Telecoms Business 8-Year 3 Statement Financial Projection Model

Accounts Payable, Average Revenue per User (ARPU), Break-Even, Budget, Budgeting, Business Plans, Business Valuation, Cash Flow Analysis, Cash Flow Projections, Churn, Conversion, Cost Calculation, Cost Projections, Dashboard, DCF Model, Debt Amortization, Discount Rate, Dividends, Excel, Financial Debt, Financial Model, Financial Modeling, Financial modelling, Financial Planning, Financial Projections, Financial Ratios, Financial Reporting, Financial Statements, Forecast, Forecasting, Free Cash Flows, Income Statement, Investing Cash Flows, Investor Cash Flows, Loans, Startup Financial Models, Terminal Value, Valuation, WACC (Weighted Average Cost of Capital)

MODEL OVERVIEW

A telecommunications business provides voice, data, and digital services through mobile and fixed networks. It is capital-intensive, relies on recurring subscription revenue, and focuses on growing subscribers, ARPU, and network efficiency to generate stable long-term cash flows.

This versatile and user-friendly Excel model provides a comprehensive 8-year rolling, quarterly financial projection across all three core financial statements (Income Statement, Balance Sheet, and Cash Flow Statement). It is suitable for both new and established telecom operators offering mobile, broadband, fixed line, TV and entertainment services, as well as related products and services.

The model incorporates direct costs, cost of sales, staff costs, marketing, operating expenses, taxation, borrowings, and fixed assets, and follows financial best practices with built-in instructions, input validations, and integrity checks. A dynamic dashboard presents key outputs in tables and charts, and an integrated discounted cash flow (DCF) valuation supports assessment of financial performance and business value.

KEY OUTPUTS

Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a quarterly basis across up to 8 years and summarised on an annual basis.
Dashboard with:
- Summarised projected Income Statement and Balance Sheet;
- Compounded Annual Growth Rate (CAGR) for each summarised income statement and balance sheet line item;
- List of key ratios including average revenue growth, ARPU, churn rate, average profit margins, average return on assets and equity and average debt to equity ratio;
- Bar charts summarising income statement and balance sheet projections;
- Revenue and subscription breakdowns in table and chart format;
- Charts and graphs showing: cash balance by month, free cash flow generation, cash flow statement breakdown, profit margins, income statement breakdown, net cash vs net income, working capital, valuation and capital structure.
Discounted cash flow valuation using the projected cash flow output.
Breakeven analysis

KEY INPUTS

Setup Inputs:

Name of business;
Currency;
First projection year and quarter;
Naming for broadband and fixed line tiers, TV and entertainment subscription packages, additional products and services, staff costs, marketing costs, other expenses, fixed assets and borrowings.

Actuals Inputs:

Opening balance sheet (for existing businesses);
Income Statement actuals (for trend analysis);

Projection Inputs:

Mobile, Broadband and TV Revenue assumptions including, total population, target market share, subscription tier mix, churn rate and ARPU.
Other products revenue including selling price, mark-up percentages, volumes, inventory and credit terms offered.
Other Services revenue including rates and volumes.
Driver driven direct expenses (e.g. by number of current or new subscribers by revenue source)
Direct and non-direct staff cost inputs including staff numbers, average salary per full time position, average employer’s social security percentage of salary, average annual bonus and bonus payment months.
Other costs inputs including marketing costs and other operating costs.
Sales and corporate tax inputs including rate and payment periods.
Dividend inputs including amount (percentage of retained earnings) and frequency.
Fixed assets including addition amounts and useful life.
Borrowings including addition amounts, interest rate and maturity date.
Share capital additions.
Discount rate inputs (for valuation calculation).

MODEL STRUCTURE

The model comprises of 9 tabs split into input (‘i_’), calculation (‘c_’), output (‘o_’) and system tabs. The tabs to be populated by the user are the input tabs (‘i_Setup’, ‘i_Actuals’ and ‘i_Assumptions’). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in ‘o_Fin Stats’, ‘o_Dashboard’ and ‘o_DCF’.

KEY FEATURES

The model contains a flexible timeline that allows for a mix of actual and forecast periods across an 8-year period. This allows projections to be easily rolled forward as forecast periods become actual period.
Timeline is split on a quarterly basis and summarised on an annual basis.
The model allows the user to model different telecom revenue sources including
- Mobile services (Prepaid, postpaid and IoT)
- Broadband and fixed line
- TV and entertainment
The model is not password protected and can be modified as required following download.
The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
- Mobile Services (3 types)
- Broadband and Fixed Line (5 subscription tiers)
- TV and Entertainment (5 subscription packages)
- Other products and services offered – 8 categories;
- Direct expenses – 10 categories;
- Staff costs – 8 direct categories and 8 non-direct categories;
- Marketing costs – 5 categories;
- Other expenses – 15 categories;
- Fixed assets – 8 categories;
- Borrowings – 3 facilities
Apart from projecting revenue and costs the model includes the possibility to model fixed assets, borrowings (amortising), dividends and corporate tax.
Business name, currency, starting projection period are fully customisable.
Revenue, cost and fixed asset descriptions are fully customisable.
The model included an integrated discounted cash flow valuation using the projected cash flow outputs.
The model includes instructions, checks and input validations to help ensure input fields are populated accurately.
The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.

SUPPORT / MODIFICATIONS

We are keen to ensure our customers are satisfied and find the models useful for their financial projection needs. Our models are developed with the user in mind and include instructions, line-item explanations, checks and input validations to ensure they are as user-friendly and easy to use as possible without requiring extensive knowledge of Microsoft Excel, finance or accounting. If any questions do arise, we are more than happy to assist. We are also happy to support with any be-spoke modifications you may require to the models to better suit your business needs. To get in touch, please send us a message through the site.

We are also always keen to receive feedback so please do let us know what you think of our models by sending us a message or submitting a review.

ABOUT PROJECTIFY

We are financial modelling professionals with experience working in big 4 business modelling teams and strong experience supporting businesses with their financial modelling and decision support needs. Our aim is to provide robust and easy-to-use tools that follow good practice financial modelling guidelines and assist individuals and businesses with their financial projection and analysis requirements.

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