Pakistan Telecommunication Co. Ltd. Class A · PSX:PTC
Pakistan Telecommunication Co. Ltd. Class A — Q2 2018 Earnings Presentation
28 slides from Pakistan Telecommunication Co. Ltd. Class A's earnings presentation, Jul 26, 2018
Slide 1: PTCL Investor Call: Financial Results for Q2 2018
PTCL Investor Call Financial Results for Q2 2018 26th July, 2018 www.ptcl.com.pk 0
Slide 2: Disclaimer
Disclaimer Pakistan Telecommunications Company Limited (PTCL) and its subsidiaries have prepared this presentation in good faith, however, no warranty or representation, express or implied is made as to the adequacy, correctness, completeness or accuracy of any numbers, statements, opinions or estim
Slide 3: Business Overview
Business Overview Dr. Daniel Ritz President & Chief Executive Officer PTCL Group www.ptcl.com.pk 2
Slide 4: PTCL Group
PTCL Group PTCL Group PTCL • PTCL • Retail • DSL • Wireless Data • Voice • Ufone • IPTV • Corporate • ICT Services • Ubank • Cloud & Data Services • Managed Services • Wholesale • Others* • Carrier services • International business * Other subsidiaries include DVCOM and SmartSky www.ptcl.com.pk 3
Slide 5: PTCL Group
PTCL Group 2% QoQ and 3% YoY Topline Growth with Positive Contributions from all Group Opcos Change % HY 2018 Change % PKR Million Q2 2018 YoY QoQ Rs. M YoY Revenue 30,612 3% 2% 60,662 4% EBITDA 10,112 3% -1% 20,353 2% EBITDA Margin 33% 0 p.p -1 p.p 34% -0.5 p.p Net Profit 1,131 -59% 12% 2,138 -45%
Slide 6: PTCL continues QoQ revenue growth after arresting the decline
PTCL PTCL continues QoQ revenue growth after arresting the decline last year Change % HY 2018 Change % PKR Million Q2 2018 YoY QoQ Rs. M % Revenue 17,779 -1% 1% 35,358 0% EBITDA 5,430 -5% -5% 11,172 -5% EBITDA Margin 31% -1.4 p.p -2.1 p.p 32% -1.7 p.p Net Profit 1,873 -26% 3% 3,690 -21% Net Profit M
Slide 7: PTCL Revenue stabilized
PTCL Revenue stabilized Growth in DSL, CharJi & Corporate Services % Change in Revenue QoQ 5% 4% 4% 3% 2% 1% 1% 0% -1% -2% -3% -2% -4% -3% Q3 2017 Q4 2017 Q1 2018 Q2 2018 www.ptcl.com.pk 6
Slide 8: Key Strategic & Operational Highlights
Key Strategic & Operational Highlights PTCL • Network transformation project for top 100 local exchanges continues – DSL subscriber and revenue growth • Continued migration of EVO (CDMA) subscribers to Charji (LTE) with device swap - double digit growth • Corporate growth mainly driven by Managed Se
Slide 9: Financial Overview
Financial Overview Nadeem Khan Chief Financial Officer PTCL Group www.ptcl.com.pk 8
Slide 10: PTCL Group Key Financials
PTCL Group Key Financials Normalized for negative Forex impact Net Profit up by 32% instead of 59% decline as reported Revenue (PKR M) EBITDA & Margin Net Profit & Margin +3% +2% +3% -1% 30,612 10,241 10,112 9,794 -59% +12% 30,050 29,680 2,736 34% 33% 33% 9% 1,131 1,007 3% 4% Q2 2017 Q1 2018 Q2 2018
Slide 11: PTCL Group – Revenue Evolution YoY
PTCL Group – Revenue Evolution YoY Revenue growth of 3% despite tough competition in cellular market and decline in fixed voice +3% PKR Million X% YOY % Change 54% 30,612 5% 36 379 -1% 29,680 665 148 Q2 2017 PTCL Ufone Ubank Eliminations Q2 2018 www.ptcl.com.pk 10
Slide 12: PTCL Group – EBITDA Evolution YoY
PTCL Group – EBITDA Evolution YoY Growth of 3% mainly driven by growth in revenues PKR Million +3% X% YOY % Change 73% 14% 10,112 54 2 -5% 9,794 553 288 Q2 2017 PTCL Ufone Ubank Eliminations Q2 2018 www.ptcl.com.pk 11
Slide 13: PTCL Group – Net Profit Evolution YoY
PTCL Group – Net Profit Evolution YoY Normalized for negative Forex impact Net Profit up by 32% instead of 59% decline as reported X% YOY % Change PKR Million -59% -26% 2,736 673 +32% -917% 228 1,663 990 883 1,260 72% 1,131 58 123 Q2 2017 PTCL Ufone Ubank Q2 2018 Liability Forex Loss Tax Impact Q2 2
Slide 14: PTCL Key Financials
PTCL Key Financials Higher SAC and Cable & Media cost put pressure on EBITDA Revenue (PKR M) EBITDA & EBITDA Margin Net Profit & Margin -1% +1% -26% +3% -5% -5% 17,928 5,718 5,742 2,545 17,779 5,430 17,579 33% 1,873 32% 1,818 31% 14% 10% 11% Q2 2017 Q1 2018 Q2 2018 Q2 2017 Q1 2018 Q2 2018 Q2 2017 Q1
Slide 15: PTCL Revenue
PTCL Revenue Wireline Data, CharJi and Corporate continue to contribute positively Change % PKR Million Q2 2018 YoY QoQ Wireline Data 6,737 6% 2% Wireless Data 819 -30% -10% CharJi 572 77% 9% EVDO 247 -71% -37% Voice 3,638 -6% -5% Retail 11,194 -1% -1% Corporate Services 1,725 12% 1% Wholesale 4,860
Slide 16: PTCL – Growing Vs Shrinking Segments
PTCL – Growing Vs Shrinking Segments Share of growing segments increased form 59% to 63% Q2 2017 Q2 2018 EVDO EVDO International International 5% 1% 14% 15% Wireline Data Wireline 35% Data 38% Voice 21% Voice 21% CharJi 2% CharJi 3% C&WS Corporate C&WS Corporate 13% 9% 13% 10% • Growing segments 59%
Slide 17: DSL Revenue
DSL Revenue Higher than average DSL revenue growth in transformed exchanges Avg. Subscribers (‘000) ARPU (PKR) Revenue (PKR M) 4% 2% 6% 1,426 1,480 1,514 6,475 1,369 6,080 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 www.ptcl.com.pk 16
Slide 18: CharJi Revenue (LTE)
CharJi Revenue (LTE) Double Digit Growth Continues Avg. Subscribers (‘000) ARPU (PKR) Revenue (PKR M) 124% -21% 77% 218 1,109 572 876 323 97 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 www.ptcl.com.pk 17
Slide 19: Corporate Revenue
Corporate Revenue Accelerating Growth by Offering New Services 12% PKR Million 0.3 1,725 22 19 175 1,547 Q2 2017 Managed Services Leased Lines Cloud Voice Q2 2018 & Services & IP Bandwidth Others www.ptcl.com.pk 18
Slide 20: PTCL – EBITDA Evolution YoY
PTCL – EBITDA Evolution YoY Higher SAC and Cable & Media charges put pressure on EBITDA PKR Million -5% 5,718 148 217 5,430 77 Q2 2017 Revenue Cost of Sales OPEX Q2 2018 www.ptcl.com.pk 19
Slide 21: PTCL – Net Profit Evolution YoY
PTCL – Net Profit Evolution YoY Lower Net profit driven by lower Non-operating Income and favorable one-offs in Q 2 2017 PKR Million -26% 2,545 288 -9% 55 2,033 789 1,873 1,849 123 89 10 349 Q2 2017 EBITDA D&A Non Taxation Q2 2018 Liability Forex Loss Tax Impact Q2 2018 Q2 2017 Operating Reversal Li
Slide 22: Balance Sheet & Cash Flow Statement
PTCL Balance Sheet & Cash Flow Statement Strong Unleveraged Balance Sheet Balance Sheet Cash Flow Statement Dec-17 Jun-18 Jun-17 Jun-18 Description Description PKR Million PKR Million Cash generated from operations 15,262 8,706 Non Current Assets 116,098 116,831 Employees retirement benefits paid (4
Slide 23: Dividend
Dividend PTCL announced PKR 1 interim dividend per share for the year 2018, equates to PKR 5.1 B dividend payout Dividend Yield 14% 12.1% 12% 10.9% 10% 7.7% 8.1% 8% 5.8% 6% 4% 2% 0% 2014 2015 2016 2017 2018 www.ptcl.com.pk 22
Slide 24: Summary & Conclusion
Summary & Conclusion Dr. Daniel Ritz President & Chief Executive Officer PTCL Group www.ptcl.com.pk 23
Slide 25: Summary & Conclusion
Summary & Conclusion • PTCL Group has maintained revenue growth with all three operating companies contributing • PTCL Group Net Profit (like-for-like) for Q2 2018 up significantly both on YoY and QoQ • PTCL revenue decline has been arrested, key growth drivers are DSL, Charji and Corporate segments
Slide 26: Questions & Answers
Questions & Answers www.ptcl.com.pk 25
Slide 27: Investor Relations
Investor Relations PTCL Investor Relations Email: amir.siddiqi@ptcl.net.pk www.ptcl.com.pk 26
Slide 28: Thank You
THANK YOU www.ptcl.com.pk 27
Pakistan Telecommunication Company Limited (PTCL) — Q2 2018 Earnings Presentation on 6ix