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Q2 AlliSON KIRKBY PRESIDENT & CEO 1 FIRST IMPRESSIONS - PowerPoint PPT Presentation

Feb 01, 2024 •310 likes •574 views

Interim REPORT January june 2020 Q2 AlliSON KIRKBY PRESIDENT & CEO 1 FIRST IMPRESSIONS Important role in society Strong positions in attractive markets OUR VALUES OF Huge opportunities in 5G, fiber, convergence and

  1. Interim REPORT January – june 2020 Q2 AlliSON KIRKBY PRESIDENT & CEO 1

  2. FIRST IMPRESSIONS • Important role in society • Strong positions in attractive markets OUR VALUES OF • Huge opportunities in 5G, fiber, convergence and DARE cloud-based services • Highly engaged employees • Desire to restore top line and earnings growth CARE • Improvements needed in - Customer experience SIMPLIFY - Commercial speed & execution - Strategy execution COULD NOT BE MORE RELEVANT - Productivity - Building a new GEM/Leadership team 2

  3. Q2 HIGHLIGHTS – RESILIENT DESPITE COVID-19 SERVICE REVENUE development ADJUSTED EBITDA development 1.8% 0.0% -2.3% -5.6% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Ex. TV & Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Ex. TV & Media Media Q2 20 Q2 20 YoY growth, like for like YoY growth, like for like EBITDA less Cash capex* OPERATIONAL FREE ProForma leverage post Turkcell sale CASHFLOW Q2 2020 Q2 2020 Ytd growth SEK EK SEK EK SEK EK 3.7 3.7 0.8 0.8 2.2 2.2 2.48 x 2.48 bil illio ion bil illio ion bil illio ion (SEK 3.0 billion Q2 2019) (SEK 2.4 billion Q2 2019) (2.64x Q2 2020) * Adjusted EBITDA including repayment of lease liabilities less cash CAPEX excluding licenses 3

  4. telco business resilient EBITD TDA b bridge q q2 2 2020 2020 • Flat EBITDA despite COVID-19 implications Like for like, excluding adjustment items • The traditional telco business ex COVID-19 grew EBITDA by around 5 percent mainly from: • Sequentially improved cost control -3.2% • TV and Media EBITDA reduced although much less +5.0% than on revenues -1.8% • Content cost phasing Q2 19 Telco op ex Roaming and TV & Media Q2 20 COVID-19 IPTV sport* 4 * COVID-19 impact outside the TV & Media unit

  5. GOOD COST CONTROL IN THE QUARTER SERVICE R REVENUE d development EBITDA DE DA DEVE VELOPM PMENT Like for like growth, external service revenues Like for like growth, excluding adjustment items -5.6% 0.0% Q2 SWE FIN NOR DEN LIT EST TV & LAT Telia Other Q2 Q2 SWE FIN NOR DEN LIT EST TV & LAT Telia Other Q2 19 Media Carrier 20 19 Media Carrier 20 • Roaming pressured mobile in all markets • Improved cost control in all markets • TV & Media impacted by lower advertising/pay-TV • OPEX down 4 percent • Norway benefited from synergies 5

  6. MOBILE REVENUES STABLE MOBILE SUBSCRIBER SERVICE REVENUE GROWTH Like for like, y-o-y change • Mobile subscriber revenues impacted by lower roaming • Solid ARPU trend excl. roaming -2.7% Ex roaming Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 20 MOBILE ARPU development Q2 2020 EX. M2M In local currency, based on subscription revenues, y-o-y change SWEDEN LITHUANIA ESTONIA DENMARK Excl. FINLAND NORWAY +2.8% +3.0% +1.0% +4.2% +5.4% -6.2% roaming Incl. -2.1% +0.5% -1.8% +0.2% -10.0% +0.0% roaming 6

  7. BROADBAND revenues growing Fixed d broadb adban and r d reve venue de deve velopm pment Fixed d broadb adban and b d bas ase c compo position Like for like growth, external service revenues Subscriptions in thousands, Sweden 100% 1,250 75% 1,000 1.3% 750 50% 500 25% 250 0 0% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 18 18 18 18 19 19 19 19 20 20 Total broadband subscriptions Share of fiber % BROADBAND ARPU development Q2 2020 Share of copper % In local currency, based on subscription revenues, y-o-y change • Fiber growth mitigating copper declines SWEDEN FINLAND NORWAY LITHUANIA ESTONIA +4.5% -4.7% -5.0% -4.0% +2.5% • Strong growth in OCN enabling convergence 7

  8. Converged customer base growing TELIA LIFE CUSTOMERS TRIPLE PLAY CUSTOMERS CONVERGENCE/ TRIPLE PLAY CUSTOMERS 288 k 288 87 k 87 82 k 82 (+14% Q2 vs. Q1) (-2% Q2 vs. Q1) (-2% Q2 vs. Q1) TELIA1 CUSTOMERS TELIA1 CUSTOMERS • Growing subscriber base in markets where we have an 70 70 k 75 75 k established converged offering • Further opportunities across footprint (+4% Q2 vs. Q1) (+8% Q2 vs. Q1) 8

  9. TV & Media fundamentals are MIXED Free-TO-AIR C MORE IPTV 4% 48.3% 48.4% 800 0% 593 k -0.4% 600 -4% 400 -8% -10.2% 200 -12% Ex. Q2 Q3 Q4 Q1 Q2 0 COVID-19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 19 19 19 20 20 Q2 20 Service revenues, like for like ex. IPTV Sport adjustments (%) Swedish linear CSOV*, ages 15-64 C More OTT subscriber base (direct) • Sweden linear stable • Premium sports severely impacted Q2 • Sequential reduction due to • Sweden digital CSOV +12 p.p. to 70% • Premium sports prices now reinstated • Postponed/cancelled sport • Finland linear stable at 41% • Conflict effects 9 * CSOV= Commercial Share of Viewing

  10. Interim REPORT January – june 2020 Q2 Douglas lubbe Acting cfo 10

  11. GOOD COST CONTROL IN THE QUARTER SERVICE R REVENUE d development EBITDA DE DA DEVE VELOPM PMENT Like for like growth, external service revenues Like for like growth, excluding adjustment items -5.6% 0.0% Q2 SWE FIN NOR DEN LIT EST TV & LAT Telia Other Q2 Q2 SWE FIN NOR DEN LIT EST TV & LAT Telia Other Q2 19 Media Carrier 20 19 Media Carrier 20 • Roaming pressured mobile in all markets • Improved cost control in all markets • TV & Media impacted by lower advertising/pay-TV • OPEX down 4 percent • Norway benefited from synergies 11

  12. SWEDEN - REVENUES IMPACTED BY COVID-19 SERV ERVICE REV E REVEN ENUES UES & & ADJUS USTED EB EBITDA SUB UBSCRI RIPTION ONS & A & ARP RPU d U dev evel elop opmen ent Like for like growth Subscription growth q-o-q in 000’, subscription rev. ARPU ex M2M in local currency ARPU (y-o-y) 11 +0.5% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 -0.9% -1.9% Subs. ARPU Subs. ARPU Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 (q-o-q) (y-o-y) (q-o-q) (y-o-y) 19 19 19 20 20 19 19 19 20 20 +41k -11% +3k +4% Service revenues EBITDA • Mobile impacted by roaming, interconnect and a • ARPU grew despite Covid-19 impacts positive one-off • Broadband continues to show good momentum • Fixed telephony no longer benefits from price increases 12

  13. FINLAND - STRONG COST CONTROL SERV ERVICE REV E REVEN ENUES UES & & ADJUS USTED EB EBITDA SUB UBSCRI RIPTION ONS & A & ARP RPU d U dev evel elop opmen ent Like for like growth Subscription growth q-o-q in 000’, subscription rev. ARPU ex M2M in local currency 4.3% 2 ARPU (y-o-y) 0.0% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 -4.1% Subs. ARPU Subs. ARPU Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 (q-o-q) (y-o-y) (q-o-q) (y-o-y) 19 19 19 20 20 19 19 19 20 20 -15k -27% -6k -5% Service revenues EBITDA • Revenues fell largely driven by mobile and TV • Growth in mobile subs driven by B2B segment • Cost control drove EBITDA growth • Liiga playoff cancelation impacted TV adversely 13

  14. NORWAY – EBITDA IS IMPROVING SERV ERVICE REV E REVEN ENUES UES & & ADJUS USTED EB EBITDA SUB UBSCRI RIPTION ONS & A & ARP RPU d U dev evel elop opmen ent Like for like growth Subscription growth q-o-q in 000’, subscription rev. ARPU ex M2M in local currency 8.4% ARPU (y-o-y) -8 -1.8% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 -5.4% Subs. ARPU Subs. ARPU Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 (q-o-q) (y-o-y) (q-o-q) (y-o-y) 19 19 19 20 20 19 19 19 20 20 -2k -7% +9k -5% Service revenues EBITDA • Consumer mobile and TV still challenging • Mobile ARPU fell due to roaming • Cost control and synergies deliver better EBITDA • Continued growth in broadband subs 14

  15. LITHUANIA - A STRONG QUARTER SERV ERVICE REV E REVEN ENUES UES & & ADJUS USTED EB EBITDA SUB UBSCRI RIPTION ONS & A & ARP RPU d U dev evel elop opmen ent Like for like growth 9.2% Subscription growth q-o-q in 000’, subscription rev. ARPU ex M2M in local currency ARPU 7.2% (y-o-y) 6 +0.2% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Subs. ARPU Subs. ARPU Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 (q-o-q) (y-o-y) (q-o-q) (y-o-y) 19 19 19 20 20 19 19 19 20 20 +3k +11% +2k -1% Service revenues EBITDA 15

  16. ESTONIA – UNABLE TO FULLY OFFSET COVID-19 IMPACT SERV ERVICE REV E REVEN ENUES UES & & ADJUS USTED EB EBITDA SUB UBSCRI RIPTION ONS & A & ARP RPU d U dev evel elop opmen ent Like for like growth Subscription growth q-o-q in 000’, subscription rev. ARPU ex M2M in local currency ARPU (y-o-y) 5 -2.1% 2.1% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 -1.3% Subs. ARPU Subs. ARPU Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 (q-o-q) (y-o-y) (q-o-q) (y-o-y) 19 19 19 20 20 19 19 19 20 20 -2k +14% -1k +2% Service revenues EBITDA 16

  17. DENMARK – STRONG COST CONTROL SERV ERVICE REV E REVEN ENUES UES & & ADJUS USTED EB EBITDA SUB UBSCRI RIPTION ONS & A & ARP RPU d U dev evel elop opmen ent Like for like growth Subscription growth q-o-q in 000’, subscription rev. ARPU ex M2M in local currency ARPU (y-o-y) 14 -10.0% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 -0.5% -7.4% Subs. ARPU Subs. ARPU Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 (q-o-q) (y-o-y) (q-o-q) (y-o-y) 19 19 19 20 20 19 19 19 20 20 +12k -41% +3k +16% Service revenues EBITDA 17

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