Dialog Axiata PLC · CSELK:DIAL.N0000

Dialog Axiata — Q1 2009 Earnings Presentation

22 slides from Dialog Axiata's earnings presentation, 2009

  1. Slide 1: Investor Forum Q1 2009

    Investor Forum Q1 2009 .......... Enriching Sri Lankan Lives an axiata company

  2. Slide 2: Highlights – Subscribers & Revenues

    Highlights – Subscribers & Revenues ƒ Strong Subscriber growth ¾ Mobile – 5.85 Mn. 29% YoY ¾ CDMA & Broadband – approx. 183,000 149% YoY ¾ Pay Tv – over 130,000 68% YoY ƒ Cost Rescaling gains traction ¾ Direct Cost (excl. telco depreciation) 3% QoQ ¾ Opex (excl. non telco depreciation) 12% QoQ ƒ Gro

  3. Slide 3: Dialog Telekom PLC (Company) Snapshot

    Dialog Telekom PLC (Company) Snapshot Change% Change YoY Growth % QoQ CELLULAR SUBSCRIBERS 5.85Mn 1.30 Mn 29% 6% Change Change% Change% KEY FINANCIALS USD Mn Rs Mn. YoY YoY QoQ REVENUE 67.64 7,709 (Rs. 511 Mn.) 6% 3% EBITDA 11.68 1,331 (Rs. 1427 Mn.) 52% 80% PAT (9.80) (1,117) (Rs. 2475 Mn.) 182% 62

  4. Slide 4: P&L Highlights-Company

    P&L Highlights-Company (All figures in Rs.Mn. COMPANY YoY QoQ except for ratios) 1Q 09 1Q 08 Change(%) Change(%) Net Revenue* 7,709 8,220 (6) (3) Direct Costs 4,821 3,684 31 (10) Gross Profit 2,888 4,536 (36) 10 Gross Margin (%) 37 55 OPEX 3,379 3,131 8 (28) EBITDA 1,331 2,759 (52) 80 EBITDA Margin

  5. Slide 5: PAT Reconciliation Q4 '08 to Q1 '09

    Net Loss - Normalised Q4 08 (1,435) -- Var. Revenue (85) Values (Rs.Mn.) -- Var. Direct Cost 136 - - Var. Opex 361 - Var. Depreciation/Amortisation (99) Operational Improvement -- Var. Non Opex 544 Net Loss - Normalised Q1 09 (598) -- Var. Revenue (159) - - PAT Reconciliation Q4 ‘08 to Q1 ‘09 Var. D

  6. Slide 6: Revenue Drivers & Dynamics

    Revenue Drivers & Dynamics Revenue Drivers •Market Leadership with sustained growth in subscribers •Total subscriber growth of 29% •Enhanced Portfolio of Value Added Services •Prepaid subscriber base growth of •Coverage and Quality of Service Improvements 30% •Postpaid subscriber base growth of Reve

  7. Slide 7: Revenue Trends - Company

    Revenue Trends - Company Quarterly Revenues (Rs. Mn.) -6% •Revenues marginally drop by 3% QoQ to Rs.7.71 Bn. 8,590 -3% 8,346 •Aggressive pricing strategies aimed at increasing 8,220 7,952 affordability of services in the wake of waning consumer 7,709 spending power •Significant Tariff Reduction impl

  8. Slide 8: Direct Costs

    Direct Costs Direct Cost Rs. Mn. •Drop in Network Costs on adjacent quarter due to 6,000 80% 67% 64% 62% 63% 70% ¾ Reduction in roaming expenditure & BTS site 5,000 54% 48% 60% related expenses (47% & 49% QoQ respectively) 4,000 45% 50% •Drop in Customer Related Costs due to decline in cost of 3,000

  9. Slide 9: Operating Costs

    Operating Costs Operating Costs Rs.Mn. ƒOperating expenses (excl. non telco depreciation) normalised for non 59% 5,000 70% recurring charges dropped by 12% on an adjacent quarter. 4,500 60% 4,000 39% 42% 44% 3,500 38% 38% 50% ƒIncrease in Maintenance Costs of 29% YoY due to increase in non 3,000 38%

  10. Slide 10: Total Cost Variance Q1 '09 Vs. Q4 '08

    Total Cost Variance Q1 ‘09 Vs. Q4 ‘08 Contribution to Total Cost Variance (Q1 09 Vs. Q4 08) Telco Depreciation Maintenance Netw ork Costs -5% 1.2% 4% Incidental 11% Selling Expenses 6% Manpow er-1.4% Levies -2% Custom er Non recurring Costs 6% charges 79% Energy & Fuel Material 1.4% -0.2% Contributi

  11. Slide 11: Remittances to Government of Sri Lanka (GoSL)

    Remittances to Government of Sri Lanka (GoSL) GoSL payments composition Q1 09 Q1 08 VAT 3% 4% 4% 11% 17% 16% VGF ƒP&L impact of GoSL 31% ECL remittances is Rs. 2% 24% MSL 675 Mn. in Q1 2009. NBT TRC Frequency 6% 37% Fees 45% Others* (all figures in Rs. Mn.) Q1 09 Q1 08 Change % VAT 75 173 -57% VGF 5

  12. Slide 12: EBITDA, PAT & Margins

    EBITDA, PAT & Margins ƒEBITDA normalised for non recurring charges improved by 27% relative to the Q4 08 driven by reduction in direct costs and operating costs of 3% and 12% respectively. ƒQ1 ‘09 EBITDA incorporates non recurring charges of Rs. 527 Mn., comprising mainly of VRS provision ƒQ1 ’09 EB

  13. Slide 13: Capital Structure

    Capital Structure YTD Mar 09 YTD Mar 08 YoY Capex* 5,783 7,120 -18.8% Cash & Cash Equivalents 14,372 3,042 +372% Gross Debt 40,594 12,910 Net Assets 39,520 51,456 -23.2% Gross debt / equity (x) 1.03 0.25 Gross debt / EBITDA** (x) 9.18 1.66 *Capex includes CWIP additions + direct additions ** Annuali

  14. Slide 14: Cash Flow Highlights

    Cash Flow Highlights (all figures in Rs. Mn.) Q1 '09 Q1 '08 Net cash from operating activities 2,924 558 Net cash used in investing activities (2,686) (6,474) ƒOperating Cash flows increased by 4 times compared to Q1’08 Net cash generated from financing activities 13,235 2,816 mainly due to improvem

  15. Slide 15: Funding Position

    Funding Position Credit Lines ƒUSD 50 Mn. IFC loan prepaid during April 09 Summary of Outstanding borrowings - As at 31 March 2009 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 Te

  16. Slide 16: Group Performance Summary

    Group Performance Summary (in Rs. Mn.) Consolidation KEY FINANCIALS Dialog DBN DTV Group Adjustments REVENUE 7,709 553 368 (187) 8,443 EBITDA 1,331 (120) (159) 53 1,105 PAT (1,117) (437) (303) (11) (1,868)

  17. Slide 17: P&L Highlights-Dialog Broadband

    P&L Highlights-Dialog Broadband Change YoY Growth % CDMA & BROADBAND SUBSCRIBERS 182,950 109,559 149% Change Change% KEY FINANCIALS USD Mn. Rs Mn. YoY YoY REVENUE 4.85 553 Rs. 16 Mn. 3% EBITDA (1.05) (120) (Rs. 158) Mn. 415% PAT (3.83) (437) (Rs. 156) Mn. 56% ^Exchange rates applied for Rupee Conver

  18. Slide 18: Dialog Broadband – Subscribers & Revenues

    Dialog Broadband – Subscribers & Revenues Quarterly revenue growth 645 651 574 537 553 Revenue (Rs. Mn.) • Revenue of Rs. 553 Mn. representing a growth of 3% YoY • CDMA & Broadband Subscriber growth of 1.5x YoY • Resulting in a quarter end CDMA & 1Q08 2Q08 3Q08 4Q08 1Q09 Broadband subscriber base of

  19. Slide 19: P&L Highlights-Dialog TV

    P&L Highlights-Dialog TV Change YoY Growth % PAY Tv SUBSCRIBERS 130,227 52,721 68% Change% KEY FINANCIALS USD Mn Rs Mn. Change YoY YoY REVENUE 3.23 368 Rs. 122 Mn. 49% EBITDA (1.40) (159) (Rs. 27.49 Mn.) 21% PAT (2.66) (303) (Rs. 127.44 Mn.) 73% ^Exchange rates applied for Rupee Conversion are the a

  20. Slide 20: Dialog TV – Subscribers and Revenues

    Dialog TV – Subscribers and Revenues Quarterly revenue growth 360 350 330 368 Revenue (Rs. Mn.) 246 • Revenue of Rs. 368 Mn. representing a growth of 49% YoY • Subscriber growth of 68% YoY • Resulting in a quarter end Pay Tv subscriber base of over 130,000 1Q08 2Q08 3Q08 4Q08 1Q09 Cumulative subscri

  21. Slide 21: P&L Highlights - Group

    P&L Highlights - Group (All figures in Rs.Mn. GROUP YoY QoQ except for ratios) 1Q 09 1Q 08 Change(%) Change(%) Net Revenue* 8,443 8,887 (5) (4) Direct Costs 5,469 4,130 32 (12) Gross Profit 2,974 4,757 (37) 15 Gross Margin (%) 35 54 OPEX 4,038 3,750 8 (26) EBITDA 1,105 2,703 (59) 193 EBITDA Margin (

  22. Slide 22: Thank You

    Thank You Dialog

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