Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Q4 FY2019 Earnings Presentation
27 slides from Singapore Telecommunications's earnings presentation, May 15, 2019
Slide 1: Q4FY19 Financial Results Presentation
Q4FY19 Financial Results Presentation For the quarter and financial year ended 31 Mar 2019 Chua Sock Koong, Group CEO 15 May 2019
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 Overview Business Units Outlook Supplementary Information
Slide 4: FY19 Full Year highlights
FY19 Full Year highlights Gained market share in core businesses amid heightened competition Competition in India & Indonesia impacted earnings, although markets are stabilising Executed to strategy: › Digitalisation of the core drove productivity, cost savings & better customer engagement › Investe
Slide 5: FY19: Performance met guidance
FY19: Performance met guidance Guidance1,2 Actual2 Revenue Grow by low single digit ▲3.7% EBITDA Decline by low single digit ▼3.9% Free Cash Flow (excluding spectrum payments & dividends from associates) ~ S$1.9b S$2.3b Cash Capital Expenditure ~ S$2.2b S$1.7b Dividends from Regional Associa
Slide 6: Strong revenue performance in Consumer & Digital
Strong revenue performance in Consumer & Digital Underlying earnings impacted by AUD weakness & Airtel % change Q4FY19 % change (constant (S$M) (reported) currency)1 › Growth in equipment sales, ICT and digital services2 offset carriage erosion Revenue 4,342 2% 6% › Strong postpaid momentum in Austr
Slide 7: Key Financials
Key Financials Quarter Financial Year (S$M) Mar 19 Mar 18 YoY % Mar 19 Mar 18 YoY % Operating revenue 4,342 4,262 2% 17,372 17,268 1% EBITDA 1,166 1,230 (5%) 4,692 5,051 (7%) - margin 26.9% 28.9% 27.0% 29.2% Associates pre-tax earnings1 419 519 (19%) 1,536 2,454 (37%) EBITDA & share of associates’ 1
Slide 8: Foreign Exchange Movements
Foreign Exchange Movements Quarter Mar 19 Financial Year Mar 19 Exchange Increase/ (decrease) Exchange Increase/ (decrease) Currency against S$ rate1 against S$ rate1 YoY QoQ YoY 2 1 AUD 0.9650 (6.9%) (2.2%) 0.9898 (5.6%) 3 1 USD 1.3546 3.6% (1.3%) 1.3580 0.1% IDR 10,417 (1.0%) 3.1% 10,526 (6.3%) IN
Slide 9: Solid Financial Position
Solid Financial Position Free Cash Flow S$3,650m Balance Sheet ▲ 1% S$m 3,606 3,650 Net debt1 S$9.9b 1,126 1,242 Singapore Net debt gearing2 24.9% ▲ S$116m Net debt: EBITDA & 1.6x share of associates’ pre-tax profits 989 Australia 1,006 ▲ S$17m Credit Ratings: A+ S&P A1 Moody’s Associates’ dividends
Slide 10: Dividend payout
Dividend payout Maintaining ordinary dividend Dividend for the last 3 years FY19: 20.5 Proposed final dividend : 10.7 cents 3.0 (Payable in Aug 2019) 17.5 17.5 Singapore cents per share Interim dividend : 6.8 cents (Paid in Jan 2019) 10.7 10.7 10.7 Total dividend : 17.5 cents 6.8 6.8 6.8 % of underl
Slide 11: Group Q4FY19 Highlights
Group Q4FY19 Highlights Group Consumer › SG/AU : World’s first cross border 5G video call › SG: Launched GOMO, digital-only mobile service › SG: Partnerships for customer lifestyles needs › AU: Optus co-produced “Only in Oz” series with National Geographic Group Enterprise › New partnerships with Mi
Slide 12: Agenda
Agenda Overview Business Units Outlook Supplementary Information
Slide 13: Singapore Consumer
Singapore Consumer ▲ 1% S$m 535 541 Mobile revenue (incl equipment sales) up 4% Mobile › Higher equipment sales with increased connections service › Lower mobile service revenue 254 249 EBITDA › Lower prepaid voice usage ▲ 4% margin › Mitigated by higher postpaid revenues from data & Mobile Revenue
Slide 14: Australia Consumer
Australia Consumer ▲ 10% 1,964 A$m 1,780 Mobile revenue (incl equipment sales) up 10% › Equipment sales up 25% on higher take-up of Mobile Service premium handsets 912 › Stable service revenue 910 ▲ 10% EBITDA Mobile customers Mobile Revenue margin2 › Postpaid handset up 121k QoQ3 Equipment 35.7% 35
Slide 15: Regional Associates
Regional Associates PBT1 % Change % Change Q4FY19 Business Highlights (S$m) (S$) (local ccy) Regional Associates 389 (20%) N.M. › Investment in network & spectrum Telkomsel 296 2% 4% › Market recovery post SIM-card registration exercise Airtel2 (134) N.M. N.M. › Rights issue to strengthen Airtel’s b
Slide 16: Group Enterprise
Group Enterprise S$m ▼ 3% Cyber Security Revenue1 1,677 1,632 S$m ▲ 11% 160 144 144 160 141 MST▲14% 124 ▲ 4% 666 ICT 679 20 19 PCI▼6% Q4FY18 Q4FY19 EBITDA margin 26.8% 23.2% ▼ 16% 449 867 ▼ 9% 793 Carriage 379 Q4FY18 Q4FY19 Q4FY18 Q4FY19 Revenue EBITDA 1. Comprises Managed Security & Technology serv
Slide 17: Group Digital Life
Group Digital Life Group Digital Life1 Amobee S$m ▲ 33% › Strategic collaboration 274 205 ▲ 33% 259 Amobee2 Innov8 196 › New investments 15 Others3 0.1 9 4 -22 -18 Q4FY18 Q4FY19 Q4FY18 Q4FY19 Revenue EBITDA 1. Includes contributions from Videology since end August 2018. 2. Excluding Videology, Amobe
Slide 18: Agenda
Agenda Overview Business Units Outlook Supplementary Information
Slide 19: Outlook
Outlook1 › Revenue3 to grow by mid single digit › EBITDA3 to be stable › Capital expenditure to be ~S$2.2b Group2 › Free cash flow, excluding spectrum payments and dividends from associates, to be ~S$2.1b › Dividends from regional associates to be ~S$1.2b › ICT services revenue to grow by low single
Slide 20: Agenda
Agenda Overview Business Units Outlook Supplementary Information
Slide 21: Singapore Mobile
Singapore Mobile Mobile revenue S$614m 4G customers up 53k QoQ 3,154k Revenue Mobile customers (S$m) (m) › 75% penetration 696 614 Average quarterly smartphone data usage 4.7Gb 607 609 591 › Up from 3.9Gb in Mar 2018 quarter › Up from 4.5Gb in Dec 2018 quarter 421 411 410 409 390 Postpaid ARPU down
Slide 22: Singapore Fixed
Singapore Fixed Consumer fixed revenue1 S$139m Consumer fixed Customers revenue (S$m)1 (‘000) Singtel TV revenues S$55m 160 158 › Down 3% 2 143 144 2 142 140 139 Singtel TV ARPU S$41 › Up 1% Residential fixed broadband revenues $59m › Up 1% Singtel Fibre broadband customers 629k › Up 5k QoQ 513 515
Slide 23: Australia Mobile
Australia Mobile Mobile revenue A$1,506m Revenue Mobile customers 4G customers1 up 146k QoQ 6,703k (A$m) (m) › 65% penetration $1,652 Postpaid $1,506 › Handset ARPU A$42 $1,386 $1,422 $1,383 - down 3% $959 $963 $943 $942 $956 › Churn 1.5% - stable YoY and up 0.1ppt QoQ Prepaid 5.30 5.34 5.43 5.56 5.
Slide 24: Australia Fixed
Australia Fixed Mass market revenue $392m Mass market revenue Customers On-net BB ARPU A$55 (A$m) (‘000) $392 › down 1% $355 $340 $336 NBN BB Customers 590k $329 › up 50k QoQ $312 $315 $313 $311 $299 TV Customers 410k 1,245 1,249 1,257 1,247 1,238 56 49 47 44 40 › down 103k QoQ1 453 483 516 540 590
Slide 25: Cost savings of S$541m in FY19
Cost savings of S$541m in FY19 Cost savings Customer experience 541 › Increase adoption of self-service channels › Integrate online & offline sales channels › Optimise customer acquisition costs 198 › Rationalise content portfolio Network & operations 154 › Headcount optimisation › Leverage Group sc
Slide 26: Trends In Constant Currency Terms
Trends In Constant Currency Terms1 Q4FY19 YoY % change YoY % change Quarter Mar 2019 (reported S$m) (reported S$) (at constant FX)1 Group revenue 4,342 1.9% 5.5% Group reported NPAT 773 0.4% 2.2% Group underlying NPAT 697 (15.0%) (13.9%) Optus revenue 2,222 (0.3%) 7.1% Regional Associates 389 (20.4%
Slide 27: 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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