Dialog Axiata PLC · CSELK:DIAL.N0000

Dialog Axiata — Q4 2010 Earnings Presentation

27 slides from Dialog Axiata's earnings presentation, 2011

  1. Slide 1: Investor Forum Q4 2010

    Investor Forum Q4 2010 Enriching Sri Lankan Lives

  2. Slide 2: Dialog Group

    Dialog Group 2 Dialog

  3. Slide 3: Group Performance Highlights - 2010 vs 2009

    Group Performance Highlights - 2010 vs 2009 Revenue Significant YoY growth in Revenue Dialog Company DBN DTV Dialog Group 14% 1% 23% 14% at Group, Company and DTV YoY growth Rs. 37.9Bn Rs. 2.4Bn Rs. 2.0Bn Rs.41.4Bn EBITDA Improvement in EBITDA due to re-scaled operating Dialog Company DBN DTV Dialog

  4. Slide 4: Performance Trend

    Performance Trend QoQ Performance Overview YoY Performance Overview* (Q4 10 Vs. Q3 10) (Q4 10 Vs. Q4 09) Revenue EBITDA NPAT EBITDA Revenue EBITDA NPAT EBITDA Margin Margin 2% 4% 18% 3pp Dialog Axiata 11% 14% 29% 1pp PLC (Company) Dialog Broadband 2% 32% 139% 9pp 1% >1000% 62% 21pp Networks (DBN) Di

  5. Slide 5: Group: P&L Highlights

    Dialog Group: P&L Highlights  Q4 10 Group EBITDA remain stable largely due to improved EBITDA in DTV  Q4 10 Group PAT impacted by higher depreciation charge and lower forex gain  Turnaround in 2010 driven by strong revenue growth, opex rescaling and a decline in finance expenses QoQ Q4 10 Vs. YoY

  6. Slide 6: Group – Consolidated Performance Trends

    Dialog Group – Consolidated Performance Trends Group EBITDA +55% Rs Mn. 16,000.00 15,084 45% 14,000.00 36% 37% 40% 4,500.00 4,004 39.00% 12,000.00 EBITDA margin 3,824 3,932 4,000.00 9,752 35% 3,324 37.00% 10,000.00 3,166 38% 8,309 3,500.00 2,808 38% 37% 35.00% • Up 4% pts Vs Q4 09 (Norm) • EBITDA gr

  7. Slide 7: Dialog Axiata PLC – Company

    Dialog Axiata PLC — Company 7 Dialog

  8. Slide 8: Company: P&L Highlights

    Dialog Company: P&L Highlights  QoQ revenue growth driven by strong growth in Cellular, Global and infrastructure businesses  Decline in QoQ EBITDA due to increased international origination cost and outbound roaming cost  Q4 2010 NPAT impacted by higher depreciation charge of Rs. 124Mn and lower

  9. Slide 9: Revenue Trends - Company

    Revenue Trends - Company Company Revenue 11%  Pre-paid revenue dominant contributor to revenue with 39% share  Amidst intense competition  Post-paid revenue continued to increase  Increase in Inbound roaming revenue  Global revenue up 17% YoY  Non voice revenue account for 10% of total revenue

  10. Slide 10: Company – Operational Performance

    DAP Company – Operational Performance Increase in MOUs in the wake of Improved Affordability Pre : Post mix 89% 11% Pre-paid Post-paid No of Subscribers & ARPUs MOU (Minutes) & RPM (Rs.) +7% 6,829 1,400 6,373 7,000 5,949 6,056 147 5,942 5,879 150 145 3.00 1,200 5,672 6,000 134 129 129 1,097 1,096 1,

  11. Slide 11: Operating Costs: Re-Scaled Costs Structure continues to deliver improvements

    Operating Costs : Re-Scaled Costs Structure continues to deliver improvements Operating Costs declined by 8% YoY  Decline in operating costs were driven by reduction in  Cost rescaling initiatives continue to operating overheads, administration & manpower drive down operating costs in Q4 10 relate

  12. Slide 12: Origination costs on International Traffic drives up Direct Costs in Q4

    Origination costs on International Traffic drives up Direct Costs in Q4 Levies Rs Mn. Direct Cost Network related costs Rs Mn. 1,040 1,114 1,032 39% 38% 14,000 690 632 13,798 13,800 38% 13,600 1,213 1,230 1,313 1,345 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 39% 3,900 1,141 38% 13,400 38% 3,800 38% 3,700 13,200

  13. Slide 13: Operating Costs: Re-Scaled Costs Structure continues to deliver improvements

    Operating Costs : Re-Scaled Costs Structure continues to deliver improvements Operating Costs declined by 8% YoY  Decline in operating costs were driven by reduction in  Cost rescaling initiatives continue to operating overheads, administration & manpower drive down operating costs in Q4 10 relate

  14. Slide 14: Significant improvement in margins in 2010

    Significant improvement in margins in 2010 EBITDA Margin Movement 2009 to 2010 - EBITDA margin impact (%) + EBITDA margin impact (%) EBITDA Margin 2009 30.4% Network related costs 2.1% Drop Link satellite cost & network maintenance costs due to renegotiation of AMCs Levies 2.0% Drop in ITL cost due

  15. Slide 15: Improvement in EBITDA & NPAT

    Improvement in EBITDA & NPAT EBITDA movement 2010 Higher origination Higher origination and outbound cost due to EBITDA movement QoQ roaming cost in line with increased increased international traffic and roaming international traffic traffic respectively Reduction in net finance NPAT movement 2010

  16. Slide 16: Company – Performance Trends

    Dialog Company – Performance Trends +43% EBITDA 14,455 40% Rs Mn. 14,000.00 38% 3,757 3,750 12,000.00 36% EBITDA margin 37% 4,000.00 3,604 42% 10,129 3,344 38% 3,170 • Up 1% pts Vs Q4 09 (Norm) 34% 3,500.00 10,000.00 40% 3,000.00 2,821 40% 8,553 32% 38% 8,000.00 30% down 2% pts Vs. Q3 10 39% • EBITD

  17. Slide 17: Dialog Broadband Networks (DBN)

    Dialog Broadband Networks (DBN) (Fixed Telephony and Broadband Services) 17

  18. Slide 18: DBN: P&L Highlights

    DBN: P&L Highlights  Strong YoY EBITDA growth due to cost rationalisation measures undertaken  Q4 EBITDA and NPAT margins impacted by;  Exceptional provision of Rs. 100Mn w.r.t. accumulated VAT balances  Accelerated depreciation on CDMA and WiMAX Networks QoQ Q4 10 Vs. YoY (All figures in Rs. Mn

  19. Slide 19: Fixed Business - Focus on Cost Management Driven EBITDA Recovery

    Fixed Business - Focus on Cost Management Driven EBITDA Recovery Strategic Focus  ARPU/Customer profitability focused sales strategy  Segment focus on SMEs and Enterprises  Aggressive cost rescaling initiatives targeted at reducing non value adding costs 700 29% 20% 50% 6% 600 -7% -24% 0% 500 -1%

  20. Slide 20: Dialog Television (DTV)

    Dialog Television (DTV) 20 Dialog

  21. Slide 21: DTV: P&L Highlights

    DTV: P&L Highlights  Revenue improved by 23% YoY due to  Increase in subscription revenue driven by 13% growth in subscribers  Increase in connection fees  4th consecutive quarter of EBITDA growth  NPAT positive in Q4 2010 due to a one-off reversals effected in the last quarter of the FY QoQ Q4

  22. Slide 22: Group - Balance Sheet KPIs

    Dialog Group - Balance Sheet KPIs 22

  23. Slide 23: Focused Capex Spending and Robust Free Cash Flow

    Focused Capex Spending and Robust Free Cash Flow Capex* Free cash Flow (FCF)** Rs Mn +50% 25% Rs Mn 10,500 1 30% 8000 +194% 9,500 20% 27% 28% 26% 8,500 3000 26% 5,000 50% 7,500 6000 17% 20% 2500 4,500 15% 6,500 40% 17% 4,000 2000 8,212 5,500 28% 3,500 4000 30% 9,885 16% 3,000 4,500 1500 12% 2,979 21

  24. Slide 24: Group - Movement of outstanding borrowings QoQ

    Dialog Group - Movement of outstanding borrowings QoQ Facility Outstanding Mn. Maturity as at 31 Dec 2010 Lending Institution Type of Currency Amount Less than More than Q4’09 Q1’10 Q2’10 Q3 ‘10 Q4 ‘10 Loan Mn. One year one year Preference RCRPS Investors ** LKR 5,000 3,750 3,750 2,500 2,500 2,500 1

  25. Slide 25: Dialog Group Balance Sheet Recovery

    Dialog Group Balance Sheet - KPI Movements QoQ Dialog Group Balance Sheet Recovery (All figures in Rs. Mn.) Q4 09 Q4 09 Q1 10 Q2 10 Q4 10 Trend except for ratio’s Gross Debt Position* 33,334 31,421 28,520 27,557 27,636 Gross Debt to EBITDA** 2.63 2.36 1.86 1.72 1.76 Net Debt to EBITDA** 2.21 2.12 1.

  26. Slide 26: 2010 Highlights

    2010 Highlights  Group delivered strong performance in terms of SRI LANKA’S DIALOG TRADENET EBITDA and NPAT YoY AMONG 8 WORLD SUMMIT  NPAT grew by 535% YoY to Rs. 5.0Bn AWARD WINNERS  EBITDA grew by 55% YoY to Rs. 15.1Bn  Company revenues up 14% YoY and 2% QoQ Growth in Mobile Voice/VAS  Mobil

  27. Slide 27: Thank You

    Thank You 27 Dialog

Dialog Axiata — Q4 2010 Earnings Presentation on 6ix