Dialog Axiata PLC · CSELK:DIAL.N0000
Dialog Axiata — Q2 2009 Earnings Presentation
19 slides from Dialog Axiata's earnings presentation, 2009
Slide 1: Investor Presentation Q2 2009
Investor Presentation Q2 2009 .......... Enriching Sri Lankan Lives an axiata company
Slide 2: Company – P&L Highlights
Company – P&L Highlights QoQ YoY Q2’09 1H 09 change change Revenue Rs.7,969Mn 3% Rs.15,678Mn 5% EBITDA Rs.1,645Mn 24% Rs.2,976Mn 44% Normalized EBITDA Rs.2,118Mn 14% Rs.3,975Mn 25% PAT (Rs.7,246Mn) -549% (Rs.8,363Mn) -488% Normalized PAT (Rs.5Mn) (Rs. 603Mn) 128% 99%
Slide 3: PAT Reconciliation Q1 '09 to Q2 '09
Net Loss ‐ Normalised Q1 (598) 09 ‐ Var. Revenue 102 ‐ 77 Var. Direct Cost ‐ Var. Opex 82 PAT Reconciliation Q1 ‘09 to Q2 ‘09 ‐ Var. Operational Improvement (35) Depreciation/Amortisation ‐ Var. Non Opex 368 Net Loss ‐ Normalised Q2 (5) 09
Slide 4: Impact of Non recurring charges on PAT
Impact of Non recurring charges on PAT Q1 ‘09 to Q2 ’09 Non Recurring Charges (5) ‐ Net Loss ‐ Q2 09 Var. Opex Var. Direct Cost Net Loss ‐ Normalised Q2 Depreciation/Amortisation 09 (510) Var. 39 (7,246) (6,770)
Slide 5: Revenue Trends - Company
Revenue Trends - Company Revenue mix 3% Company Revenue 9Amidst intensified price competition International termination Quarterly Revenue – Rs. Mn. 5% Post paid Revenue 10%
Slide 6: Revenue Drivers & Dynamics
Revenue Drivers & Dynamics Blended MoUs & Revenue per minute Mobile – Q2 09 net adds 146k Pre : Post mix 88% 12% Prepaid Postpaid Mobile subscriber– Mn. 25% 2% 5,509 5,847 5,993 28K 4,806 4,978 Postpaid 118K Prepaid 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09
Slide 7: Cost Rescaling Initiatives Gaining Momentum
Cost Rescaling Initiatives Gaining Momentum Direct Cost excluding Depreciation & 2% Direct cost as a % of Revenue Non – recurring expenses Q2 09 vs. Q1 09 9 improved by 2% points Network related cost – Rs.117Mn 6% 9 Link satellite cost dropped by 41% 9 BTS Site expenses dropped by 56% 4,500 50% 9 Ne
Slide 8: Cost Rescaling Initiatives Gaining Momentum
Cost Rescaling Initiatives Gaining Momentum Operating costs excluding Depreciation & Non ‐ recurring 3% Opex as a % of Revenue expenses Q2 09 vs. Q1 09 9 improved by 2% points Advertising expenses – Rs. 48Mn 22% 5,000 57% 60% 9 As a result of focused advertising 4,500 50% 39% Manpower expenses – Rs.
Slide 9: EBITDA, PAT & Margins
EBITDA, PAT & Margins EBITDA normalised for exceptional Items at Rs. 2.2Bn Normalised PAT improved significantly • growth of 14% Vs. Q1 09 • improvement of 99% vs. Q1 09 EBITDA margin Exceptional Items includes 27% • up 3% pts Vs Q1 09 9Modernization impairment - Rs. 6Bn 9Equipment obsolescence prov
Slide 10: Cash Flow Highlights - Company
Cash Flow Highlights - Company (All figures in Rs. Mn.) 30-June-2009 30-June-2008 Net cash from operating activities 5,101 1,238 Net cash used in investing (6,032) (10,961) activities Net cash generated from Operating Cash Flows 5,502 6,216 financing activities increased four–fold Increase/(decrease
Slide 11: Remittances to Government of Sri Lanka (GoSL)
Remittances to Government of Sri Lanka (GoSL) GoSL payments composition ¾ P&L impact of GoSL remittances Rs. 945 Mn. in Q2 ‘09 (all figures in Rs. Mn.) Q2 09 Q1 09 Change % MSL 647 631 3% ECL 113 112 1% VGF 615 547 12% VAT 99 75 33% NBT 153 40 282% TRC Frequency fees 308 308 -0% Others 46 58 -20% To
Slide 12: Capital Structure
Capital Structure • Net debt/EBITDA has increased mainly due to increase in borrowings (OCBC - USD 100 Mn., advances from Axiata - USD 79.5 Mn.) and reduction in earnings • Reduction in Net Asset is due to a one-off provision of Rs. 6 Bn for impairment arising on account of network modernization 30-
Slide 13: Funding Position
Funding Position Summary of outstanding borrowings - As at 30 June 2009 Instructions Type of Currency Facilities Principal Less than More than one facility amount outstanding one year year USD Mn eqv. USD Mn eqv. USD Mn eqv. USD Mn eqv. DFCC Term Loan LKR 8.71 6.97 1.74 5.23 SCB Loan Facility LKR 21
Slide 14: Group – P&L Highlights
Group – P&L Highlights QoQ YoY Q2’09 1H 09 change change Revenue Rs.8,751Mn 4% Rs.17,194Mn 5% EBITDA Rs.1,749Mn 58% Rs.2,854Mn 46% Normalized EBITDA Rs.2,069Mn 25% Rs.3,722Mn 29% PAT (Rs.7,668Mn) -310% (Rs.9,536Mn) -880% Normalized PAT (Rs.579Mn) (Rs. 1,905Mn) 256% 56%
Slide 15: DTV – P&L Highlights
DTV – P&L Highlights QoQ YoY Q2’09 1H 09 change change Revenue Rs.409Mn 12% Rs.775Mn 35% EBITDA (Rs.81Mn) 48% (Rs.240Mn) 2% PAT (Rs.226Mn) (Rs.529Mn) 52% 25% Pay TV Subscribers 136,384 5% YOY Change 34,091 33%
Slide 16: DBN – P&L Highlights
DBN – P&L Highlights QoQ YoY Q2’09 1H 09 change change Revenue Rs.556Mn 1% Rs.1,108Mn 6% EBITDA (Rs.274Mn) -128% (Rs.394Mn) -509% Normalized EBITDA (Rs.17Mn) 83% (Rs.117Mn) 222% PAT (Rs.591Mn) -35% (Rs.1,028Mn) -84% Normalized PAT (Rs.334Mn) 20% (Rs. 751Mn) 35% CDMA & Broadband 181,985 1% YOY Change
Slide 17: Modernization – Rationale
Modernization – Rationale NGNs provide the company with the opportunity to de-scale operating costs by a significant margin, while also reducing future capital expenditure and carrying values of core network assets due to the over 80% reduction in per-subscriber core network capital costs. 9positive
Slide 18: Modernization – Competitive advantages of NGN technology
Modernization – Competitive advantages of NGN technology Capacity Capacity & & Density Density Many Many Generations Generations – – All All in in One One Solution Solution LEGACY •Not Scalable •Technology silo’s Legacy NGN •Higher time to market for •High space •Less space new services GSM 3G •Low
Slide 19: Thank You
Thank You Dialog