slide1
Download
Skip this Video
Download Presentation
Financing for Telcos: A Caribbean Perspective

Loading in 2 Seconds...

play fullscreen
1 / 18

Financing for Telcos: A Caribbean Perspective - PowerPoint PPT Presentation


  • 263 Views
  • Uploaded on

Financing for Telcos: A Caribbean Perspective. July 15, 2008. Agenda. Introductions :10 Overview of Caribbean Telco Market Environment :10 Panel Discussion :40 Audience Q&A :10. Introductions. Charles Uhrig (727) 567-5020 [email protected] raymondjames.com.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Financing for Telcos: A Caribbean Perspective' - Patman


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1
Financing for Telcos:

A Caribbean Perspective

July 15, 2008

agenda
Agenda
  • Introductions :10
  • Overview of Caribbean Telco Market Environment :10
  • Panel Discussion :40
  • Audience Q&A :10
introductions
Introductions

Charles Uhrig

(727) 567-5020 [email protected]

raymondjames.com

Full-service investment bank offering equity capital raising, M&A, and strategic advisory services.

Lender to communications, agricultural, and rural energy businesses with approximately $60 billion in total assets.

Offers wireless, local telephone, and international long distance voice and data services in the Caribbean and U.S.

Raymond James

Telecom Investment Banking

Co-Bank

Lender / Communications Division

Atlantic Tele-Network

Telco Perspective

Justin Cadman

(727) 567-5102

[email protected]

raymondjames.com

John Cole

(770) 618-3213

[email protected]

Michael Prior

(978) 619-1301

[email protected]

introductions4
Introductions

Analysys Mason

Telecom Consultant

Scotiabank

Lender

Howard Armstrong

(876) 999-8775

[email protected]

analysysmason.com

Offers strategic advice, technical design, operations support, and market intelligence to telecoms, IT, and media and in over 90 countries worldwide.

A leading North American financial institution serving customers in 50 countries worldwide and offering personal, commercial, corporate and investment banking services.

Tim Lorimer

(416) 866-6755

[email protected]

scotiabank.com

overview of caribbean telecom environment
Overview of Caribbean Telecom Environment
  • Competitive landscape varies widely by country
    • Dependent in part on state of telecom liberalization & government
    • Few multinational players (including Digicel and C&W)
    • Numerous other participants
  • Significant growth opportunity fueled by wireless and Internet/data
    • Attracting increased attention from investors
    • Better growth profile than North America/Western Europe due to lower penetration rates
  • Unique set of considerations for operators and investors alike
    • Political/regulatory outlook
    • Consolidation opportunities
    • Opportunities from continuing market liberalization/privatization
share price performance of caribbean latam telcos
(2)

(1)

Share Price Performance of Caribbean/LatAm Telcos

Wireless +77%

Wireline +69%

C&W +59%

S&P +3%

Shares of publicly traded Caribbean / Latin American companies have outperformed the U.S. stock market.

Notes:

(1) Wireless index includes AMX, NIHD, TMB, TSU, and VIV.

(2) Wireline index includes ATNI, AXTEL, BRP, GVT, MXT, TMX, TNE, and TSP.

telecom penetration a growth opportunity
Telecom Penetration: A Growth Opportunity

Wireless Penetration

Wireless penetration has significant upside opportunity across much of the Caribbean/Latin America.

Source: International Telecommunications Union

telecom penetration a growth opportunity8
Telecom Penetration: A Growth Opportunity

Wireline Penetration

While wireless growth should eclipse wireline growth in the region, there should continue to be modest, steady wireline growth.

Source: International Telecommunications Union

telecom penetration a growth opportunity9
Telecom Penetration: A Growth Opportunity

Internet Users

Many Caribbean / Latin American countries have very low Internet usage, reflecting low penetration of data services. There is significant opportunity for broadband/data growth.

Source: International Telecommunications Union

other factors driving interest in caribbean telcos
Other Factors Driving Interest in Caribbean Telcos
  • Countries are closely aligned to larger economies in North American and Europe
  • Legal and political systems are generally advanced and parallel North American / Western European systems
  • Underlying economies and populations are growing steadily
  • Market liberalization/privatization creating new opportunities
  • Valuations generally still reasonable
caribbean telecom transactions
Caribbean Telecom Transactions

The Caribbean telecom industry is a hotbed of investment and M&A activity.

public company valuations
Public Company Valuations

Enterprise Value / 2008E EBITDA

Carib./LatAm Wireless

Carib./LatAm Wireline

  • Valuations vary depending on country and company specific factors
  • Caribbean & Latin American average 2008E Enterprise Value / EBITDA:
    • Wireless: 5.3x
    • Wireline: 3.3x
  • Valuations are still reasonable, and represent a discount to corresponding U.S. multiples despite a more robust growth profile.

Wireless Average

Wireline Average

factors influencing valuation
Factors Influencing Valuation
  • Public company valuations provide investors and acquirers with a benchmark utilized when evaluating investment opportunities.
  • Reasons for valuation variations include:
debt and equity investor considerations
Debt and Equity Investor Considerations
  • Debt investors like stable cash flows and a certain regulatory/political environment.
    • Capacity for Caribbean telcos to take on debt depends on these factors
  • Equity investors are also very interested in growth opportunities.

Leverage ─ Debt / 2008E EBITDA

Wireless Average

Wireline Average

ad