Corporate Presentation. December 2013

Transcription

1 1 Corporate Presentation December 2013

2 Strategy and Operations 2

3 Market Revenue (Millions) Forthnet revenue (Millions) 3 Market environment Market revenue evolution % 7% 6% 5% Forthnet value share 7,1% 6,4% 5,2% 4,7% 7,6% +2.9pp % Market revenue declined 200 4% 3% % Forthnet outperformed 100 2% 1% % Total Fixed Telco, Mobile and Pay TV market revenue Forthnet revenue In a challenging macroeconomic and competitive environment Forthnet managed to outperform

4 4 Key figures 9M 2013 #1 in 3Play market #1 in PayTV #2 in Broadband #1 in LLU 1.03m 778k 252k 287m k 5.8k Broadband and Pay TV subscriptions unique households (~19% of total Greek Households) households with 3Play services 9 months revenues Shops all over Greece SMEs and Corporate accounts km of fibre optic network

5 5 International market trends Double play has peaked and is actually decreasing 3Play is growing fast and is the most important driver in PayTV and Telco market Quad play is still at a very early stage Source: E-COMMUNICATIONS HOUSEHOLD SURVEY, Special Eurobarometer 396, European Commision 3Play bundles have continued to gain ground over the years The share of 3Play bundles has increased by two percentage points since December 2011, and 10% since autumn 2007

6 Thousands Thousands 6 Greek market impact of 3Play Pay TV subs per service BB subs per service (estimation) Standalone Pay TV 3Play Total Pay TV (estimation) Standalone Broadband 3Play Total Broadband 3Play growth boost both Pay TV and Broadband LLU markets

7 7 Nova 3Play proposition Higher ARPU Higher Contribution Profit Lower Churn than 2play (and combo* products) * Fixed voice, Fixed Broadband and Mobile voice Addresses the needs of Greek Households for quality entertainment and communication at an affordable price

8 8 Nova 3Play add-ons Nova 3Play can be combined with Add-ons Unlimited Mobiles Price 5 Price 15 Price 19,9 VDSL Price 10 Price 10 Price 15 VAS Add-ons are customizable to each Household needs Offer significant margin uplift

9 9 Content / Multichannel offering Nova operates the most comprehensive and the first multichannel television service in Greece with: 250+ channels 14 Sport channels 5 Premium movies channels 8 High Definition channels First 3D channel in Greece Total of hours of linear program per year On demand premier movies Hundreds hours of live shows

10 10 Content / Premium sports Greek Football Superleague All games of the Greek Soccer League exclusively on NOVA until 2017 UEFA Champions League/UEFA & Europa League Both major European soccer events exclusively until 2015 Increased games share from 2012 Other Top Events Euroleague until The most acclaimed Basketball organization with the participation of Greek teams Βasket League and Volley League until 2016 Wimbledon, Argentinian League Major Gulf tournaments, Powerboat, extreme sports

11 11 Content / Thematic & premium movies Established Studio Relationships Comprehensive Coverage of all Major Studios Hollywood premiers first on NOVA. Output deals with majors including premiers and selective library titles Targeted Approach for Popular TV Series Selective acquisitions of the top paytv drama series 1st on TV in Greece, premier right after USA Strong performers The Game of the Thrones, Mentalist, NCIS, THE FOLLOWING, Person of interest, Burn Notice, Boardwalk Empire All series subtitled Key TV Rights Broad Portfolio of Thematic Channels

12 Thousands 12 Added value services HD subs take up 148,5 Live TV at any device / anywhere / anytime ,3 72, M 2013 Exclusive 3D content Nova on demand Nova Επίγεια

13 13 Infrastructure / Pay TV network HotBird Satellite Coverage DTH DTT Network 100% national coverage Company currently leases 5 HotBird transponders from Eutelsat (4 from 01/01/2014 onwards) 2 DVB-T channels Premium Content offering (sport and movies) 79% population coverage Uplink Facility Content Production Transmissi on Facilities HD broadcast infrastructure HD production studios, editing, graphics and recording facilities HD multi-channel play-out, monitoring and continuing rooms HD live coverage of sports events Latest generation tapeless technology OTT facilities to Mobile platforms VOD platform Five digital Multiplexers with uplinks to HotBird Satellite DTH distribution to Greece and Cyprus Optimized picture quality with latest MPEG, statistical multiplex technology IP and MPEG-4 infrastructure Irdeto conditional access 24/7 monitoring and network management

14 14 Infrastructure / Telco network Telecom backhaul and international connectivity C.5,820km fibre optic MAN, and WAN infrastructure 495 physical and remote collocations to OTE s local exchanges for providing LLU services, covering Athens, Thessaloniki and the majority of other cities & villages throughout the Greek territory 94% of active customers are served from private network 76% LLU coverage of total active local loops 100% population coverage through SAT BB ~10% of active loops can be served with own VDSL infrastructure 10 GE Frankfurt 30 GE 100G international connectivity. Direct IP peering at Amsterdam, Frankfurt & Sofia exchanges & (AMS- IX, DE-CIX, BIX) 10GE Sophia 10GE 10GE 10GE Proprietary network allows high-speed broadband and telephony as well as further services in the future 20GE Athens

15 15 Customer Service 100% Nationwide Coverage Supported services (Broadband Pay TV Satellite Internet Swap point) Technical Assistance Network No of Points No of technicians EXCLUSIVE SWAP 127 Unified Call Centre 500 full-time employees equivalent Forthnet Call Centre

16 16 Distribution channels Company promotes its services through more than 900 points of presence nationwide 130 shops covering Athens, Thessaloniki and all major cities (60 in total) selling all product & services of Forthnet in combination with other technology products and entertainment tickets. bill payments visitors per month 6 retail chain stores, including the large and well known retailers (plaisio, kotsovolos, mediamarkt, ilektroniki etc) 550 resellers throughout Greece, includes more than 250 authorized partners / nova technicians) Extrernal call centers

17 17 Wide range product portfolio Retail Market 3play 2play Telephony TV Internet, Telephony and TV, 29.9 / Month Nova 3play plus add-ons Nova 3play fllu New services! Forthnet 2play unlimited unlimited Fixed + mobile unlimited Fixed unlimited On net Telephony Forthnet Telephony unlimited unlimited Fixed + mobile unlimited Fixed unlimited On net TV FLLU pack Sports pack Cinema pack Start pack SMEs & Corporate Market Professional services for SMEs Corporate services Advertising Advertising Advertising on Advertising on Pay TV platform Pay TV platform Internet & Telephony Forthnet Professional TV Public & Private view Bundle services Cloud services Forthnet domain name, s, web hosting, SasS hosting, SSL Data services MPLS VPN, ILL, Forthnet Leased Lines Datacenter services Collocation, Dedicated, Streaming Fixed Telephony Forthnet my link Intelligence Networks Forthnet 800 & Forthnet 801

18 18 KPIs and financial performance

19 Thousands 19 Growing customer base Forthnet Unique subs in Greece All time high in Pay TV subs (420K) Q3 Standalone Broadband subs 3Play subs Standalone Pay TV subs Total Households Total subscriptions in Greece Subs = subscribers 1M total subscriptions at the end of September an all time high

20 Thousands 20 3Play customer base evolution Nova 3Play HH evolution Nova 3Play as % of Total Greek HH ,4% 35% 7% % 6% 5,9% ,1% 17,1% 20,3% 25% 20% 15% 10% 5% 4% 3% 2% 2,4% 3,2% 3,8% 50 3,6% 5% 1% 0,6% Q3 0% 0% Q3 Nova 3Play Households Forthnet's Households with Nova 3Play Services (%) Nova 3Play demand accelerated in Q3 13 with record net adds increasing Telecom and Pay TV customer base

21 Thousands 21 Forthnet s LLU market share LLU market vs. Forthnet net adds Forthnet s LLU market share ,7 32,7 31% 31% 30,7% 30 28, ,4 21, , ,9 10 7,9 5 4,8 0-0,5 Q Q Q Q Q Market LLU net adds Forthnet LLU net adds 30% 30% 29% 29% 28% 29,6% 29,7% +2.4pp 28,6% 28,3% Q Q Q Q Q Forthnet LLU market share Forthnet s LLU net additions market share in Q3 13 at 183% and overall LLU market share at 30.7%

22 In Millions In Millions 22 Revenue preservation & diversification ,6 Total Revenue 287, Total Retail, Telco business, Pay TV business and Advertising 237,9 223, M M Telco & Pay TV Retail 38,0 30,9 Telco Corporate 10,1 12,0 7,1 6,7 Pay TV Business Advertising 9M M 2013 Revenue for 9M 2013 was lower against 9M 2012 mainly impacted by pricing pressure, a result of the adverse macro environment and strong competition, and by MTRs drop in corporate Company s successful revenue diversification strategy continues (i.e. advertising and SMEs)

23 Millions 23 Revenue trends in retail segment 90 Retail revenue change y-o-y 0% ,3 75,6-7,8% -8,9% 73,1 73,3-7,3% -3,6% -1% -2% -3% -4% -5% -6% -7% -8% -9% 0 Q Q Q Q Revenue Total retail Total Retail revenue y-o-y change -10% The increased Nova 3Play customer base is starting to impact Retail Revenue with Q3 showing the lowest revenue decline for the year so far

24 Millions Millions Millions 24 Cost optimization Advertising and promotion Payroll and related costs Sundry expenses , , ,3 42,9 10 9, , M M M M M M 2013 The company is continuously optimizing its cost structure (i.e. 10,5% payroll cost of total revenue). Furthermore, a reduction in the cost of transmission is expected from 2014 due to legacy Pay TV decoders swap.

25 In Millions In Millions 25 Operational profitability Reported EBITDA Adjusted EBITDA* ,8 41, ,3 18,4% 50,0 17,5% 20% 18% 16% 14% 12% 10% 8% 6% % 2% 0 9M M 2013 * One-off and Non cash adjustments 0 0% 9M M 2013 Adjusted EBITDA* Adjusted EBITDA margin Increased customer acquisition, pricing pressure as was as the cost of swapping previous generation PayTV decoders, lead to a decrease in EBITDA compared to 9M 2012

26 26 Highlights Recent Developments Successful 3play launch Continued cost optimization Sport rights expansion with focus on local content Super League up to 2017 Euroleague up to 2017 Basket League up to 2016 Volley League up to 2016 Replacements of older generation of decoders Next Steps Capital increase Continue 3play growth Innovation (novago, Cloud, HotSpots, Nova 3Play SAT etc.) Refinancing of existing debt

27 27 Capital Increase 15 new shares for every 2 existing 97,144,575 new shares Issue price of 0.30 Total amount to be raised up to 29.1m Rights Trading Period December Subscription Period December

28 28 Thank You for Your Attention