Dialog Axiata Plc · CSELK:DIAL.N0000
Dialog Axiata — Q1 2020 Earnings Presentation
14 slides from Dialog Axiata's earnings presentation, 2020
Slide 1: Dialog Axiata PLC Q1 2020 Results
Dialog Axiata PLC Sri Lanka's Premier Connectivity Provider Q1 2020 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 COMPANY CONFIDENTIAL I DIALOG AXIATA PLC I 2 2
Slide 3: Dialog Group Performance Highlights – Q1 2020
DIALOG GROUP PERFORMANCE HIGHLIGHTS – Q1 2020 Stable Performance During the Quarter; PAT Impacted by Forex Losses Capex Investments Directed to All Key Business Segments Aggressive Subscriber Fulfil Growing Demand for Delivered Strong Growth QoQ YoY Data and Digitisation Initiatives Performance Reve
Slide 4: Group Financial Summary
GROUP FINANCIAL SUMMARY Rs Mn 1Q 20 QoQ YoY Revenue 29,500 -1% +1% EBITDA 12,164 +4% +1% PAT 1,489 -39% -69% EBITDA Margin 41.6% +2.3pp 0.0pp PAT Margin 5.1% -3.1pp -11.7pp ROIC 12.3% +0.6pp -3.0pp Normalised for Forex PAT 1 3,087 +31% -13% 1 2 Covid-19 induce lockdown situation Non-cash translation
Slide 5: Group Revenue Continues YoY Growth Trajectory
GROUP REVENUE CONTINUES YOY GROWTH TRAJECTORY Positive Revenue Performance YoY; Revenue Marginally Declined QoQ +1% -1% 29,665 29,250 30, 000 29, 000 28,994 28, 000 27, 000 26, 000 25, 000 24, 000 23, 000 22, 000 21, 000 20, 000 Q1 19 Q4 19 Q1 20 Mobile Revenue recorded growth of 2% YoY whilst QoQ g
Slide 6: Group Profitability Improvement Supported by Strong Cost Focus
GROUP PROFITABILITY IMPROVEMENT SUPPORTED BY STRONG COST FOCUS WHILE FOREX MOVEMENT ADVERSELY IMPACTED Q1 20 PAT EBITDA Expand YoY and QoQ Underpinned by Strong Cost Norm. for forex Q1 20 PAT Expand on QoQ basis Albeit Declining Optimisation Initiatives YoY Due to Increased Depreciation and Transact
Slide 7: Total Cost to Revenue Ratio Decreased 2.2pp QoQ in Q1 20
TOTAL COST TO REVENUE RATIO DECREASED 2.2PP QoQ IN Q1 20; TOTAL COST SAVINGS OF RS0.7BN IN Q1 20 FROM COST RESCALING INITIATIVES Q1 20 As % of Q4 19 As % of Q1 19 As % of QoQ YoY revenue revenue revenue Total Cost Rs17,108Mn 58.5% Rs18,008Mn 60.7% Rs16,945Mn -2.2pp +0.1pp 58.4% Direct Expenses 26.1%
Slide 8: Focused Capex Investments to Support Digitisation and Capacity Upgrades
FOCUSED CAPEX INVESTMENTS TO SUPPORT DIGITISATION AND MOBILE/FIXED BROADBAND CAPACITY UPGRADES Network Rollout Impacted due to Covid-19 Situation; Capex Intensity at 7% in Q1 20 OFCF Increased to 9.0Bn for the Quarter Capex Investments Directed Towards Digitising and Expanding Data Network; Mobile 4
Slide 9: Group's Net Debt to EBITDA Remained Healthy at 0.81x
GROUP’S NET DEBT TO EBITDA REMAINED HEALTHY AT 0.81X (Rs Mn) 31 Mar 20 31 Mar 19 31 Dec 19 Gross Debt 45,052 1 44,542 44,876 Net Debt 39,425 39,383 39,986 Cash and Cash Equivalents 5,628 5,159 4,890 Gross Debt / Equity (x) 0.59 0.62 0.60 Gross Debt/ EBITDA (x) 0.93 0.92 0.96 Net Debt/ EBITDA (x) 0.8
Slide 10: Dialog Axiata Group Performance
Dialog Axiata Group Performance Dialog Axiata PLC - Company Performance Subsidiary Performance – Dialog Broadband and Dialog TV 10
Slide 11: Dialog Axiata PLC (Company): Profitability Stable to Positive
DIALOG AXIATA PLC (COMPANY) : DIALOG PROFITABILITY STABLE TO POSITIVE ON YOY AND QOQ BASIS DESPITE FOREX IMPACT; ARPU RECORDS MARGINAL GROWTH QOQ Revenue Decline due to Challenges on Core Revenue Significant Improvement in MOUs (post re-statement); ARPU stable Owing to Growth in Data Revenues Off-Se
Slide 12: Dialog Axiata Group Performance
Dialog Axiata Group Performance Dialog Axiata PLC - Company Performance Subsidiary Performance – Dialog Broadband and Dialog TV 12
Slide 13: Dialog Television
DIALOG TELEVISION Continues to Capture Market Share while Strong Cost Focus Helping Profitability; Forex Losses Impacting PAT Subscriber Growth led by Prepaid and Postpaid with Improved Churn Strong Subscriber Growth Driving Overall YoY Top Line Management Drives Performance; QoQ Revenue Remained St
Slide 14: Dialog Broadband Networks – Fixed Business
DIALOG BROADBAND NETWORKS – FIXED BUSINESS Fixed Business Continuing to Deliver Positive EBITDA and PAT Strong Revenue Growth YoY Supported by Int. Business Revenues; Positive EBITDA Performance on YoY and QoQ Basis; YoY PAT Fixed Revenue up 2% QoQ Impacted by Higher Depreciation and Finance Cost +1