Dialog Axiata PLC · CSELK:DIAL.N0000
Dialog Axiata — Dialog Telekom — 9M 2007 Earnings Presentation
33 slides from Dialog Axiata's earnings presentation, Sep 30, 2007
Slide 1: Investor Forum – Nine months ended 30 September 2007
Investor Forum Nine months ended 30 September 2007
Slide 2: Financials
TELEKOM TM Dialog
Slide 3: 3.96 million mobile subscribers, 40% growth
3.96 million mobile subscribers NP of Rs. 4,868 Mn. 40% growth
Slide 4: Highlights: 1-3Q 07
Highlights : 1-3Q 07 Mobile subscriber base of 3.96 Mn. Churn down to 6.69% from 10.77% Dialog Telekom PAT : Rs. 7.98 Bn. Dialog Telekom Group PAT : Rs 7.30 Bn. Commercial Launch of CDMA service Introduction of eZ Pay, South Asia’s first Mobile Payments Service
Slide 5: Snapshot 1-3Q 07 – Company
Snapshot –1-3Q 07 – Company Change YoY Growth CELLULAR SUBSCRIBERS 3.96 Mn. 1.13 Mn. 40% Change Growth KEY FINANCIALS USD Mn Rs Bn. (1-3Q07 vs. 1-3Q 06) (1-3Q07 vs. 1-3Q06) NP of Rs. 4,868 Mn. REVENUE 208 23.03 Rs. 4,530 Mn. 24% EBITDA 102 11.30 Rs. 1,505 Mn. 15% PAT 72 7.98 Rs. 524 Mn. 7% ^Exchange
Slide 6: 1-3Q07 – Group PAT Derivation
1-3Q07 – Group PAT Derivation Dialog Telekom NP:Rs. 7,983 Mn Dialog Broadband Net loss of Rs. 97 Mn. Dialog TV Net loss of Rs. 543 Mn. Dialog Group NP:Rs. 7,304 Mn. Note: Eliminations on account of inter company transactions are not shown. Growth KEY FINANCIALS USD Mn Rs Bn. Change (1-3Q06 Vs 1-3Q 0
Slide 7: P&L Highlights
P&L Highlights GROUP COMPANY (All figures in Rs.Mn. 1-3Q Change(%) 1-3Q Change(%) except for ratios) 2007 2006 2007 2006 Net Revenue* 23,916 18,890 27 23,030 18,500 24 Direct Costs 9,432 6,526 45 8,391 6,332 33 Gross Profit 14,484 12,364 17 14,640 12,168 20 Gross Margin (%) 61 65 64 66 OPEX 6,553 NP
Slide 8: Highlights: 1-3Q 07 - Company
Highlights : 1-3Q 07 - Company SUBSCRIBER BASE UNITS 1-3Q 07 1-3Q 06 Postpaid 000 523 475 Prepaid 000 3,441 2,359 Total active subscriber base 000 3,963 2,835 Total net additions 000 857 711 OPERATIONAL RESULTS UNITS 1-3Q 07 1-3Q 06 Blended ARPU Rs. 603 680 Prepaid ARPU Rs. 418 438 Postpaid ARPU Rs.
Slide 9: Revenue Drivers
Revenue Drivers Subscriber (Thousands) • Market leadership with sustained +40% +8% growth in subscribers ( 40 per cent YoY) 3,963 3,656 • Pre/post mix: 87:13 3,365 3 , 10 6 3,137 3,441 2,835 • Coverage and Quality of Service 2,879 2,621 Improvements coupled with 2,359 Introduction of innovative Valu
Slide 10: Revenue Environment
Revenue Environment Revenue growth of 24% recorded despite several revenue lines being suppressed due to Macro-Environmental factors: Intermittent disruption of the company’s services in the Northern and Eastern Provinces of Sri Lanka The upturn in macro-economic indices together with the rece
Slide 11: Revenue – Company
Revenue – Company • Steady growth in revenue– 27 per cent increase over 3Q06 • Prepaid revenue- the dominant contributor to revenue with 48 per cent share • Termination revenue increased by 38 per cent. • Value Added Services account for approx. 10 per cent of total revenue for 1-3Q07. Revenue (Rs.
Slide 12: Direct Costs - Company
Direct Costs - Company • Direct Costs increased by 2 percentage points (relative to revenue) in 1-3Q07 compared to performance in the 1-3Q06 due to revenue mitigating factors cited previously. 38% 40% 37% 35% 0.11% 0.12% 4.08% 3.90% 30% 35% 34% 3,086 25% 33% 20% 2,661 2,644 32.24% 15% 30.20% 2,204 2
Slide 13: Network Costs - Company
Network Costs - Company (all figures in Rs. Mn.) 1-3Q 06 % of Revenue 1-3Q 07 % of Revenue Net Revenue 18,500 23,030 Network Related Costs Lease Circuit Rental 284 1.53 228 0.99 International Telecommunication Levy 640 3.46 912 3.96 Telecom equipment depreciation 1,749 9.46 2,313 10.04 International
Slide 14: Operating Costs - Company
Operating Costs - Company • Opex as a percentage of revenue increased by 2 percentage points in 1-3Q07 vis-à-vis 1-3Q06 . Performance relative to revenue is mitigated in the main due to the company not achieving its full revenue potential due to macro environmental conditions. (all figures in Rs. Mn
Slide 15: Selling Expenses - Company
Selling Expenses - Company • Selling Expenses as a percentage of revenue has improved by 2 percentage points QoQ. • Selling Expenses maintained close to 10 per cent of Revenue despite 40 per cent growth in subscribers YoY. (all figures in Rs. Mn.) 1-3Q 06 % of Revenue 1-3Q 07 % of Revenue Change % N
Slide 16: PAT and EBITDA Margins - Company
PAT and EBITDA Margins - Company • PAT performance in 1-3Q 07 vis-à-vis 1-3Q 06. has been mitigated due to inflationary pressure on principal cost lines in addition to revenue mitigating factors cited previously. PAT (Rs. Mn.) EBITDA (Rs. Mn.) +6% +13% 40% +2% 39% 35% 35% 33% 53% 54% 50% 50% 47% 2,7
Slide 17: Balance Sheet
Balance Sheet • Net Asset per share of the Company has increased by 62% following the rights issue. 30 September 2007 31 December 2006 (all figures in Rupees '000) Group Company Group Company ASSETS Non - current assets 42,192,449 38,107,682 33,634,237 31,329,629 Current assets 13,907,256 16,441,460
Slide 18: Investments / Network rollout
Investments / Network rollout Total investments in excess of USD 95 Mn (Rs 10 Bn) in telecommunication and infrastructure, a large proportion of which has been deployed in underserved regions of the country. Increased capex will lead to a faster island wide coverage and hence higher penetration.
Slide 19: Cash Flow Highlights - Company
Cash Flow Highlights - Company (all figures in Rs. Mn.) 1-3Q 07 1-3Q 06 Net Cash Flows from Net cash from operating activities 9,587 8,558 operating activities up 12% Net cash used in investing activities (12,617) (6,696) Net cash used in financing activities 5,265 (3,032) Increase/(decrease) in cas
Slide 20: Reconciliation of Cash Generated from Operations
Reconciliation of Cash Generated from Operations - Company (all figures in Rs. Mn.) 1-3Q 07 1-3Q 06 Profit before Tax 8,073 7,530 Adjustments for: Interest Expenses 463 237 Depreciation 2,437 1,865 Amortisation 279 130 Retirement Benefit Obligation 24 24 Other Adjustments* (1,209) (1,050) (incl. Cha
Slide 21: KPIs - Company
KPIs - Company • Net Debt/ EBITDA has reduced mainly due to improved cash position after the rights issue in June 2007. • RoE diluted due to increase in shareholders funds following the equity issue. RATIOS Units 30 Sep 2007 31 Dec 2006 Net Tangible Assets per share Rs. 5.44 3.36 Net Debt to EBITDA*
Slide 22: Earnings Per Share
Earnings Per Share DESCRIPTION UNITS 1-3Q 07 1-3Q 06 Net income applicable to ordinary shares Rs. Mn. 7,304 7,549 Weighted average number of shares, end of period* Mn. 7,775 7,322 EPS Rs. 0.94 1.03 *Adjusted for effects of rights issue and ESOS shares exercised DESCRIPTION UNITS 1H-07 1H-06 EPS Rs.
Slide 23: Lenders - Company
Lenders - Company Summary of Outstanding borrowings Less than More than Institutions Type of Facility Currency Facilities Amt Principal Outstanding one year one year USD Mn eqv. USD Mn eqv. USD Mn eqv. USD Mn. eqv. IFC Term Loan USD 15.00 11.25 2.50 8.75 SCB Term Loan LKR 25.00 5.74 - 5.74 Total 40.
Slide 24: Subsidiary / SBU Performance
Subsidiary / SBU Performance
Slide 25: International Business
International Business Contribution to DT group bottom line: 14% 38% growth in International termination revenue International Fibre backbone through SMW3 and SMW4 Best-in -class International Gateway infrastructure with Soft Switching
Slide 26: Dialog Broadband Networks (Pvt) Ltd. [DBN]
Dialog Broadband Networks (Pvt) Ltd. [DBN] Revenue of Rs. 681.68 Mn up 19% relative to Rs. 574.47 Mn. recorded for the nine months ended 30 September 2006 . Net loss of Rs. 96.55 Mn. for the nine months ended 30 September 2007 vis-à-vis a profit of Rs. 126.00 Mn recorded for the nine months ende
Slide 27: Broadband Technologies & Segment Coverage
Broadband Technologies & Segment Coverage Broadband/HSDPA was launched in 3Q 2007. WiMax subscribers base as of 30 September 2007 :122 Significant market potential for Broadband and Data Networks Dialog will use a mix of technologies Fixed Broadband: HSDPA,Wi-Max, WiFi Mobile Broadband:
Slide 28: Development Of National Optical Fibre Network (OFN)
Development Of National Optical Fibre Network (OFN) National OFN Network : 1250km The project on laying of the outer ring is expected to commence in the fourth-quarter of 2007 Colombo Access Fibre : 200km The fibre optic Colombo ring is complete The OFN is expected to substantially increase vo
Slide 29: Dialog Television (Pvt) Ltd.
Dialog Television (Pvt) Ltd. DTV Group (inclusive of subsidiaries Communiq Broadband Network (Pvt) Ltd (CBN) and CBN SAT (Pvt) Ltd) recorded a revenue of Rs. 479.62 Mn. on the backdrop of over a 200 per cent growth in subscribers within the first nine months of operations for 2007. The company r
Slide 30: South Asia's First Mobile Payments Service
South Asia’s First Mobile Payments Service Launched the eZ Pay service in the month of August : South Asia’s first commercial mCommerce (Mobile Commerce) initiative, a revolutionary service that allows consumers to purchase goods, pay bills, transfer money and perform banking transactions via thei
Slide 31: CSR
CSR Dialog Telekom awarded membership of the UN Global Compact – the Worlds largest CR network with 4,400 organizations Nominated as champion for Communications sector in the Sri Lanka steering committee for the UN Global Compact. Investment in downstream supply chain – Conducted workshops to em
Slide 32: Recognitions
Recognitions Chief Marketing Officer of the Dialog Telekom Group, Nushad Perera was recently bestowed with the coveted ‘Global Brand Leadership Award’ at the Asia Brand Congress 2007 held in India. Asia Pacific Customer Service Consortium award for “Winners of the Customer Relationship Excellence-
Slide 33: Thank you
TELEKOM TM Dialog