25
9M09 RESULTS ANNOUNCEMENT PRESENTATION 18 NOVEMBER 2009
9M09 RESULTS ANNOUNCEMENT PRESENTATION
18 NOVEMBER 2009
DISCLAIMERDISCLAIMERDISCLAIMERDISCLAIMER
This presentation contains forward looking information, including statements which constitute forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of
1995. These statements are based on the current beliefs and assumptions of our management and on information available to management only as of the date such statements were made.
Forward-looking statements include
(a) information concerning strategy, possible or assumed future results of our operations, earnings, industry conditions, demand and pricing for our products and other aspects of our business, possible
or future payment of dividends and share buy back program; and
(b) statements that are preceded by, followed by or include the words “believes”, “expects”, “anticipates”, “intends”, “is confident”, “plans”, “estimates”, “may”, “might”, “could”, “would”, and the
negatives of such terms or similar expressions.
These statements are not guarantees of future performance and are subject to factors, risks and uncertainties that could cause the assumptions and beliefs upon which the forwarding looking statements
were based to substantially differ from the expectation predicted herein. These factors, risks and uncertainties include, but are not limited to, changes in demand for the company’s services,
technological changes, the effects of competition, telecommunications sector conditions, changes in regulation and economic conditions. Further, certain forward looking statements are based upon
assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from the plans, strategy, objectives, expectations, estimates and intentions
expressed or implied in such forward-looking statements. Additionally, some of these statements refer to board proposals to be submitted to ZON - Multimédia – Serviços de Telecomunicações e
Multimédia, SGPS, S.A. (“Multimedia” or “ZON”) AGM and subject to (i) its approval by Multimedia’s shareholders, (ii) the market conditions and (iii) the ZON’s financial and accounting position as
revealed in the financial statements approved by Multimedia’s AGM.
Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to provide reasons
why actual results may differ. You are cautioned not to place undue reliance on any forward-looking statements.
ZON Multimedia is exempt from filing periodic reports with the United States Securities and Exchange Commission (“SEC”) pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934, as
amended. The SEC file number for PT Multimedia’s exemption is No. 82-5059. Under this exemption, ZON Multimedia is required to post on its website English language translations, versions or
summaries of certain information that it has made or is required to make public in Portugal, has filed or is required to file with the regulated market Eurolist by Euronext Lisbon or has distributed or
is required to distribute to its security holders.
This presentation is not an offer to sell or a solicitation of an offer to buy any securities.
TÍTULO E DATA DA APRESENTAÇÃO ARIAL 10pt. | 30 09 05
1. Introduction
4
4
Another Quarter of Very Strong Operating GrowthAnother Quarter of Very Strong Operating GrowthAnother Quarter of Very Strong Operating GrowthAnother Quarter of Very Strong Operating Growth
RecordRecordRecordRecord TripleTripleTripleTriple PlayPlayPlayPlay PenetrationPenetrationPenetrationPenetration inininin 3333QQQQ09090909:::: 36363636....9999%%%%,,,, 436436436436 thousandthousandthousandthousand TripleTripleTripleTriple PlayPlayPlayPlay subscriberssubscriberssubscriberssubscribers
ConfirmationConfirmationConfirmationConfirmation ofofofof reversalreversalreversalreversal ofofofof trendtrendtrendtrend inininin BasicBasicBasicBasic SubscribersSubscribersSubscribersSubscribers withwithwithwith positivepositivepositivepositive netnetnetnet addsaddsaddsadds,,,, reinforcingreinforcingreinforcingreinforcing leadershipleadershipleadershipleadership inininin PayPayPayPay TVTVTVTV –––– 68686868%%%% marketmarketmarketmarket shareshareshareshare,,,,
andandandand thethethethe importanceimportanceimportanceimportance ofofofof ZON’sZON’sZON’sZON’s strongstrongstrongstrong HDHDHDHD offerofferofferoffer
ContinuedContinuedContinuedContinued strongstrongstrongstrong growthgrowthgrowthgrowth inininin BroadbandBroadbandBroadbandBroadband andandandand VoiceVoiceVoiceVoice servicesservicesservicesservices
ZONZONZONZON hashashashas alreadyalreadyalreadyalready achievedachievedachievedachieved 600600600600 thousandthousandthousandthousand BroadbandBroadbandBroadbandBroadband customerscustomerscustomerscustomers inininin thethethethe beginningbeginningbeginningbeginning ofofofof 4444QQQQ09090909 representingrepresentingrepresentingrepresenting penetrationpenetrationpenetrationpenetration ofofofof overoveroverover 50505050%%%%
529529529529....2222 thousandthousandthousandthousand FixedFixedFixedFixed VoiceVoiceVoiceVoice customerscustomerscustomerscustomers,,,, penetrationpenetrationpenetrationpenetration ofofofof 44444444....8888%%%%
3333QQQQ09090909 resultsresultsresultsresults reinforcereinforcereinforcereinforce ourourourour leadershipleadershipleadershipleadership positionpositionpositionposition inininin PayPayPayPay TVTVTVTV andandandand TripleTripleTripleTriple PlayPlayPlayPlay andandandand continuedcontinuedcontinuedcontinued strongstrongstrongstrong growthgrowthgrowthgrowth momentummomentummomentummomentum inininin BBBBBBBB andandandand VoiceVoiceVoiceVoice.... WeWeWeWe alsoalsoalsoalso
remainremainremainremain oneoneoneone ofofofof thethethethe fastestfastestfastestfastest growinggrowinggrowinggrowing TripleTripleTripleTriple PlayPlayPlayPlay providersprovidersprovidersproviders inininin EuropeEuropeEuropeEurope
OverOverOverOver 1111....8888 millionmillionmillionmillion homeshomeshomeshomes alreadyalreadyalreadyalready coveredcoveredcoveredcovered withwithwithwith EurodocsisEurodocsisEurodocsisEurodocsis 3333....0000,,,, 58585858%%%% ofofofof thethethethe networknetworknetworknetwork
ContinuingContinuingContinuingContinuing totototo leadleadleadlead marketmarketmarketmarket innovationinnovationinnovationinnovation withwithwithwith launchlaunchlaunchlaunch ofofofof 100100100100Mbps,Mbps,Mbps,Mbps, 200200200200MbpsMbpsMbpsMbps andandandand 1111GbpsGbpsGbpsGbps ZONZONZONZON FibraFibraFibraFibra bundlesbundlesbundlesbundles
ARPUARPUARPUARPU growthgrowthgrowthgrowth throughthroughthroughthrough enhancedenhancedenhancedenhanced featuresfeaturesfeaturesfeatures andandandand additionaladditionaladditionaladditional servicesservicesservicesservices
YYYY....oooo....yyyy.... growthgrowthgrowthgrowth inininin multiplemultiplemultiplemultiple serviceserviceserviceservice CableCableCableCable ARPUARPUARPUARPU ofofofof 11111111....8888%%%% inininin 3333QQQQ09090909
BlendedBlendedBlendedBlended ARPUARPUARPUARPU growthgrowthgrowthgrowth ofofofof 6666....2222%%%% inininin 3333QQQQ09090909
LeadingLeadingLeadingLeading inininin RollRollRollRoll----OutOutOutOut ofofofof NextNextNextNext GenerationGenerationGenerationGeneration ServicesServicesServicesServices inininin PortugalPortugalPortugalPortugal
5
5
Strong Operational Momentum Driving Superior Financial Performance Strong Operational Momentum Driving Superior Financial Performance Strong Operational Momentum Driving Superior Financial Performance Strong Operational Momentum Driving Superior Financial Performance
TotalTotalTotalTotal OperatingOperatingOperatingOperating RevenuesRevenuesRevenuesRevenues increasedincreasedincreasedincreased bybybyby 7777....5555%%%% totototo 605605605605....6666 millionmillionmillionmillion euroseuroseuroseuros inininin 9999MMMM09090909 (+(+(+(+8888....0000%%%% inininin 3333QQQQ09090909))))
PayPayPayPay TV,TV,TV,TV, BroadbandBroadbandBroadbandBroadband andandandand VoiceVoiceVoiceVoice RevenuesRevenuesRevenuesRevenues upupupup bybybyby 9999....0000%%%% inininin 9999MMMM09090909 ((((9999....8888%%%% inininin 3333QQQQ09090909)))) onononon thethethethe backbackbackback ofofofof recordrecordrecordrecord TripleTripleTripleTriple PlayPlayPlayPlay penetrationpenetrationpenetrationpenetration,,,, RGURGURGURGU andandandand ARPUARPUARPUARPU
growthgrowthgrowthgrowth
OperatingOperatingOperatingOperating ProfitabilityProfitabilityProfitabilityProfitability,,,, EBITDA,EBITDA,EBITDA,EBITDA, grewgrewgrewgrew aboveaboveaboveabove RevenuesRevenuesRevenuesRevenues,,,, bybybyby 9999%%%% inininin 9999MMMM09090909 ((((11111111....3333%%%% inininin 3333QQQQ09090909)))) withwithwithwith improvementimprovementimprovementimprovement inininin MarginMarginMarginMargin totototo 33333333....2222%%%%,,,, duedueduedue totototo strongstrongstrongstrong
RGURGURGURGU andandandand ARPUARPUARPUARPU performanceperformanceperformanceperformance
NetNetNetNet IncomeIncomeIncomeIncome ofofofof 41414141 millionmillionmillionmillion euroseuroseuroseuros inininin 9999MMMM09090909 reflectingreflectingreflectingreflecting higherhigherhigherhigher levelslevelslevelslevels ofofofof depreciationdepreciationdepreciationdepreciation duedueduedue totototo customercustomercustomercustomer relatedrelatedrelatedrelated investmentinvestmentinvestmentinvestment inininin terminalterminalterminalterminal equipmentequipmentequipmentequipment.... InInInIn
3333QQQQ09090909,,,, NetNetNetNet ProfitsProfitsProfitsProfits werewerewerewere 11111111....9999 millionmillionmillionmillion euros,euros,euros,euros, 21212121....8888%%%% higherhigherhigherhigher yyyy....oooo....yyyy....
TÍTULO E DATA DA APRESENTAÇÃO ARIAL 10pt. | 30 09 05
2. Continued Strong Operating Performance
7
Continued Strong Operational MomentumContinued Strong Operational MomentumContinued Strong Operational MomentumContinued Strong Operational Momentum
7
RGU RGU RGU RGU –––– Revenue Generating UnitsRevenue Generating UnitsRevenue Generating UnitsRevenue Generating Units
[thousands]
+25.9%+25.9%+25.9%+25.9%
+81.4 +144.4 +134.2 +134.4+81.4 +144.4 +134.2 +134.4+81.4 +144.4 +134.2 +134.4+81.4 +144.4 +134.2 +134.4 +134.5+134.5+134.5+134.5
RGU GROWTH REMAINS STRONGRGU GROWTH REMAINS STRONGRGU GROWTH REMAINS STRONGRGU GROWTH REMAINS STRONG
[Net Adds - thousands]
8
3Play Penetration Over One Third of Cable Subscriber Base3Play Penetration Over One Third of Cable Subscriber Base3Play Penetration Over One Third of Cable Subscriber Base3Play Penetration Over One Third of Cable Subscriber Base
8
RGUs per SubscriberRGUs per SubscriberRGUs per SubscriberRGUs per Subscriber
[units]
Triple Play Subscribers Penetration of Cable BaseTriple Play Subscribers Penetration of Cable BaseTriple Play Subscribers Penetration of Cable BaseTriple Play Subscribers Penetration of Cable Base
+19.9%+19.9%+19.9%+19.9%
+19.3pp+19.3pp+19.3pp+19.3pp
Triple Play SubscribersTriple Play SubscribersTriple Play SubscribersTriple Play Subscribers
[thousands]
+125.4%+125.4%+125.4%+125.4%
+40.1 +64.2 +64.5 +51.1 +44.9+40.1 +64.2 +64.5 +51.1 +44.9+40.1 +64.2 +64.5 +51.1 +44.9+40.1 +64.2 +64.5 +51.1 +44.9 [Net Adds
thousands]
2010 objective of 30% Triple Play Penetration achieved
well ahead of schedule; ZON is the fastest growing Triple
Play operator in Europe
Each customer now subscribes to 2.10 services, on average,
compared with 1.75 a year ago
9
Pay TV Pay TV Pay TV Pay TV –––– Improving Trends in 3Q09Improving Trends in 3Q09Improving Trends in 3Q09Improving Trends in 3Q09
9
Basic SubscribersBasic SubscribersBasic SubscribersBasic Subscribers
[thousands]
+3.6%+3.6%+3.6%+3.6%
(17.9) (14.0) (18.2) (3.9)(17.9) (14.0) (18.2) (3.9)(17.9) (14.0) (18.2) (3.9)(17.9) (14.0) (18.2) (3.9) +3.3+3.3+3.3+3.3
Cable SubscribersCable SubscribersCable SubscribersCable Subscribers
[thousands]
+7.7%+7.7%+7.7%+7.7%
(2.6) +4.6 +0.2 +3.1 +2.4(2.6) +4.6 +0.2 +3.1 +2.4(2.6) +4.6 +0.2 +3.1 +2.4(2.6) +4.6 +0.2 +3.1 +2.4
DTH SubscribersDTH SubscribersDTH SubscribersDTH Subscribers
[thousands]
(6.6)%(6.6)%(6.6)%(6.6)%
(15.3) (18.5) (18.4) (7.0) +0.8(15.3) (18.5) (18.4) (7.0) +0.8(15.3) (18.5) (18.4) (7.0) +0.8(15.3) (18.5) (18.4) (7.0) +0.8
BasicBasicBasicBasic CustomersCustomersCustomersCustomers showingshowingshowingshowing reversalreversalreversalreversal ofofofof trendtrendtrendtrend ofofofof recentrecentrecentrecent quartersquartersquartersquarters withwithwithwith positivepositivepositivepositive netnetnetnet addsaddsaddsadds ofofofof 3333....3333 thousandthousandthousandthousand
Cable base stable, and posting some growth
Strong reduction in DTH disconnections in 2Q09, and positive net adds of 0.8 thousand in 3Q09
[Net Adds thousands]
Note: 4Q08 Net Adds are adjusted for the impact of the acquisition of TVTel and Parfitel operations.
10
Strong TakeStrong TakeStrong TakeStrong Take----Up of Higher Value Digital ServicesUp of Higher Value Digital ServicesUp of Higher Value Digital ServicesUp of Higher Value Digital Services
10
“Funtastic” Digital Subscribers“Funtastic” Digital Subscribers“Funtastic” Digital Subscribers“Funtastic” Digital Subscribers
[thousands]
ZON Boxes InstalledZON Boxes InstalledZON Boxes InstalledZON Boxes Installed
[thousands]
+37.5%+37.5%+37.5%+37.5%
+29.0 +50.0 +43.7 +35.3 +38.2+29.0 +50.0 +43.7 +35.3 +38.2+29.0 +50.0 +43.7 +35.3 +38.2+29.0 +50.0 +43.7 +35.3 +38.2
Take-up of higher value digital services driving ARPU growth
High penetration of HD ZON Boxes, enabling new TV viewing experiences – VoD, HD, EPG, PVR, Pause live TV…
+7.9x+7.9x+7.9x+7.9x
≈ 50% 50% 50% 50% withoutwithoutwithoutwithout
PVRPVRPVRPVR
[Net Adds
thousands]
ZONZONZONZON todaytodaytodaytoday hashashashas thethethethe broadestbroadestbroadestbroadest rangerangerangerange ofofofof HDHDHDHD channelschannelschannelschannels whichwhichwhichwhich havehavehavehave beenbeenbeenbeen instrumentalinstrumentalinstrumentalinstrumental inininin containingcontainingcontainingcontaining churnchurnchurnchurn inininin PayPayPayPay TVTVTVTV
[Net Adds thousands]
11
Broadband, Fixed Voice and Mobile Broadband, Fixed Voice and Mobile Broadband, Fixed Voice and Mobile Broadband, Fixed Voice and Mobile –––– Very Strong Momentum MaintainedVery Strong Momentum MaintainedVery Strong Momentum MaintainedVery Strong Momentum Maintained
11
Broadband SubscribersBroadband SubscribersBroadband SubscribersBroadband Subscribers
[thousands]
+31.8%+31.8%+31.8%+31.8%
+20.2 +28.0 +27.0 +26.5 +21.9+20.2 +28.0 +27.0 +26.5 +21.9+20.2 +28.0 +27.0 +26.5 +21.9+20.2 +28.0 +27.0 +26.5 +21.9
Fixed Voice SubscribersFixed Voice SubscribersFixed Voice SubscribersFixed Voice Subscribers
[thousands]
+108.4%+108.4%+108.4%+108.4%
+50.1 +73.2 +72.8 +59.2 +50.6+50.1 +73.2 +72.8 +59.2 +50.6+50.1 +73.2 +72.8 +59.2 +50.6+50.1 +73.2 +72.8 +59.2 +50.6
Mobile SubscribersMobile SubscribersMobile SubscribersMobile Subscribers
[thousands]
+7.2 +8.8 +17.4+7.2 +8.8 +17.4+7.2 +8.8 +17.4+7.2 +8.8 +17.4 +20.5+20.5+20.5+20.5
In Broadband, the pace of growth remains very strong at above 20k subs per quarter; ZON is the operator growing the most in terms of market
share and is the leading operator in terms of traffic. Importantly, latest operating data reveals that 20% of gross adds are subscribing to ZON Fibra
bundles in areas covered
50k net adds in Fixed Voice during 3Q09, taking the total to well over half a million subscribers
The mobile business is increasing pace, with 20.5k net adds in the quarter, supported in particular by the take-up of mobile broadband connections
+7.5x+7.5x+7.5x+7.5x
12
Driving ARPU GrowthDriving ARPU GrowthDriving ARPU GrowthDriving ARPU Growth
12
Blended ARPUBlended ARPUBlended ARPUBlended ARPU
[euros]
+6.2%+6.2%+6.2%+6.2%
Cable & DTH ARPU y.o.y. Growth in 3Q09 Cable & DTH ARPU y.o.y. Growth in 3Q09 Cable & DTH ARPU y.o.y. Growth in 3Q09 Cable & DTH ARPU y.o.y. Growth in 3Q09
[%]
Premium between Cable and DTH ARPUPremium between Cable and DTH ARPUPremium between Cable and DTH ARPUPremium between Cable and DTH ARPU
[%]
Multiple Service ARPU DifferentiationMultiple Service ARPU DifferentiationMultiple Service ARPU DifferentiationMultiple Service ARPU Differentiation
[Single Play ARPU = 1]
TÍTULO E DATA DA APRESENTAÇÃO ARIAL 10pt. | 30 09 05
3. Supported by Solid Financial Indicators
14
14
Revenues Driven by RGUs and ARPU GrowthRevenues Driven by RGUs and ARPU GrowthRevenues Driven by RGUs and ARPU GrowthRevenues Driven by RGUs and ARPU Growth
Operating Revenues 3Q09 / 3Q08Operating Revenues 3Q09 / 3Q08Operating Revenues 3Q09 / 3Q08Operating Revenues 3Q09 / 3Q08
[millions of euros]
+7.5%+7.5%+7.5%+7.5%
+9.0%+9.0%+9.0%+9.0% +10.0%+10.0%+10.0%+10.0%
Excluding Excluding Excluding Excluding
Advertising Advertising Advertising Advertising
Pay TV, Broadband and Voice 3Q09 / 3Q08Pay TV, Broadband and Voice 3Q09 / 3Q08Pay TV, Broadband and Voice 3Q09 / 3Q08Pay TV, Broadband and Voice 3Q09 / 3Q08
[millions of euros]
+8.0%+8.0%+8.0%+8.0%
Operating Revenues 9M09 / 9M08Operating Revenues 9M09 / 9M08Operating Revenues 9M09 / 9M08Operating Revenues 9M09 / 9M08
[millions of euros]
Pay TV, Broadband and Voice 9M09 / 9M08Pay TV, Broadband and Voice 9M09 / 9M08Pay TV, Broadband and Voice 9M09 / 9M08Pay TV, Broadband and Voice 9M09 / 9M08
[millions of euros]
+9.8%+9.8%+9.8%+9.8% +10.0%+10.0%+10.0%+10.0%
Excluding Excluding Excluding Excluding
Advertising Advertising Advertising Advertising
15
15
Audiovisuals 3Q08 / 3Q09Audiovisuals 3Q08 / 3Q09Audiovisuals 3Q08 / 3Q09Audiovisuals 3Q08 / 3Q09
[millions of euros]
Cinema 9M09 / 9M08Cinema 9M09 / 9M08Cinema 9M09 / 9M08Cinema 9M09 / 9M08
[millions of euros]
Improving Sequential Trends in Audiovisuals and Cinema RevenuesImproving Sequential Trends in Audiovisuals and Cinema RevenuesImproving Sequential Trends in Audiovisuals and Cinema RevenuesImproving Sequential Trends in Audiovisuals and Cinema Revenues
+9.2%+9.2%+9.2%+9.2%
+2.7%+2.7%+2.7%+2.7%
Audiovisuals 9M08 / 9M09Audiovisuals 9M08 / 9M09Audiovisuals 9M08 / 9M09Audiovisuals 9M08 / 9M09
[millions of euros]
(2.4)%(2.4)%(2.4)%(2.4)%
Cinema 3Q09 / 3Q08Cinema 3Q09 / 3Q08Cinema 3Q09 / 3Q08Cinema 3Q09 / 3Q08
[millions of euros]
+5.9%+5.9%+5.9%+5.9%
32.7%32.7%32.7%32.7% 33.2%33.2%33.2%33.2%
Operational Profitability Operational Profitability Operational Profitability Operational Profitability –––– Solid EBITDA GrowthSolid EBITDA GrowthSolid EBITDA GrowthSolid EBITDA Growth
16
EBITDA and EBITDA Margin 9M09 / 9M08EBITDA and EBITDA Margin 9M09 / 9M08EBITDA and EBITDA Margin 9M09 / 9M08EBITDA and EBITDA Margin 9M09 / 9M08
[millions of euros; %]
+11.3%+11.3%+11.3%+11.3% +9.0%+9.0%+9.0%+9.0%
Operating Costs
(millions of euros) 9M0 9 ∆ % Drivers
Impact of acquisitions and internalization of several functions
Impact of Share Plan
Lower Programming Costs - impact of SIC and other content contracts renegotiation
Increase in traffic and capacity-related costs partially compensating the reduction in Programming CostsHigher sales commission charges, due to high level of commercial activity driving RGU growth
Increase in COGS due to growth of Mobile subscriber base and subsequent increase of handsets sold
Other Operating
Costs 136.1 6.6%
Higher customer care, maintenance and repair costs, due to increasing number and complexity of services subscribed by customers
Commercial Costs 58.3 36.2%
W&S 42.2 17.1%
Direct Costs 167.9 (2.6%)
EBITDA and EBITDA Margin 3Q09 / 3Q08EBITDA and EBITDA Margin 3Q09 / 3Q08EBITDA and EBITDA Margin 3Q09 / 3Q08EBITDA and EBITDA Margin 3Q09 / 3Q08
[millions of euros; %]
33.2%33.2%33.2%33.2% 34.3%34.3%34.3%34.3%
17
Net IncomeNet IncomeNet IncomeNet Income
17
Net Income 9M09 / 9M08Net Income 9M09 / 9M08Net Income 9M09 / 9M08Net Income 9M09 / 9M08
[millions of euros]
TOTAL NET RESULTS INCREASED BY 21.8% IN 3Q09TOTAL NET RESULTS INCREASED BY 21.8% IN 3Q09TOTAL NET RESULTS INCREASED BY 21.8% IN 3Q09TOTAL NET RESULTS INCREASED BY 21.8% IN 3Q09
+21.8%+21.8%+21.8%+21.8% (19.5)%(19.5)%(19.5)%(19.5)%
Depreciation increased by 47.0% to 135.4 million euros in
9M09, driven by higher investment in terminal equipment
and long term contracts
Net financial results were negative by 7.1 million euros,
with net interest charges amounting to 20.4 million euros
Net Income 3Q09 / 3Q08Net Income 3Q09 / 3Q08Net Income 3Q09 / 3Q08Net Income 3Q09 / 3Q08
[millions of euros]
18
CustomerCustomerCustomerCustomer----Driven CAPEX y.o.y. IncreaseDriven CAPEX y.o.y. IncreaseDriven CAPEX y.o.y. IncreaseDriven CAPEX y.o.y. Increase
18
Total CAPEXTotal CAPEXTotal CAPEXTotal CAPEX
[millions of euros]
+33.8%+33.8%+33.8%+33.8%
Increase mostly due to upgrade to Eurodocsis 3.0
and cell splitting
Increase mostly due to the installation of a greater
amount of terminal equipment9M089M089M089M08 9M099M099M099M09
19
Sound Capital Structure and Adequate Debt MaturitySound Capital Structure and Adequate Debt MaturitySound Capital Structure and Adequate Debt MaturitySound Capital Structure and Adequate Debt Maturity
19
Net Financial DebtNet Financial DebtNet Financial DebtNet Financial Debt
[millions of euros]
Net Financial Debt / EBITDANet Financial Debt / EBITDANet Financial Debt / EBITDANet Financial Debt / EBITDA
[x]
TÍTULO E DATA DA APRESENTAÇÃO ARIAL 10pt. | 30 09 05
4. Wrap Up
21
Wrap UpWrap UpWrap UpWrap Up
21
StillStillStillStill oneoneoneone ofofofof thethethethe highesthighesthighesthighest growthgrowthgrowthgrowth companiescompaniescompaniescompanies ofofofof thethethethe peerpeerpeerpeer groupgroupgroupgroup:::: ++++7777....5555%%%% yyyy....oooo....yyyy.... growthgrowthgrowthgrowth inininin RevenuesRevenuesRevenuesRevenues,,,, ++++9999....0000%%%% inininin corecorecorecore PayPayPayPay
TV,TV,TV,TV, BroadbandBroadbandBroadbandBroadband andandandand VoiceVoiceVoiceVoice businessbusinessbusinessbusiness
ContinuedContinuedContinuedContinued focusfocusfocusfocus onononon profitableprofitableprofitableprofitable growthgrowthgrowthgrowth withwithwithwith EBITDAEBITDAEBITDAEBITDA increasingincreasingincreasingincreasing aboveaboveaboveabove RevenuesRevenuesRevenuesRevenues:::: ++++9999....0000%%%% yyyy....oooo....yyyy....
RationalRationalRationalRational investmentinvestmentinvestmentinvestment strategystrategystrategystrategy –––– customercustomercustomercustomer drivendrivendrivendriven growthgrowthgrowthgrowth CAPEXCAPEXCAPEXCAPEX totototo securesecuresecuresecure marketmarketmarketmarket shareshareshareshare withwithwithwith attractiveattractiveattractiveattractive returnsreturnsreturnsreturns onononon
investmentinvestmentinvestmentinvestment,,,, leveragingleveragingleveragingleveraging scalabilityscalabilityscalabilityscalability ofofofof HFCHFCHFCHFC networknetworknetworknetwork inininin placeplaceplaceplace whilewhilewhilewhile leadingleadingleadingleading inininin technologicaltechnologicaltechnologicaltechnological innovationinnovationinnovationinnovation
OperationalOperationalOperationalOperational KPIsKPIsKPIsKPIs continuecontinuecontinuecontinue totototo showshowshowshow veryveryveryvery strongstrongstrongstrong performanceperformanceperformanceperformance:::: reversalreversalreversalreversal ofofofof PayPayPayPay TVTVTVTV trendtrendtrendtrend withwithwithwith positivepositivepositivepositive netnetnetnet addsaddsaddsadds,,,, andandandand
TripleTripleTripleTriple PlayPlayPlayPlay penetrationpenetrationpenetrationpenetration nownownownow atatatat 37373737%%%% ((((2010201020102010 yearyearyearyear----endendendend targettargettargettarget waswaswaswas 30303030%%%%))))
LeadingLeadingLeadingLeading rollrollrollroll----outoutoutout ofofofof NextNextNextNext GenerationGenerationGenerationGeneration NetworksNetworksNetworksNetworks andandandand ServicesServicesServicesServices:::: 1111....8888 millionmillionmillionmillion homeshomeshomeshomes coveredcoveredcoveredcovered,,,, 200200200200 MbpsMbpsMbpsMbps TripleTripleTripleTriple PlayPlayPlayPlay
bundlesbundlesbundlesbundles
TÍTULO E DATA DA APRESENTAÇÃO ARIAL 10pt. | 30 09 05
Appendix
• Financial Highlights
• Operational Highlights
23
Financial HighlightsFinancial HighlightsFinancial HighlightsFinancial Highlights
23
(Millions of Euros) 3Q08 3Q09 ∆ y.o.y. 9M08 9M09 ∆ y.o.y.
Operating Revenues 18 9.8 20 5 .0 8 .0 % 5 63.4 60 5 .6 7.5 %
Pay TV, Broadband and Voice 167.1 183.5 9.8% 5 0 1.2 546.3 9.0%
Audiovisuals 15 .7 16.1 2.7% 44.6 43.5 (2.4%)
Cinema Exhibition 14.0 14.9 5.9% 36.0 39.3 9.2%
Other (7.1) (9.5) 33.9% (18 .3) (23.5) 28.1%
EBITDA (1) 63.1 70 .2 11.3% 18 4.4 20 1.0 9.0 %
Income from Operations (2) 27.3 20.6 (24.5%) 92.3 65.6 (28.9%)
NET INCOME 9.7 11.9 21.8 % 5 0 .9 41.0 (19.5 %)
CAPEX 42.5 5 3.4 25 .6% 10 7.7 144.0 33.8 %
EBITDA minus CAPEX 20 .5 16.8 (18 .2%) 76.7 5 7.0 (25 .7%)
Net Financial Debt 361.1 621.8 72.2% 361.1 621.8 72.2%
EBITDA margin (%) 33.2% 34.3% 1.0 pp 32.7% 33.2% 0 .5 pp
CAPEX as % of Revenues 22.4% 26.1% 3.6pp 19.1% 23.8 % 4.7pp
Net Financial Debt / EBITDA [x] 1.5 x 2.4x n.a. 1.5 x 2.4x n.a .
(1) EBITDA = income from operations + depreciation and amortisation. (2) Income from operations = income before financials and income taxes + work force reduction programme costs + impairment of goodwill + losses (gains) on disposal o f fixed assets + o ther costs/income.
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Operational HighlightsOperational HighlightsOperational HighlightsOperational Highlights
24
3Q08 3Q09 ∆ y.o.y. 9M08 9M09 ∆ y.o.y.
Homes Passed ('0 0 0 ) 2,8 21 3,0 8 3 9.3% 2,8 21 3,0 8 3 9.3%
RGUs ('0 0 0 ) 2,690 3,38 5 25 .9% 2,690 3,38 5 25 .9%
Basic Subscribers 1,539 1,595 3.6% 1,539 1,595 3.6%
"Funtastic" Digital Subscribers 446 613 37.5% 446 613 37.5%
Broadband Internet 451 594 31.8% 451 594 31.8%
Fixed Voice 254 529 108 .4% 254 529 108 .4%
Mobile - 54 n.a. - 54 n.a.
Net Adds RGUs ('0 0 0 ) 8 1.4 134.5 65 .3% 277.0 40 3.1 45 .5 %
Basic Subscribers (18 ) 3 (118 .2%) (8 ) (19) 134.8%
"Funtastic" Digital Subscribers 29 38 32.0% 64 117 83.7%
Broadband Internet 20 22 8 .4% 51 75 48 .6%
Fixed Voice 50 51 0 .9% 170 183 7.1%
Mobile - 21 n.a. - 47 n.a.
Blended ARPU (€ ) 32.0 34.0 6.2% 31.8 33.4 5 .1%
Revenues per ticket (€ ) 4.2 4.6 10 .4% 4.1 4.4 8 .2%
Tickets sold ('0 0 0 ) 2,346.1 2,229 (5 .0 %) 6,0 5 4.2 5 ,90 8 (2.4%)
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ContactsContactsContactsContacts
25
José Pedro Pereira da Costa
CFO
Maria João Carrapato
Head of Investor Relations
ZON MultimediaZON MultimediaZON MultimediaZON Multimedia
Avenida 5 de Outubro, 208
1069-203 Lisboa, Portugal
Tel.: +351 21 782 47 25
Fax: +351 21 782 47 35
