ZON OPTIMUS SGPS SA 2Q17 Highlights
Strong year over year Revenue and Cash Flow growth in 2Q17 led by solid operational performance with growth still coming through in core RGUs;
+ 99.1 thousand RGU net adds of which:
+ 4.9 thousand pay TV, +6.2 thousand fixed, -1.3 thousand DTH;
+ 13.1 thousand fixed voice;
+ 18.5 thousand fixed broadband;
+ 62.0 thousand mobile.
+ 4.2% growth in Consolidated Revenues; 388.4 million euros
+5.4% growth in Consolidated EBITDA; 156.7 million euros
+ 52.5% yoy in Net Income; 40.4 million euros
+ 49% EBITDA-CAPEX; 71.1 million euros
- Free Cash Flow 43.9 million euros; +3x
Consolidated CAPEX - 15.1%; 85.7 million euros
2
Table 1.
2Q17 Highlights | 2Q16 | 2Q17 | 2Q17 / | 2Q16 | 1H16 | 1H17 | 1H17 / | 1H16 |
Operating Revenues | 372.8 | 388.4 | 4.2% | 743.1 | 769.4 | 3.5% |
Telco Revenues | 357.9 | 368.8 | 3.1% | 710.4 | 731.8 | 3.0% |
EBITDA | 148.7 | 156.7 | 5.4% | 286.5 | 300 .3 | 4.8% |
EBITDA Margin | 39.9% | 40.4% | 0.5pp | 38.6% | 39.0% | 0.5pp |
Net Income Before Associat es & Non-Controlling Interests | 29.7 | 37.2 | 25.1% | 60.6 | 63.3 | 4.4% |
Net Income | 26.5 | 40.4 | 52.5% | 50.9 | 71.8 | 41.1% |
EBITDA - Total CAPEX | 47.7 | 71.1 | 49.0% | 90.5 | 127.5 | 41.0% |
Total Free Cash-Flow Before Dividends, Financial Investments and Own Shares Acquisition | 14.1 | 43.9 | 210.9% | 23.9 | 102.1 | n.a. |
Total RGUs | 8,746.4 | 9,254.3 | 5.8% | 8,746.4 | 9,254.3 | 5.8% |
Mobile | 4,270.3 | 4,549.1 | 6.5% | 4,270.3 | 4,549.1 | 6.5% |
Pay TV | 1,574.4 | 1,613.3 | 2.5% | 1,574.4 | 1,613.3 | 2.5% |
Fixed Voice | 1,665.0 | 1,751.1 | 5.2% | 1,665.0 | 1,751.1 | 5.2% |
Broadband | 1,206.4 | 1,308.0 | 8.4% | 1,206.4 | 1,308.0 | 8.4% |
Convergent RGUs | 3,155.6 | 3,585.9 | 13.6% | 3,155.6 | 3,585.9 | 13.6% |
Convergent Customers | 644 .0 | 710.8 | 10.4% | 644 .0 | 710.8 | 10.4% |
Convergent Customers as % of Fixed Access Customers | 44 .4% | 47.1% | 2.7pp | 44 .4% | 47.1% | 2.7pp |
Residential ARPU / Unique Subscriber With Fixed Access (Euros) | 43.1 | 44 .3 | 2.8% | 43.4 | 44 .4 | 2.3% |
Total RGUs | 151.3 | 99.1 | (34.5%) | 281.6 | 177.5 | (37.0%) |
Mobile | 97.3 | 62.0 | (36.2%) | 147.2 | 93.4 | (36.6%) |
Pay TV | 12.9 | 4.9 | (61.8%) | 30.6 | 12.7 | (58.3%) |
Fixed Voice | 17.0 | 13.1 | (23.0%) | 41.7 | 26.4 | (36.6%) |
Broadband | 23.9 | 18.5 | (22.6%) | 61.7 | 43.4 | (29.6%) |
Convergent RGUs | 167.5 | 76.9 | (54.1%) | 301.8 | 198.7 | (34.2%) |
Convergent Customers | 29.2 | 13.0 | (55.4%) | 53.1 | 30.6 | (42.4%) |
3
2Q17 Consolidated Results
NOS continues to strengthen market share in almost all of its core services as reflected in the most recent data published by ANACOM for end 1Q17. NOS´ share of mobile subscribers was 24.4%, 1.6 pp greater than last year. Share of fixed internet and voice services grew by 0.8pp and 1.6pp to 37.7% and 35.1%, respectively whilst pay TV market share remained stable at 43.5%.
Total RGUs grew by 5.8% yoy to 9.25 million services with net adds of 99.1 thousand in 2Q17. The primary source of RGU growth for NOS is the network expansion project that NOS initiated in 2014, together with marginal growth in the HFC footprint. By the end of 2Q17 NOS covered a total of 3.787 million households with its fixed network, of which 449 thousand with FttH and the remaining 3.338 million with its Docsis 3.0 HFC network. NOS covered an additional 14.9 thousand households in 2Q17.
The Pay TV base continued to post healthy growth to 1,613 thousand subscribers, +2.5% yoy. During 2Q17, fixed access customers grew by 6.2 thousand subscribers to 1.282 million, representing 34% penetration of NOS' total network coverage. In new network geographies covered since the merger, customer penetration now stands at 24%, with some locations reaching close to 50%1.
Fixed network rollout of own and competitors' ftth networks in areas previously covered only by satellite is, as anticipated, starting to reflect on the DTH customer base, with NOS posting negative net adds of 1.3 thousand in 2Q17. Offers based on DTH are more vulnerable to fixed NGN solutions given their higher Internet speeds and quality and interactivity of TV solutions. This is a trend that is set to continue although mitigated by customer migration wherever possible to NOS' own fixed network. NOS' net losses of DTH customers were compensated almost entirely by migrations to NOS' FttH access.
Customers continue to take up convergent solutions, albeit at a slower pace due to the already high level of penetration at 47.1% of the fixed network and 44.1% of the total customer base. Progressively more households are upgrading to the higher end UMA interface with its more sophisticated features amongst which its voice controled remote, advanced search functionalities, NOS' cloud sharing service and 4K viewing capabilities amongst others, acting as key differentiators versus other offers in the market.
Fixed Broadband and Voice services continued to post good growth of 18.5 thousand RGUs and 13.1 thousand RGUs respectively. By the end of 2Q17, penetration of fixed broadband services measured as a proportion of the fixed customer base was 76.7% and penetration of fixed voice services was 86.7%, reflecting the maturity of the market in terms of bundled offers.
1 The penetration rate refers to customer activations in new FttH geographies.
4
Nos SGPS SA published this content on 20 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 July 2017 16:08:12 UTC.
Original documenthttp://www.nos.pt/institucional/Documents/Noticias e Comunicados/NOS 2Q17 ENGLISH.pdf
Public permalinkhttp://www.publicnow.com/view/97B980BB12477DE448B1A986FFE036A91E0E69C5
