Empresa de Telecomunicaciones de Bogotá 1Q 2015

Empresa de Telecomunicaciones de Bogotá
Quarter results presentation
1Q 2015
June 2 of 2015
01
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
Participating
Executives
SAÚL
KATTAN
COHEN
CARLOS
HERNÁNDEZ
ZULUAGA
Chief Executive
Officer - CEO
Chief Financial
Officer - CFO
PABLO
GÓMEZ
MORA
Strategy and Business
Development VP
EUGENIA
LONDOÑO
VALLEJO
Investor Relation
Officer - IRO
Content
1. Relevant Facts
2. Financial Statements – IFRS
3. Strategic Corporate program
04
Relevant
Information
Nearly the 60% of Bogotá covered with FTTH.
More than 900 homes passed and more then 30
thousand connected homes in Bogotá
1Q 2015
-
75 thousand customers using mobile
services LTE/4G
FTTH deployment for corporate
customers in Ibague, Barranquilla and
Cucuta
Fitch and ratings reaffirmed DEBTs
calification:
- Domestic corporate debt: AAA
- Local and foreign currency: BBB- Local Currency: Ba1
Data Center project bid process kick off
7 new wi fi hotspots in Bogotá
IFRS implementation
05
Telecomunication Market in Colombia
Telecomunication´s Sector Evolution
Mobile internet continues to drive the industry over the past year with a growth CARG of 22%, followed by dedicated internet (CAGR 12.3%) , mobile services ( 10% CAGR )
TOTAL SUBSCRIBERS BY SERVICE
7,2
7
5,6
6
50
40
5,1
5
4,9
30
4
3
20
2
10
-0
1Q 8
-0
2Q 9
3Q 09
4Q 09
-0
1Q 9
2Q 10
-1
3Q 0
-1
4Q 0
-1
1Q 0
2Q 11
-1
3Q 1
-1
4Q 1
1Q-11
-1
2Q 2
3Q 12
-1
4Q 2
-1
1Q 2
-1
2Q 3
3Q 13
3Q 13
1Q 13
2Q 14
-1
3Q 4
-1
4
1
4Q
Number of subscribers other services
(Millions)
8
Mobile Services
Basic line
Dedicated Internet
Mobile Internet
ANNUAL - CAGR
4Q13 - 4Q14
3,3%
10,0%
-0,2%
0,7%
2,4%
12,3%
7,8%
22,0%
0,1%
4,9%
60
TV
Source : Prepared by GEC . Information MinTIC 2014. File: informetrimestral4t2014.xlsx . http://colombiatic.mintic.gov.co/602/w3-article-5550.html
Note : The Basic Lines - TPBC , published by MinTIC in 2012 were Billing , during other periods have been Lines in Service .
Number of mobile phone subscribers
(Millions)
55,3
9
QUARTERLY
CHANGE
3Q14 - 4Q14
06
Fixed Lines – TPBC
Bogotá - Soacha
ETB maintained its leadership. CLARO maintained its bundled offers to low income levels, this way regain market share in Bogotá and Soacha.
Subscribers for fixed line
Fixed line market share
(%)
(Thousand)
Variation %
3Q14 - 4Q14
2.454
2.467
197
199
196 196
199 199
672
689
-0,5%
4Q-14
3Q-14
-5,7%
-0,4%
1.399
3Q-14
ETB
1.369
Claro
UNE
-0,1%
4Q-14
Movistar
8,1%
8,1%
2,5%
-2,1%
Total annual subscribers
Annual CAGR
Households
Penetration
8,0%
56,7%
4Q12 - 4Q14
28,1%
27,2%
55,8%
8,0%
4Q13 - 4Q14
3,4%
1,3%
-
95,1%
* In 2013 MinTIC republished lines in service , unlike in 2012 where they were billed lines .
Note : To calculate the household penetration DANE report used : Hogares_viviendas_1985-2020.xls
Source : Prepared by GEC . Information SIUST ( MinTIC 2014) File : informetrimestral4t2014.xlsx .
ETB
Claro
UNE
Movistar
07
Internet - Broadband
Bogotá - Soacha
ETB focused its efforts to maintain its natural market as second operator with 33.4% market share in subscribers, which allowed to grow 5.6% in the last year.
Internet subscribers
Internet market share
(%)
(Thousands)
Variation %
3Q14 - 4Q14
1.572
1.541
20
135
184
21
137
186
519
525
4,9%
1,3%
11,9%
1,5%
Claro
683
703
3Q-14
4Q-14
Movistar
ETB
1,4%
UNE
Others
44,3%
44,7%
33,7%
1,1%
8,8%
4Q12 - 4Q14
Household
penetration
1,4%
11,9%
33,4%
2,9%
Total annual subscribers
Annual CAGR
4Q-14
3Q-14
2,0%
8,7%
4Q13 - 4Q14
12,5%
12,9%
-
60,9%
Note : To calculate the household penetration DANE report used : Hogares_viviendas_1985-2020.xls
Source : Prepared by GEC . Information SIUST ( MinTIC 2014) File : informetrimestral4t2014.xlsx
Claro
ETB
UNE
Movistar
Others
08
Paid Television
Bogotá - Soacha
CLARO is the market leader followed by DirecTV. However ETB growth begins to register clients for its IPTV offering.
2,9%
TV services subscribers
Variation %
3Q14 - 4Q14
(Thousands)
Television market share
(%)
0,8%
1.252
1.262
4
37
1
36
90
72
94
226
226
827
827
Claro
3Q-14
Direct TV
>100%
0,3%
3,8%
74
225
225
3,4%
827
827
Others
4Q-14
3Q-14
7,5%
5,9%
7,2%
5,7%
5,1%
4Q-14
Movistar
UNE
-0,6%
ETB
-0,1%
17,8%
18,1%
2,9%
65,5%
3,0%
66,1%
Total annual subscribers
4Q12 - 4Q14
4Q13 - 4Q14
Annual CAGR
-
6,2%
Household
penetration
-
48,9%
Claro
Direct TV
Others
UNE
Movistar
ETB
09
Telecomunications Sector in Colombia
Market Share – Subscribers 4Q2014
Fixed
Line
Other
Total
(Thousands)
Dedicated
Internet
TV
Mobile
Internet
Mobile
Services
21,3%
33,3%
43,6%
41,0%
53,8%
24,7%
23,3%
7,9%
35,0%
23,2%
26,1%
27,9%
21,2%
22,8%
17,2%
19,8%
11,2%
0,3%
0,5%
0,04%
-
-
20,1%
-
-
-
-
-
-
1,0%
-
-
-
-
3,6%
-
-
-
-
0,7%
-
-
-
0,7%
0,5%
8,1%
4,3%
6,7%
-
-
7.181
5.052
4.897
5.566
55.331
Source: Prepared by GEC. Information SIUST ( MinTIC 2014) File: informetrimestral4t2014.xlsx
Operator with the largest
market share
10
Telecomunications Sector in Colombia
Market Share 4Q2014
Bogotá
Fixed
Line
Total
(Thousands)
Fixed
Line
Dedicated
Internet
Paid
TV
27,7%
44,5%
66,4%
27,7%
44,6%
63,1%
7,6%
8,6%
2,9%
12,1%
12,6%
4,5%
8,4%
12,4%
6,2%
7,4%
10,4%
4,7%
56,2%
33,6%
0,4%
52,0%
30,4%
0,3%
-
18,7%
-
-
20,6%
-
Other
Bogotá/Region (BCM)
Dedicated
Internet
Paid
TV
0,04%
0,9%
5,3%
0,9%
1,9%
6,8%
2.366
1.499
1.189
2.739
1.828
1.574
Source: Prepared by GEC. Information SIUST ( MinTIC 2014) File: informetrimestral4t2014.xlsx.
Operator with the largest
market share
11
Content
1. Relevant Facts
2. Financial Statements – IFRS
3. Strategic Corporate program
12
Financial Statements - IFRS
Balance Sheet
(COP$ thousand million)
Current assets
Total Assets
$1.566
4Q-2014
$4.699
$4.527
-3,65%
-9,30%
$1.420
1Q-2015
Non-current assets
4Q-2014
1Q-2015
$3.132
4Q-2014
-0,83%
$3.106
1Q-2015
13
Note :
The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change .
Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December 31 2015.
Financial Statements - IFRS
Balance Sheet
(COP$ thousand million)
Current liabilities
Total liabilities
$711
4Q-2014
$1.836
$1.719
-6,36%
$605
1Q-2015
-14,88%
Long term debt
4Q-2014
1Q-2015
$1.124
$1.114
4Q-2014
1Q-2015
-0,97%
14
Note :
The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change .
Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December 31 2015.
Financial Statements - IFRS
Balance Sheet
(COP$ thousand million)
Shareholders´Equity
$2.863
$2.808
-1,92%
1Q-2015
4Q-2014
Liquidity
Leverage
2,20
1Q-2014
2,35
39,1%
1Q-2015
Liquidity ratio
38,0%
1Q-2014
1Q-2015
Leverage ratio
Note :
The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change .
Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December 31 2015.
15
Financial Statements - IFRS
Income Statement
(COP$ thousand million)
Profit
Operating Profit
Revenue ETB
$352
1Q-2014
$351
0%
$18
$18
1Q-2014
1Q-2015
Net Profit
1Q-2015
$43
$17
1Q-2015
Detail
0%
1Q-2014
Note :
The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change .
Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December 31 2015.
146%
16
Financial Statements - IFRS
Income Statement
(COP$ thousand million)
EBITDA
$130
$124
35,33%
Margin
37,04%
Margin
1Q- 2015
1Q -2014
17
Note :
The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change .
Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December 31 2015.
Financial Statements - IFRS
Income Statement
(COP$ million )
163%
$2.530
$963
$169.260
$177.193
Television
$88.679
5% $84.556
$131.524
$125.765
Internet
$21.150
-9% $23.291
686%
Residential
Corporate
Long Distance
$9.612
$1.223
Mobile
STRATEGIC
BUSINESS
UNITS
BUSINESS
LINE
Local
$129.731 -8%
$141.270
$44.586
Data $45.197
Special Business
Mobile
-1%
$41.185
$39.236
$9.612
$1.223
Infraestructure
5%
1Q- 2015
1Q -2014
Variation
Note :
The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change .
Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December 31 2015.
$26.960
$31.450
18
Financial Statements - IFRS
Income Statement
(COP$ million)
1Q 2015
March
1Q 2014
Absoluta
Relativa
Variation
Absolut
%
2015
2014
$ 351.136
$ 352.169
($ 1.033)
0%
$ 332.909
$ 333.927
(1.018)
0%
Profit on recurring operations
Profit before taxes
$ 18.228
$ 21.010
$ 18.242
$ 19.910
($ 15)
$ 1.100
0%
6%
Taxes prevision (IMPORRENTA and CREE)
$ 22.596
($ 2.209)
$ 24.804
-1.123%
IRent tax (Tax recovery - Deferred tax)
$ 24.804
-
$ 24.804
100%
CREE Tax
($ 2.209)
($ 2.209)
$ 43.606
$ 17.701
RECURRING ACTIVITIES
Income of recurrent activities
Cost and expenses on recurring activities
Profit after taxes
$ 25.904
0%
146%
19
Detail
Note :
The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change .
Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December 31 2015.
Financial Statements – IFRS
Financial Indicators
Variation
01/01/2013 31/03/2015
2.000
$ 600
12,37%
COLCAP
-28,8%
1.900
1.800
ETB Price
$ 550
$1.688
1.700
$ 500
1.600
1.500
$ 450
Variation
$445
1Q-14
1Q-15
1.400
1.300
$440
1,14%
$ 400
COLCAP
-22,7%
$1.305
1.200
ETB Price
$ 350
1.100
ETB Price
1.000
$ 300
31/03/14
COLCAP
20
Note :
The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change .
Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December 31 2015.
Content
1. Relevant Facts
2. Financial Statements – IFRS
3. Strategic Corporate program
21
Strategic Corporate
Program Development
N-Play
Services
Nearly the 60% of Bogotá covered with FTTH.
Progress on the development of new IPTV features (e.g.
SVOD, OTT, Go&Play)
More than 900 homes passed and more then 30 thousand
connected homes in Bogotá
End on the development of the Triple Play corporate offer
Data Center project bid process kick off
Adoption of more than 120 additional services in FTTH
for corporate customers
FTTH deployment for corporate customers in Ibague,
Barranquilla and Cucuta
Regional and
Corporate strengthening
Mobile
services
75 thousand customers using mobile services
LTE/4G
Progress on the development of Mobile Services
corporate offer
Progress on the mobile services launch in other cities
(e.g. Cali, Barranquilla, Medellin, Bucaramanga)
WiFi
Service
Excellence
Strategic
Information
Management
7 new wi fi hotspots in Bogotá, some of them are: San
Andresito 38, Galerias, Usaquen, Plazoleta Calle 90.
Kick off of the production of the "ETB Corporate wiFi
services".
Progress on the remodeling of the ETB offices and attention
points
Progress on the customer experience certification for ETB
employees
Progress on the set up of the business intelligence
model
22
Q&A
23
Thanks,
[email protected]
www.etb.com.co/inversionistas
+ (571) 242 3029
01 8000 120077
24
Financial Statements - IFRS
(COP$ million)
Return
Operating Income
Concept
Operating Income
Execution up to
march 2015
337.356
Execution up to
Marzo 2014
335.631
Absolut
Variation
1.725
Variation
%
0,51%
Non operating income
Concept
Non Operating Income
Execution up to
Marzo 2015
Execution up to
Marzo 2014
Absolut
Variation
Variation
%
13.780
16.538
-2.757
-16,70%
Recovery
4.700
10.052
-5.351
-53,20%
Other non operating income
9.080
6.486
2.594
40,00%
Note :
The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change .
Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December 31 2015.
Financial Statements - IFRS
(COP$ million)
Return
Costs and Expenses
Concept
Execution up to
march 2015
Execution up to
march 2014
Total expenses
332.909
333.927
Cost and expenses manageable
Non operating expenses
unmanageable
214.685
6.395
111.829
195.635
32.100
106.192
Absolut
Variation
Variation
%
Variación
-1.018
-0,30%
19.049
-25.705
5.637
Note :
The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change .
Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December 31 2015.
9,70%
-80,10%
5,30%