Telco Overall Financial Performance

Get Started. It's Free
or sign up with your email address
Telco Overall Financial Performance by Mind Map: Telco Overall Financial Performance

1. Revenue growth

1.1. Definition

1.1.1. Percentage change in revenue (sales) from period to period

1.2. Components

1.2.1. Churn

1.2.2. ARPU

1.3. Processes

1.3.1. Sales & Marketing Activities Market Investigation & Intelligence Campaign and promotion mgt Sales planning Customer Approach KPI Churn rate Average revenue per user (ARPU) Minutes of use Subscriber density Cross-sell and up-sell effectiveness

1.3.2. Order Fulfillment & Service Activation

1.3.3. Product Development

1.3.4. Network Development & Mgt

1.3.5. Dealer Support & Customer Care

1.4. Influencers

1.4.1. ARPU and Churn

1.4.2. Service and Product Mix

1.4.3. Fixed Line

1.4.4. Pricing Strategy

1.4.5. Acquisitions

1.4.6. Foreign Exchange

1.4.7. Prices Changes

2. Profitability

2.1. Definition

2.1.1. Profits as a percentage of revenue

2.2. Components

2.2.1. Profit Margins EBITDA Calculation Drivers Use Typical value Operating Income Margin (OIM) Calculation Why? Use Net Income Margin (NIM) Calculation Use

2.2.2. Cost of Services Sold Drivers Customer acquisition costs Customer care costs Processes Network Development & Mgt Product Development Procurement & Logistics Supplier & Partner Mgt Influencers Pricing strategy Price Changes Customer Acquisition and Churn Outsourcing Access Accounting Practices Foreign Exchange Service and Product Mix Typical value 30 - 50 % revenue

2.2.3. Cost of SG&A Drivers Salaries Marketing, Advertising, Promotion,... Sales comissions expenses IT costs Call centers Professional Services fees HR Finances & Accounting Sales channels Processes IT Financial & Assets Mgt Sales & Marketing Dealer Support & Customer Care Legal & Public Relations HR Typical value 20 - 30 % revenues

3. Capital Utilization

3.1. Definition

3.1.1. Money of revenue generated per unit invested in capital

3.2. Components

3.2.1. Fixed Asset Utilization Definition Amount of revenue that is generated per unit of currency that is invested in net Property Plant and Equipment (PP&E). Net PP&E is the book value of the gross PP&E less any accumulated depreciation. Goal Maximize Influencers Age of Assets Operating Leases Outsourcing Access Capacity Pressure Processes IT Network Development & Mgt Financial & Asset Accounting Typical value 0 - 5 %

3.2.2. Cash Operating Cycle (cash-to-cash cycle) Drivers + Days in inventory + Days Sales Outstanding (DSO) - Days Purchases Outstanding (DPO)