Slide 1: Dialog Axiata PLC Q1 2017
Dialog Axiata PLC Sri Lanka's Premier Connectivity Provider Q1 2017 an axiata company
Slide 2: Group Performance, Company Performance, Subsidiary Performance
Dialog Group Performance Dialog Axiata Company Performance Subsidiary Performance 2
Slide 3: Dialog Group Performance Highlights – Q1 2017
Dialog Group Performance Highlights – Q1 2017 Dialog Posts 5% YoY Revenue Increase in First Quarter; Growth Decelerated due to Taxation (VAT) Group Continued to Deliver YoY Growth across Mobile, Tele-Infrastructure and Fixed Businesses • Q1 2017 Group Revenue at Rs22.2Bn, grew 5% YoY • Q1 2017 Group
Slide 4: Group Financial Summary
Group Financial Summary 5% Growth in Revenue, 28% Increase in Tax Remittances (YoY) Rs Mn 1Q 17 QoQ YoY Revenue 22,165 -3% 5% EBITDA 7,221 -3% 3% PAT 1,546 24% -42% PAT (Norm)1 1,811 1% -34% EBITDA Margin 32.6% 0pp -0.6pp PAT Margin1 8.2% 0.3pp -4.7pp ROIC 11.9% -3.5pp -5.4pp • YoY :Revenue and EBIT
Slide 5: Key Impacts from Externalities in Q1 2017
Key Impacts from Externalities in Q1 2017 VAT impacted Consumer Spend and Revenue Linked Cost Customer spending in Q1 2017 continued to be affected by the introduction of Value Added Tax on communication services spanning Mobile, Fixed, Broadband and Pay Television effective 1st November 2016 Re
Slide 6: QoQ Group Revenue Reduced by 3% due to Drop in Mobile Voice, VAS, Pay TV
QoQ Group Revenue Reduced by 3% due to Drop in Mobile Voice, VAS, Pay TV and International Services Despite the Moderate Growth in Data and Tele-Infra Revenue Declined 3% QoQ as Taxation and Other Externalities Pare Revenue Growth (Rs Mn) +5% -3% 22,165 22,775 21,157 Q1 17 Q4 16 Q1 16 Q1 2017 Revenu
Slide 7: Q1 EBITDA Declined 3% on Lower Revenue while PAT Grew 24% QoQ
Q1 EBITDA Declined 3% on the back of Lower Revenue while PAT Grew 24% QoQ Driven by Lower Non-Cash Translational Forex Losses; EBITDA Margin Stable EBITDA Contracted by 2.7% QoQ on the PAT Improved by 24% QoQ; YoY Decline in PAT back of Decline in Revenue led by Higher Depreciation and Finance Cost
Slide 8: Contributed Rs10.5Bn to Government Revenue in Q1 2017, Up 28% YoY
Dialog Contributed Rs10.5Bn to Government Revenue in Q1 2017, Up 28% YoY Dialog Group remitted a total of Rs10.5Bn to GoSL during the three months ended 31st March 2017. Total remittances included direct taxes and levies as well as consumption taxes collected on behalf of the GoSL Payments to GoSL –
Slide 9: Focused Capex Investments; Capex Intensity 18%, OFCF Rs1.4Bn
Focused Capex Investments to Further Strengthen the Group’s Leadership in Sri Lanka’s ICT Sector. Capex Intensity 18%, OFCF Rs1.4Bn Q1 2017 Capex of Rs4.0Bn, Up 36% YoY; OFCF Improved to Rs1.4Bn in Q1; YoY Capex Intensity of 18% Decline of 44% Driven by Higher Capex +36% -44% (Rs Mn) (Rs Mn) -62% +1
Slide 10: Structurally Strong Balance Sheet with Net Debt to EBITDA at 1.0x
Structurally Strong Balance Sheet Demonstrates the Group’s Financial Strength with Net Debt to EBITDA at 1.0x (Rs Mn) 31 Mar 17 31 Dec 16 31 Mar 16 Gross Debt 33,041 32,562 31,540 Net Debt 28,919 26,152 21,799 Cash and Cash Equivalents 4,123 6,410 9,741 Gross Debt / Equity (x) 0.59 0.60 0.63 Gross D
Slide 11: Dialog Axiata Company Performance
Dialog Group Performance Dialog Axiata Company Performance Subsidiary Performance 11
Slide 12: Dialog Axiata PLC (Company)
Dialog Axiata PLC (Company) Revenue Growth Decelerated due to VAT; Profitability Impacted by Revenue Drop and Forex Revenue Declined 4% QoQ while Grew 2% YoY QoQ Profitability Impacted by Contraction driven by Data 42% and Device Sales (100%) in Revenue (Rs Mn) +2% (Rs Mn) EBITDA -9% | PAT -43% -4%
Slide 13: Mobile Subscriber Base Up 4% QoQ and 16% YoY; ARPU Down 5%
Dialog Continues to Capture Market Share; Mobile Subscriber Base, Up 4% QoQ and 16% YoY. ARPU Impacted (5% Drop) due to VAT Growth in Prepaid Segment Underpins ARPU and MOUs Declined as Increased Consumption Subscriber Growth Tax Constrained Customer Spending (in ‘000s) Total subs growth +4% QoQ; +1
Slide 14: Subsidiary Performance
Dialog Group Performance Dialog Axiata Company Performance Subsidiary Performance 14
Slide 15: Dialog Television
Dialog Television Subscriber Growth Momentum Continues; Profitability Impacted by VAT and Forex Revenue Declined 1% QoQ due to VAT; QoQ EBITDA Impacted by Expansion in However, Subscription Revenue Grew 3% YoY Foreign Currency Denominated Input Cost -5% EBITDA +108% | PAT -71% (Rs Mn) (Rs Mn) -1% 1,
Slide 16: Dialog Broadband Networks – Fixed Business
Dialog Broadband Networks – Fixed Business Revenue Growth Underpinned by LTE Home Broadband on the back of Network Coverage Enhancements and Aggressive Subscriber Acquisition Fixed Revenue Improvement Driven by LTE DBN’s PAT Turned Positive on the back of Strong Revenue Growth +39% (Rs Mn) EBITDA :
Slide 17: Thank You
Dialog Thank You 17