O2 Czech Republic As Net Income jumped on 70.1% in 2015 and Revenue showed almost no change
26 Jan 2016 • About O2 Czech Republic As (
$O2CZ) • By InTwits
O2 Czech Republic As reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- O2 Czech Republic As has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.3%. At the same time it's in pair with industry average of 12.1%.
- CAPEX is quite volatile: 1,701 in 2015, 2,727 in 2014, 5,584 in 2013, 5,671 in 2012, 6,094 in 2011
- The company has highly profitable business model: ROIC is at 14.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
O2 Czech Republic As ($O2CZ) key annual financial indicators
| mln. CZK | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 52,388 | 50,534 | 47,895 | 37,372 | 37,385 | 0.0% |
| EBITDA | 21,790 | 19,781 | 18,477 | 15,333 | 11,160 | -27.2% |
| Net Income | 8,684 | 6,776 | 5,695 | 3,998 | 6,799 | 70.1% |
Balance Sheet
|
|---|
| Cash | 6,955 | 3,044 | 3,890 | 3,256 | 1,970 | -39.5% |
| Short Term Debt | 3,061 | 31 | 4 | 4,004 | 11 | -99.7% |
| Long Term Debt | 0 | 3,000 | 3,000 | 3,000 | 2,970 | -1.0% |
Cash flow
|
|---|
| Capex | 6,094 | 5,671 | 5,584 | 2,727 | 1,701 | -37.6% |
Ratios
|
|---|
| Revenue growth | -5.7% | -3.5% | -5.2% | -22.0% | 0.0% | |
| EBITDA growth | -20.4% | -9.2% | -6.6% | -17.0% | -27.2% | |
| EBITDA Margin | 41.6% | 39.1% | 38.6% | 41.0% | 29.9% | -11.2% |
| Net Income Margin | 16.6% | 13.4% | 11.9% | 10.7% | 18.2% | 7.5% |
| CAPEX, % of revenue | 11.6% | 11.2% | 11.7% | 7.3% | 4.5% | -2.7% |
| ROIC | 13.1% | 11.8% | 11.7% | 7.2% | 14.5% | 7.3% |
| ROE | 12.2% | 10.5% | 9.8% | 7.3% | 18.8% | 11.5% |
| Net Debt/EBITDA | -0.2x | -0.0x | -0.0x | 0.2x | 0.1x | -0.2x |
Revenue and profitability
The company's Revenue showed almost no change in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 11.2 pp from 41.0% to 29.9% in 2015.
Net Income marign increased on 7.5 pp from 10.7% to 18.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.5% in 2015. CAPEX/Revenue decreased on 6.7 pp from 11.2% in 2012 to 4.5% in 2015. Average CAPEX/Revenue for the last three years was 7.8%.
Return on investment
The company operates at good ROIC (14.51%) and ROE (18.76%). ROIC increased on 7.3 pp from 7.2% to 14.5% in 2015. ROE jumped on 11.5 pp from 7.3% to 18.8% in 2015.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 0.2x to 0.1x in 2015. Debt dropped on 57.4% in 2015 while cash dropped on 39.5% in 2015.
Appendix 1: Peers in Fixed Line Telecommunications
Below we provide O2 Czech Republic As benchmarking against other companies in Fixed Line Telecommunications industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Syqic ($SYQ) | 190.6% | 37.6% | 20.5% | 126.5% | |
| Alternative Networks ($AN.) | | -2.1% | -0.4% | 17.5% | 9.2% |
| Telecom Egypt ($TEEG) | -3.4% | 1.6% | 11.0% | 9.2% | |
| Verizon Communications Inc ($VZC) | | 4.5% | 4.1% | 5.4% | 3.6% |
| Rostelekom ($RKMD) | 7.4% | -0.2% | -1.6% | 2.8% | |
| |
|---|
| Median (13 companies) | 3.5% | -0.8% | -1.6% | -0.8% | 4.7% |
|---|
| O2 Czech Republic As ($O2CZ) | | -3.5% | -5.2% | -22.0% | 0.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kt Corp ($KTCD) | 81.6% | 75.5% | 76.0% | 77.9% | |
| Verizon Communications Inc ($VZC) | 58.6% | 60.1% | 62.8% | 60.7% | 60.1% |
| Telecom Egypt ($TEEG) | 45.0% | 41.4% | 41.9% | 44.2% | |
| Syqic ($SYQ) | 59.6% | 57.3% | 59.9% | 43.6% | |
| Alternative Networks ($AN.) | 38.1% | 39.0% | 39.2% | 41.2% | 41.3% |
| |
|---|
| Median (6 companies) | 51.8% | 49.4% | 50.9% | 43.9% | 41.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Koninklijke Kpn Nv ($0O8F) | 39.5% | 35.9% | 34.1% | 39.1% | |
| Ooredoo Qsc ($ORDS) | 45.9% | 46.0% | 42.4% | 37.6% | |
| Hellenic Telecom.Organization S.A. ($OTES) | 33.0% | 32.0% | 28.8% | 35.4% | |
| Orange Polska Sa ($OPLD) | 39.2% | 34.3% | 30.1% | 33.2% | |
| Rostelekom ($RKMD) | 40.8% | 39.7% | 39.0% | 33.0% | |
| |
|---|
| Median (13 companies) | 32.2% | 32.0% | 32.0% | 31.7% | 27.1% |
|---|
| O2 Czech Republic As ($O2CZ) | 41.6% | 39.1% | 38.6% | 41.0% | 29.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ooredoo Qsc ($ORDS) | 20.7% | 21.9% | 27.5% | 25.3% | |
| Rostelekom ($RKMD) | 28.0% | 31.7% | 23.6% | 19.3% | |
| Telefonica Sa ($TDE) | 14.5% | 15.2% | 17.0% | 19.1% | |
| Orange Polska Sa ($OPLD) | 17.5% | 16.6% | 16.9% | 17.6% | |
| Hellenic Telecom.Organization S.A. ($OTES) | 14.2% | 11.7% | 14.8% | 15.4% | |
| |
|---|
| Median (13 companies) | 14.2% | 13.6% | 13.8% | 13.0% | 8.1% |
|---|
| O2 Czech Republic As ($O2CZ) | 11.6% | 11.2% | 11.7% | 7.3% | 4.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| BT Group ($BT.A) | 23.3% | 23.6% | 27.0% | 34.7% | 37.5% |
| Syqic ($SYQ) | 64.3% | 38.9% | 3.2% | 33.9% | |
| Alternative Networks ($AN.) | 36.7% | 35.2% | 33.7% | 28.5% | 20.2% |
| Adept Telecom ($ADT) | 11.9% | 11.6% | 15.5% | 13.2% | 14.3% |
| Hellenic Telecom.Organization S.A. ($OTES) | 4.8% | 8.2% | 5.4% | 10.4% | |
| |
|---|
| Median (13 companies) | 11.2% | 9.6% | 8.5% | 8.7% | 19.8% |
|---|
| O2 Czech Republic As ($O2CZ) | 13.1% | 11.8% | 11.7% | 7.2% | 14.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Telefonica Sa ($TDE) | 3.0x | 2.5x | 2.5x | 3.6x | |
| Kt Corp ($KTCD) | 2.0x | 2.1x | 2.1x | 3.1x | |
| Koninklijke Kpn Nv ($0O8F) | 2.4x | 3.8x | 3.4x | 3.0x | |
| Verizon Communications Inc ($VZC) | 1.4x | 1.7x | 0.8x | 2.8x | 2.1x |
| Ooredoo Qsc ($ORDS) | 1.7x | 1.6x | 1.7x | 2.0x | |
| |
|---|
| Median (13 companies) | 1.7x | 1.7x | 1.3x | 1.6x | 1.2x |
|---|
| O2 Czech Republic As ($O2CZ) | -0.2x | -0.0x | -0.0x | 0.2x | 0.1x |
