)
RGUs
50 000
45 000
120 000
46 859
44 295
40 000
100 000
42 639
40 363
35 000
98770
39 618
96120
94002
80 000
30 000
25 000
91508
87391
60 000
20 000
40 000
15 000
10 000
20 000
5 000
0
Q1'14
Q1 2015
Q2'14
Q3'14
Q4'14
0
Q1'15
Q1'14
12
Q2'14
Q3'14
Q4'14
Q1'15
Mobile (consumers and business)
•
•
•
•
Building mobile customer base
Q3’14 revenues high due to vacation season (roaming)
Pre-paid service to be launched in Q2 2015 – new
distribution agreements established
New services to be launched in 2015 are expected to
gain momentum higher up in the SME segment with state
of the art new IN-platform – bringing much demanded
new end- user features
Revenues (NOKm)
RGUs
40 000
50 000
35 000
45 000
33 686
30 000
25 000
32 363
44488
40 000
32 351
30 591
35 000
27 887
40600
46506
42030
36436
30 000
20 000
25 000
15 000
20 000
15 000
10 000
10 000
5 000
5 000
0
Q1'14
Q1 2015
+10,000 y-o-y
Q2'14
Q3'14
Q4'14
0
Q1'15
Q1'14
13
Q2'14
Q3'14
Q4'14
Q1'15
Revenues by product and segment
Revenues by product Q1’15
4%
11%
6%
Broadband
VoIP
14%
65%
Mobile
TV
Other
Revenues by segment Q1’15
1%
26%
Consumer
73%
Q1 2015
14
Business
Other
ARPU by product/segment
Consumer segment – monthly ARPU by product (NOK)
410
335
334
336
240
210
256
257
261
260
272
310
339
350
360
323
144
Q1 14
15
DataNet
VoIP
Q1 15
Mobile
343
170
1430
Q4 14
601
154
347
608
375
159
605
Q3 14
Internet (xDSL+fiber)
Q1 2015
1423
1440
Q2 14
361
163
1660
1460
1260
1060
860
660
460
260
60
1456
Business segment – monthly ARPU by product (NOK)
TV
611
Mobile
Q1 15
355
Q4 14
1358
VoIP
144
315
Q3 14
171
DSL (ADSL+VDSL)
148
321
150
Q2 14
643
Q1 14
325
60
153
110
325
160
International markets
NOK million
• Telio brand (DK and CH)
• Primary focus to maintain customer
base and profitability
Q1’15
Q1‟14
FY’14
Total revenue
21.9
26.1
95.9
Gross profit
12.5
14.7
54.1
Gross margin
57%
56%
56%
Customer base development
„000 customers
• Netherlands
• Majority of KPN ITNS customers
migrated out (approx 12,000
customers left to be migrated later
this year)
200
180
160
140
120
100
80
60
40
20
0
Q1 14
Q2 14
Netherlands
Q1 2015
16
Q3 14
Denmark
Q4 14
Switzerland
Q1 15
Growth opportunities
Consumer segment
•
Increased focus on fiber and
collective agreements
(“Borettslag”)
Business segment
•
Q1 2015
Launch of major new voice
services
17
Consumers – focus on fiber and collective
agreements
• Fiber via Telenor
•
•
•
•
•
Approximately 60,000 target customers per February 2015
Sales in progress since February
2,000 customers per 6 May
>75% with TV and VoIP
ARPU = NOK 660
• Fiber via other partners
• 8,000 customers as of end Q1
• ARPU = NOK 536
• Collective agreements – disruptive offering
• NextGenTel intends to become a key supplier to collective agreements
• Target market is approximately 600,000 end customers, through condominiums and
cooperative agreements
• Freedom of choice for the customer by disabling TV from Internet
Q1 2015
18
Business – success in the retail segment
• Strengthened position within the retail chain segment
• Internet/Datanet , mobile and VoIP
• Great customer wins in Q1 2015
Q1 2015
19
Business – new services
• Total tele-/datacom solution from NextGenTel to
business customers
• Gaining competitive edge with new product innovation
• Meets demand in higher end customer segments and public
tenders
• Cloud based switchboard; Mobile & Sip Trunk with Lync integration
• One-number – full presence, use any device
• PC, tablet, mobile phone, desk phone
• Extended usability and features for end users
Q1 2015
20
Thank
you!
Investor relations:
www.nextgentelholding.com
Disclaimer
•
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•
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