Dialog Axiata PLC · CSELK:DIAL.N0000
Dialog Axiata — Q3 2009 Earnings Presentation
24 slides from Dialog Axiata's earnings presentation, 2009
Slide 1: Investor Forum Q3 2009
Investor Forum Q3 2009 .......... Enriching Sri Lankan Lives an axiata company
Slide 2: Performance Trend
Performance Trend QoQ Performance Overview* Dialog Telekom Revenue 2% EBITDA 11% NPAT 7,500% PLC (Company) Dialog Broadband Revenue (1%) EBITDA (725%) NPAT (23%) Networks (DBN) Dialog Television Revenue 0% EBITDA 57% NPAT 36% (DTV) Dialog Group Revenue 2% EBITDA 10% NPAT 66% *Normalised Performance
Slide 3: Dialog Telekom PLC – Company
Dialog Telekom PLC — Company Dialog
Slide 4: Dialog Telekom PLC – P&L Highlights
Dialog Telekom PLC – P&L Highlights 9 Revenue grew by 2% QoQ & 5% relative to Q1 2009 9 Normalised EBITDA improved by 11% QoQ and 27% relative to Q1 2009 QoQ Q3’09 Vs. YTD (All figures in LKR Mn.) Q3’09 change Q1’09 9M 09 change Revenue 8,125 2% 5% 23,803 -5% Normalized Total Cost* 5,771 -1% -4% 17,
Slide 5: PAT Reconciliation Q2 '09 to Q3 '09
PAT Reconciliation Q2 ‘09 to Q3 ‘09 Operational Improvement
Slide 6: Revenue Drivers & Dynamics
Revenue Drivers & Dynamics Blended MoUs & Revenue per Minute Pre : Post mix 88% 12% Prepaid Postpaid No of Subscribers & Net additions
Slide 7: Direct Costs: Increase Commensurate with Revenue Growth
Direct Costs: Increase Commensurate with Revenue Growth Direct Cost Composition* Direct Costs* - Q3’09 vs. Q2’09 2% 9 Direct Costs Commensurate with Revenue Expansion 9 Levies – a significant component of Direct Cost Network related cost (Rs.80Mn) 4% • International origination cost increased by 8%
Slide 8: Operating Costs: Drops in the wake of strategic cost rescaling activities
Operating Costs: Drops in the wake of strategic cost rescaling activities Operating Cost Composition* Operating Costs* - Q3 09 vs. Q2 09 5% Energy related Facilities & Expenses Incidentals Selling Expenses (Rs.10Mn) 1% • Increase in advertising expenses Manpower Expenses (Rs.32Mn) 5% • Manpower savi
Slide 9: 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. 1,005 Mn. in Q3 ‘09 (All figures in Rs. Mn.) Q3 09 Q2 09 Change % MSL 654 647 1% ECL 115 113 2% VGF 671 615 9% VAT 110 99 11% NBT 214 153 40% TRC Frequency fees 309 308 0% Others 55 46 20% To
Slide 10: EBITDA, PAT & Margins
EBITDA, PAT & Margins EBITDA normalised for Non recurring Items at Rs. 2.3Bn Normalised PAT improved significantly • growth of 11% Vs. Q2 09 • PAT – Rs. 370Mn in Q3 09 vs. negative Rs. 5Mn in Q2 09 EBITDA margin 29% • up 2% pts Vs Q2 09 (Norm) EBITDA (Rs. Mn.) PAT (Rs. Mn.) 2,355 2,318 2,275 2,118 1
Slide 11: Balance Sheet – Dialog Telekom
Balance Sheet – Dialog Telekom (All figures in Rs. ‘000) 30th th September 31st st December 2009 2008 ASSETS Non current liabilities have increased Non - current assets 66,681,550 69,677,390 due to term loan of USD 100Mn. obtained from OCBC in March ’09 and Current assets 9,899,937 10,499,687 recl
Slide 12: Cash Flow Highlights - Dialog Telekom
Cash Flow Highlights - Dialog Telekom 30-September 30-September (All figures in Rs. Mn.) 2009 2008 Net cash from operating activities 9,043 3,735 • Operating Cash Flows Net cash used in investing activities (9,172) (17,591) increased two-fold Net cash generated from compared to first 9 1,427 8,056 m
Slide 13: Capital Structure & Related KPIs
Capital Structure & Related KPIs • 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 mainly due to a one-off provision of Rs. 6 Bn for impairment arising on account of net
Slide 14: Funding Position
Funding Position Summary of Outstanding Borrowings - As at 30 September 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 8.72 6.97 1.74 5.23 SCB Loan Facility L
Slide 15: Dialog Group
Dialog Group Dialog
Slide 16: Dialog Group – P&L Highlights
Dialog Group – P&L Highlights 9 Normalised Group costs dropped by 1% QoQ & 4% relative to Q1 2009 9 Normalised EBITDA & PAT improved by 10% & 66% respectively on a QoQ basis QoQ Q3’09 Vs. YTD (All figures in LKR Mn.) Q3’09 9M 09 change Q1’09 change Revenue 8,945 2% 6% 26,200 -5% Normalized Total Cos
Slide 17: Dialog Group PAT Reconciliation Q2 '09 to Q3 '09
Dialog Group PAT Reconciliation Q2 ‘09 to Q3 ‘09 Operational Improvement * Incl. a non-recurring charge of Rs. 220Mn. for DBN on account of the impairment of equipment to be fully decommissioned by the end of 2009
Slide 18: Dialog Broadband Networks (DBN)
Dialog Broadband Networks (DBN) (Fixed Telephony and Broadband Services)
Slide 19: DBN – P&L Highlights
DBN – P&L Highlights 9 Revenue excl. connection fee increased by 29% YTD vs 9M 08 9 DBN’s Q3 2009 performance incl. a non-recurring charge of Rs. 220 Mn. on account of the impairment of equipment to be fully decommissioned by the end of 2009 QoQ Q3’09 Vs. YTD (All figures in LKR Mn.) Q3’09 change Q1
Slide 20: DBN – Revenue Trends
DBN – Revenue Trends 9 CDMA & Broadband subscribers up 42% YoY 9 Broadband & ISP revenue and CDMA usage & rental revenue increased by 62% & 35% respectively YoY 9 Revenue drop of 5% YoY due to the reduction in Connection Fee Revenue resulting from focused subscriber acquisition strategy CDMA & Broad
Slide 21: Dialog Television (DTV)
Dialog Television (DTV) Dialog
Slide 22: DTV – P&L Highlights
DTV – P&L Highlights 9 DTV Revenue increased by 28% YTD vs. 9M 08 9 Normalised EBITDA & PAT improved by 57% & 36% respectively on a QoQ basis QoQ Q3’09 Vs. YTD (All figures in LKR Mn.) Q3’09 9M’09 change Q1’09 change Revenue 408 0% 11% 1,183 28% EBITDA 0.8 101% 101% (240) 36% Normalized EBITDA (35)
Slide 23: DTV – Revenue Trend
DTV – Revenue Trend 9 DTV Revenue grew by 17% YoY 9 Pay TV Subscribers grew by 3% on a QoQ basis and 20% on a YoY basis Revenue LKR Mn. Subscribers ’000 17% 20% 3% 409 408 136 141 130 123 118 366 360 350 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09
Slide 24: Thank You
Thank You Dialog