Dialog Axiata Plc · CSELK:DIAL.N0000
Dialog Axiata — Q2 2023 Earnings Presentation
16 slides from Dialog Axiata's earnings presentation, 2023
Slide 1: Dialog Axiata PLC Q2 2023 Results
Dialog Axiata PLC Sri Lanka's Premier Connectivity Provider Q2 2023 Results an axiata company
Slide 2: Dialog Axiata Group Performance
Dialog Axiata Group Performance Dialog Axiata PLC - Company Performance Subsidiary Performance – Dialog Broadband and Dialog TV 2
Slide 3: Dialog Group Performance Highlights – Q2 2023
DIALOG GROUP PERFORMANCE HIGHLIGHTS – Q2 2023 Cost Rescaling Initiatives and Favorable Forex Driving Profitability Capex Investments Directed to All Key Business Segments Aggressive Subscriber Fulfil Growing Demand for Delivered Strong Growth YTD QoQ YoY Data and Digitisation Initiatives Performance
Slide 4: SASB ESG Quantitative Metrics with Quarterly Actuals
SASB ESG Quantitative Metrics with Quarterly Actuals Network Availability Average Download Energy Consumption and Core Network Speeds (Mbps) Downtime Energy Q2 ’23 Q1 ’23 Change Availability Q2 ’23 Q1 ’23 Change Q2‘23 Q1 ’23 Change Total (MwHr) 43.780k 43,783k 0.01% Total Network 99.84% 99.78% 0.06%
Slide 5: Group Financial Summary
GROUP FINANCIAL SUMMARY Rs Mn 1H 2023 YTD 2Q 23 QoQ YoY Revenue 97,737 +20% 47,670 -5% +10% EBITDA 27,168 -1% 14,158 +9% +11% EBIT 6,333 -22% 3,587 +31% +30% PATAMI 11,795 >+100% 3,103 -64% >+100% OFCF 6,190 >+100% 1,304 -73% >+100% EBITDA Margin 27.8% -5.9pp 29.7% +3.7pp +0.3pp Core EBITDA Margin 4
Slide 6: Group Revenue
GROUP REVENUE Positive Revenue Growth Across YTD, YoY; QoQ Revenue drop stem from non-core revenue lines +20% +10% -5% 120 ,000 97,737 100 ,000 81,559 80, 000 60, 000 43,308 50,067 47,670 40, 000 20, 000 0 1H 22 1H 23 Q2 22 Q1 23 Q2 23 Revenue Mobile Revenue remained flattish due to data revenue gro
Slide 7: Group EBITDA and PATAMI
GROUP EBITDA AND PATAMI EBITDA Recorded Strong Growth QoQ and YoY Driven by Cost Rescaling Initiatives; YTD EBITDA remained flattish Reported PATAMI Improvement underpinned by strong EBITDA and Forex (Rs Mn) Gain; Higher Finance Cost in Q2 2023 impacted PATAMI growth QoQ -1% +11% (Rs Mn) +9% 30, 000
Slide 8: Total Cost to Revenue Ratio Decrease 3.7pp QoQ Owing to Cost Rescaling Initiatives
TOTAL COST TO REVENUE RATIO DECREASE 3.7PP QOQ OWING TO COST RESCALING INITIATIVES Q2 23 As % of Q1 23 As % of Q2 22 As % of 1H 23 As % of 1H 22 As % of QoQ YoY YTD revenue revenue revenue revenue revenue Total Cost Rs33,512Mn 70.3% Rs37,062Mn 74.0% Rs30,512Mn Rs70,574Mn Rs54,022Mn 70.5% 72.2% 66.2%
Slide 9: Focused Capex to Support Critical Infrastructure Upgrades
FOCUSED CAPEX TO SUPPORT CRITICAL INFRASTRUCTURE UPGRADES. 1H 2023 OFCF at Rs6.1Bn Capex Investments Directed Towards Expanding Data Network; Drop Resulting from Strengthening LKR and Lower Spend (Rs Mn) -38% -42% +66% 25,0 00 22,445 20,0 00 13,972 14,957 15,0 00 10,0 00 8,723 Capex 5,249 14% 5,00 0
Slide 10: Reduction of Forex Exposure on Balance Sheet Continue; Gearing Remains Low
REDUCTION OF FOREX EXPOSURE ON BALANCE SHEET CONTINUE; GEARING REMAINS LOW WITH NET DEBT TO EBITDA AT 1.14X (Rs Mn) 30 Jun 23 31 Mar 23 31 Dec 22 30 Jun 22 Gross Debt 110,190 103,109 102,689 82,389 USD denominated debt (in USD Mn’s) 181.4 190.5 226.5 195.8 Net Debt 61,757 68,954 62,140 42,174 Cash a
Slide 11: Dialog Axiata Group Performance
Dialog Axiata Group Performance Dialog Axiata PLC - Company Performance Subsidiary Performance – Dialog Broadband and Dialog TV 11
Slide 12: Dialog Axiata PLC (Company)
DIALOG AXIATA PLC (COMPANY) Subscriber Growth moderated QoQ Driven by postpaid Revenue Improvement Driven by Expansion in Data Revenue segment; YoY up 5% Total subs growth -1% QoQ; +5% YoY (Rs Mn) -1% (In ‘000) +3% Postpaid subs growth -3% QoQ; -5% YoY Prepaid subs growth -1% QoQ; +6% YoY -3% 49,081
Slide 13: Dialog Axiata Group Performance
Dialog Axiata Group Performance Dialog Axiata PLC - Company Performance Subsidiary Performance – Dialog Broadband and Dialog TV 13
Slide 14: Dialog Television
DIALOG TELEVISION Cost Rationalization and Favorable Forex Impact Driving Profitability Revenue growth continue driven by subscription Revenue; QoQ Subscriber Growth Stalled due to Prepaid Segment Revenue growth Challenged due to Wallet Pressure Contraction Total subs growth -2% QoQ; -4% YoY (Rs Mn)
Slide 15: Dialog Broadband Networks
DIALOG BROADBAND NETWORKS Delivering Strong Revenue Growth YTD Revenue Growth Underpinned by rise in low margin International Wholesale Revenue and Fixed BB Revenue; on QoQ Profitability Improve driven by Revenue Growth; Increase in Finance LKR appreciation drove Int. Wholesale Revenue Down Cost res
Slide 16: Thank you
Thank you For further information Contact : Investor relations Team, Dialog Axiata PLC Mobile : +94 777332052 Email : ir@dialog.lk Web site : www.dialog.lk 16