itouch plc preliminary results 2001 - investis...
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![Page 1: iTouch plc Preliminary Results 2001 - Investis CMSfiles.investis.com/itouch/presentations/prelim01.pdf · • Thus Voice acquisition to enhance performance and capacity • Acquired](https://reader033.vdocuments.net/reader033/viewer/2022042114/5e912af00ff40f0bfb693f6c/html5/thumbnails/1.jpg)
iTouch plc
iTouch plc
Preliminary Results 2001
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iTouch plc
2
• Wireless ASP
• Mobile services for both consumer and business customers
• Listed on London Stock Exchange in August 2000 (raised £42.5m net)
• Operating in 6 countries and a further 2 with MIH
• Agreements with 20 mobile operators and over 100 media companiesworldwide
iTouch plc
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iTouch plc
John Miller
Acting Chief Financial Officer
Financial Review
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iTouch plc
113%£36k£17kRevenue per employee
£36.1m
3.6m
4.7m
733
£15.0m
£48.2m
0.8m
1.6m
238
£4.2m
355% (1)Voice minutes Q4 (2)
Cash at 31 December
201% (1)SMS messages Q4 (2)
209% (1)Corporate Data customers Q4 (2)
260%Revenue
4
Highlights 2000 2001 % Change
(1) Q4 2000 vs Q4 2001
(2) Average monthly
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iTouch plc
5
Profit and Loss
1.4p
0.9p
(3.9)
0.0
(3.9)
0.4
(4.3)
(0.0)
(4.3)
(0.1)
(0.1)
(1.2)
(0.3)
(2.6)
(4.5)
(0.8)
2.6
(2.4)
5.0
Q4 2001 £m
(0.8)--Exceptional charge
(5.0)(4.7)(3.9)EBIT
1.6p
0.7p
(4.5)
0.1
(4.6)
0.4
(4.2)
(0.1)
(0.0)
(1.3)
(0.2)
(2.6)
(4.1)
(0.8)
2.3
(1.7)
4.0
Q3 2001 £m
1.1p
0.5p
(3.2)
0.1
(3.3)
0.7
(3.9)
(0.1)
(0.2)
(1.4)
(0.1)
(2.0)
(2.9)
(0.5)
1.4
(1.2)
2.6
Q1 2001 £m
1.8Gross profit
(3.9)General admin costs
1.5p
0.9p
(4.2)
0.1
(4.3)
0.4
(4.7)
(0.1)
(0.2)
(1.4)
(0.1)
(2.9)
(0.8)
(1.6)
3.4
Q2 2001 £m
LPS
- basic
- adjusted
Retained loss
Minorities
LBT
Interest
EBIT before exceptional
Associates/JV
Share incentive scheme
Depreciation
Goodwill amortisation
EBITDA
Selling costs
COGS
Actual revenue
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iTouch plc
Profit and Loss
6.8p
3.5p
(14.8)
0.5
(15.3)
1.5
(16.8)
-
(16.8)
(0.4)
(0.5)
(1.8)
(4.8)
(0.3)
(9.1)
(9.8)
(1.9)
2.6
(1.6)
4.2
From 18/01 2000 £m
(0.8)Exceptional charge
(18.0)EBIT
5.6p
3.0p
(15.9)
0.2
(16.1)
1.9
(17.2)
(0.5)
-
(0.5)
(5.4)
(0.7)
(10.1)
(15.3)
(2.9)
8.1
(6.9)
15.0
12 months 2001 £m
Gross profit
General admin costs
LPS
- basic
- adjusted
Retained loss
Minorities
LBT
Interest
EBIT before exceptional
Associates/JV
Development expenditure
Share incentive scheme
Depreciation
Goodwill amortisation
Loss before amortisation, depreciation exceptional and share scheme charges
Selling costs
COGS
Actual revenue
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iTouch plc
(2.6)
(3.9)
54%
2.6
5.0
Q4
(2.6)
(4.6)
57%
2.3
4.0
Q3
(2.9)
(4.3)
54%
1.8
3.4
Q2
(2.0)
(3.3)
52%
1.4
2.6
Q1
20012000
64%62%51%61%Gross margin
(3.6)
(5.4)
1.2
1.9
Q4
(3.6)
(6.8)
(1.4)
(2.2)
(0.5)
(0.9)
EBITDA
LBT
0.80.40.1Gross profit
1.20.80.2Revenue
Q3Q2Q1£m
* Q1 proforma v Q2
• Quarterly revenue growth +56%* +51% +55% +36% +29% +20% +24%
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Quarterly Profit and Loss
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iTouch plc
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2000
Ireland48%
UK9%
South Africa38%
Australasia 5%
Revenue by Country
2001
Ireland21%
Australasia25%
South Africa19%
UK35%
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iTouch plc
+52%
+77%
(1%)
+137%
9,060
2,491
3,037
3,531
2001
H2
5,970
1,404
3,075
1,491
2001
H1
+260%15,0304,172Total
+236%3,8951,160Other
+495%6,1121,028SMS
+153%5,0221,984Voice
20012000£k
9
Revenue by Product
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iTouch plc
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4,636
2,470
H2 2001 Average
37 *47 **-CustomersBusiness Mobility
3,009
891
H1 2001 Average
3,832
1,687
2001 Average
937Messages (k)SMS
775Minutes (k)Voice
2000 Average
10
NFOD
* Data is for Q2 – no data available for Q1
** Average is for 9 months ended 31 December 2001
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iTouch plc
Wayne Pitout
Joint Managing Director
Operational Review
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iTouch plc
iTOUCH PLC
IPO Research Model 2000 Actual 2000 IPO Research Model 2001 Actual 2001(£'000) (£'000) (£'000) (£'000)
Revenue £3,200 £4,172 £14,600 £15,030
Gross Margin -£500 £2,530 £8,000 £8,132
EBITDA -£19,400 -£9,145 -£21,200 -£10,139
Capex £8,000 £1,717 £8,100 £936
Marketing £7,500 £1,816 £15,200 £2,894
Net Cash/(Debt) £50,800 £48,185 £21,600 £36,056
(IPO Source : Merrill Lynch 22 June 2000)
Actual vs IPO Research Model
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iTouch plc
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Successful Strategy Implementation 2001
• Significant market positions secured in each operation, aided by key acquisitions
• Extensive operator and media partnerships
• GAP (Global Architecture Platform) being deployed in all OpCo’s
• Low cost and low risk entry into Thailand and Indonesia with MIH
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iTouch plc
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Acquisition & Licensing Strategy
• Critical mass for existing OpCo’s – revenues, relationships and resources
• New territories to widen distribution network
• Product enhancing (Group)
MIH
Worldpop (UK)
HGL (Business Mobility)
Thus Voice (UK)
Telequity (Australia)
New TerritoryProduct EnhancingCritical Mass
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iTouch plc
• Good year with revenues up 81% and cash positive in Q4
• Voice revenues up 269% in 2001 helped by Big Brother
• 523 Corporate SMS users in Q4, up 122% on 2000
• Smart Data messages up 149% on 2000
• 30m SMS messages in 2001
• Digital Mall – Internet e-commerce service provider sold to management
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South Africa
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iTouch plc
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• Revenue H2 vs H1 up over 205%
• SMS Smart Data launched successfully – provide services on Vodafone, Optus and Telstra as well as ninemsn and Yahoo web portals
• Management agreement with Orange for WAP portal & Telstra Corporate Web SMS
• Strong Corporate SMS – now over 100 customers including AC Nielsen, Commonwealth Bank, Nissan, Novotel and Siemens.
• Business Mobility being marketed actively – sales include Cadbury, Chubb & Courier Post
• iTouch New Zealand operations running from Sydney
Australasia
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iTouch plc
• Acquired 75% in July 2001. Call Option over 25% on formula basis
• Paid A$2.6m cash and A$1.8m in shares (in escrow). Deferred performance payment of A$1m
• IVR based prepaid airtime recharging and SMS Surepage services with Optus
• Mobile entertainment prepaid cards recently launched with retailers
• Voice Chat launched for ninemsn
• Integration gone well – £1.4m revenue in Q3 & Q4, ahead of expectations
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Telequity
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iTouch plc
• Revenue H2 vs H1 up over 32%
• Thus Voice acquisition to enhance performance and capacity
• Acquired Worldpop, strong youth brand with 140k opt-in users
• White label mobile services for media partners – BBC, Trinity Mirror, NTL and Belfast Telegraph, etc.
• Corporate SMS – 22 customers including Telecom 4 & Courage
• Launching a suite of new products in Q2 – SMS games, SMS chat, football World Cup and prepaid cards
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UK
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iTouch plc
• Acquired Interactive Media and Content division of Thus for £3.5m cash in October 2001
• Gives iTouch:-
ØLeading position in UK Voice
ØMajor brands (Clubcall, Weathercall, Racecall and Teleshare)
ØKey customers (Telegraph, Met Office and Premiership Clubs)
ØMarketing partnership with Thus
ØOpportunity to launch mobile services
• Integrating into iTouch UK and expect positive contribution before goodwill in 2002
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Thus Voice
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iTouch plc
• Revenue up 61% on 2000
• Voice revenues up 34% in 2001
• 31 Corporate SMS customers in H2, customers include Bank of Ireland, Office of Public Works and Ski Club of Ireland
• Launched suite of mobile entertainment services – prank calls, custom voicemail, animated screensavers, SMS info services
• Business Mobility sales – INM, Northern Area Health Board & NTL
• Cash positive Q4 2001
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Ireland
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iTouch plc
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Israel• 50% Joint Venture with Globes
• SMS connectivity secured with all network operators – Cellcom, Orange, Pelephone & MIRS
• 22 corporate SMS clients at year end generating in excess of 300k messages per month
• Premium rate SMS agreement signed with Orange
• WAP agreements with Cellcom, Orange, GoNext and Comverse
• Voice portal service launched with Cellcom
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iTouch plc
• Top developer for handheld Palm OS and now supporting Pocket PC
• Acquired 100% December 2000, £0.7m cash, £0.7m shares. 3 year earn-out, capped at £6.1m
• Positive feedback from international marketing. Orders achieved in all iTouch countries despite challenging targets and difficult market conditions
• Over 50 customers including Telstra-Saturn, Meridian Energy, Belfast Telegraph & Australian Post
• Preferred partnerships signed with BT Ignite, Eircell (Vodafone), Telstra, Telecom NZ and Vodafone NZ
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Holliday Group (Business Mobility)
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iTouch plc
• Excellent 18 months since the IPO – 6 consecutive quarters of growth
• Building revenues: 20% revenue growth in Q3 and 24% in Q4
• Controlling costs: £36.1m cash at year end
• Very well positioned for mobile future with:
Ø International business
Ø Strong cash position
Ø Fully funded business model
Ø Experienced management team
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Positioned for Success
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iTouch plc
Avi Azulai
Joint Managing Director
Strategy Overview
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iTouch plc
• Average increase in ARPU driven by content expenditure
– Voice-centric ARPU is expected to come down, wireless data revenues will pick up
– Data to account for 28% of ARPU by 2005, pushing 16% increase of total ARPU from 2000 to 2005 (Source JP Morgan)
– NTT DoCoMo data 17% of total revenue versus 9% for Vodafone (Source Informa Telecoms Group)
• Growth in wireless mobile users worldwide
– NTT DoCoMo mobile internet service provides e-mail and internet access to over 31 million subscribers (Source NTT DoCoMo)
Mobile Data opportunities
2005
95%
5%
65%
35%
2001
(Source UMTS Forum)
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Voice vs Mobile Data Revenue Projections
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iTouch plc
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iTouch’s Strategy
• # 1 or 2 Wireless ASP in each market
• Establish operator and key media partnerships
• Consumer and business focus
• Licensing strategy
• Channel development
• Early profitability and cash positive
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iTouch plc
Consumer Products
iTouch has a large range of Voice (IVR) and Data (SMS) products
• Voice
– Well known brands, large capacity, relationships with global media brands
• Information Data – Push and pull SMS
– Enables users to request and receive content on their phone as SMS
• Smart Data
– Ringtones, operator logos, picture messages, group graphics
– Support for new standards (MMS) and multiple handsets (Nokia, Sagem, Ericsson …)
• Commerce
– Credit card pre-paid airtime recharge system
• WAP and PDA services
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iTouch plc
Corporate Products• Messaging solutions
– Email, web and FTP products enable businesses to communicate with employees and clients
– 2-way SMS capability
• PDA services
– Services on intelligent devices enabling mobile PDA users to integrate with corporate legacy systems
– Off the shelf applications – iSell, iDeliver, iSurvey and iService
– Turnkey integrated solutions developed for customers
– Supports multiple data standards – WAP, SMS, CSD, GPRS & CDPD
BUSINESS MOBILITY GATEWAY
Corporate Legacy Systems
Intelligent Devices
Palm
Pocket PC
Symbian
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iTouch plc
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Q2 Product Launches
• Corporate Messaging
• Football World Cup
– goal flashes, half time/full time updates– daily news– logos and ringtones– fantasy football game
• Fonezone
– polyphonic ringtones, animated graphics – celebrity voicemail – spoof comedy content etc.
• Gamezone
– aggregate best of breed games providers– ticker, leader boards, polling– build sense of community and interactivity
• Prepaid Cards
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iTouch plc
• Well positioned for the new opportunities
– Higher mobile data speeds
– ‘Always-on’ technology (GPRS, 3G)
– Multimedia handsets (MMS)
– Intelligent mobile devices, pocket PC
• Leading Wireless Application Service Provider
• Global reach – 20 Network operators, 80million+ mobile users, over 100 media companies
• Proven track record and capacity to roll out business model in new territories
• Very well positioned for mobile future with;
– Global technology platform
– Fully funded business model
– International reach and relationships
– Strong cash position
iTouch at a Glance
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