Telecom Company Financial Model - Dynamic 10 Year Forecast

Description
Telecom companies play a significant and central role in the lives of people and businesses. To ensure innovative communication services such as broadband and other services like 4G or recent 5G up-gradation, these companies are required to bear huge investments.


This Financial model presents a business scenario of a Telecom Company and includes calculations of development and growth phases, potential and active new connections, revenue from 4 different sources (Broadband, Landline, Mobile and TV Services), Direct Costs, Payroll & Operating Expenses, Capital Expenditures, Financing through Debt & Equity and Business Valuation & Exit Multiples in case of a potential sale of the business.


The template structure follows Financial Modeling Best Practices principles and is fully customizable with a dynamic functionality allowing users to select the desired forecasted Years (1 to 10). Output Reports & Charts are updated based on the selected forecast period.


Detailed instructions on the use of the model are included in the Excel file.


Model Structure


Inputs & Model Calculations:
• General Business Info
• Project Timing (Development & Growth Phases)
• Market Penetrations (Potential Households, Targeted and Active Connections, Market Share, etc.)
• Revenue from 4 different sources (Broadband, Landline, Mobile and TV Services)
• Direct Costs (Service Provision, Network, Customer Acquisition, Direct Payroll etc.)
• Operating Expenses & Capital Expenditures
• Financing & Capital Structure – Uses & Sources of Cash analysis (Financing through Equity & Debt)
• Exit Year Scenario & Valuation Multiples


Outputs:
• Monthly Budget and Actual Reports
• Monthly Profit & Loss Statement Summary per Year
• Budget vs Actual Variance Analysis per month and year
• Annual Financial Statements (Dynamic 10-Year forecast using a 3 Statement Financial Model)
• Annual Direct Cash Flow
• Breakeven Analysis
• Profitability Analysis per Year
• Summary of various KPIs and Financial Ratios (Operating Metrics, Profit Margins, ROE, ROA, etc.)
• Dynamic Performance Dashboard
• Business Valuation (incl. Enterprise & Equity Value, DCF, Terminal Value, Unlevered & Levered Cash Flow, Project Return Metrics & Sensitivity Analysis)
• Investor Returns (4-tier IRR hurdle waterfall model to distribute proceeds between investors)
• Exit Year Executive Summary


Help & Support
Committed to high quality and customer satisfaction, all our templates follow best practice financial modeling principles and are thoughtfully and carefully designed, keeping the user’s needs and comfort in mind.
Whether you have no experience or are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you experience any difficulty while using this template and cannot find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.
If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.