Telio Holding ASA Q3 07 presentation. Eirik Lunde, CEO Oslo, 8 November, 2007

Transcription

1 Telio Holding ASA Q3 07 presentation Eirik Lunde, CEO Oslo, 8 November, 2007

2 Telio Holding ASA Leading European broadband telephony provider Committed to improving user experience and reducing cost to subscribers Innovative products and services based on scalable, access independent technology platform World renowned technology experts Headquartered in Oslo, listed on OSE with ticker telio

3 Q3 07 Highlights Continued Customer Growth Subscribers: total increase of 7,062 VoIP customers during 3rd quarter, 4,366 in Norway Revenues: NOK 89.2 million, 17% increase compared to Q3 06 Financials 59% Gross margin 17% EBITDA Operating profit of NOK 1.9 million Gross margin slightly increased, OPEX continues to scale Healthy cash position: NOK million Customers & Distribution SMB successfully launched in Norway and showing positive results Continuous customer growth in Denmark and Netherlands

4 Norway; Substantial Increase in Number of Active Customers in Q3 Net increase of 4,366 VoIP customers 000 subscribers Passed 100,000 customers in Norway early in October Improved gross to active and active to provisioned rates SMB launch started to show first results Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07

5 Statistics 1st Half Market Share Fixed Telephony Telio market share on traffic volume from fixed residential towards fixed and mobile abroad: 53,4% (VOIP/ISDN/PSTN) Telio market share on traffic volume from fixed residential and enterprise towards fixed and mobile abroad: 37,0% (VOIP/ISDN/PSTN)

6 Market Share Broadband Telephony

7 Statistics 1st Half 2007 Telio har økt sin trafikk markedsandel innen fasttelefoni (privat + bedrift) fra 4,8 til 7,2% Alle andre har nedgang eller 0-vekst

8 SMB Linjer Acc.linjer Nye linjer dette året Perfect timing for SMB launch Focus on small companies (1-20) Higher ARPU and lower CAC Distribution development: Agents Resellers Web TM Total market E

9 Norway Q3 Above 100,000 customers Focus on profitable growth Better balance in the distribution channels Lower CAC Increased brand awareness from 11 to 15 % More focus on target marketing Launch a new video conference subscription with Tandberg Launch of SMB subscription

10 International Healthy growth DK 19% compared to Q2 07 NL 10 % compared to Q subscribers 9,5 10,5 10,0 SMB expected to be launched in Denmark during November 3,2 3,8 3,2 4,6 5,8 5,3 7,8 7,2 8,4 0,4 1,6 1,0 1,7 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Denmark (Tellio) Netherlands

11 Technology and Products Update mvoip slightly delayed from plan and will be launched for SMB market in November 2007 IP enabled mobile with two different subscriptions Stand alone with handset on existing SMB price plan, nok 159 pr. month Add on service to existing SMB subscription, nok 59 pr. Month Available on following Nokia s phones: E61, E61i, E65, N80 and N95 It is not necessary to have Telio GSM subscription and not required to buy phone through Telio Telio pure IP-communication package increased and improved to also include automatic backup of customers' digital assets (automatized online backup of photos, doc etc), and marketed as standalone service under the brand Bankboksen. Basic 59 NOK per month (includes 1GB storage, unlimited IP to IP calling, ) Pro NOK per month (includes 10 GB storage, unlimited IP to IP calls with Telio IP softphone, )

12 Update Legal Issues Ecom/VAT BoD of Telio has decided to bring the issue into court in order to have a legal ruling Issued a writ to the Oslo Tingrett Court against the Ministry of Transportation and Communication

13 Q3 07 Highlights Continued Customer Growth Subscribers: total increase of 7,062 VoIP customers during 3rd quarter, 4,366 in Norway Revenues: NOK 89.2 million, 17% increase compared to Q3 06 Financials 59% Gross margin 17% EBITDA Operating profit of NOK 1.9 million Gross margin slightly increased, OPEX continues to scale Healthy cash position: NOK million Customers & Distribution SMB successfully launched in Norway and showing positive results Continuous customer growth in Denmark and Netherlands

14 Enclosures

15 Overall subscriptions per Q subscribers Q4 04 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Norway Denmark Netherlands Mobile

16 Continued revenue growth, +17% compared to Q3 06 NOK mill Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07

17 Revenue per subscriber for VoIP Norway NOK Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07

18 Average monthly gross margin per subscriber for VoIP Norway NOK ,4 163,1 166,1 166,8 166, ,8 Subscription Fee Loss on free calls Margin from non free calls Incoming termination Margin on subscription per customer Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07

19 Scaling continues improved quarterly opex* per subscriber** NOK Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 * Opex excludes sales&marketing, amortization of subscriber acquisition cost and share based payment ** Billable subscriber (Musimi includes number of customers that used the account during the quarter)

20 Profit & loss statement NOK 000 Q3 07 Q3 06 var Ytd Q3 07 Ytd Q3 06 var Sales % % Other revenues % % Total revenue % % Cost of connections and traffic charges (36 506) (33 110) 10 % ( ) (96 185) 17 % Salaries & personnel costs (11 376) (10 103) 13 % (30 151) (27 411) 10 % Selling & marketing costs (15 460) (7 775) 99 % (42 645) (26 206) 63 % Other expenses (11 065) (12 571) -12 % (36 335) (42 373) -14 % Depreciation and amortisation (12 911) (8 977) 44 % (37 650) (22 788) 65 % Operating profit (loss) (3 065) Finance costs (1 295) (738) 75 % (2 535) (2 004) 26 % Profit (loss) before tax (5 069)

21 Interim reporting summary (NOK '000) Q3 07 Q2 07 Q1 07 Q4 06 Q3 06 Total revenues Revenue grow th (year-on-year) (%) 17 % 30 % 34 % 60 % 67 % Gross margin (%) 59 % 58 % 58 % 54 % 56 % Operating Profit/(loss) (9 321) Operating margin (%) 2 % 3 % 5 % (11%) 5 % Ebitda Ebitda (%) 17 % 18 % 18 % 5 % 16 % EPS (NOK) 0,02 0,05 0,11 (0,35) 0,04 EPS fully diluted (NOK) 0,02 0,05 0,11 (0,35) 0,04