Presentation 3Q

Transcription

Presentation 3Q
Empresa de Telecomunicaciones de Bogotá
Reporting financial results
3Q 2014
November 2014
Disclosure
This disclosure contains future projections relating to the probable development of the
business and the estimated results of the Company. These future projections include
information based on company estimates, approximations and current plans with regard to
its financial future and its operational results. Please note that this information is not in
itself an assurance of actual performance and it may be modified at a later date. Real
results may fluctuate with regard to the future projections of the company due to various
factors that are not within the control of the issuer.
The Company is under no responsibility for the information contained herewith, nor has it
any obligation to revise the projections established in this document, nor is it obliged to
update, modify or supplement it in the light of actual occurrences taking place after its
publication. The information disclosed herein the present document is of an informative
and descriptive nature, and may not be divulged to third parties, nor reproduced, copied,
distributed, used or marketed without the prior written authorization of the Company.
02
Directors
who will take part
03
ETB
Chairman
Vice President of
Finance and
Administration
Vice President of
Strategy and Business
Development
Investors Relationship
Management
Saúl Kattan Cohen
Hernando Chica
Zuccardi
Pablo Gómez Mora
Eugenia Londoño
Vallejo
Agenda
1. Relevant facts
2. Financial statements
3. Strategic plan
04
04
Agosto 2014
Relevant Facts
For the conversion
2Q 2013
Awarding of the
LTE [Long Term
Evolution]
spectrum
following the
ETB-Tigo merger,
for the AWS band
on open block, for
an amount of
$195 billion.
FTTH deployment
begins (N-Play
Program).N-Play).
3Q 2013
Wi-Fi availability in
public telephones
implemented (forty
points).
4Q 2013
Accenture Innovation
in Colombia 2013
Prize, appointed
winner by the public
in the category of
Corporate Social
Responsibility.
Agreement for the
sale of Colombia
Móvil shares (24.99%)
to Une-EPM, for 240
million dollars.
Merger with the
company Ingelcom.
1Q 2014
Acquisition of 75% of
Skynet.
Winner of the
Evaluamos a la
Innovación
Tecnológica [We
Assess Technological
Innovation] Prize for
the ETB Fiber To The
Home (FTTH)
program.
2Q 2014
Deployment of fiber
optic cable to over
500,000 homes in
Bogota (homes
passed).
First trial call on our
4G LTE mobile
network.
Completion and
delivery of Fiber
Optic Rings in
Medellin,
Bucaramanga and
Tunja, to strengthen
our regional
presence.
Creation of the Vice
President of
Customer Experience
post.
3Q 2014
Begin cell phone sales to internal
customers.
Finalist for the ANDESCO
[Asociación Nacional de Empresas
de Servicios Públicos y
Comunicaciones (National
Association of Communications
and Public Services Companies)]
Prize for Corporate Social
Responsibility.
Results of the Measure of
Corporate Transparency - ETB
scored 83 points on the Measure of
Corporate Transparency Index, up
by 12 points on 2013 results;
positioning itself above average in
the ICT sector (79 points).
ETB achieved recognition by the
Transparencia por Colombia
Corporation, for employing good
practices of Corporate Governance.
In the Opinion Panel on Figures
and Concepts survey, ETB ranks
among the 25 companies in
Colombia most admired by opinion
leaders - the only
telecommunications company in
the list.
05
05
Agosto 2014
Telecommunications Sector Developments
in Colombia
Internet Móvil [mobile internet connection] continues to be the service that has grown the most in the last year (37.7%) - this service surpassed
subscriptions for Internet Fijo [fixed internet connection] and TV Paga [paid television connection]. Línea Básica [basic telephone service] settles
at 7 million subscribers during the last nine months.
9
TOTAL SUBSCRIBERS PER SERVICE
60
CAGR – ANNUAL
2Q13 - 2Q14
8
50
QUARTERLY
VARIANCE
1Q14 - 2Q14
40
6
5
30
4
20
3
2
10
10,7%
1,2%
9,1%
0,4%
10,1%
1,0%
37,7%
7,1%
8,7%
2,5%
1
-
-
Mobile telephony
06
No. of cell phone subscribers
(Millions)
No. of subscribers for other services
(Millions)
7
Basic telephone service
Dedicated internet
Mobile internet
TV
Source: Developed by GEC [Gestión Estrategica del Cliente (Strategic Client Management)]. Information, MinTIC [Ministério de Tecnologias de la Información y las Comunicaciones (Ministry of Information Technologies
and Communication)] 2014. File: informetrimestral2t2014.xlsx. http://colombiatic.mintic.gov.co/602/w3-article-5550.html
Note: The basic lines (TPBC [Telefonía Pública Básica Conmutada (Public Switched Basic Telephone Service), published by MinTIC in 2012 corresponded to Billing lines, while during the other periods Service lines have
been published.
06
Agosto 2014
Basic Line/TPBC
Bogota and Soacha
ETB maintained leadership in this service, with a 58.4% market share.
Basic Line Subscribers
Variance %
1Q14 – 2Q14
(Thousands)
2.427
0,2%
205
Movistar
5,7%
Claro
ETB
1.418
-1,0%
199
-4,0%
UNE
603
Basic Line Shares
(%)
2Q - 2014
8,5%
24,8%
2,7%
2Q-14
Total Annual Subscribers
2Q12 – 2Q13
07
1Q13 – 1Q14
CAGR Annual
6,6%
0,02%
-0,1%
Household
Penetration
96,5%
93,9%
94,1%
Annual Net
Profit
(Thousands)
8
0
8,2%
2Q13 – 2Q14
58,4%
4
Note: The DANE [Departamento Administrativo Nacional de Estadística (National Administrative Department of Statistics)] report is used to calculate penetration in homes: Hogares_viviendas_1985-2020.xls
Source: Developed by GEC. Information, SIUST [Sistema de Información Unificado del Sector de Telecomunicaciones (Unified Information Reporting System for the Telecommunications Sector)] (MinTIC 2014), file:
informetrimestral2t2014.xlsx.
07
Agosto 2014
Dedicated Internet
Bogota and Soacha
ETB is the second broadband operator with a 33% market share.
Dedicated Internet Subscribers
(Thousands)
1.504
659
Others
1,5%
3,0%
129
UNE
2Q - 2014
6,8%
Movistar
ETB
(%)
3,1%
22
Claro
Dedicated Internet Shares
Variance %
1Q14 – 2Q14
12,4%
1,2%
43,8%
507
2,9%
187
33,7%
5,2%
8,6%
2Q-14
Total Annual Subscribers
2Q12 – 2Q13
1Q13 – 1Q14
2Q13 – 2Q14
CAGR Annual
18,5%
11,4%
11,4%
Household
Penetration
53,6%
56,5%
211
149
Annual
Net Profit
(Thousands)
08
58,3%
154
Note: The DANE report is used to calculate penetration in homes: Hogares_viviendas_1985-2020.xls
Source: Developed by GEC. Information, SIUST (MinTIC 2014), file: informetrimestral2t2014.xlsx
08
Agosto 2014
Net Profit
1Q14 – 2Q14
(Thousands)
9
14
2
19
1
Agenda
1. Relevant facts
2. Financial statements
3. Strategic plan
09
09
Agosto 2014
Financial Statements
Balance Sheet
(COP billions)
Assets
3Q 2014
2Q 2014
1.609
1.212
Liabilities 3Q 2014
595
2Q 2014
627
Equity
3.493
945
10
Agosto 2014
4.705 100%
Short Term
Long Term
Total
1.540 31,7%
976
3Q 2014
3.315
2Q 2014
3.102
3Q 2014
Liquidity Ratio 2.71
10
4.855 100%
3.245
1.603
34,1%
68,3%
65,9%
2Q 2014
Liquidity Ratio 1.93
Financial Statements
Quarterly Comparisons
(COP billions)
3Q 2014
3Q 2013
11
11
Agosto 2014
320.757
EBITDA
125.060
340.084
146.723
Revenues
Financial Statements
3Q 2014
(COP billions)
Results
Operating Revenue
125.779
Companies
Homes
Infrastructure
Mobile
Statement of results
Costs and Expenditure
12
Agosto 2014
6.403
164.140
Depreciation,
amortization and
provisions
29.615
1.223
Manageable costs
Total
12
Access fees
320.757
118.494
186.984
Total
314.191
Results
3Q 2014
(COP billions)
Revenues
1.006.350
September 2013
987.677
September 2014
Operating
income
September 2013
Net
income
September 2013
EBITDA
September 2013
September 2014
September 2014
September 2014
13
13
Agosto 2014
72.088
67.514
63.652
296.514
441.286
409.814
Margin 43.85%
Margin 41.49%
Results
3Q 2014
Cable TV
Ingelcom
Local
Mobile
LD
Special Business
Ventures
Data
Internet
14
14
Agosto 2014
Agenda
1. Relevant facts
2. Financial statements
3. Strategic plan
15
15
Agosto 2014
Strategic plan
Achievements
Achievements
Program
N-Play
services

There
were more tri-band activations than dual band activations.
Deployment of fiber optic cable to over 687,000 homes (homes passed).
Over 125,000 connectable homes.
Over 40% of the city of Bogota covered with fiber optic cable.
Over 40% increase in sales applications compared to the last quarter average.
Launch of the 150 Megas offer.
A story to be continued
Accelerate the installation processes, to capture market demand at a faster rate.
Develop new value-added services that allow our customers to maximize the use of
broadband offered by FTTH technology.
Conclude the implementation of interactive functions for the IPTV [Internet Protocol
television] platform.
16
16
Agosto 2014
Strategic plan
Achievements
Achievements
Program
Cell phone
services
Market launch of ETB’s 4G Mobile service.
85% of cell phone users on monthly contract plans.
Monthly ARPU [Average Revenue per User] more than $34 thousand pesos.

Increase of 15% in comparative revenue for 3Q 2013-2014 in data services.
Homologation of terminals and inter-connections with all operators in the country.
Developments to support mobile products, front implementation, Charging platform,
website, portability process, among others.
More than 1,000 tests in real environments to guarantee customer experience, defined for all
possible situations in the real world.
Documentation of all the new processes that will support the mobile business.
In/Out calls ready to serve ETB’s 4G customers, etb.co for sales and self-service for ETB’s 4G
customers, and implementation of after-sales technical service for terminals.
Business partnerships with partners such as Spotify, Facebook and WhatsApp.
Recharge network with over 15 thousand points in Bogota, ready to serve all customer needs:
online and cash payments.
Risk model for a controlled offer of financing terminals.
Partnership with a partner to provide loans and insurance for purchasing smartphones.
Training sales force agents.
Sales plans and equipment for ETB employees.
A story to be continued
Market stability for mobile operations.
17
17
Agosto 2014
Strategic plan
Achievements
Achievements
Program
Reinforcement
of Regions
Construction and installation of 11 Fiber Optic rings in the cities of Medellin,
Barranquilla,
Tunja, Bucaramanga and Barrancabermeja.

Over 700 kilometers of fiber optic cables built.
Major corporate customers in the new ring network: Davivienda, Banco de Bogotá,
Terpel, Saludcoop, Universidad del Norte, and El Corral among others.
Migration of 25 customers.
Completion of financial, sales and technical model for the deployment of Phase II
(Pereira, Neiva, Pasto, Santa Marta, Cúcuta).
Rings and corporate services launch events with regional customers in the cities of
Barranquilla, Medellin, Bucaramanga and Tunja.
A story to be continued
Continued construction on planned rings.
Continued migrations plan.
18
18
Agosto 2014
Strategic plan
Achievements
Achievements
Program
Wifi
Review and definition of alternatives to executing the Program without strategic
partners.

Implementation of a public Wi-Fi solution, at big audience events such as Rock al
parque and events to commemorate the 130 years of ETB, with a 60 Gbps traffic
capacity.
Implementation of a Wi-Fi solution during the three days of the Bogotá Robótica
event with a download capacity of 163 Gbps traffic.
Implementation of a public Wi-Fi solution in the Central ETB store.
A story to be continued
Implementation of a Wi-Fi solution in two areas of commercial interest with large
numbers of people in Bogota.
Implementation of a public Wi-Fi solution in the five ETB service centers.
19
19
Agosto 2014
Strategic plan
Achievements
Achievements
Program
Excellence in
Service
Opening of a modernized central store, applying new concepts of customer
experience.
Service to more than 8 thousand customers, more than 400 sales of broadband and

more than 1,000 activations of mobile services in two months since the opening of
the central store.
Processes started for the self-service application for tablets: Check-in, payment
band, digital purchase guide and plan change.
Progress in open-plan offices, with delivery of the 8th and 9th floors.
Progress in facade of central administrative headquarters.
Delivery of digital educational content as part of the training model for the
Customer Service team.
First team having graduated with a Certificate of Excellence in Service.
A story to be continued
Conclude the transformation of physical facilities in a way that is coherent with the
image and positioning of ETB. (Deliver floors 4, 6, 7, 11 and 13 of the Central
Administrative Headquarters, Kennedy Store and facade of Buildings 2056, 2037
and 2015 first floor of central administrative headquarters).
Other processes started for the self-service application.
20
20
Agosto 2014
Strategic plan
Achievements
Achievements
Program
Strategic
Customer
Management
Implementation
and production start-up of strategic information reports, such as:

Datamart of local telephony, long distance and invoice adjustment information,
and special new features for billing.
A story to be continued
Continue implementation and production start-up of strategic information reports.
21
21
Agosto 2014
Thank you,
inversionistas@etb.com.co
etb.com.co/inversionistas
+ (571) 242 3029
01 8000 120077
22
23
Agosto 2014