Dialog Axiata PLC · CSELK:DIAL.N0000
Dialog Axiata — Q1 2010 Earnings Presentation
27 slides from Dialog Axiata's earnings presentation, 2010
Slide 1: Investor Forum Q1 2010
Investor Forum Q1 2010 .......... Enriching Sri Lankan Lives an axiata company
Slide 2: Dialog Group
Dialog Group 2 Dialog
Slide 3: Performance Trend – Q1'10 Vs. Q1'09
Performance Trend – Q1’10 Vs. Q1’09 YoY Performance Overview* Dialog Telekom Revenue 13% Subs 15% EBITDA 68% NPAT 313% PLC (Company) Dialog Broadband -11% Revenue 1% Subs 2% EBITDA 55% NPAT Networks (DBN) Dialog Television Revenue 33% Subs 23% EBITDA 116% NPAT 69% (DTV) Dialog Group Revenue 13% EBIT
Slide 4: Performance Trend - Q1'10 Vs. Q4'09
Performance Trend - Q1’10 Vs. Q4’09 QoQ Performance Overview* Dialog Telekom Revenue 3% 2% Subs 6% EBITDA 5% NPAT 5% PLC (Company) Dialog Broadband >-1000% -38% Revenue -1% Subs 1% EBITDA NPAT Networks (DBN) Dialog Television Revenue Subs EBITDA 548% NPAT 6% (DTV) 8% 7% Dialog Group Revenue 3% EBITD
Slide 5: Dialog Group: P&L Highlights Q1'10
Dialog Group: P&L Highlights 9 Q1’10 Group costs declined by 5% relative to Normalised Q1’09 due to drop in operating costs by 13% YoY 9 Q1’10 EBITDA & NPAT improved by 89% & 153% relative to Normalised Q1’09 * Q1 2010 reported performance has been compared against normalised performance in Q1 2009
Slide 6: NPAT Reconciliation Q1'09 to Q1'10
NPAT Reconciliation Q1’09 to Q1’10 Operational Performance 9 Positive Var. (Rs. 396Mn.) in Opex due to costs savings in manpower cost and overhead costs 9 Negative Var. (Rs. 138Mn.) in Depreciation/amortisation due to accelerated depreciation on WiMAX & CDMA CPE in Q4’09 9 Positive Var. (Rs. 604Mn.)
Slide 7: Dialog Group NPAT Reconciliation Q4'09 to Q1'10
Dialog Group NPAT Reconciliation Q4’09 to Q1’10 Operational Performance 9 Negative Var. (Rs. 195Mn.) in Direct costs mainly due to increased termination & origination costs 9 Negative Var. (Rs. 258Mn.) in Depreciation/amortisation due to Group-wide revision of asset useful lives of Telco assets from
Slide 8: Dialog Group – Consolidated Performance Trends
Dialog Group – Consolidated Performance Trends Group EBITDA & NPAT* (Rs. Mn.) EBITDA margin 34% • Up 14% pts Vs Q1’09 (Norm) • EBITDA growth of 89% YoY & 5% Vs. Q4’09 NPAT margin 8% • Up 23% pts Vs Q1’09 (Norm) Group Financial Summary (Rs. Mn.) Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 EBITDA** (Reported) 1,218
Slide 9: Dialog Telekom PLC – Company
Dialog Telekom PLC – Company 9
Slide 10: Dialog Telekom PLC: P&L Highlights
Dialog Telekom PLC: P&L Highlights 9 Revenue grew by 15% YoY & 3% relative to Q4‘09 9 Q1’10 EBITDA & NPAT improved by 68% & 313% relative to Normalised Q1’09 * Q1 2010 reported performance has been compared against normalised performance in Q1 2009 & Q4 2009 (All figures in Rs. Mn.) QoQ YoY Q1’10 Q4
Slide 11: NPAT Reconciliation Q1'09 to Q1'10
NPAT Reconciliation Q1’09 to Q1’10 Operational Performance 9 Negative Var. (Rs. 113Mn.) in Direct costs mainly due to increased termination & origination costs 9 Positive Var. (Rs. 365Mn.) in Opex due to costs savings in manpower cost and overhead costs 9 Positive Var. in Non Opex due to; 9 Forex ga
Slide 12: NPAT Reconciliation Q4'09 to Q1'10
NPAT Reconciliation Q4’09 to Q1’10 Operational Performance 9 Negative Var. (Rs. 181Mn.) in Direct costs mainly due to increased termination & origination costs 9 Negative Var. (Rs. 133Mn.) in Depreciation/amortisation due to revision of asset useful lives of Telco assets from Q4 ’09 onwards Non Recu
Slide 13: Revenue Drivers & Dynamics: Net Subscriber Additions
Revenue Drivers & Dynamics Pre : Post mix 89% 11% Blended MoUs & Revenue per Minute Pre-paid Post-paid No of Subscribers & Net additions 800 7.0 6.74 6.5 Net Subscriber additions'000 No of subscribers - Mns. 600 6.37 6.33 6.0 5.99 5.85 400 5.5 5.0 200 337 336 365 4.5 146 0 44 4.0 1Q 09 2Q 09 3Q 09 4
Slide 14: Termination and Origination costs on International Traffic drives up Total costs
Termination and Origination costs on International Traffic drives up Total costs Direct Cost lines Total Costs* relative to Q4’09 2% Network Costs 3% 9 Drop in BTS site expenses, Link satellite cost & site sharing costs Customer Related Costs (Rs. 41Mn) 16% 9 decrease in cost of phones & accessories
Slide 15: Cost Re-scaling has resulted in significant improvement in margins in Q1'10
Cost Re-scaling on the backdrop of aggressive marketing has resulted in significant improvement in margins in Q1’10 EBITDA Margin Movement Q1’09 to Q1’10 ‐ EBITDA margin impact (%) + EBITDA margin impact (%) Drop in BTS site expenses, Link satellite cost & site sharing costs Increase in VGF cost in
Slide 16: Dialog Company – Performance Trends
Dialog Company – Performance Trends DT Company EBITDA & NPAT* (Rs. Mn.) EBITDA margin 37% • Up 12% pts Vs Q1’09 (Norm) • EBITDA growth of 68% YoY & 5% Vs. Q4’09 NPAT margin 14% • Up 22% pts Vs Q1’09 (Norm) DT Company Financial Summary (Rs. Mn.) Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 EBITDA (Reported)** 1,463
Slide 17: Balance Sheet – Dialog Telekom
Balance Sheet – Dialog Telekom (All figures in Rs. ‘000) 31st March 31st December 2010 2009 ASSETS Current liabilities have Non - current assets 66,235,767 65,766,982 decreased as at end 31 March Current assets 10,949,371 12,424,057 2010 mainly due to repayment Total assets 77,185,138 78,191,039 o
Slide 18: Cash Flow Highlights - Company
Cash Flow Highlights - Company (All figures in Rs. Mn.) 31st March 31st March 2010 2009 Net cash from operating activities 2,865 2,924 Net cash used in investing activities (2,234) (2,686) Net cash (used in)/ generated from financing activities (1,404) 13,235 Increase/(decrease) in cash and cash equ
Slide 19: Capital Structure
Capital Structure • Net debt/EBITDA has decreased mainly due to improved performance in Q1’10 • Reduction in Net Asset base is mainly due to a one-off provision of Rs. 6Bn. for impairment arising on account of network modernisation in Q2’09 & one-off adjustment of Rs. 2.56Bn. to align CI/CWIP and de
Slide 20: Funding Position
FundingPosition Funding Position Summary of outstanding borrowings - As at 31 March 2010 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 8.78 5.27 1.76 3.51 SCB Loa
Slide 21: Dialog Broadband Networks (DBN) (Fixed Telephony and Broadband Services)
Dialog Broadband Networks (DBN) (Fixed Telephony and Broadband Services) 21
Slide 22: DBN – P&L Highlights
DBN – P&L Highlights 9 Revenue grew by 1% YoY and declined by 1% QoQ basis 9 DBN’s normalised NPAT declined by 11% YoY and 38% QoQ due to accelerated depreciation on WiMAX & CDMA Assets from Q4’09 (All figures in Rs. Mn.) QoQ YoY Q1’10 Q4’09 Q1’09 change change Revenue 591 598 -1% 584 1% EBITDA (38)
Slide 23: Dialog Television (DTV)
Dialog Television (DTV) 23 Dialog
Slide 24: DTV – P&L Highlights
DTV – P&L Highlights 9 EBITDA was recorded at positive Rs. 26Mn. in Q1’10 9 NPAT improved by 29% on a QoQ basis & 69% relative to Q1‘09 (All figures in Rs. Mn.) QoQ YoY Q1’10 Q4’09 change Q1’09 change Revenue 490 454 8% 368 33% EBITDA 26 (6) 566% (159) 116% NPAT (94) (132) 29% (303) 69% Pay TV Subsc
Slide 25: DTV – Revenue Trend
DTV – Revenue Trend 9DTV Revenue grew by 33% YoY and 8% QoQ increase in subscription revenue due to subscriber growth of 23% YoY and 7% on a QoQ basis & increase in ARPUs Subscribers ’000 23% 7%
Slide 26: Accolades
Accolades 2010 SLIM-Nielsen People’s Awards Dialog Telekom PLC became the only telecommunications service provider to win two awards 9 People’s Mobile Telecom Brand of the Year 9 People’s Youth Brand of the Year 2% Dialog Telekom PLC topped Sri Lanka’s Corporate Accountability ratings for the Ye
Slide 27: Thank You
Thank You 27 Dialog