3q20 highlights - nos
TRANSCRIPT
3Q20
HIGHLIGHTS
3Q20
HIGHLIGHTS
3Q19 4Q19 1Q20 2Q20 3Q20
STRONG TELCO PERFORMANCE REFLECTING DEFENSIVE NATURE OF BUSINESS
Net Adds kk Net Adds kk Net Adds kk
3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20
NETWORK EXPANSION AND LOWER YOY CHURNCONTINUE TO SUPPORT GOOD PAY TV PERFORMANCE
CONSUMERS PREFER CONVERGENT OFFERS WITH AN INTEGRATED VALUE PROPOSITION
Just 10% of TELCO revenues are generated by stand-alone mobile servicewith the vast majority of consumers subscribing to convergent bundles
% NOS fixed subscribers
3Q20
HIGHLIGHTS
PORTUGAL LEADS IN NEXT GENERATION FIXED AND MOBILE SERVICE PENETRATION
AND IS AT THE FOREFRONT OF NEXT GENERATION NETWORK COVERAGE IN EUROPE
PRICES IN PORTUGAL ARE AMONG THE LOWEST IN EUROPE
3Q20
HIGHLIGHTS
CONTINUOUS INNOVATION DRIVING OUR DIFFERENTIATION IN THE CONSUMER MARKETPROVIDING THE BEST COMMUNICATION AND ENTERTAINMENT SOLUTIONS FOR THE HOME
B2B - PARTNERS FOR BUSINESS TRANSFORMATION, FOCUS ON CLIENT PROXIMITY
STRATEGIC PARTNERSHIPS WITH THE MAJOR HYPER-CLOUD PLATFORMS TO PROVIDE HYBRID AND MULTI-CLOUD SOLUTIONS
Millions of homes Before and after lockdown
B E S T I N C L A S S N E T W O R K S PROVIDING OUTSTANDING RESILIENCE TO INCREASED TRAFFIC DEMANDS
FTTH DEPLOYMENT ONGOING AND ON TRACK TO REACH NATIONWIDE COVERAGE
SUCCESSFUL COMPLETION OF TOWER DEAL AND LONG-TERM AGREEMENT WITH CELLNEXSIGNIFICANT VALUE CREATION AND FURTHER REINFORCEMENT OF CAPITAL STRUCTURE
STRATEGIC MOBILE NETWORK SHARING DEAL REACHED WITH VODAFONE
01of all technologies, current and future
02More Environmentally and
03and network quality
High Density areas
Low Density areas
2 764
477
3Q19 3Q20
POSTPONEMENT OF BLOCKBUSTER LAUNCHES AFFECTING A&C PERFORMANCE
POSTPONED POSTPONED
POSTPONED POSTPONED POSTPONED
7.8
18.2
3Q19 3Q20
617 578
652
954
614 681
1 109 1 033
622828
697884
683 693
1510 0 0 51
189 237
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
40
STRATEGIC FOCUS ON SUSTAINABILITY AND RESPONSIBLE MANAGEMENT PUBLICLY RECOGNIZED WITH VIGEO RANKING IN AUGUST
60+50%
#10/24
#5/41
00 WEAK 30 LIMITED 50 ROBUST 60 ADVANCED
0 100
2020
2018
3Q20
HIGHLIGHTS
QUARTERLY RECOVERY IN YEARLY REVENUE GROWTH,ALBEIT STILL PRESSURED BY CINEMAS
Telco AV & Cinema Consolidated
2.4%
-54%
TELCO REVENUES EXCLUDING ROAMING SHOW RESILIENCE IN CURRENT CONTEXT
Telco Revenues Excluding RoamingMillions of Euros
Impact ofRoaming Revenues
Impact of Roaming Revenues
Roaming RevenuesYoY 3Q20 / 19
Roaming Revenues / Telco Revenues FY19
336.6 1.2 1.3 1.4
3Q19 Consumer Business WS & Others 3Q20
OPEX SAVINGS HELPING TO REDUCE REVENUE PRESSURES
EBITDAMillions of Euros
Impact ofRoaming Revenues
EBITDA3Q20 / 3Q19 YoY %
TelcoConsolidated C & AV
160.6172.7 23.6
2.4 9.0
3Q19 Revenues DirectCosts
Non-DirectCosts
3Q20
-7.0%-1.0%
-67.4%
RELEVANT SAVINGS ACHIEVED IN CINEMA BUSINESS
NET INCOME DECLINE ON THE BACK OF LOWER EBITDA MAINLYAT THE CINEMA & AUDIOVISUALS DIVISION AND DUE TO HIGHER D&A
3Q193Q20
PICK-UP IN TELCO CAPEX REFLECTING QUARTERLY FTTHACCELERATION AND INCREASE IN COMMERCIAL ACTIVITY
83.6 89.781.8 79.4
92.0
8.710.0
6.44.1
5.892.2
99.7
88.283.5
97.8
3Q19 4Q19 1Q20 2Q20 3Q20
Telco C & AV
30.6 34.229.8
39.832.4
16.918.4
18.7
8.219.2
47.5
52.648.5 48.0
51.6
3Q19 4Q19 1Q20 2Q20 3Q20
Baseline NW Exp/Subst
36.1 37.033.4
31.4
40.5
3Q19 4Q19 1Q20 2Q20 3Q20
INCREASE IN CAPEX AND DECLINE OF EBITDA IMPACTING OCF,RECEIVAL OF ≈375 MILLION EUROS UPFRONT PAYMENT FROM TOWER DEAL
Telco EBITDA - CAPEX
BALANCE SHEET STRENGTH AND OPERATIONAL PERFORMANCE SUFFICIENT TO MEET FUTURE COMMITMENTS AND SUSTAIN ATTRACTIVE LEVEL OF SHAREHOLDER REMUNERATION
Millions of Euros, x%
0.0 x
0.5 x
1.0 x
1.5 x
2.0 x
2.5 x
3.0 x
3.5 x
4.0 x
175 .0
275 .0
375 .0
475 .0
575 .0
675 .0
775 .0
875 .0
975 .0
1 07 5.0
1 17 5.0
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