Third quarter result 2019 14 November 2019 CEO Eivind Helgaker and CFO Henning Karlsrud
Disclaimer By reading this company presentation (the “Presentation”), or attending any meeting or oral presentation held in relation the ret o, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been produced by Ice Group ASA (the “Company”) for information purposes only and does not in itself cons titute, and should not be construed as, an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction. The distribution of this Presentation may be restricted by law in certain jurisdictions, and the Recipient should inform itself about, and observe, any such restriction. Any failure to comply with such restrictions may constitute a violation of the laws of any such jurisdiction. The Recipient acknowledge that it will be solely responsible for its own assessment of the Company, the market and the market position of the Company and that it will conduct its own analysis and be solely responsible for forming its own view of the potential future performance of the Company’s business . The Company shall not have any liability whatsoever (in negligence or otherwise) arising directly or indirectly from the use of this Presentation or its contents, including but not limited to any liability for errors, inaccuracies, omissions or misleading statements in this Presentation, or violation of distribution restrictions. An investment in the Company involves significant risk, and several factors could adversely affect the business, legal or financial position of the Company or the value of its securities. For a description of relevant risk factors we refer to the Company’s annual report for 2018 and the prospectus dated 16 May 2 019 , available on the Company’s website www.icegroup.com. Should one or more of these or other risks and uncertainties materialize, actual results may vary significantly from those described in this Presentation. An investment in the Company is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of their investment. This Presentation contains certain forward-looking statements relating to inter alia the business, financial performance and results of the Company and the industry in which it operates. Any forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts and are subject to risks, uncertainties and other factors that may cause actual results and events to be materially different from those expected or implied by the forward-looking statements. The Company cannot provide any assurance that the assumptions underlying such forward-looking statements are free from errors nor do any of them accept any responsibility for the future accuracy of opinions expressed in this Presentation or the actual occurrence of forecasted developments. This Presentation speaks as at the date set out on herein. Neither the delivery of this Presentation nor any further discussions of the Company shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not assume any obligation to update or revise the Presentation or disclose any changes or revisions to the information contained in the Presentation (including in relation to forward-looking statements). This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts. 2
Third quarter highlights and main developments ▪ 555k smartphone subscriptions at end of Q3, up 19k in the quarter ▪ 26% YoY growth in smartphone service revenues ▪ Adj EBITDA result of NOK -20 million, margin of -4% ▪ Launch of “MobilBytte” , a handset-as-a-service programme Subsequent to the quarter: ▪ Two first dedicated Ice retail stores opened ▪ Successful completion of NOK 900 million senior unsecured bond issue with maturity in October 2023 ▪ Ice awarded « Mobile Company of the Year » 3
Ice awarded «Mobile Company of the Year» The winner of the “Mobile Company of the Year” award is a challenger that is becoming more and more visible in the Norwegian market. During the past year, the company has opened stores, listed on the stock exchange, launched a mobile swap product and several innovations on the subscription front. The jury will particularly highlight the company's new junior subscription for those under the age of 13, which gives the youngest consumers the opportunity to use their mobile for free Photo: Helge Brekke (TU Media) Gulltasten, 5 November 2019 4
Launch of “MobilBytte”, a handset-as-a-service program ▪ Lowest monthly price in the market ▪ Better insurance than competitors ▪ 18 month replacement period ▪ Drives loyalty ▪ High ARPU customers 5
Two first dedicated Ice retail stores opened ▪ Retail stores opened in the two largest shopping malls in Norway ▪ Sandvika Storsenter, west of Oslo ▪ Strømmen Storsenter, north of Oslo ▪ Important sales channel to support both subscriber and ARPU growth ▪ Increased brand awareness ▪ Reduced sales acquisition cost ▪ Telco-stores of the future ▪ Events and in-store experiences ▪ A five-star customer experience ▪ Expect to launch more retail stores going forward
Continuous growth in smartphone subscribers leading to 26% growth in smartphone service revenues Smartphone subscribers & ARPU Smartphone service revenues 1,000 subscribers / ARPU in NOK NOK million +119 +26% 555 365 536 320 457 443 436 290 289 287 234 231 224 221 220 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 ARPU Subscribers 7
Ice continue to take market share in the Norwegian market Market share in the Norwegian mobile market Ice market share in Norway Percantage points change in market share from December 2017 to June 2019 Ice market share in Norway 2015-2019 ~20% 20% Ice +2.5 15% Other -0.1 ~10% 10% Telia -1.1 5% Telenor -1.3 2015 2019 Only network operator 9.7% market share Target of 20% market gaining market share as of Q3 share medium term Based on total market size as of June 2019 Source: Nkom Ekomstatistikken 24 October 2019 (subscriptions) 8
We continue to build base stations – giving us higher on-net share and lowering our roaming costs Operational smartphone sites Average on-net data and VoLTE share +304 1,987 73% 72% 71% 1,933* 67% 1,873 1,775 59% 1,683 22% 19% 16% 6% 1% Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Data VoLTE * Number of smartphone sites in Q2 2019 as reported in 9 the Q2 report are corrected in the above chart
Finance 10
Positive top-line and margin development in Q3 2019 Operating revenues Adj EBITDA and adj EBITDA margin NOK million NOK million / % +9% 483 457 443 34 432 21 0 0,0 421 34 34 27 84 80* -10 36 -4% 39 -5% 75 -0,1 -20 -8% 83 72 67 +26% -20 -11% -21 -30 -14% -0,2 -40 -36 290 287 289 320 365 -50 -46 -0,3 -60 -65 -70 -0,4 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Sweden (divested Q1-19) MBB service revenues (NO/DK) Adj EBITDA Adj EBITDA margin Other revenues Smartphone service revenues *Other revenues in Q1-19 includes sale of trademark from AINMT Holdings (NOK 46 million) 11
Adj. EBITDA development – Q3 2018 vs Q3 2019 -34 -1 75 -19 NOK million 2 -18 4 -8 -20 -21 Adj EBITDA Smartphone Sweden Other NRA Operating Other Employee EBITDA Adj EBITDA Q3 2018 service revenues revenues expenses expenses expenses benefit adjustments Q3 2019 revenues expenses Revenues Expenses Adj . 12
The increasing on-net share driving the decline in NRA cost share despite growth in data consumption On-net data share and network rental cost as % of revenues 73% 72% 71% ▪ Network build-out 67% enabling shift from 59% 55% variable to fixed cost 45% base 41% 41% 36% 35% 34% 34% 33% ▪ Continuously 22% 19% decreasing network 16% rent cost as on-net 6% 1% share increases Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Avg. data on-net share NRA cost / smartphone service revenues Avg. voice on-net share 13
Recommend
More recommend
