Dialog Axiata PLC · CSELK:DIAL.N0000
Dialog Axiata — Dialog Telekom — Q1 2008 Earnings Presentation
41 slides from Dialog Axiata's earnings presentation, 2008
Slide 1: Investor Forum First Quarter 2008
Investor Forum First- Quarter 2008
Slide 2: Company Performance Review
e Dialog TELEKOM Company Performance Review TELEKOM
Slide 3: Snapshot – Company
Snapshot – Company Change YoY Growth CELLULAR SUBSCRIBERS 4.55 Mn. 1.18 Mn 35% Change Change KEY FINANCIALS USD Mn Rs Bn. (1Q-2008 vs. 1Q-2007) (1Q-2008 vs. 1Q-2007) REVENUE 76.15 8.22 Rs. 575 Mn. 8% EBITDA 25.55 2.76 (Rs. 867 Mn.) 24% PAT 12.58 1.36 (Rs.1,207 Mn.) 47% ^Exchange rates applied for Ru
Slide 4: 4.55 million mobile subscribers, 35% growth
4.55 million. mobile subscribers 35% growth *as of 31 March 2008
Slide 5: Company Performance Overview
Company Performance Overview The company’s core mobile business continued to deliver robust performance in the market ending the quarter with a subscriber base of 4.5 Million, representing 35 per cent growth Year on Year (YoY) and an estimated market share of 53 percent . Currency Devaluation Re
Slide 6: Tariff Revision
Tariff Revision Currency Devaluation • The tariff revision was one of several initiatives carried out during 2007 aimed at expanding the mobile market through affordability enhancement in contra-direction to macro inflation. • Sri Lanka’s mobile telephony penetration level reached an estimated 40 pe
Slide 7: P&L Highlights
P&L Highlights (All figures in Rs.Mn. COMPANY except for ratios) 1Q-2008 1Q-2007 Change(%) Net Revenue* 8,220 7,645 8 Direct Costs 3,848 2,661 45 Gross Profit 4,372 4,985 (12) Gross Margin (%) 53 65 OPEX 2,967 2,202 35 EBITDA 2,759 3,626 (24) EBITDA Margin (%) 34 47 PBT 1,420 2,585 (45) PAT 1,358 2,
Slide 8: Operational Results
Operational Results SUBSCRIBER BASE UNITS 1Q-2008 1Q-2007 Postpaid 000 579 486 Prepaid 000 3,968 2,879 Total active subscriber base 000 4,547 3,365 Total net additions 000 287 259 OPERATIONAL RESULTS UNITS 1Q-2008 1Q-2007 Blended ARPU Rs. 501 609 Prepaid ARPU Rs. 359 423 Postpaid ARPU Rs. 1,463 1,68
Slide 9: Revenue Environment
Revenue Environment Revenue Drivers Subscriber (Thousands) • Market leadership with sustained +35% +7% growth in subscribers ( 35 per cent YoY) 4, 260 4, 547 3, 963 • Pre/post mix: 87:13 3, 656 3,968 3, 365 3,690 • Coverage and Quality of Service 3,137 3,441 Improvements coupled with 2,879 7% 7% Int
Slide 10: Revenue Performance
Revenue Performance • Revenue growth of 8 per cent in 1Q 2008 compared to 1Q 2007. • Prepaid revenue- the dominant contributor to revenue with 50 per cent share . • Value Added Services account for approx. 11 per cent of total revenue for 1Q 2008. Revenue Composition (Rs. Mn.) Revenue* (Rs. Mn.) 406
Slide 11: Direct Costs
Direct Costs Direct costs Performance relative to revenue is impacted by increases in frequency fees (351 per cent), telco depreciation (60 per cent) on the back drop of aggressive investment and other network costs in relation to site rentals (98 per cent), electricity charges( 90 per cent) fuell
Slide 12: Operating Costs
Operating Costs • Operating expenses as a percentage of revenue increased by 7 percentage points in 1Q 2008 vis-à-vis 1Q 2007. • In addition to inflationary pressure on principal cost lines, performance relative to revenue is impacted by escalation of energy driven costs and expansion in operations.
Slide 13: PAT and EBITDA Margins
PAT and EBITDA Margins • PAT /EBITDA performance in 1Q 2008 vis-à-vis 1Q 2007 has been impacted due to: • Revenue recovery post tariff reduction not achieved in 1Q 2008 • Cost expansion driven by • Growth in operations • Inflation • Energy costs • Increase in Depreciation (60% YoY Increase) EBITDA (
Slide 14: Balance Sheet
Balance Sheet 31st March 2008 31st December 2007 (all figures in Rupees '000) Company Company ASSETS Non - current assets 54,097,086 49,527,591 Current assets 20,422,186 20,379,238 Total assets 74,519,272 69,906,829 EQUITY Capital and reserves attributable to equity holders of the Company Stated Cap
Slide 15: Cash Flow Highlights
Cash Flow Highlights (all figures in Rs. Mn.) 1Q-08 1Q-07 Operating Cash flows reduced due to a Net cash from operating activities 521 5,124 reduction in earnings and Net cash used in investing activities (6,474) (5,831) increase in receivables – compared to 31 March Net cash used in financing activ
Slide 16: Reconciliation of Cash Generated from Operations
Reconciliation of Cash Generated from Operations (all figures in Rs. Mn.) 1Q-08 1Q-07 Profit before Tax 1,420 2,585 Adjustments for: Interest Expenses 74 209 Depreciation 1,064 752 Amortisation 126 92 Impairment 164 - Retirement Benefit Obligation 25 8 Other Adjustments* (2,289) 1,684 Cash Generated
Slide 17: KPIs
KPIs • Net Debt/ EBITDA has increased mainly due to increase in borrowings ( SCB –Rs. 950 Mn., DFCC Rs. 225 Mn) and reduction in earnings due to reasons cited previously. • RoE & RoCE diluted due to a reduction in earnings , combined with expansion of capital investments. RATIOS Units 1Q-2008 2007 C
Slide 18: Lenders
Lenders Summary of Outstanding borrowings Institutions Type of Facility Currency Facilities Amt Principal Outstanding Less than one year More than one year USD Mn eqv. USD Mn eqv. USD Mn eqv. USD Mn. eqv. IFC Term Loan USD 50.00 25 - 25.00 DFCC Term Loan LKR 9.07 9.29 1.86 7.43 SCB Loan Facility LKR
Slide 19: Subsidiary Performance
TELEKOM Subsidiary Performance TELEKOM
Slide 20: CDMA and WiMax subscriber growth
CDMA subscribers 157% growth Wi Max subscribers 104% growth *growth compared against 4Q 2007
Slide 21: Dialog Broadband Networks (Pvt) Ltd. [DBN]
Dialog Broadband Networks (Pvt) Ltd. [DBN] Revenue of Rs. 536.65 Mn up 158 per cent relative to Rs. 207.70 Mn. recorded for the three months ended 31 March 2007 . Net loss of Rs. 126.52 Mn. for the three months ended 31 March 2008 vis- à-vis a profit of Rs. 10.39 Mn recorded for the three months
Slide 22: QoQ Performance Comparison: DBN
QoQ Performance Comparison: DBN Revenue of Rs. 536.65 Mn up 45 per cent relative to Rs. 370.61 Mn. recorded for the three months ended 31 December 2007 . EBITDA recorded at Rs. 14.65 Mn. (114% positive QoQ) and PAT at negative Rs. 126.52 Mn. (43% positive QoQ) signifying substantial improvements
Slide 23: Revenue Growth - DBN
Revenue Growth - DBN • DBN has delivered revenue growth of 158 per cent in 1Q 2008 compared to 1Q 2007 • DBN revenue components include Transmission and Infrastructure Business, Fixed Telephony (CDMA WLL), Data communication services, and Broadband and Internet services. 51% of FY 2007 DBN revenue c
Slide 24: Revenue Environment - DBN
Revenue Environment - DBN • Post / Pre CDMA mix: 41:59 • The CDMA fixed wireless service commercially launched in July 2007 covers over 18 districts including Colombo. •CDMA subscriber growth : 157 per cent on adjacent QoQ. •Wi Max subscriber growth : 104 per cent on adjacent QoQ. CDM A Subs cribe r
Slide 25: Dialog Television
TELEKOM Dialog Television TELEKOM
Slide 26: Pay TV Subscribers 300% YoY growth
77,000 + Pay TV Subscribers 300% YoY growth
Slide 27: Dialog Television (Pvt) Ltd.
Dialog Television (Pvt) Ltd. DTV Group (inclusive of subsidiaries Communiq Broadband Network (Pvt) Ltd (CBN) and CBN SAT (Pvt) Ltd) recorded a revenue of Rs. 336.42 Mn for the three months ended 31 March 2008 The company recorded a net loss of Rs. 114 Mn. for the three months ended 31 March 2008.
Slide 28: QoQ Performance Comparison: DTV
QoQ Performance Comparison : DTV •DTV Group (inclusive of subsidiaries Communiq Broadband Network (Pvt) Ltd (CBN) and CBN SAT (Pvt) Ltd) recorded a revenue of Rs. 336.42 Mn for the three months ended 31 March 2008 relative to Rs. 242.83 Mn. recorded for the three months ended 31 December 2007 . •EBI
Slide 29: Revenue Environment - DTV
Revenue Environment - DTV Revenue comprises of initial connection fees and monthly subscription rentals. Connection fee revenue represented 43 per cent of total revenue totaling to Rs. 146 Mn. The revenue generated from monthly subscription totaled Rs. 190 Mn. contributing to 57 per cent of tota
Slide 30: Dialog Group Performance
TELEKOM Dialog Group Performance TELEKOM
Slide 31: Snapshot – Dialog Group
Snapshot – Dialog Group The Dialog Group has achieved a strong foothold in the multiple sectors of fixed line, broadband and pay television through comprehensive portfolio of services commercialised during the course of 2007. The growth potential of the associated new businesses, is expected to
Slide 32: QoQ comparison - Dialog Group
QoQ comparison - Dialog Group An immediate QoQ comparison (1Q 2008 vs 4Q 2007) reveals an improvement in performance in terms of EBITDA and PAT compared to 1Q 2008 vs 1Q 2007. Change Change KEY FINANCIALS USD Mn Rs Bn. (1Q-2008 vs. 4Q-2007) (1Q-2008 vs. 4Q-2007) Revenue 83.16 8.98 (Rs. 71 Mn.) 1%
Slide 33: P&L Highlights - Group
P&L Highlights -Group (All figures in Rs.Mn. GROUP except for ratios) 1Q-2008 1Q-2007 Change(%) Net Revenue* 8,977 7,912 13 Direct Costs 4,352 2,926 49 Gross Profit 4,625 4,986 (7) Gross Margin (%) 52 63 OPEX 3,410 2,329 46 EBITDA 2,736 3,555 (23) EBITDA Margin (%) 30 45 PBT 1,170 2,453 (52) PAT 1,1
Slide 34: Balance Sheet - Group
Balance Sheet - Group 31st March 2008 31st December 2007 (all figures in Rupees '000) Group Group ASSETS Non - current assets 59,943,175 54,337,744 Current assets 16,247,894 17,387,769 Total assets 76,191,070 71,725,513 EQUITY Capital and reserves attributable to equity holders of the Company Stated
Slide 35: Recent Updates
TELEKOM Recent Updates TELEKOM
Slide 36: Recent Key Product /Service Initiatives
Recent Key Product /Service Initiatives Navigation System Launched Sri Lanka’s First Mobile Satellite Navigation System The Dialog SatNav device enables users to navigate Sri Lanka’s road network using satellite positioning. IP Voice Box office is one of the flagship products of Dialog Broadband
Slide 37: My TV
My TV Mobile TV MyTV is a personal television experience offering 13 TV channels on Dialog mobile, with unlimited access. Sri Lankan Content Channel C Sri Lanka's very own musical Channel - Channel C (a 24 Hour Music Channel) was launched by Dialog TV in March 2008.
Slide 38: Fitch Ratings Affirmed Dialog Telekom at AAA (lka)
Fitch Ratings Affirmed Dialog Telekom at AAA (lka) Fitch Ratings affirmed Dialog Telekom PLC’s (Dialog) National Long Term Rating at ‘AAA(lka)’. The rating Outlook is Stable. Fitch has also affirmed the rating on Dialog’s outstanding preference shares of LKR 5 Bn at ‘AA+(lka)’.
Slide 39: Local and International Recognition
Local and International Recognition Dialog Telekom PLC was recognized as the single largest investor in Sri Lanka at the Invest Sri Lanka felicitation event hosted by BOI. Dialog Telekom PLC secured the top slot in investment rankings for the 3rd year in succession. Dialog Telekom was ranked N
Slide 40: Corporate Responsibility
Corporate Responsibility Dialog’s Gift to Differently able war heroes Dialog Telekom recently furthered its commitment to the differently able war heroes by gifting a Listening Library & Therapeutic Centre to Ranaviru Sevana in Ragama and a Water therapy unit to the Army Commando camp in Ganemulla.
Slide 41: Thank you
TELEKOM Thank you TELEKOM