An Introduc+on to TalkTalk Business February 2013

Transcription

1 A brighter place for everyone An Introduc+on to TalkTalk Business February 2013

2 Chief Execu+ve 2

3 ! Growing TalkTalk Business is an important element of our medium term 2% revenue and 25% EBITDA margin targets! 425m revenue business today, of which 315m Corporate and 110m basic business phone and broadband! Similar opportunity to grow revenue, simplify operajons and expand margin as in our Consumer business! Similar opportunity to leverage the cost and technology advantage of our network 3

4 Managing Director, TalkTalk Business 4

5 ! 425m, scale business! The only B2B operator apart from BT, VMEd and C&W with significant network presence! 140,000 SoHo/SME customers! 1,400 mid- market and corporate customers! 750 Partners ranging from resellers to systems integrators! Key contributor to Group revenue and profits 5

6 Direct Channel Enterprise: 2k+ e ees Mid Market: 250 2,000 e ees Partner Channel SME: e ees SOHO: < 10 e ees CONSUMERS 6

7 Voice Data Carrier Enterprise Voice Over Ethernet (VOE) IPVPN Networks Ethernet / EFM Voice Interconnect Wholesale Transit Mid Market ISDN30 Hosted Contact Centre Hosted PBX IPVPN Networks Ethernet / EFM Ethernet over Fibre (EoF) SME ISDN30 / ISDN2 Hosted Contact Centre Hosted PBX EFM / EoF Fibre SOHO Phone Fibre DSL (MPF / SMPF) 7

8 Local & na+onal calls for SOHO and Small SME Mul+ple line services for SME and Mid Market Contact Centre specific services Call Bundles with Broadband Hosted PBX/UC Premise based phone systems NEW Next Gen ISDN / SIP Contact Manager Voice over Ethernet 8

9 Asymmetric, asynchronous, Contended, business SLAs, <2Mbps upstream High speed asymmetrical Symmetric, synchronous, non- contended, business- grade SLAs, high speeds MPF & SMPF Broadband Fibre EoF EFM 10 MB 100 MB Gig < 20 p.m. From 25 p.m. From 100 p.m. From 350 p.m. From 1,000 p.m. 9

10 By Channel * Partner 50% By Product * Carrier 14% Data 37% Direct 50% Voice 49% * 9m to 31 st December

11 Typical Competitors Customers Typical Partners Virgin Media BT Cable & Wireless Enterprise Integrators Carriers e.g. Daisy Mid Market e.g. XLN, O2, Chess, SME ISPs Resellers e.g. ZEN, NewCall, SOHO 11

12 Reach 95% coverage More Ethernet exchanges than BT Wholesale Product Innovation On-Net SIP & ISDN30 (30% cheaper than BT) FTTC only scale alternative to BT Wholesale Value For Money 10 business broadband Competitive ethernet pricing Service Quality 6 Hour Fix on Fibre Public sector certified Carrier / Enterprise grade service model 12

13 ! Large Direct customer base with up and cross sell potenjal! Vibrant Partner channel that scales quickly for revenue build! Legacy voice revenues in decline but momentum growing in a strong set of high margin data products! Opportunity to simplify operajons ahead of driving scale 13

14 Data! Significant opportunijes through Partner channel and Direct! Only 10% of SME customers take our data products! ConJnued expansion of Ethernet products Carrier! Core revenue and new market growth! ConJnued expansion of internajonal trading! New opportunijes in data Voice! Established declining trend in legacy voice! Growing selecjvely through next generajon ISDN and SIP proposijons 14

15 Strong growth in high margin products Making TalkTalk Simpler! Broadband & Fibre vs Voice! Ethernet family! New Next Gen Voice! Growth in new segments e.g. integrators and public sector Improving customer service! Business and Enterprise grade service model! Consolidate service teams in Warrington and Irlam! Closing Stoke Mandeville Simpler systems and processes! InvesJng in online! RaJonalising legacy products and systems! Fewer, beaer systems 15

16 16

17 ! Network scale and design allows: Product innovajon CompeJJve pricing Flexibility! A simplified and effecjve operajng model: Lower costs to serve as scale grows! The value player in the B2B market 17

18 Largest UK Unbundled Network Opera+ng Efficiencies Value for money quad play B2B Fibre 2% REVENUE CAGR Base Growth from 20% of UK not online Base Growth from lower churn Plus Mix Base growth for TV Data and Carrier Fibre demand grows with TV Offnet decline Mobile + TV, content ARPU Legacy Voice 25% EBITDA MARGIN Growth in fully unbundled mix Making TalkTalk Simpler: 30m- 50m Investment in network Lower SAC from lower churn Higher margin Plus TV Content gross margin % Growing Data services Declining lower margin legacy Voice Lower costs to serve Lower gross margin % SAC to build TV and mobile 18

19 A brighter place for everyone February 2013