Dialog Axiata PLC · CSELK:DIAL.N0000
Dialog Axiata — Dialog Telekom — 1H 2005 Earnings Presentation
28 slides from Dialog Axiata's earnings presentation, 2005
Slide 1: Telekom
TELEKOM ATIVE company
Slide 2: Business Performance - 1H 2005
Business Performance - 1H 2005
Slide 3: Agenda
Agenda Highlights Financials Key Performance Indicators
Slide 4: Highlights – 1H 2005
Highlights – 1H 2005
Slide 5: Highlights – Period Ended 30 June '05 Vs 30 June '04
Highlights – Period Ended 30 June ‘05 Vs 30 June ‘04 Subscriber Base : 1.74 Million – 64% Revenue : Rs.8.1 Billion – 62% EBITDA : Rs. 4.55 Billion – 64% Net Profit : Rs. 3.45 Billion - 77% Blended ARPU : Rs. 692 4% Churn Rate : 0.44% 18%
Slide 6: Financials - A Snapshot
Financials - A Snapshot Six Months ended June 2005
Slide 7: Profit & Loss
Profit & Loss 1H 1H 2004 2005 (All figures in Rs. Mn) Revenue 5,043 8,138 YoY Growth (%) 61% Direct Cost 1,769 2,595 YoY Growth (%) 47% Gross Profit 3,274 5,544 YoY Growth (%) 69% Gross Margin (%) 65% 68% OPEX 1,239 1,985 YoY Growth (%) 60% EBITDA 2,777 4,554 YoY Growth (%) 64% EBITDA Margin(%) 55%
Slide 8: Revenue Growth
Revenue Growth Revenue has grown at 61% during six months ended 30 June 2005 compared to 1st half of 2004. 9 8 Revenue (Rs. Billion) 7 6 5 4 3 2 1 0 2004 2005
Slide 9: Revenue Mix
Revenue Mix Revenue Composition (Rs. Million) 30-Jun-04 % 30-Jun-05 % CHANGE Post-paid Revenue 2,219 44% 3,662 45% 65% International Roaming Revenue 605 12% 651 8% 8% Pre-paid Revenue 1,765 35% 3,011 37% 71% Equipment , Accessories + other Revenue 101 2% 326 4% 223% International Termination Revenue
Slide 10: Revenue Mix (Six Months comparison)
Revenue Mix ( Six Months comparison) As of June 2004 As of June 2005 International Termination Termination Revenue Equipment , Revenue Equipment , 7% Accessorie 6% Accessories s + other + other Revenue Post-paid Revenue Post-paid Revenue 4% Revenue 2% 45% 44% Pre-paid International Revenue Internati
Slide 11: Direct Costs
Direct Costs Dialog has realised scale advantages to minimize the growth of direct costs. Period ended 30 June, Rs. Mn. 2004 % 2005 % CHANGE Network Related Costs 1,493.0 85% 2,044.0 79% 37% As a % of Revenue 30% 25% Customer Related Costs 220.0 12% 337.0 13% 53% As a % of Revenue 4% 4% Internationa
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 US Cents 03/2003-03/2004 From 04/2004 Incoming Local Access Fee 7.20 5.20 Contribution to Vishva Gram
Slide 13: Direct Costs relative to Revenue
Direct Costs relative to Revenue Total direct costs as a proportion of revenue has dropped by 3% for the six months ended 30 June 05 compared to the same period in 2004. 30% 25% 20% 15% Network Related Costs Customer Related Costs 10% Intl. Telecommunication levy Others 5% 0% 2004 2005
Slide 14: Operating Costs
Operating Costs Cost of Manpower maintained < 7% Period ended 30 June, Rs. Mn. 2004 % 2005 % Change % Manpow er 277.0 22.4% 457.0 23.0% 65.0% As a % of Revenue 5.5% 6.0% Maintenance 236.0 19.1% 354.0 17.8% 50.0% As a % of Revenue 4.7% 4.0% Energy & Fuel 22.0 1.8% 36.0 1.8% 63.6% As a % of Revenue
Slide 15: Operating Costs relative to Revenue
Operating Costs relative to Revenue Total operating costs as a proportion of revenue has dropped by 1% for the six months ended 30 June 05 compared to the same period in 2004. 14% Manpower 12% Maintenance Energy & Fuel Material 10% Selling Expenses Incidental 8% 6% 4% 2% 0% 2004 2005
Slide 16: EBITDA Growth
EBITDA Growth EBITDA has grown at 64% during the six months ended 30 June 2005 compared to 30 June 2004 5,000 4,500 4,000 EBITDA (Rs. Mn) 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2004 2005
Slide 17: PAT Growth
PAT Growth •Net Profit has grown at 77% during 1st half of 2005 compared to same period in 2004. •Economies of Scale and close control of costs has enabled Dialog to grow its margins. 3,500 3,000 Net Profit (Rs.Mn) 2,500 2,000 1,500 1,000 500 0 2004 2005
Slide 18: Summary Balance Sheet
Summary Balance Sheet Balance Sheet As at 30 June, Rs. Mn 2005* 2004 Fixed Assets 14,537 11,562 Current Assets 5,164 4,579 Total Assets 19,701 16,141 Capital & Reserves 10,254 6,975 Non Current Liabilities 6,184 6,708 Current Liabilities 3,263 2,458 Total Liabilities 19,701 16,141 * Based on a limit
Slide 19: Gearing Ratio as of 30th June 2005
Gearing Ratio as of 30th June 2005 Gearing Ratio Debt 38% Equity 62%
Slide 20: Cash Flow Summary
Cash Flow Summary (All amounts in Rs '000) 1H 2005 1H 2004 Profit Before Tax 3,474,960 1,950,892 Adjustments for:- Net Interest cost 53,419 85,949 Depreciation 979,580 727,505 Amortisation Retirement benefit obligation 12,000 3,000 Other Adjustments 532,883 405,498 (incl exchange diff, profit on sal
Slide 21: Lenders
Lenders Cash position as of 30 June 2005
Slide 22: Performance Indicators
Performance Indicators
Slide 23: Earnings per Share
Earnings per Share EPS Computation 30 June Rs (Mn) 2005 2004 PAT 3,446 1,951 Dividend on preference shares - (54) Net Income Applicable to ordinary shares 3,446 1,897 Par Value Rs 1/- Rs 10/- Ordinary Shares at the beginning(Mn) 370 37 Issuance of shares during the period(Mn) 6,913 - Weighted averag
Slide 24: Balance Sheet Indicators
Balance Sheet Indicators As at 30 June 2005 2004 Current Ratio 1.58 1.86 Asset Turnover 63% 53% Net Asset per share* 1.48 154.22 Gearing 38% 49% Total Debt / EBITDA 0.68 1.21 *No of ordinary shares in issue(thousands) 6,913,468 37,000
Slide 25: Key Operational Indicators - Subscriber Breakdown
Key Operational Indicators - Subscriber Breakdown Pre paid subscriber base increased by 68% & post paid by 51% for six months ended 30 June 2005 compared to 30 June 2004. Subscriber Breakdown 1,336 1,400 1,200 Subscribers '000 1,000 794 800 Prepaid 600 403 Postpaid 400 267 200 0 2004 2005 30th June
Slide 26: Key Operational Indicators – Blended ARPU
Key Operational Indicators – Blended ARPU Monthly ARPU for the 1st half of 2005 has increased by 4.4% compared to 1st half of 2004 663.81 692.42 700 600 ARPU (Rs.) 500 400 300 200 100 0 2004 2005
Slide 27: Key Operational Indicators – Monthly Churn %
Key Operational Indicators – Monthly Churn % • Monthly Churn rate has decreased by 18% 1.00% Churn Rate(%) 0.90% 0.80% 0.70% 0.60% 0.54% 0.50% 0.44% 0.40% 0.30% 0.20% 0.10% 0.00% 2004 2005
Slide 28: Thank you
Thank you TM TELEKOM