Dialog Axiata PLC · CSELK:DIAL.N0000
Dialog Axiata — Dialog Telekom — Q1 2006 Earnings Presentation
30 slides from Dialog Axiata's earnings presentation, Jun 15, 2006
Slide 1: Telekom
TELEKOM ATIVE company
Slide 2: Business Performance - 1Q 2006
Business Performance - 1Q 2006
Slide 3: Agenda
Agenda Highlights Financials Subsidiary Performance Key Performance Indicators Updates
Slide 4: Highlights – 1Q 2006
Highlights – 1Q 2006 Key Financials Units Quarter Ended 31 March 2006 2006 2005 Group Company Company Revenue Rs.Mn 5,953 5,829 3,853 EBITDA Rs.Mn 3,201 3,070 2,191 Profit after Tax Rs.Mn 2,397 2,311 1,722 EPS Rs. 0.33 0.32 0.37 Key Financials Quarter Ended 31 March 2006 2006 2005 Group Company Comp
Slide 5: Highlights
Highlights Financials Subsidiary Performance Key Performance Indicators Updates
Slide 6: Profit & Loss Highlights
Profit & Loss Highlights (All figures in Rs. Mn. Three Months Ended 31 March except for ratios) 2006 2006 2005 Group Company Company Revenue 5,953 5,829 3,853 QoQ Growth (%) 55 51 Direct Costs 2,081 2,067 1,321 QoQ Growth (%) 58 56 Gross Profit 3,872 3,762 2,532 QoQ Growth (%) 53 49 Gross Margin (%)
Slide 7: Revenue Growth
Revenue Growth • Steady growth in revenue • Termination revenue increased by 256 per cent Revenue Mix • Non voice revenues continue to increase. SMS revenue accounts for approx. 6 per cent of total 7,000 revenue in 1Q06, and Non-SMS Data Revenue 6,000 accounts for approx. 1 percent of Total Revenue
Slide 8: Revenue Drivers
Revenue Drivers +22% • Market leadership with continued growth +4% in subscribers (50 per cent YoY) 575 600 517 541 493 • Pre/post mix:80:20 • Coverage and Quality of Service Improvements 1Q05 2Q05 3Q05 4Q05 1Q06 No. of Transmission sites Net Subscribers (‘000) +50% Blended ARPU (SLR) +8% 2,302 2,12
Slide 9: Healthy EBITDA and PAT Margins
Healthy EBITDA and PAT Margins • Improvement in EBITDA and PAT margins compared to 4Q05 • 1Q05 (in terms of margins) was exceptional due to exceptional inbound roaming revenues in the aftermath EBITDA (Rs. Mn) of the tsunami. Inbound roaming commandeers higher than average margins. +40% 57% 55% +21%
Slide 10: Direct Costs Under Control
Direct Costs Under Control Dialog continues to capitalise on scale advantages to control growth of direct costs. 1Q 2005 % 1Q 2006 % Change % (All figures in Rs. Mn.) Network Related Costs 1,169 88.5% 1,920 92.9% 64% As a % of Revenue 30.3% 32.9% Customer Related Costs 150 11.3% 146 7.1% -2% As a %
Slide 11: Direct Costs Relative to Revenue
Direct Costs Relative to Revenue • Direct costs relative to revenue has improved by 2 points relative to performance in the immediately preceding quarter – (4Q05). Direct cost composition 35.00% 30.00% Network related Direct cost relative to Revenue 25.00% Customer related 40% 20.00% 15.00% 37% Othe
Slide 12: International Telecom Operator Levy
International Telecom Operator Levy Imposed in March 2003 with the Liberalization of International Services via Special direction by the Minister of Telecommunications dated 21/ 02/03 Figures in USD Cents 03/2003-03/2004 From 04/2004 Incoming Local Access Fee 7.20 5.20 Contribution to Vishva Gra
Slide 13: Operating Costs Relative to Revenue
Operating Costs Relative to Revenue Cost of Manpower maintained < 6% (All figures in Rs. Mn.) 1Q05 % 1Q06 % Change % Selling Expenses 461 57% 710 54% 54% As a % of Revenue 12% 12% Manpower 191 24% 320 24% 68% As a % of Revenue 5% 5% Maintenance 54 7% 113 9% 108% As a % of Revenue 1% 2% Energy & Fu
Slide 14: Selling Expenses
Selling Expenses (All figures in Rs.Mn.) 1Q 05 1Q 06 Net Revenue 3,853 5,829 Selling Expenses: Sales Commission 308 315 Advertising 37 93 Sales Promotion 38 72 Others 79 230 Total 461 710 As a % of Net Revenue 1Q 05 1Q 06 Sales Commission 8% 5% Advertising 1% 2% Sales Promotion 1% 1% Others 2% 4% To
Slide 15: Operating Costs Controlled
Operating Costs Controlled • Opex relative to revenue has improved by 2 points relative to performance in the immediately preceding Operating cost composition quarter (4Q05). 14.00% 12.00% Manpower Maintenance 10.00% Opex relative to Revenue Energy & Fuel 8.00% Material 27% 27% 25% 6.00% Selling Exp
Slide 16: Summary Balance Sheet
Summary Balance Sheet • Balance Sheet remains healthy (All figures in Rs. Mn) As at 31 March As at 31 Dec 2006 2006 2005 Group Company Company Fixed Assets 21,577 20,384 18,986 Intangible Assets 1,605 325 348 Investment in DBN Nil 1,971 1,971 Cash and Bank 7,046 6,908 6,624 Net Working Capital excl
Slide 17: Capex Composition – Core & Non Core Assets
Capex Composition –(Core & Non Core Assets) Invested Rs 1.97 Bn for the three months ended 31 March 2006. • Compared to 1Q05 , capex spent up by 78 per cent Capex (in SLR .Mn.) 1,966 1,103 1Q05 1Q06
Slide 18: Cash Flow Highlights
Cash Flow Highlights • Strong cash flows enabling heavy capex spending ( All figures in Rs.Mn) Three Months ended 31 March 2006 2005 Company Net cash from operating activities 2,258 2,344 Net cash used in investing activities (1,993) (1,102) Net cash used in financing activities 19 (2,948) Increase/
Slide 19: Reconciliation of Cash generated from Operations
Reconciliation of Cash generated from Operations (All figures in Rs. Mn) Three months ended 31 March 2006 2005 Company Profit before Tax 2,341 1,740 Adjustments for: Interest Expenses 79 13 Depreciation 565 427 Amortisation 61 40 Retirement Benefit Obligation 7 6 Other Adjustments (747) 131 (incl. C
Slide 20: Lenders
Lenders Outstanding as at 31st Facility Type Period All figures in US$Mn March 2006 USD SLR Total < 12 months >12 months Citi/Commercial Syndicated loan 16.80 4.20 21.00 2.59 7.84 10.43 Standard Chartered Bank 25.00 25.00 - 25.00 24.46 International Finance Corporation 30.00 30.00 2.49 12.51 15.00 H
Slide 21: Subsidiary Performance
Highlights Financials Subsidiary Performance Key Performance Indicators Updates
Slide 22: Dialog Broadband Networks (Pvt) Ltd. (DBN)
Dialog Broadband Networks (Pvt) Ltd.(DBN) Revenue, EBITDA and PAT For the quarter ended 31 March 2006, DBN recorded revenue of Rs. 184 Mn. The EBITDA for the first quarter of 2006 was Rs.131 Mn (US $1.28 Mn) and EBITDA margin was 71 per cent. PAT margin is recorded at 46 per cent.
Slide 23: Key Performance Indicators
Highlights Financials Subsidiary Performance Key Performance Indicators Updates
Slide 24: Earnings per Share
Earnings per Share Three months ended 31 March Units 2006 2005 Company Net Income Applicable to ordinary shares Rs. Mn 2,311 1,722 Par Value Rs. 1 10 Ordinary Shares at the beginning Mn 370 37 Issuance of shares during the period Mn 7,403 - Weighted average number of shares Ordinary Shares Mn 7,403
Slide 25: KPIs
KPIs 31 Dec 2005 1Q2006 Company Company Net tangible assets per share(Rs.) 2.32 2.65 Gearing Ratio (times) 0.37 0.34 Net Debt to EBITDA ratio (times) 0.36 0.24 Total Debt to equity (times) 0.58 0.50 Return on Equity (%) 41 47 Return on Capital Employed (%) 26 31 Earnings per Share (Rs.)^ 1.15 0.32 C
Slide 26: Updates
Highlights Financials Subsidiary Performance Key Performance Indicators Updates
Slide 27: Key Developments - Market Position
Key Developments-Market Position Another milestone -600th base station at Suriyawewa Market Share maintained at over 60% as of 1Q-06 Over 2.3 Million active subscriber base on Dialog Network Products Packages introduced Lite 103 and 30X Blackberry launched in January 2006 Dialog Plans
Slide 28: Awards Received
Awards Received DTL honored with Top awards at TM inaugural Group awards: Award for the most Customer Centric Organisation Op-Co of the Year - the award for the best performing Operating Unit of the Telekom Malaysia Group TM Group Award - The "top" award for outstanding performance and selec
Slide 29: Other updates
Other updates Appointment of Ms. Anoja Obeyesekere-GM Legal and Regulatory affairs, Company Administration and International Business as Vice Chairperson of GSM Asia Pacific 3G license to be obtained within the next quarter Dialog Telekom powered Sri Lankan Contingent to 2006 Commonwealth Game
Slide 30: Thank you
Thank you TM TELEKOM