Transcript telio

“They [Telio] have no baggage – it’s just pure VoIP built by sharp people
who really understand the technology.
Jon Arnold, industry analyst
Telio – Q2 – 05 presentation
“We believe the Norwegian market to be the home of the most advanced
and successful of the access-independent VoIP operators we have
encountered in Europe - Telio”
James Enck, telecom analyst
Agenda today`s presentation
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Highlights
New Management
Q2-05
Telio Structure
Market and competition
Outlook
Q&A
Telio highlights
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Norways first, largest and fastest growing ITSP (Internet Telephony Service Provider)
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Offices in Norway, Sweden, Denmark, Holland and Switzerland
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Telio technical management and advisory board include many of the worlds preeminent SIP and VoIP experts
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New top management in place from mid-August
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60 employees and more than 65 000 subscribers (Norway + Denmark)
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Over the summer approx 8.000 customers added
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Q2 revenues of 42,7 MNOKs and H1 revenues of 77,7 MNOKs
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Q2-05 pre tax profit of 5,7 MNOK and H1 pre tax profit of 11,9 MNOKs
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Offering technology platform on OEM basis to ISPs/carriers
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Enables rapid, low risk, low cost entry into VoIP for anyone with an installed customer
base.
Agenda today`s presentation
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Highlights
New Management
Q2-05
Telio Structure
Market and competition
Outlook
Q&A
New Managment
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New CEO – Arild Nilsen
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Prev. Experience:
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1992-1995 McKinsey – Senior Consultant
1995-2000 NetCom - Operations and Technical Director, Business Market Director and Product Market
Director
2001-2005 Glastad Invest - CEO
New CFO - Kyrre Grinde-Andersen
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Prev experience
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1987-1989 Deloitte management consultants
1989-1995 Schlumberger Ltd.
1995-2001 Kodak Norge as
2001-2005 Sense Communiactions Int. AS
The founders recognize the need to include execution resources as the company grows.
Founders will still play a significant role in the development of the company
Agenda today`s presentation
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Highlights
New Management
Q2-05
Telio Structure
Market and competition
Outlook
Q&A
Sales/quarter
45
40
35
30
25
20
15
10
5
0
Q1-04
Q2-04
Q3-04
Q4-04
Q1-05
Q2-05
Financials – Group
- Profit & Loss Statement
Group
2005 unaudited
Q2 2005
Ytd Q2 2005
FY 2004
Sales revenue
Other operating revenues
Total operating revenues
42 650
0
42 650
77 726
0
77 726
42 096
705
42 801
Cost of goods sold
Personnel costs
Depreciations
Other operating expenses
Total operating expenses
11 477
4 079
1 964
19 446
36 966
23 451
8 797
3 589
30 000
65 837
15 443
6 313
2 375
15 844
39 974
5 684
11 889
2 826
248
220
258
272
125
515
5 712
11 874
2 436
Operating profit
Financial income
Financial expenses
Profit before taxes
Financials – Group
- Balance sheet - Assets
2005 unaudited
Assets
Jun 30, 2005
Mar 31, 2005
Dec 31, 2004
8 748
8 748
7 317
7 317
6 775
6 775
Tangible fixed assets
Plant, machinery, operating equipment, fixtures etc 20 544
Total tangible fixed assets
20 544
18 888
18 888
16 397
16 397
0
0
0
0
0
0
Total non-current assets
29 292
26 206
23 172
Currents assets
Debtors
Accounts receivables
Other receivables
Total debtors
28 707
1 523
30 230
20 486
3 525
24 010
9 729
5 358
15 087
24 995
7 138
5 987
Total current assets
55 225
31 148
21 074
TOTAL ASSETS
84 517
57 354
44 247
Fixed Assets
Intangible assets
IT platform and other intangible rights
Total intangible assets
Fixed assets investments
Investments in subsidiary
Total fixed assets investments
Cash and bank deposits
Financials – Group
- Balance sheet – Equity & Liabilities
2005 unaudited
EQUITY AND LIABILITIES
EQUITY
Called-up and fully paid share capital
Share capital
Share premium reserve
Total capital and reserve
Retained earnings
Other equity
Total retained earnings
Total equity
LIABILITIES
Provisions for liabilities and charges
Deferred tax liabilities
Total provisions for liabilities
Other long-term liabilities
Financial lease liability
Total other long-term liabilities
Current liabilities
Accounts payable
Current tax
Unpaid government charges and special taxes
Other current liabilities
Total current liabilities
Total liabilities
TOTAL EQUITY AND LIABILITIES
Jun 30, 2005
Mar 31, 2005
Dec 31, 2004
179
43 695
43 874
171
28 468
28 639
171
28 368
28 539
12 076
12 076
55 950
7 035
7 035
35 674
1 928
1 928
30 467
412
412
294
294
262
262
5 798
5 798
3 399
3 399
3 548
3 548
16 496
2 183
56
3 622
22 357
28 567
84 517
8 168
1 190
1 708
6 922
17 988
21 681
57 354
6 377
313
1 204
2 076
9 970
13 780
44 247
Financials contd
UNAUDITED
Q2 2005
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22 % revenue growth quarter on quarter (42% growth on a comparable
basis as Q1 included one-of revenue)
Nearly 1000 % revenue growth year on year
Sales&marketing costs reflect high activity in the distribution channels
and somewhat higher customer acquisition costs.
Equity Management Associates (EMA) og Kinderhook Partners
acquired 1.340.000 shares out of which 670.000 were through a direct
placement. This represents approx. 7,5% of the company.
Agenda today`s presentation
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Highlights
New Management
Q2-05
Telio Structure
Market and competition
Outlook
Q&A
Telio structure – final result of work in progress
Telio
Holding AS
- Hub for tech devt and network
operations (ca 60 empl)
- Commercial team for OEM business
- Key developers
- OEM contract with InterNL.net.
- Offered to consumers as Obtibel
(www.optibel.nl)
Telio
Telecom AS
Svenska
Telio AB
Telio Bv
Netherlands
Telio SA
Telio Aps
(Denmark)
-Hub for consumer IP-comm. offering
-Offering IP-comms in Norway
- Musimi offering to danish consumers
- Preparing Telio brand offering
Agenda today`s presentation
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Highlights
New Management
Q2-05
Telio Structure
Market and competition
Outlook
Q&A
Telio is undisputably No.1 VoIP player in Norway
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More than 65,000 total customers (Norway + Denmark)
8,000 new customers over the summer
Telio maintains its momentum and leading position in Norway
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Many small players will not survive much longer due to capital
contrains
Compared to next largest competitor (Nextgentel), Telio’s growth
during summer is larger than Nextgentel’s total VoDSL customer base
2004 results
MNOK
Telio
IP24
Tele VoIP
Briiz
One Call AS
Phonect
AS
Omsetning
42,1
2,4
1,2
1,4
0,1
0,1
Res. f.skatt
2,4
-3,6
-0,27
-2,9
-0,9
-0,7
EK
30,5
-1
-,016
-2,1
-0,03
-1
Telio no. 1 position will be further enhanced through expansion
in distribution and whitelabel in Norway…
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Norway
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Key focus going forward is primary line replacement with high value add
mobile integration services
Telio target market segment is and will still be high volume callers
Other customer segments in Norway can be served by white label
Distribution channels need to be added (e.g. Netthandelen), but TM and
www.telio.no will continue to be important in the near to mid-term
Important to strengthen Sales and Market and Customer Service
departments in order to continue the growth (temps in CS)
… and international
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International
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Musimi in Denmark still going strong, but Telio will launch the Telio brand
name and services this year
Sweden and Holland so far on white-label. Holland in operation, Sweden in
operations Q1-06
Early stage white-label discussions going on in other countries, but long lead
time to close deal
Other countries are being investigated as part of the development of an
international expansion strategy
New services will play an important role in building value add to
the customers
New services will continue to be rolled out – launched in H1:
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Conference Bridge with international dial in numbers (8 countries so far, more
countries will be added)
PC centric soft phone with video capabilities:
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”Tid: 28. august 2005, 01:30 AM lokal tid
Sted: SAS Business class, Bangkok-Copenhagen, SK972
Posisjon: Et sted over diktaturstaten Myanmar, 9500 moh, 950km/h
Samtale: til norsk mobilnummer
Utstyr: Laptop med wireless card og Softphone, SAS inflight WLAN
Provider: Boeing Connexions high speed satellite internet (på alle SK interkontinentale
flyvinger)
Resultat: Noe ekko på mottakerside, ellers utmerket samtalekvalitet”
Many new value added services are either in development or being researched.
Focus on sales promoting and mobile integration features
Agenda today`s presentation
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Highlights
New Management
Q2-05
Telio Structure
Market and competition
Outlook
Q&A
Telio outlook
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Top and bottom line growth will continue into Q3
Customer growth somewhat lower in Q3 than Q2 due to summer (but growth
Q3 still nearly 300 % higher than Q3 last year)
Reduced SG&A spending due to lower customer growth
New distribution channels will be brought online
New very high value service features will be launched in Q3 and Q4
Agenda today`s presentation
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Highlights
New Management
Q2-05
Telio Structure
Market and competition
Outlook
Q&A