the fiber and convergence leader in northern spain...the fiber and convergence leader in northern...
TRANSCRIPT
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The fiber and convergence leader in Northern Spain June 2017
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The regional integrated telecommunication Champion
Leading fiber and
convergence operator
in the Basque Country and Galicia
Supportive macro dynamics in
relevant regions and rebounding
telecom dynamics
State-of-the-art fiber
network fully invested, providing
best-in-class service and
acting as an entry barrier
Growth momentum underway
focused on the
lifetime value of the client and fully
on track to meet the targets
announced at IPO
Consolidator of the regional
cable in the North of Spain through
the acquisition of
1
4
3
2
5
6
Superior best in class cash-flow
conversion underpinned by a
prudent financial policy
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Galicia Basque Country
The leading fiber and convergence operator in complementary regions 1
Note: FY16 figures.
(1) Revenues excluding elimination of profit neutral activities.
(2) 2015 EBITDA adjusted to exclude costs related to the IPO process, debt cancellation and acquisition of R Cable (c.€15.4m)
(3) Measured as residential fixed subscribers over homes passed.
(4) Measured as residential fixed subscriber with mobile (excluding mobile only) over total fixed subscribers.
Complementary fit with no market overlap and benefiting from increased size and scale
Revenue (€m): 566(1) 573 +1.3%
Adj. EBITDA (€m): 267(2) 281 +5.1%
(49.0% of sales)
Operating cash flow (€m): 164 185 +12.7%
(32.2% of sales)
Net debt/EBITDA: 5.1x 4.2x
Key consolidated metrics
FY2015 FY2016 Change
Residential
65%
Revenue breakdown
2016A: €573m
Business
29%
Wholesale
& Other
6%
Market position: #1 in footprint
Addressable market (population in millions): c.5.0
Residential RGUs (‘000 s): 1,900
RGUs/subscriber: 3.5x
3P/4P Penetration: 66%
ARPU (€/month): 58.4
Fixed penetration(3): 28%
Mobile penetration over fixed customer(4): 77%
+
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Macro tailwinds with further penetration upside…
Significant room for further market development on the back of economic recovery to reach
penetration levels in line with other mature European cable markets
Wealthy, fast growing regions and lower unemployment than the Spanish average
Broadband and Pay TV penetration significantly below European average
Spanish GDP sustained growth expected on the back of increasing private consumption and upturn in
investment
Rebounding dynamics of the Spanish telecommunication market, with
convergence and market consolidation driving market repair
2
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State-of-the-art fiber network fully invested 3
Future-proof network supports success-based capex and 15% capex over revenues as medium term target
Coverage
(%HH)
Fully-owned backbone
network
% of EuroDOCSIS 3.0
Households
per node (avg.)
Access capacity
(MHz)
4G license
Source: Company filings.
(1) In Core regions (as defined by Telecolumbus).
(2) EuroDOCSIS NGN.
(3) In August 2014, announced upgrade to 1 GHz in Flanders by 2019.
(4) Part of the backbone is rented under irrevocable use rights of use until 2025 with an annual cost of €2.9m,
of which €2.4m relate to optic fiber.
35%
c.50%
n.a.
862
via SFR
39%
92%
c.580
862
36%(1)
c.96%
c.450
862
87%
100%
c.500
862
61%
100%
c.580
600(3)
81%
100%(2)
n.a.
750
via Optimus
47%
100%
c.500
862
via Vodafone
55%
100%
c.280
862
(4)
via BASE
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Best-in-class service proposition for the residential segment
The speed leader with the only ultra-fast
broadband offering across the entire region
(DOCSIS 3.0 network)
Superior fiber coverage in the Basque
Country and Galicia (1.7m homes passed)
Wide offering of commercial speeds, ranging
from 30Mbps to 350Mbps
Competitive prices offering best value
for money and superior service to competitors
Unrivalled coverage with the
fastest broadband offering
The most complete and innovative
TV proposition
High-quality and comprehensive content
offering covering different customer groups’
needs with possibility of adding premium
channels
Enhanced offering providing a superior and
differentiated user experience (PVR, VoD, TV
Everywhere)
Increased penetration of superior quality
services (HD, catch-up TV, VOD, network
PVR, start over, time shift...)
Anticipating the future: Euskaltel will launch the
first hybrid 4K/UHD set top box in Spain
Internet in the STB: Smart TV connection
Highly attractive and competitive
mobility proposition
Full-service, leading MVNO
Competitive and innovative tariffs to address
real customer needs
Largest WiFi network in the Basque Country
and Galicia with more than 240k hotspots
allowing for data for clients
FY2016 RGUs: 395k FY2016 RGUs: 270k FY2016 RGUs: 764k
(77.2% penetration over fixed customers)
Convergent offer with a leading value proposition focused on the lifetime value of the client in
Basque Country and Galicia
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66.6%
71.7%
77.2%
IPO Jul-15 4Q15 4Q16
60.9%
63.3%
65.8%
IPO Jul-15 4Q15 4Q16
Visible and consistent strategy focused on customer long term value
Bundling strategy (3P/4P)1
Successful upselling strategy delivering sustained growth in
RGU/subs reaching 3.5x, and 3P/4P penetration of c.66%.
Mobile convergence strategy
Leading convergent strategy which has resulted in capturing
c.61K new mobile lines in 2016 (+8.6% YoY) whilst managing
host and access costs
Notes:
1. Residential subs as % of total subscribers
2. Residential mobile subscribers (excluding mobile only) as % of total fixed customers
3. IPO data pro forma to include R Cable
Residential RGU/Subs (x)
3.2x
3.5x Mobile penetration2
+4.9%
+10.6% 3.3x
3 3
4
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27%
57%
70%
Successful response to aggressive competition
Coverage and competition
Commercial response adapted to FTTH deployment
Our network quality remains a competitive strength, but FTTH deployment has narrowed the gap
Market share preserved despite aggressive price competition, particularly in the last quarter
Our speed offering and TV functionalities delivering strong customer satisfaction
Source: Report of “Secretaría de Estado de Telecomunicaciones y para la Sociedad de la Información”
250270
4Q15 4Q16
Product intake
+5.4k
389 395
4Q15 4Q16
+20.1k
Pay-TV RGUs
Broadband RGUs
Broadband
Pay-TV offering
Euskaltel +R
Cable fiber
coverage as of
IPO and 2Q16)
Competitors fiber
coverage in 1Q15
Competitors fiber
coverage in 2Q16
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103
96
2015 2016
85.5
83.5
2015 2016
Strict cost and capex management yielding record-high cash flow metrics
Direct cost management
2015 2016
Proven ability to contain mobile cost despite significant
increase in the # of lines and traffic per line
Capex and cash flow management
Efforts focused on converging R Cable capex level with those of
Euskaltel. Overall capex reduction below 17% of revenue in line
with guidance
Operating cash flow margin growth of +374bps in the period
As % of revenue
16.7%
17.9%
(€7.2m) / (7.0%)
Direct network costs (€m) Mobile data traffic
(€2.0m) / (2.3%) +74%
As % of revenue
14.6%
14.9% 163.9
184.7
2015 2016
€20.8m / 12.7%
As a % of revenue
28.5%
32.2%
Capex (€m) Operating Cash flow 2 (€m)
Notes:
1. Data pro forma to include R Cable
2. Operating Cash Flow calculated as EBITDA-capex
1 1 1 1
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Note: Dec-2016 figures; INE
(1) Total subscribers figure as of Dec-16
(2) 2015 data from INE
(3) Based on residential fixed subscribers (excl. mobile only)
(4) Measured as residential fixed subscriber with mobile (excluding mobile only) over total fixed subscribers
Consolidator of the regional cable in the North of Spain
Complementary fit with no market overlap and benefiting from increased size and scale
Residential RGUs
('000)s 1,892 451
RGUs / subscriber(3) 3.5x 3.5x
Addressable market
(inhabitants) c.5.0m c.1.0m
Market position in respective
region
in respective
region 1 1
c.6.0m
in respective
region 1
2,343
3.5x
3P/4P Penetration 66% 71% 67%
ARPU (€/month)(3) 58.4 61.6 c.59.1
Mobile penetration
over fixed customer(4) 77% 56% c.73%
Churn(3) 15.1% 15.5% c.15.2%
+
Subs(1): 297k
Population(2):
2.7m
Subs(1): 157k
Population(2): 1.0m Subs(1): 350k
Population(2):
2.2m Total K+T: 803k subs
Geographical complementarity
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Strong financials with positive prospects and FCF per share accretive
(1) Unaudited preliminary 2016 pro-forma financial statements of Euskaltel post-acquisition of Telecable
(2) Unaudited figures. Adjusted for management fees, M&A expenses, transaction bonuses and other extraordinary items (+€2.8m in 2016)
(3) Including fully-phased synergies and proforma to include dividends to be paid in Jul-17
(4) Subject to Euskaltel’s Board of Directors and General Shareholders’ Meeting approval
Revenue to grow by 1% to 2% in 2017 in line with Euskaltel guidance
+24% growth vs. Euskaltel standalone
2016 PF capex as a % of revenue at 17.1% vs. 16.7% for Euskaltel stand alone
Capex to remain around 17% of revenue in the mid-term, in line with Euskaltel
announced targets
Leverage post transaction not to exceed 4.5x(3)
2016 PF adjusted EBITDA margin at 48.6% vs. 49.0% for Euskaltel pre-transaction
Medium term target of 50%
OpFCF growth expected to grow by over 5% for the year 2017
Guidance PF figures(1)
€711m
€121m 17.1% of revenue
c.4.5x
Double digit dividend growth(4)
€346m 48.6% margin
€224m 31.5% of revenue
Revenue (€m)
Adjusted
EBITDA (€m)(2)
Capex (€m)
OpFCF (€m)
Leverage
EqFCF accretive deal since year 1 pro forma fully-phased synergies >6-7% EqFCF
accretion
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Key terms
Euskaltel has reached a definitive agreement to acquire 100% of Telecable, the largest cable operator in Asturias, from
Zegona
Enterprise value of €686m
– Purchase price represents a 10.5x EV/EBITDA 2016 pre-synergies, or c.8.5x adjusted for synergies
The consideration will be paid through a combination of new shares of Euskaltel (representing a 15% stake post-capital
increase) and €431m in cash (including €245m of estimated net debt as of 30 June 2017 and €186m payable in cash)
Zegona will be entitled to an additional contingent payment of 35% of realized tax assets resulting from the transaction, if any,
and subject to a cap of €15m
Zegona has committed to customary standstill and lock-up undertakings in order to maintain its shareholding in Euskaltel within
the agreed levels for a period of time
Consideration
and financing
Key dates Euskaltel Shareholders’ approval required at Euskaltel’s General Shareholders’ Meeting in June 2017
Transaction expected to close in 3Q 2017, following clearance from antitrust authorities
Total consideration to be financed with:
– €255m capital increase fully subscribed by Zegona (26.8m new ordinary shares of Euskaltel issued at €9.5 per share)
– €186m of cash, of which €163m will be funded through cash on hand and the remaining through additional debt, including
refinancing of €245m of Telecable’s estimated net debt
Euskaltel’s leverage to increase from current 4.2x to c.4.5x post-closing and expected to decrease close to 4.0x by the end of
2018(1)
Euskaltel expects to maintain its shareholders’ remuneration in the terms previously announced to the market(2)
Transaction summary
Recommended
transaction
The transaction has been approved unanimously by the Board of Directors of Euskaltel and Zegona, respectively
Irrevocable commitment from Kutxabank to vote in favour of the transaction at Euskaltel’s General Shareholders’ Meeting
Zegona to become a new shareholder with presence in Euskaltel’s Governance bodies and fully aligned with the Company’s
long term objectives
(1) Including fully-phased synergies. Leverage post-closing proforma to include dividends to be paid in Jul-17
(2) Subject to Euskaltel’s Board of Directors and General Shareholders’ Meeting approval
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Revenue (€m)
Telecable: resilient financial performance
Capex (€m)
As % of
revenue
Adjusted EBITDA(1) (€m)
OpFCF(2) (€m)
Adjusted
EBITDA
Margin (%)
As % of
revenue
(1) Unaudited figures. Adjusted for management fees, M&A expenses, transaction bonuses and other extraordinary items
(2) OpFCF defined as adjusted EBITDA minus capex
63 65 65
2014 2015 2016
48.1% 48.4% 47.0%
35 3640
2014 2015 2016
26.9% 26.8% 28.6%
98 99 101
33 35 370.4 0.4 0.5
131 134 138
2014 2015 2016
Residential Business Other
7 7 8
14 15 13
6 7 5
28 2926
2014 2015 2016
Ordinary capex Client equipment capex Expansion capex
21.2% 21.5% 18.5%
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21%
15%
9%
55%
Kutxabank
Zegona
CF Alba
Free-float
Pro Forma Shareholder structure
Zegona to provide increased international sector experience and reinforce current
governance structure
Note: New corporate governance structure subject to approval by Euskaltel’s General Shareholders’ Meeting
(1) Proprietary directors in the Board of Directors representing Kutxabank (2), Zegona (1) and Corporación Financiera Alba (1)
Executive director Independent director
Board of Directors(1)
Chairman CEO
VP & Lead
Director
Proprietary director
1 Reinforcement of current Corporate Governance structure with the
appointment of two new Board Members
2 Creation of a new consultative Strategy Committee with 7 members
(including 3 representatives of Kutxabank, Zegona and Alba, and 4
independent Board members)
4 Zegona’s involvement to bring increased international cable experience
and attract other international investors
3 Increase of the maximum number of members of both the Audit and
Control and Appointments and Remuneration Commissions
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Balance sheet optimization through an efficient mix of shares/cash payment
Proforma capital
structure
Euskaltel’s leverage to increase from current 4.2x to c.4.5x post-closing and expected to decrease
close to 4.0x by the end of 2018(1)
New debt expected to be included within current existing facilities and to be implemented based on
market conditions at closing
Prudent and clear
financial policy
Approach to leverage as per IPO guidance
Targeted leverage of 3.0x-4.0x ND/EBITDA
Shareholders remuneration to be maintained in the terms previously announced to the market(2)
Total transaction consideration to be financed with:
– €255m capital increase fully subscribed by Zegona (26.8m new ordinary shares of Euskaltel
issued at €9.5 per share)
– €163m of cash on balance sheet
– €268m of additional debt, including refinancing of €245m of Telecable’s estimated net debt as
of 30 June 2017
(1) Including fully-phased synergies. Leverage post-closing proforma to include dividends to be paid in Jul-17
(2) Subject to Euskaltel’s Board of Directors and General Shareholders’ Meeting approval
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Milestones Date Status
Due-Diligence process 1Q 2017
Execution of legal documentation May 2017
Euskaltel’s General Shareholders’ Meeting June 2017
Spanish antitrust clearance 3Q 2017
Approval of the Prospectus by the CNMV 3Q 2017
Financing 3Q 2017
Expected closing 3Q 2017
1
2
6
4
3
5
7
Key transaction dates
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Update on Q12017 - Operational and financial overview
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91 93 92
42 40 39
8 10 8
142 142 140
1Q 2016 4Q 2016 1Q 2017
Residential Business Wholesale
69 7168
1Q 2016 4Q 2016 1Q 2017
A snapshot of 1Q17 reported financial results
Revenue EBITDA and EBITDA margin
EBITDA margin (%)
49.8% 48.8%
Cash Flow and Cash Conversion
Op Cash Flow over sales (%)
33.5%
29.9% 48.7% 32.1%
(1.6%)
(2.1%)
€m €m €m
4743
45
1Q 2016 4Q 2016 1Q 2017
Notes:
1. OpCF defined as EBITDA-capex
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141.8
139.5
1.1
(3.4)
0.0
1Q 2016 Residential Business Wholesales 1Q 2017
69.1 68.0
2.3
1.3
1Q 2016 Revenue Direct costs Commercialand fixed
1Q 2017
Constituents of revenue and EBITDA YoY growth in 1Q 2017
Revenue growth driven by the residential segment (+1.2% YoY)
offset by the evolution of the business segment
Direct cost management contributing €1.3m to EBITDA
Fixed costs offsetting increase in commercial costs
One-off commercial costs of €1m devoted to retention efforts
during the host migration program
(1.6%)
(1.5%)
YoY growth (%)
(8.1%)
+1.2%
(1.6%)
+3.7%
YoY growth (%)
48.7% 48.8%
+0.1%
+0.1%
Mainly driven by
the loss of Basque
Government
contract
JA: GV al
comentario o
al script
Revenue evolution (€m) EBITDA evolution (€m)
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720.5
763.7774.1
1Q16 4Q16 1Q17
Mobile and bundle penetration driving residential ARPU growth
Consistent ARPU2 improvement (€/month)
Increased 3P/4P penetration
(as % of total subscribers)
BB subs as % of total subs
83.0%
84.1% 84.5%
Residential mobile RGUs (‘000)
+53.6k serv.
+7.4%
+10.4k serv.
+1.4%
Residential mobile penetration1 (%)
73.7%
77.2% 78.6%
+1.0€
+1.7%
+0.2€
+0.2%
Record-high for Mobile penetration (78.6%), BB subscriber penetration (84.5%) and TV subscriber penetration (58.5%)
Positive TV subscribers evolution over the last quarter with +4.1k net adds
Residential ARPU record at €58.57 (+€1.0 YoY ) on the back of continued upselling (66.5% 3P&4P bundles in 1Q17 vs. 64.3% in 1Q16) and
certain price repair
64.3%
65.8%
66.5%
1Q16 4Q16 1Q17
57.6
58.4 58.6
1Q16 4Q16 1Q17
Notes:
1. Residential subscribers with mobile (excluding mobile-only subscribers) as percentage of total fixed subscribers
2. Global ARPU based on fixed customers
Record High Record High
TV subs as % of total subs
54.4%
57.6% 58.5%
Record High
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88.3 89.3 88.9
1Q16 4Q16 1Q17
SOHO and Business segment performance
55.3%
17.3 17.7 17.5
1Q 2016 4Q 2016 1Q 2017
SoHo Revenue evolution (€m)
Sustained growth of SOHO revenue (+1.0% YoY) driven by both increase in customers and ARPU
Increased number of subscribers and 3P/4P penetration (55.3% in 1Q17)
Subs (000’) evolution
4P/3P SoHo subs penetration
+€0.2m /+1.0%
(0.2m)/(0.9%)
49.9% 53.9%
Business revenue evolution (€m)
New initiatives in the quarter
Above sector average capture of new SME business
Expected revenue crystallisation in the coming quarters
Working on adapting the data centre offering
Several ongoing projects to integrate Azure and AWS
4240 39
1Q 2016 4Q 2016 1Q 2017
(€3.4m) / (8.1%)
(0.7m) / (1.7%)
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Initiatives in place to boost the business segment
Development of platform providing TIC solutions:
Advanced data solutions, voice IP, data centre,
Cybersecurity, SAAS, NOC and SOC services, customer
care, Wi-Fi solutions, big data, analytics
Strategic partnerships Global coverage
Integrating other
accesses (NEBA,
VULA, Wireless,
Satellite, …)
Platform to drive
companies to the cloud
services
Platform for transition to
digital economy
Objective Initiatives to be implemented
Evolve from telecom product to global solution
Value proposition based on vertical solutions
Evolution from connecting to a solution engineering
Active presence in strategic projects
Implementation and development of the 4.0 policy
Smart cities
E-Health
Energetic efficiency
Organizational focus on corporate segment
22
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28
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177
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102
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73
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3
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187 39 42 39
34 29 33
73 71 71
1Q 2016 4Q 2016 1Q 2017
Trading & overheads Direct costs
Efficient cost management despite intensive growth in mobile data traffic
Successful management of data traffic growth (direct costs down by 3.7% vs last year with mobile lines growing by 9% and traffic per line increasing
by 53%
As % of revenue
27.4%
23.9%
27.8%
23.5%
(1.8%)
29.6%
20.6%
+0.0% 720.5
774.1 Residential mobile RGUs (‘000)
1Q 2016 1Q 2017
+67.0%
Mobile data traffic Cost structure (€m)
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47
4345
1Q 2016 4Q 2016 1Q 2017
22
28
23
1Q 2016 4Q 2016 1Q 2017
Capex according to plan driving superior cash flow conversion
Capex as % of revenue (%)
Consolidated capex (€m) Consolidated OpCF (€m) and OpCF conversion (%)
15.2% 16.7% 19.9% 68.7% 60.0% 65.8%
Consolidated capex progressively converging to mid-term target levels on an annual basis
Company working towards minimising seasonality impact and that partly explains growth vs last year
Cash-conversion rate at sector notch reaching 32.1% OpCF over revenue and 65.8% over EBITDA
Capex investments in DOCSIS 3.1 technology enabling coverage of 14% of client base as of 1Q17 with the target to double the coverage in the
short term
Notes:
1. OpCF defined as EBITDA – capex
33.5% 29.9% 32.1% OpCF / Sales
OpCF / EBITDA
Capex and OpCF1 evolution
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1,353
1,223 1,21828.6
(22.8)
1Q16 4Q16 FCF Dividend 1Q17
Net debt evolution
Net debt (€m)
Leverage evolution1 (ND / LTM EBITDA)
4.8x 4.2x 4.2x
Notes:
1. PF leverage including fully phased synergies
YTD OpCF generation of €45m (32.1% conversion over revenues)
YTD net interest payments of €10.5m
Complementary dividend of €0.21 per share (also against 2016
results), to be communicated upon approval by the AGM of the
2016 accounts (in 1H 2017), and in accordance to the dividend
policy announced to the market
Key cash flow items
Complementary dividend distribution
Free Cash Flow of €28.6m in 1Q 2017 vs. €19.5m YoY
Payment of interim dividend of 0.15€ per share (€22.8m)
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Appendix I - Euskaltel Q1 2017 consolidated results
and KPIs
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Euskaltel consolidated - KPIs (i/ii)
Residential Quarterly
KPIs Unit 2014 2015 2016 1Q16 2Q16 3Q16 4Q16 1Q17
Homes passed # 869,900 1,699,073 1,707,558 1,700,847 1,703,361 1,703,941 1,707,558 1,708,468
Household coverage % 85% 65% 65% 65% 65% 65% 65% 65%
Residential subs # 296,023 545,502 546,040 547,009 548,069 548,945 546,040 544,351
o/w fixed services # 279,212 471,664 469,662 471,837 470,895 471,463 469,662 468,944
as % of homes passed % 32.1% 27.8% 27.5% 27.7% 27.6% 27.7% 27.5% 27.4%
o/w mobile only subs # 16,811 73,838 76,378 75,172 77,174 77,482 76,378 75,407
o/w 1P (%) % 17.8% 21.9% 21.7% 21.7% 21.6% 21.9% 21.7% 21.2%
o/w 2P (%) % 26.9% 14.8% 12.5% 14.0% 13.3% 12.9% 12.5% 12.3%
o/w 3P (%) % 35.0% 29.6% 26.4% 29.0% 27.8% 27.0% 26.4% 26.0%
o/w 4P (%) % 20.3% 33.7% 39.4% 35.3% 37.3% 38.2% 39.4% 40.6%
Total RGUs # 896,077 1,809,720 1,891,653 1,836,291 1,868,347 1,881,701 1,891,653 1,904,783
RGUs / sub # 3.0 3.3 3.5 3.4 3.4 3.4 3.5 3.5
Residential churn fixed customers % 14.8% 14.8% 15.1% 13.5% 14.1% 14.9% 15.1% 16.1%
Global ARPU fixed customers €/month 53.78 55.97 58.44 57.59 58.10 58.52 58.44 58.57
Fixed Voice RGU's # 279,691 467,181 462,827 467,280 467,292 465,362 462,827 459,968
as% fixed customers % 100.2% 99.0% 98.5% 99.0% 99.2% 98.7% 98.5% 98.1%
BB RGU's # 217,726 389,456 394,810 391,733 392,722 394,738 394,810 396,310
as% fixed customers % 78.0% 82.6% 84.1% 83.0% 83.4% 83.7% 84.1% 84.5%
TV RGU's # 124,754 250,191 270,333 256,783 264,899 267,325 270,333 274,408
as% fixed customers % 44.7% 53.0% 57.6% 54.4% 56.3% 56.7% 57.6% 58.5%
Postpaid lines # 273,906 702,892 763,683 720,495 743,434 754,276 763,683 774,097
Postpaid customers # 153,939 412,247 438,953 422,737 433,513 436,737 438,953 443,892
as% fixed customers (only mobile excluded) % 49.1% 71.7% 77.2% 73.7% 75.7% 76.2% 77.2% 78.6%
Mobile lines / customer # 1.8 1.7 1.7 1.7 1.7 1.7 1.7 1.7
SOHO Quarterly
KPIs Unit 2014 2015 2016 1Q16 2Q16 3Q16 4Q16 1Q17
Subs # 47,038 88,163 89,322 88,301 89,014 89,076 89,322 88,945
o/w 1P (%) % 32.7% 28.5% 29.7% 31.7% 30.8% 30.4% 29.7% 28.7%
o/w 2P (%) % 26.1% 27.0% 16.4% 18.4% 17.5% 16.9% 16.4% 15.9%
o/w 3P (%) % 31.1% 33.9% 39.7% 38.1% 38.9% 39.3% 39.7% 40.1%
o/w 4P (%) % 10.2% 10.6% 14.2% 11.8% 12.8% 13.3% 14.2% 15.2%
Total RGUs # 143,472 278,314 300,713 285,111 292,888 296,335 300,713 303,168
RGUs / sub # 3.1 3.2 3.4 3.2 3.3 3.3 3.4 3.4
ARPU Global clientes red fija % 20.3% 21.3% 20.3% 22.3% 21.5% 20.5% 20.3% 24.1%
Global ARPU Fixed customers €/month 65.0 65.3 65.2 64.9 65.0 65.3 65.2 65.1
SMEs and Large Accounts Quarterly
KPIs Unit 2014 2015 2016 1Q16 2Q16 3Q16 4Q16 1Q17
Customers # 5,094 11,518 11,193 11,315 11,262 11,224 11,193 11,084
Annual
Annual
Annual
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Euskaltel consolidated - KPIs (ii/ii)
Selected financial information Quarterly
Unit 2014 2015 2016 1Q16 2Q16 3Q16 4Q16 1Q17
Total revenue €m 321.2 349.4 572.9 141.8 144.2 144.4 142.5 139.5
Y-o-y change % -4.1% 8.8% 164.0% 78.2% 75.7% 74.6% 35.7% -1.6%
o/w residential €m 196.2 215.7 373.1 91.3 93.7 95.0 93.1 92.5
Y-o-y change % 0.4% 10.2% 173.0% 86.3% 84.5% 83.7% 45.1% 1.2%
o/w Business €m 93.4 99.3 166.6 42.4 42.8 41.7 39.7 39.0
Y-o-y change % -7.7% 6.3% 167.7% 86.3% 82.5% 83.1% 30.8% -8.1%
o/w Wholesale and Other €m 24.7 25.4 33.2 8.0 7.8 7.7 9.7 8.1
Y-o-y change % -1.7% 0.8% 130.6% 44.3% 39.1% 24.8% 19.6% 0.1%
o/w Other Profit Neutral Revenues €m 6.9 8.9 - - - - - -
Y-o-y change % -20.1% 29.5%
Adjusted EBITDA €m 155.9 167.0 280.6 69.1 70.3 70.2 71.0 68.0
Y-o-y change % 0.5% 7.1% 168.0% 83.2% 83.4% 72.7% 41.0% -1.5%
Margin % 48.5% 47.8% 49.0% 48.7% 48.7% 48.6% 49.8% 48.8%
Capital expenditures €m (42.2) (53.1) (95.9) (21.7) (24.0) (21.8) (28.4) (23.2)
Y-o-y change % 1.7% 25.9% 180.5% 137.8% 161.2% 111.8% 15.8% 7.2%
% total revenues % -13.1% -15.2% -16.7% -15.2% -16.7% -15.1% -20.0% -16.7%
Operating Free Cash Flow €m 113.7 113.9 184.7 47.4 46.3 48.4 42.6 44.8
Y-o-y change % 0.1% 0.2% 162.1% 65.9% 58.7% 59.5% 65.0% -5.5%
% EBITDA % 72.9% 68.2% 65.8% 68.7% 65.7% 69.0% 60.0% 65.8%
Net profit €m n/a 7.237 62.1 14.6 15.6 14.7 17.2 13.2
Annual
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