Orange Polska Sa EBITDA dropped on 15.2% in 2015 and Revenue decreased on 3.0%
15 Feb 2016 • About Orange Polska Sa (
$OPLD) • By InTwits
Orange Polska Sa reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Orange Polska Sa is a company in decline: 2015 revenue growth was -3.0%, 5 years revenue CAGR was -5.5%
- Orange Polska Sa has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.1%. At the same time it's a lot of higher than industry average of 12.3%.
- CAPEX is quite volatile: 2,609 in 2015, 1,584 in 2014, 756 in 2013, 516 in 2012, 689 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.2x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Orange Polska Sa ($OPLD) key annual financial indicators
| mln. PLN | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 14,922 | 14,141 | 12,923 | 12,212 | 11,840 | -3.0% |
| EBITDA | 5,848 | 4,853 | 3,895 | 4,059 | 3,443 | -15.2% |
| Net Income | 1,917 | 855 | 294 | 535 | 254 | -52.5% |
Balance Sheet
|
|---|
| Cash | 2,860 | 406 | 198 | 248 | 266 | 7.3% |
| Short Term Debt | 767 | 2,195 | 3,343 | 1,143 | 1,318 | 15.3% |
| Long Term Debt | 4,170 | 2,990 | 1,236 | 3,288 | 2,930 | -10.9% |
Cash flow
|
|---|
| Capex | 2,606 | 2,344 | 2,180 | 2,153 | 1,998 | -7.2% |
Ratios
|
|---|
| Revenue growth | -5.0% | -5.2% | -8.6% | -5.5% | -3.0% | |
| EBITDA growth | 24.6% | -17.0% | -19.7% | 4.2% | -15.2% | |
| EBITDA Margin | 39.2% | 34.3% | 30.1% | 33.2% | 29.1% | -4.2% |
| Net Income Margin | 12.8% | 6.0% | 2.3% | 4.4% | 2.1% | -2.2% |
| CAPEX, % of revenue | 17.5% | 16.6% | 16.9% | 17.6% | 16.9% | -0.8% |
| ROIC | 11.2% | 8.9% | 4.7% | 6.1% | 3.7% | -2.5% |
| ROE | 13.2% | 6.3% | 2.3% | 4.3% | 2.1% | -2.2% |
| Net Debt/EBITDA | 0.4x | 1.0x | 1.1x | 1.0x | 1.2x | 0.1x |
Revenue and profitability
The company's Revenue decreased on 3.0% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.2 pp from 33.2% to 29.1% in 2015.
Net Income marign decreased on 2.2 pp from 4.4% to 2.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Orange Polska Sa had CAPEX/Revenue of 16.9%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 17.1%.Battling declining revenue the company invested a large share of EBITDA (58.0%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (3.68%) and ROE (2.08%). ROIC decreased on 2.5 pp from 6.1% to 3.7% in 2015. ROE decreased on 2.2 pp from 4.3% to 2.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is 1.2x. Net Debt / EBITDA jumped on 0.1x from 1.0x to 1.2x in 2015. Debt decreased on 4.1% in 2015 while cash increased on 7.3% in 2015.
Appendix 1: Peers in Fixed Line Telecommunications
Below you can find Orange Polska Sa benchmarking vs. other companies in Fixed Line Telecommunications industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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 ($RKMD) | 7.4% | -0.2% | -1.6% | 2.8% | |
| |
|---|
| Median (13 companies) | 5.4% | -0.8% | -1.6% | -0.8% | 0.0% |
|---|
| Orange Polska Sa ($OPLD) | | -5.2% | -8.6% | -5.5% | -3.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kt Corp ($KTCD) | 81.6% | 75.5% | 76.0% | 77.9% | 77.9% |
| Verizon Communications Inc ($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 ($AN.) | 38.1% | 39.0% | 39.2% | 41.2% | 41.3% |
| |
|---|
| Median (6 companies) | 51.8% | 49.4% | 50.9% | 43.9% | 50.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| O2 Czech Republic As ($O2CZ) | 41.6% | 39.1% | 38.6% | 41.0% | 29.9% |
| Koninklijke Kpn Nv ($0O8F) | 39.5% | 35.9% | 34.1% | 39.1% | 33.2% |
| Ooredoo Qsc ($ORDS) | 45.9% | 46.0% | 42.4% | 37.6% | |
| Hellenic Telecom.Organization S.A. ($OTES) | 33.0% | 32.0% | 28.8% | 35.4% | |
| Rostelekom ($RKMD) | 40.8% | 39.7% | 39.0% | 33.0% | |
| |
|---|
| Median (13 companies) | 32.2% | 32.0% | 33.1% | 31.7% | 29.9% |
|---|
| Orange Polska Sa ($OPLD) | 39.2% | 34.3% | 30.1% | 33.2% | 29.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ooredoo Qsc ($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% | |
| Hellenic Telecom.Organization S.A. ($OTES) | 14.2% | 11.7% | 14.8% | 15.4% | |
| Verizon Communications Inc ($VZC) | 14.7% | 14.0% | 13.8% | 13.5% | 13.5% |
| |
|---|
| Median (13 companies) | 13.2% | 13.5% | 13.7% | 12.9% | 13.4% |
|---|
| Orange Polska Sa ($OPLD) | 17.5% | 16.6% | 16.9% | 17.6% | 16.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| BT Group ($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) | 11.9% | 11.2% | 9.7% | 8.7% | 14.5% |
|---|
| Orange Polska Sa ($OPLD) | 11.2% | 8.9% | 4.7% | 6.1% | 3.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Telefonica Sa ($TDE) | 3.0x | 2.5x | 2.5x | 3.6x | |
| Kt Corp ($KTCD) | 2.0x | 2.1x | 2.1x | 3.1x | 1.3x |
| Koninklijke Kpn Nv ($0O8F) | 2.4x | 3.8x | 3.4x | 3.0x | 3.6x |
| Verizon Communications Inc ($VZC) | 1.4x | 1.7x | 0.8x | 2.8x | 2.1x |
| Ooredoo Qsc ($ORDS) | 1.7x | 1.6x | 1.7x | 2.0x | |
| |
|---|
| Median (13 companies) | 1.7x | 1.7x | 1.3x | 1.6x | 1.3x |
|---|
| Orange Polska Sa ($OPLD) | 0.4x | 1.0x | 1.1x | 1.0x | 1.2x |
