The Internet Communication Company

The Internet Communication Company
Q3 2001 Results – 14 November 2001
Tiscali at a glance
? 7.56 m active subscribers in the last 30 days*
? 14.5 m monthly unique visitors (**)
? 130 m minutes of
daily Internet traffic in
September 2001
? Eur 190.1 m revenues in Q3 2001
up 15% compared to Q2
? EBITDA loss down 29% Q/Q
to Eur (44.8) m
(*) proforma data including Infosource France and Wish Nok Nok
(**) MMXI September data
Q3 2001 key achievements
?
Eur 190.1 m total revenues in Q3 2001, up 15% from Q2 2001
?
Access revenues amount to Eur 121.7 m, up 24% compared
to Q2 2001
?
Portal revenues in line with Q2 despite seasonality and
downturn in online advertising market
?
15% increase in B2B revenues amounting to Eur 25.1 m
?
Gross margin at 30%, up from 26 % in Q2 2001
3
Q3 2001 key achievements
?
EBITDA loss down 29% from Eur (63.3) m in Q2 2001 to Eur
(44.8) m in Q3 2001. Actions already implemented of price
increases, migration on proprietary IP network and contracts
renegotiations bring Tiscali in line with forecasted breakeven in
Q4 01
?
Integration process well under way, no execution risk left. All
activities acquired integrated into one company, with one brand,
one technology and one portal.
?
Tiscali 10.0 set to be the platform for future value added
services on European basis
4
Active subscribers breakdown
7.56 m active subscribers
Switzerland
1%
Spain
2%
24 % of customers with a direct billing
relationship
South Africa
1%
Nordic
Czech
Italy
4%
2%
17%
Benelux
15%
Germany/ Austria
25%
France
16 %
UK
17%
5
The first european web property
22.60%
25.00%
23.80%
14,000
14,481
20.00%
12,000
10,000
13,000
16.30%
15.00%
9,500
8,000
Reach %
Monthly unique visitors (000s)
16,000
10.00%
6,000
4,000
5.00%
2,000
0
0.00%
March
June
September
Total proforma portal revenues amounting
to Eur 52 m in the first 9 months
6
Quarterly comparison
Eur m
2Q 01
3Q 01*
q3/q2 growth
Access
Portal
B2B
Voice
Other
Total revenues
98.3
19.9
21.8
19.8
5.2
165.0
121.7
20.0
25.1
18.1
5.2
190.1
24%
1%
15%
-9%
0%
15%
COGS
123
133.8
9%
Gross margin
42.1
56.3
34%
26%
30%
36.7
40.7
28.0
30.9
41.0
29.2
-16%
1%
4%
Total operating costs
105.4
101.1
-4%
EBITDA
(63.3)
(44.8)
-29%
% on revenues
Sales & marketing
Labour costs
Other operating costs
(*) Includes Planet Interkom, surfEU, Inicia and Yucom
7
Quarterly financials
Eur m
Q4 00
Q1 01
2Q 01
3Q 01*
Access
Portal
B2B
Voice
Other
Total revenues
88.9
12.8
24.0
18.4
6.2
150.3
95.2
11.6
18.4
18.9
5.4
149.5
98.3
19.9
21.8
19.8
5.2
165.0
121.7
20.0
25.1
18.1
5.2
190.1
145
129
123
133.8
5.6
21.0
42.1
56.3
4%
14%
26%
30%
191.1
124.1
105.4
101.1
(185.5)
(103.1)
(63.3)
(44.8)
(6.9)
(5.1)
(3.9)
-
(192.4)
(108.2)
(67.2)
(44.8)
COGS
Gross margin
% on revenues
Total operating costs
EBITDA
Ebitda loss from new
acquisitions
EBITDA adjusted
(*) Includes Planet Interkom, surfEU, Inicia and Yucom
8
Increasing gross margin
Q1 01
Eur m
Access
Q2 01
% on
revenues
Q3 01
Eur m
% on
revenues
Eur m
% on
revenues
11.3
12%
27.3
28%
38.2
31%
Portal
5.0
43%
8.6
43%
8.8
44%
B2B
8.5
46%
9.8
45%
11.5
46%
Voice
(4.8)
-25%
(4.0)
-20%
(2.7)
-15%
Other
1.0
19%
0.5
10%
0.5
10%
Total
21
14%
42.1
26%
56.3
30%
9
Increasing gross margin
60.0
35%
30%
50.0
25%
Eur m
40.0
20%
30.0
15%
20.0
10%
10.0
5%
0.0
0%
4Q 2000
1Q 2001
2Q 2001
3Q 2001
Gross margin from 4% to 30% in 9 months
10
A path to EBITDA breakeven
4Q ‘00
1Q ‘01
2Q ‘01
3Q ‘01
(44.8)
Eur m
(63.3)
(67.2)
(103.1)
(108.2)
(185.5)
Adjusted for Surf EU,
Planet Interkom, Inicia,
Yucom results
77% reduction of EBITDA loss
in 9 months
(192.4)
11
Disclaimer
This presentation contains unaudited proforma financial data; it also
includes forward-looking information that is subject to risks and
uncertainties associated with Tiscali and the Internet sector. This
information reflects Tiscali’s management expectations, based on
currently available information. The forward-looking information reflects
certain assumed market parameters and other assumptions, but may
differ materially from actual future results.
This presentation does not constitute an offer of Tiscali Shares
Not for release, publication or distribution, in whole or in part, in or into
United States, Canada, Australia, Japan or Germany.
12