Maxis Bhd. · MYX:MAXIS
Maxis Bhd — Q3 2011 Earnings Presentation
19 slides from Maxis Bhd's earnings presentation, Nov 30, 2011
Slide 1: Maxis Berhad 3Q 2011 Results
MAXIS BERHAD 3Q 2011 RESULTS NOVEMBER 30, 2011
Slide 2: 3Q Performance
3Q PERFORMANCE Strong start to the second half of the year Solid financial performance +4.0% QoQ revenue growth EBITDA at RM1.1b EBITDA margin of 50.0% PATAMI at RM537m Mobile non-voice revenue contribution of 44.0%, driven by +7.6% QoQ revenue growth +8.3% QoQ broadband revenue growth Market leader
Slide 3: 3Q Results
3Q RESULTS Solid revenue growth and financials RM million Growth Growth 2Q11 3Q11 YTD10 YTD11 QoQ YoY Comparable Revenue* 2,128 2,211 +3.9% 6,262 6,424 +2.6% Revenue 2,158 2,244 +4.0% 6,559 6,535 -0.4% EBITDA 1,106 1,123 +1.5% 3,248 3,319 +2.2% EBITDA Margin 51.3% 50.0% -1.3pp 49.5% 50.8% +1.3pp PAT
Slide 4: Revenue
REVENUE All-round improvement in revenue Comparable Revenue (RM mn) +4.8% +3.9% +2.6% 6,424 2,211 6,262 2,202 2,110 2,085 2,128 Solid quarterly revenue momentum driven by mobile internet, SMS and WBB Reversal in declining mobile 3Q 10 4Q 10 1Q 11 2Q11 3Q11 YTD10 YTD11 voice revenue trend Reported Re
Slide 5: Mobile Subscriptions
MOBILE SUBSCRIPTIONS Continued focus on real revenue generating subscriptions Mobile Subscriptions (‘000) Hotlink (Prepaid) Old New Maxis (Postpaid and WBB) definition definition 14,114 14,112 14,225 12,743 12,756 12,692 Prepaid: Decline in revenue generating subscription base, but QoQ ARPU up 10,79
Slide 6: ARPU & MOU
ARPU & MOU Focus on quality subscriptions yielding desired results - higher ARPU ARPU (RM/month) New New Postpaid Prepaid WBB Blended definition definition 108 108 110 108 101 105 102 70 69 64 61 63 63 62 Postpaid: Non-voice components 54 49 49 49 51 51 51 continue to boost ARPU, driven by 35 34 34
Slide 7: Non-Voice Revenue
NON-VOICE REVENUE 44% of mobile revenue; 8% QoQ growth Non Voice Revenue (RM mn) +18% +8% +8% QoQ non-voice revenue growth +19% on the back of increased mobile 42.7% 44.0% 42.9% internet and higher WBB revenue 41.5% 42.1% 39.2% 36.9% 952 2,694 Growing smartphone penetration 893 885 857 2,260 and enh
Slide 8: Wireless Broadband
WIRELESS BROADBAND Strong revenue momentum on the back of higher subs base WBB Subscription & ARPU New WBB Revenue (RM mn) definition 70 64 63 63 +24% 61 +51% +8% +9% 681 367 131 625 602 121 594 115 111 524 106 243 3Q 10 4Q 10 1Q 11 2Q11 3Q11 3Q 10 4Q 10 1Q 11 2Q11 3Q11 YTD 10 YTD 11 WBB ARPU (RM) W
Slide 9: Investing in Future Revenue - Network
INVESTING IN FUTURE REVENUE - NETWORK Capex (RM mn) Network population coverage 2G: 95% (>7,200 sites) 931 3G: 81% (>5,000 sites) 513 489 Continued deployment of 3G on 707 900MHz providing better indoor coverage; >1,000 sites deployed to date 257 225 225 Accelerating returns on network investment: S
Slide 10: Network Sharing and Alliance Agreement with U Mobile
NETWORK SHARING AND ALLIANCE AGREEMENT WITH U MOBILE Accelerating returns on network investments First active 3G RAN sharing arrangement to be deployed in Malaysia Also encompasses LTE sharing upon spectrum becoming available and when technology is roll out Salient terms of the agreement includes: M
Slide 11: EBITDA
EBITDA Market leading margin of 50% EBITDA (RM mn) -1.3% +2.2% EBITDA Margin EBITDA +1.5% 50.8% EBITDA margin maintained at 50% 49.5% on higher revenue, supported by 51.4% 50.6% 51.1% 51.3% 50.0% 3,248 3,319 disciplined control on expenses 1,138 1,168 Higher sales & marketing spend* on 1,106 1,123 1
Slide 12: PAT & PATAMI
PAT & PATAMI PAT (RM mn) -10.5% -3.3% -2.5% 25.7% 24.9% 27.1% 26.4% 1,685 25.3% 25.6% 1,630 24.0% 601 610 540 552 538 YoY PAT margin remains healthy despite effects of 3Q 10 4Q 10 1Q 11 2Q11 3Q11 YTD10 YTD11 increased gearing towards an optimal capital structure PATAMI (RM mn) -10.6% -3.4% -2.5% 1,6
Slide 13: Cash Flows
CASH FLOWS Continue to generate strong cash flows RM mn RM mn 1Q 11 2Q11 3Q11 YTD11 Gearing Level 2Q11 3Q11 Debt # 6,171 6,368 Cash flow from operating activities 903 871 961 2,735 Changes in working capital (116) (179) - (295) Cash 1,487 916 Cash flow used in investing activities (284) (254) (256)
Slide 14: Home Services
HOME SERVICES Home services campaign launched after successful trials Content and platform for multi-screen delivery being developed Content can be viewed on both fixed and mobile devices Exciting range of content and applications with interactive features Offerings will include Life Services such a
Slide 15: Conclusion
CONCLUSION All round market leadership Strong operating fundamentals Strategy on internet and future revenue yielding results Continued focus on cash flows Dividend promise delivered 15
Slide 16: Disclaimer
Maxis Berhad DISCLAIMER This presentation by Maxis Berhad (“Maxis”) contains forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”,
Slide 17: Appendices
APPENDICES SJ maxis. 17
Slide 18: Consolidated Income Statement
Consolidated Income Statement RM mn 2Q11 3Q11 QoQ chg YTD10 YTD11 YoY chg REVENUE 2,158 2,244 +4.0% 6,559 6,535 -0.4% Direct Expenses (650) (707) (2,179) (2,046) Indirect Expenses (401) (414) (1,133) (1,170) Total Opex (1,051) (1,121) (3,312) (3,216) EBITDA 1,106 1,123 +1.5% 3,248 3,319 +2.2% Margin
Slide 19: Revenue Breakdown
Revenue Breakdown RM mn 3Q10 4Q10 1Q11 2Q11 3Q11 Mobile 2,063 2,152 2,038 2,075 2,163 Fixed 43 46 43 48 44 Home 4 4 4 5 4 Comparable Revenue 2,110 2,202 2,085 2,128 2,211 International Gateway Services 106 108 48 30 33 Reported Revenue 2,216 2,310 2,133 2,158 2,244 19