Philippines – Broadband Operator Valuation and Strategic Options

Client Context:

Our client started as a small cable-TV operator and has grown into fixed telecoms as well, serving both residential and business customers.

It has been growing aggressively and is facing challenges stemming from inadequate processes and systems

At the same time, the company has been approached by interested parties to explore a strategic investment or acquisition


Objectives:

Evaluate strategic options to achieve up to a six-fold increase from its current revenue by 2020.

Assess the associated company value in each option and the risks involved

Identify innovative growth opportunities



What we did to help:

  • Identified improvements in internal systems and processes and HR capabilities required to enable its high growth targets
  • Assessed network rollout plans in metros and suburban areas to forecast capex and operational requirements
  • Proposed a roadmap of new services tailored to their capabilities and market opportunities, and developed business cases for each including:
    • OTT video services
    • WIFI prepaid service
    • Cloud services
    • Enterprise-specific services
  • Evaluated a long list of strategic investment scenarios for the company and then used our rigorous methodology to shortlist four scenarios
  • Identified customer segments to maximize ARPU, profitability and long term value
  • Developed valuation models for each scenario using DCF and a Multiples approaches, and assessed risks/risk mitigation

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