Grameenphone Ltd. · DSEBD:GP
Grameenphone — Q2 2020 Earnings Presentation
22 slides from Grameenphone's earnings presentation, Jul 15, 2020
Slide 1: Grameenphone Ltd. 2nd Quarter, 2020 Results
Grameenphone Ltd. 2nd Quarter, 2020 Results Yasir Azman, CEO 15 July 2020 Sensitivity: Open
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (’relevant persons’). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in the fo
Slide 3: Highlights
Highlights YoY Revenue degrowth due to COVID-19 Gradual recovery from May following strong decline in April Business Continuity Planning Regulatory Impositions Q2 2020 Sensitivity: Open
Slide 4: Revenue de-growth due to COVID-19
Revenue de-growth due to COVID-19 • Lockdown and lower economic activity MARKET • Supplementary Duty increased to 15% from June OPERATIONS • Digital reload mix improved 10.0 pp from Feb’20 • Rollout resumed in June; 132 4G/LTE sites added NETWORK • Fast recovery from Cyclone Amphan ROLLOUT • VOLTE l
Slide 5: Empowering Societies
Empowering Societies “Dakche Amar Desh” initiative with BRAC to provide emergency food assistance to 100,000 affected families 50,000 PPE for medical front-liners “Bangladesh Challenge” in partnership with a2i, Google and ICT Division to identify essential and emergency locations 30 GB data @ BDT 1
Slide 6: COVID-19 Situation & Impact
COVID-19 Situation & Impact Barriers in Market Reinforced Reinforced Operations Workforce Point Of Sales Q2 2020 Sensitivity: Open
Slide 7: Regulatory Landscape
Regulatory Landscape Significant BTRC Tower Co Market Audit Licensing Power Q2 2020 More details on Business Highlights Sensitivity: Open
Slide 8: Grameenphone Ltd. 2nd Quarter, 2020 Results (CFO)
Grameenphone Ltd. 2nd Quarter, 2020 Results Jens Becker, CFO 15 July 2020 Sensitivity: Open
Slide 9: Q2'20 financial performance impacted by countrywide general holidays under COVID-19
Q2’20 financial performance impacted by countrywide general holidays under COVID-19 -8.1% YoY Growth -10% YoY Growth Subscription & Traffic Revenue* EBITDA ** 6.3% 5.38 CAPEX/Sales*** Earnings Per Share *Revenues generated by own subscription (excludes interconnection) ** EBITDA before other items,
Slide 10: Subscriber base decreased by 0.8Mn while reaching 15.2Mn 4G data users
Subscriber base decreased by 0.8Mn while reaching 15.2Mn 4G data users Total Subscribers (Mn) 76.5 75.7 75.3 75.3 74.5 99.6% 96.0% 77.14% Population Geographic 4G Population Coverage Coverage Coverage Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2 2020 Sensitivity: Open
Slide 11: Gradual recovery in subscription & traffic revenue after hitting rock bottom in April 2020
Gradual recovery in subscription & traffic revenue after hitting rock bottom in April 2020 Y-Y Subs & Traffic Revenue growth trend in 2020 • Gradual recovery from May’20 onwards after the sharp decline in 0% Apr’20 • Yet to reach positive YoY growth by the end of Jun’20 Jan'20 Feb'20 Mar'20 Apr'20 M
Slide 12: De-growth in daily subscription & traffic revenue due to general holidays
De-growth in daily subscription & traffic revenue due to general holidays Total Revenue (BDT Bn) and Growth (YoY) DSTR* (BDT Mn) and Growth (YoY) 36.0 36.6 36.2 36.2 33.1 372.3 371.2 369.5 374.4 342.3 10.6% 13.4% 4.2% 3.7% 6.6% 4.8% 3.0% 6.7% -8.2% -8.1% Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2’19 Q3’19 Q4’
Slide 13: Continued YoY growth in data revenue despite two months of general holidays
Continued YoY growth in data revenue despite two months of general holidays (+16.7%) Data Revenue (BDT Bn) and % of Service Revenue* Active Data Users** (Mn) and % of Sub-base +2.8% +16.7% 8.5 39.8 40.6 40.6 40.4 40.9 8.0 8.4 7.8 7.2 52.8% 53.7% 53.1% 53.6% 54.8% 22.5% 24.0% 25.7% 20.2% 21.7% Q2’19
Slide 14: Service ARPU impacted by lower contribution from voice
Service ARPU impacted by lower contribution from voice Service ARPU, AMPU and APPM Data ARPU, AMBPU and APPMB +65.1% 220 219 213 215 2,603 201 2,225 159 158 156 156 146 1,912 1,763 0.72 0.72 0.73 0.73 0.73 0.04 0.04 0.03 0.03 0.03 1,576 62 64 66 71 69 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2’19 Q3’19 Q4’19
Slide 15: Efficient opex management despite CSR contribution under COVID-19
Efficient opex management despite CSR contribution under COVID-19 Opex (BDT Bn) and Margin** EBITDA* (BDT Bn) and Margin** -6.7% -10.0% 11.0 10.9 11.1 11.1 22.9 23.4 23.0 22.9 10.3 20.6 63.7% 64.0% 63.5% 63.2% 62.4% 30.6% 29.7% 30.7% 30.8% 31.1% Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2’19 Q3’19 Q4’19 Q1’20
Slide 16: Investment resumed with gradual NOC approval from regulator
Investment resumed with gradual NOC approval from regulator *Capex (BDT Bn) and Capex/Sales% 3.9 3.8 • 132 new 4G sites rolled out • Total number of sites stand at 16,557 along with 2.5 10,351 4G sites 2.1 11.8% 9.7% 9.8% 7.0% 6.3% 0.4 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 *Capex excluding license & lease C
Slide 17: Net profit negatively impacted by lower revenue under COVID-19, modernization, & finance cost
Net profit negatively impacted by lower revenue under COVID-19, modernization, & finance cost NPAT (BDT Bn) and Margin* Earnings Per Share (BDT)* -23.9% -23.9% 7.92 10.7 7.07 6.81 9.6 9.2 5.38 5.38 7.3 7.3 29.6% 26.5% 25.4% 19.9% 22.0% Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 NPAT
Slide 18: OCF de-growth driven by lower EBITDA
OCF de-growth driven by lower EBITDA *OCF (BDT Bn) and OCF/Sales% Net debt (BDT Bn) and Net debt/EBITDA** 8.0 0.09 22.5 21.3 19.2 19.0 18.1 62.1% 58.3% 0.9 54.8% 0.01 53.2% 52.6% (0.04) (0.04) (0.04) Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 (3.2) (3.4) (3.9) Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 OCF OCF/Sales % Net De
Slide 19: Contribution to National Exchequer
Contribution to National Exchequer 801 84.2 85.0 • BDT 46.4Bn (equaling 67% of total revenues) contributed to national exchequer in 1H’20 61.8 58.6 12.7Bn • Contribution in the form of taxes, VAT, duties, 4G license payment 46.4 license/spectrum fees & revenue share 2016 2017 2017 2019 1H 2020 Total
Slide 20: Recommended 130% of PuC cash interim dividend for 2020
Recommended 130% of PuC cash interim dividend for 2020 BDT 13.30 BDT 13.00 98% Earnings Per Share Dividend Per Share Payout Ratio 2020 (interim) 2020 (interim) 2020 (interim) • Shareholders as of the record date 05 August 2020 will be entitled 1H 2020 Sensitivity: Open
Slide 21: Growth momentum negatively impacted due to COVID-19
Growth momentum negatively impacted due to COVID-19 We are committed to contributing to society and using our technology expertise to battle COVID-19 Continued growth in data reinforces our focus on strengthening our network with planned investment Sensitivity: Open
Slide 22: Thank You
Thank You Q2 2020 *In consideration of the local regulations, Grameenphone Ltd. does not provide any forward looking statements. Sensitivity: Open