Q2 and HY1 2009 results
July 2009
Management commentary to Stock
Exchange about Q2 2009 results
The Group’s sales revenues in the second quarter
were primarily impacted by regulations (European
Union regulations applied on the mobile sector) and
the economic downturn (reduction of sales of goods
and changes in consumer behavior). At the same
time, there is a continuing growth of mobile postpaid,
mobile and fixed broadband and TV customers.
EMT’s market position
484,0
480,0
4,0
Contractual, Change
Prepaid, Change
293,000
292,000
278,000
480,000
484,000
487,000
488,000
June 08
Sept 08
Dec 08
262,000
484,000
March 09
-16,000
-14,000
-1,000
-3,000
275,000
746,000
1,000
766,000
3,000
779,000
755,000
18,000
777,000
4,000
Prepaid
+/-
7,000
Contractual
June
2008
-4,000
Mobile postpaid
users (in th.)
June
2009
June 09
EMT’s estimated market share
(by number of active SIM-cards)
was 47%
Elion’s market position
No of permanent Internet
connections (in th.)
No of IP and cable-TV
customers (in th.)
Total means of
communication (in th.)
June
2009
June
2008
+/-
175,2
168,3
6,9
88,4
67,7
20,7
54% of permanent
Internet connections
Others
46%
Elion
54%
29% of cable-TV market
460,0
473,0
-13,0
Elion
29%
Market shares
Elion
Others
71%
Others
100%
20
80%
46
71
76
40%
0%
80% of fixed voice
market
46
60%
20%
80
54
Q2 2009
19
81
54
Q2 2008
Consumer broadband market
29
24
Q2 2009
Q2 2008
Paid TV market
Others
20%
Elion
80%
Q2 2009
Q2 2008
Fixed voice market
Financial results
Eesti Telekom Group
Dynamics of sales
•
Continued customers’ growth
in broadband services and
mobile communication
segments;
Sales revenues were
primarily impacted by
regulations that EU applies to
the mobile sector and by the
economic downturn
•
Consolidated net sales growth, Y-to-Y, %
-1.0%
-2.9%
0.2%
-10.0%
Q2 2008
Q3 2008
Q4 2008
Q1 2009
-13.9%
Q2 2009
ARPU
Dynamics of OPEX
•
Decline in retail and wholesale
volumes
Significant impact of efficiency
projects to IT, maintenance
and personnel costs
•
Consolidated OPEX growth, Y-to-Y, %
-3.4%
Q2 2008
-5.2%
Q3 2008
4.6%
-9.6%
Q4 2008
Q1 2009
-14.6%
Q2 2009
Dynamics of EBITDA
Consolidated EBITDA growth, Y-to-Y, %
3.8%
Q2 2008
0.1%
Q3 2008
-7.9%
-10.3%
-12.6%
Q4 2008
Q1 2009
Q2 2009
EBITDA margin
39.6%
37.4% 37.0%
Mobile communications segment
38.9%
Mobile
communications
segment
34.1%
31.7%
30.6%
Broadband
services segment
27.9%
22.8%
Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009
24.5
23.3
mEUR
38.9%
EBITDA
15.7
Broadband services segment
21.6
17.5
15.8
19.1
15.9
14.9
Q1 2009
Q2 2009
12.0
Q2 2008
Q3 2008
Q4 2008
CAPEX and depreciation
Investing priorities:
Broadband
Development of network
resources, changes in the product
portfolio, the improvement of and
expansion of the availability of the
triple-service packages
Mobile
Implementation of technologies
supporting high-speed data
communications;
IT
Expansion of the infrastructure
necessary for the provision of
services
Cash position
Eesti
Telekom
Group
paid
dividends on 16 June 2009:
0.67 EUR per share;
In total, 92.6 mln EUR was
paid out.
Net gearing
-14.3%
-7.5%
-13.1%
-19.9%
-25.9%
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Largest shareholders of
AS Eesti Telekom
30 June 2009
No of shares
Participation
Changes since
31 March 2009
Baltic Tele AB
82,936,299
60.12%
0
M inistry of Finance
33,346,464
24.17%
0
Development Fund
4,138,636
3.00%
0
SEB clients
2,349,205
1.70%
(469 541)
ING Luxembourg S.A.
2,137,813
1.55%
82 030
Deutsche Bank (GDR accounts)
1,810,971
1.31%
(435 867)
Clearstream Banking Luxembourg S.A. clients
623,158
0.45%
44 857
M ellon Treaty Omnibus
496,473
0.36%
133 000
UniCredit Bank Austria AG
439,918
0.32%
(32 230)
State Street Bank and Trust Omnibus Account
381,045
0.28%
45 100
Trading statistics in Tallinn
SHARE INFORMATION
Veerg1
2005
2006
2007
2008
Year-end number of shares
137,954,528 137,954,528 137,954,528 137,954,528
Annual average number of shares
137,954,528 137,954,528 137,954,528 137,954,528
Equity per share, EUR
1.87
1.90
1.99
1.99
Earnings per share, EUR
0.50
0.61
0.70
0.66
P/E ratio
15.1
13.8
11.2
5.9
Dividends per share for the year, EUR
0.58
0.61
0.67
0.67
114.2
100.1
96.1
101.0
Dividend payout ratio, %
AS Eesti Telekom has been
listed on the Tallinn and
London Stock Exchanges
(OMX:ETLAT/LSE:EETD)
since 1999.
TRADING HISTORY ON THE TALLINN STOCK EXCHANGE (in euros)
Veerg1
2005
2006
2007
2008
6M 2009
High
8.60
8.40
10.77
7.99
5.45
Low
7.10
6.95
6.57
3.81
4.10
Last
7.60
8.40
7.80
3.90
4.34
Change, %
5.56
10.53
-7.14
-50.00
11.29
23,749,354
19,336,241
23,693,032 17,636,495
5,017,457
185.83
148.77
193.36
116.47
24.26
1,048.45
1,158.82
1,076.05
538.02
604.24
Traded volume
Turnover, mln
Capitalisation, mln
Source: NASDAQ OMX Tallinn
Structure of the Group