Maxis Bhd. · MYX:MAXIS
Maxis Bhd — Q2 2010 Earnings Presentation
19 slides from Maxis Bhd's earnings presentation, Aug 30, 2010
Slide 1: Maxis Berhad 2Q 2010 Results Presentation
MAXIS BERHAD 2Q 2010 Results Presentation 30th August 2010
Slide 2: 2Q10 Highlights
2Q10 HIGHLIGHTS Strong business results Leadership all around • Strong leadership and growth - 2.8% QoQ underlying revenue growth - 12.97m Mobile subscriptions - 280k Mobile net adds •Leading the way in data business - 36.6% mobile non-voice revenue - 6.7m mobile internet users; over 50% of base •Br
Slide 3: At a glance 2Q10
At a glance 2Q10 Growth Growth 1Q10 2Q10 YTD 09 YTD 10 QoQ YoY Revenue (RM m) 2,152 2,191 +1.8% 4,244 4,343 +2.3% Comparable Revenue * (RM m) 2,152 2,211 +2.8% 4,244 4,363 +2.8% EBITDA (RM m) 1,082 1,028 -5.0% 2,146 2,110 -1.7% EBITDA margin 50.3% 46.9% -3.4pp 50.6% 48.6% -2.0pp PAT (RM m) 552 532 -
Slide 4: Mobile Subscriptions
MOBILE SUBSCRIPTIONS Subscriber market leadership Subscription Breakdown m axis +8% Hotlink (Prepaid) +15% Total +14% m axis +4% maxis * Hotlink (Prepaid) Hotlink (Prepaid) +2% Total +2% 16,000 11,423 11,735 12,291 12,691 12,971 12,000 Subscriptions ’000 8,000 9,667 9,836 8,835 9,316 8,524 4,000 2,8
Slide 5: Revenue
REVENUE Revenue growth QoQ Revenue ● 2Q10 revenue grew 3.5% against +4% +2% +2% 4,343 corresponding quarter of previous year driven 2,211 4,244 by higher mobile revenue, which grew 4.0% 2,191 2,156 2,152 ● QoQ revenue grew 1.8% on higher revenue RM m 2,116 across all business segments. However, ` un
Slide 6: ARPU, MOU
ARPU, MOU ARPU stable despite intense competition and strong net adds ARPU 150 Postpaid Prepaid WBB Blended Postpaid +1% Postpaid +0% ● ARPU remained largely stable for Prepaid -3% Prepaid -12% WBB 0% WBB -32% postpaid, prepaid and WBB despite Blende d -1% Blended -9% 107 increased competition 104 1
Slide 7: Non-Voice Revenue
NON-VOICE REVENUE Leading the way in data business Data revenue 36.6% of mobile revenue Non-Voice Revenue 36.6% 40% 35.7% 34.4% 34.8% 2,000 33.0% 31.4% 31.0% 30% 1,450 1,500 Non-Voice Revenue Non Voice Revenue as % of Mobile Revenue 1,216 20% 1,000 714 704 747 616 663 500 10% 0 0% 2Q09 3Q09 4Q09 1Q1
Slide 8: Smartphones
SMARTPHONES Future Data Services ‘Smartphones for everyone’ – widest range Extended our range of market-leading smartphones Introduced the HTC Desire, Samsung Galaxy S and Blackberry White in the quarter 8
Slide 9: Innovation: Key tie-ups – PayPal, OutThere Media
INNOVATION Future Data Services Key tie-ups – PayPal, OutThere Media World’s first strategic collaboration for secured payments via online and mobile with PayPal Launched “myDeals”: Asia’s first permission- based mobile advertising model Partners include BMW, Malaysia Airlines, Colgate-Palmolive and
Slide 10: Mobile TV: World Cup LIVE
MOBILE TV Future Data Services World Cup ‘LIVE’ Official broadcast sponsor of the 2010 FIFA World Cup Offered LIVE mobile TV coverage of all 64 matches, as well as online streaming 10
Slide 11: Broadband gaining momentum
BROADBAND Broadband gaining momentum Highest industry share of adds in Q2 WBB Subscriptions WBB Revenue +162% +43% +70% 448 +51% +32% Subscriptions ’000 78 136 RM m 313 90 58 59 264 51 171 189 46 2Q09 3Q09 4Q09 1Q10 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 YTD 09 YTD 10 Note: WBB subscriptions are defined as c
Slide 12: EBITDA
EBITDA Highest industry EBITDA Q2 RM1.03b, YTD RM2.11b EBITDA and EBITDA margin -4% -2% 5,000 -5% EBITDA Margin 4,000 50.7% 50.4% 50.3% 50.6% 60% 50.0% 48.6% 46.9% RM m 3,000 2,146 2,110 40% 2,000 1,073 1,086 1,106 1,082 1,028 20% 1,000 0 0% 2Q09 3Q09 4Q09 1Q10 2Q10 YTD 09 YTD 10 ● One-off effect: S
Slide 13: PAT
PAT PAT remains solid PAT and PAT margin -10% -5% 3,000 40% PAT Margin -4% 28.1% 28.5% 26.2% 26.9% 30% 25.7% 25.0% 2,000 RM m 24.3% 22.7% 20% 1,141 1,084 1,000 594 615 580 * 552 532 10% 503 0 0% 2Q09 3Q09 4Q09 1Q10 2Q10 YTD 09 YTD 10 * Comparable PAT for 4Q 09 excludes IPO related expenses of RM24m
Slide 14: Operating Expense
OPERATING EXPENSE Subscriber quality improving Lower bad debts Operating Expense Breakdown As a % of revenue 2Q09 3Q09 4Q09 1Q10 2Q10 Direct Expenses 31.9% 32.4% 32.6% 33.3% 34.7% Sales and Marketing 4.1% 3.8% 4.6% 3.9% 5.2% Staff-Related Cost 4.7% 4.4% 4.1% 4.6% 4.7% Bad Debts 2.1% 2.1% 1.8% 1.4% 1
Slide 15: Capex
CAPEX Continuing capex investment Accent in data networks Capex ● Ramp-up in 2H10 activities 596 600 − 500km of fiber encompassing 300 sites 442 450 357 RM m − >800 new 3G/WBB sites rollout to 291 307 300 support broadband and data ambitions 199 135 150 − Expand coverage in East Malaysia and East Co
Slide 16: Cash Flow
CASH FLOW Strong operating cash flow maintained RM m 2Q09(1) 3Q09(1) 4Q09(2) 1Q10 2Q10 Cash flow from operating activities 934 679 1,426 798 1,064 - Changes in work ing capital (32) (40) 459 (171) 113 Cash flow used in investing activities (234) (300) 379 (154) (314) - Purchase of property, plant an
Slide 17: Dividend
DIVIDEND Continued commitment to shareholder returns Active capital management Declared and Expected* Dividends (all figures denote dividend per share in sen) ? 3 8 ` 8 8 8 6 6 Nov 2009 Feb 2010 May 2010 Aug-2010 Nov-2010 Feb-2011 Declared Interim Declared Final Expected Interim * Final * * The Boar
Slide 18: Discussion Points
DISCUSSION POINTS Quarterly Update ● Transformation to integrated communications Status on HSBB Home services ● Recent regulatory changes Revision to interconnect termination rates Spectrum re-farming Singapore roaming charges ● Outlook 18
Slide 19: Disclaimer
DISCLAIMER This presentation by Maxis Berhad (“Maxis”) contains forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “aim”, “plan”