Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Q3 FY2016 Earnings Presentation
22 slides from Singapore Telecommunications's earnings presentation, Feb 12, 2016
Slide 1: Financial Results Presentation Q3 FY16
Financial Results Presentation Q3 FY16: Quarter ended 31 December 2015 12 February 2016 • Chua Sock Koong, Group CEO
Slide 2: Forward looking statement – important note
Forward looking statement – important note The following presentation contains forward looking statements by the management of Singapore Telecommunications Limited ("Singtel"), relating to financial trends for future periods, compared to the results for previous periods. Some of the statements conta
Slide 3: Agenda
Agenda 01 • Overview 02 • Business Units 03 • Supplementary Information
Slide 4: Q3FY16: Strong business performance offsets currency headwinds
Q3FY16: Strong business performance offsets currency headwinds % change % change Q3FY16 (constant Highlights (reported) currency)1 Operating revenue › Growth in mobile data, ICT & digital services S$4,474m +1% +6% › First full quarter contribution from Trustwave › Continued growth momentum in Austra
Slide 5: Foreign exchange movements
Foreign exchange movements Quarter ended 9 months ended 31 December 2015 31 December 2015 Increase/ Exchange Increase/ (decrease) Exchange Currency (decrease) rate1 against S$ rate1 against S$ YoY QoQ YoY 2 1 AUD 1.0138 (8.4%) 0.5% 1.0222 (10.6%) IDR 9,804 (3.9%) 2.0% 9,875 (5.2%) INR 46.7 2.3% - 46
Slide 6: Group Q3FY16 highlights
Group Q3FY16 highlights Group › SG: Widest 4G coverage at 99.8%1 Consumer › SG: Launched Singtel Circle to reward customers with bundled services2 › AU: Secured 1800MHz regional spectrum Group › Leverage Trustwave to form strategic cyber Enterprise security partnerships with global carriers › Signif
Slide 7: 9MFY16: Net profit increased 3%
9MFY16: Net profit increased 3% 3 months to 9 months to Dec 15 Dec 14 YoY % Dec 15 Dec 14 YoY % Operating revenue 4,474 4,427 1.1% 12,867 12,884 (0.1%) EBITDA 1,220 1,229 (0.7%) 3,751 3,817 (1.7%) - margin 27.3% 27.8% 29.2% 29.6% Associates pre-tax earnings1 698 683 2.2% 2,048 1,960 4.5% EBITDA & sh
Slide 8: Solid financial position
Solid financial position Free cash flow $2,036m Balance sheet Working capital -21% movements Net debt1 S$8.9b 2,585 Net debt gearing2 26.6% Group free cash flow (S$m) 951 2,036 Net debt: EBITDA & share of 1.2x Singapore 616 › Down S$336m associates’ pre-tax profits3 642 Australia 263 › Down S$379m E
Slide 9: Agenda
Agenda 01 • Overview 02 • Business Units 03 • Supplementary Information
Slide 10: Group Consumer: EBITDA growth across Singapore & Australia
Group Consumer: EBITDA growth across Singapore & Australia Consumer Singapore S$m -4% S$m -3% 659 635 2,770 2,677 +9% 174 28.7% 29.3% EBITDA 160 margin -1% Q3FY15 Q3FY16 Q3FY15 Q3FY16 796 785 Revenue EBITDA Australia +6% A$m 2,015 1,907 Q3FY15 Q3FY16 Q3FY15 Q3FY16 Revenue EBITDA › Singapore: Softer
Slide 11: Singapore Consumer: Cautious consumer sentiments impacted revenues
Singapore Consumer: Cautious consumer sentiments impacted revenues Singapore Consumer Consumer Home Revenue S$m Customers ‘000 Revenue S$m 659 -4% Stable 635 $131 $131 328 330 Mobile Comms 492 498 127 133 133 Fixed 1 Q3FY15 Q3FY16 122 Customers on triple/quad play services 2 107 Sale of equipment Re
Slide 12: Australia Consumer: Growth in mobile and fixed
Australia Consumer: Growth in mobile and fixed Australia Consumer Mobile handset customer growth 41k Revenue › Postpaid handset customers down 21k; up 93k A$m +6% 2,015 1,907 excluding wholesale deactivations 467 › Prepaid handset customers up 61k 450 Fixed1 Outgoing mobile service revenue up 3% 371
Slide 13: Regional Mobile Associates
Regional Mobile Associates PBT1 % Change % Change Q3FY16 Business Highlights (S$m) (S$) (local ccy) › Strong revenue growth driven by data › Higher depreciation, amortisation & net finance Regional Mobile 647 Stable N.A. costs › Customer base up 3% to 595m Telkomsel 276 +1% +5% › Strong data & voice
Slide 14: Group Enterprise: Higher ICT revenues and growing cyber security services
Group Enterprise: Higher ICT revenues and growing cyber security services Group Enterprise (ex fibre rollout & maintenance) Singapore +10% (+4% ex Trustwave) S$m S$m +8% (+3% ex Trustwave) 1,255 1,677 1,139 1,559 +3% (+3% ex Trustwave) 1,181 EBITDA 414 30.7% 29.2% 401 margin 1,602 411 +2% (+2% ex Tr
Slide 15: Group Digital Life: Driving revenue growth and improving EBITDA
Group Digital Life: Driving revenue growth and improving EBITDA Group Digital Life Amobee S$m +23% 135 › New key customer wins 110 133 Digital marketing 107 Amobee revenue grew 24% HOOQ EBITDA Others1 Q3FY15 Q3FY16 › First to introduce sachet access to Hollywood 3 2 Q3FY15 Q3FY16 & premium local con
Slide 16: Agenda
Agenda 01 • Overview 02 • Business Units 03 • Supplementary Information
Slide 17: Singapore Mobile
Singapore Mobile Mobile Communications revenue up 1% S$536m 4G customers up 122k QoQ 2,205k Mobile revenue Mobile customers (S$m) (m) $533 $531 $536 $530 $518 Tiered data plans › Postpaid customers on tiered plans1 65% › Tiered plans customers who exceed 26% data bundles 2.26 2.27 2.28 2.30 2.32 24k
Slide 18: Singapore Fixed
Singapore Fixed Singtel TV revenue up 3% S$57m Singtel TV ARPU S$39 › Up 1% Singtel TV Revenue Customers (S$m) (‘000) $60 $58 $57 $55 $55 Singtel TV churn 1.3% › Stable Fibre customers1 485k › Up 23k QoQ 420 423 422 423 424 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Residential Singtel TV Customers Singtel
Slide 19: Australia Mobile
Australia Mobile Mobile revenue up 6% A$1,623m 4G customers1 up 314k QoQ 4,445k Mobile revenue Mobile customers (A$m) $1,623 (m) › 47% penetration $1,534 $1,533 $1,544 $1,498 114k Postpaid › Handset ARPU A$61 4.69 26k2 4.56 4.62 4.66 4.71 - down 2% QoQ - up 4% ex-DRP credits › Churn 1.4% 61k - stabl
Slide 20: Australia Fixed
Australia Fixed Mass market revenue up 6% A$304m On-net BB ARPU A$53 Mass market revenue (A$m) Customers (‘000) › Down 2% YoY & stable QoQ $304 $288 $286 $284 $290 1,040 1,046 1,044 1,003 1,023 36 36 35 34 32 NBN BB Customers 88k 36 54 72 88 26 › Up 16k QoQ 520 524 518 506 491 TV Customers 272k › Up
Slide 21: Trends in constant currency terms
Trends in constant currency terms1 Q3FY16 YoY % change YoY % change 3 months to Dec 15 (reported S$m) (reported S$) (at constant FX)1 Group revenue 4,474 1.1% 6.2% Group reported NPAT 954 (1.7%) 1.1% Group underlying NPAT 955 (1.5%) 1.2% Optus revenue 2,467 (2.7%) 6.3% Regional Mobile Associates 647
Slide 22: Disclaimer
Disclaimer: This material that follows is a presentation of general background information about Singtel’s activities current at the date of the presentation. The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to
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