Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Q3 FY2019 Earnings Presentation
24 slides from Singapore Telecommunications's earnings presentation, Feb 14, 2019
Slide 1: Q3FY19 Financial Results Presentation
Q3FY19 Financial Results Presentation For the quarter ended 31 Dec 2018 Chua Sock Koong, Group CEO 14 February 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: Earnings impacted by Airtel India performance
Earnings impacted by Airtel India performance % change Q3FY19 % change (constant (S$M) (reported) currency)1 › Growth in equipment sales, ICT and digital services2 Revenue 4,626 1% 4% offset carriage erosion › Strong postpaid momentum in Australia & Singapore Margin erosion in carriage services, low
Slide 5: Q3FY19 and 9MFY19 Performance
Q3FY19 and 9MFY19 Performance Quarter 9 Months (S$M) Dec 18 Dec 17 YoY % Dec 18 Dec 17 YoY % Operating revenue 4,626 4,583 1% 13,030 13,006 Stable EBITDA 1,190 1,331 (11%) 3,526 3,820 (8%) - margin 25.7% 29.0% 27.1% 29.4% Associates pre-tax earnings1 342 523 (35%) 1,035 1,816 (43%) EBITDA & share of
Slide 6: Foreign Exchange Movements
Foreign Exchange Movements Quarter Dec 2018 9 Months Dec 2018 Exchange Increase/ (decrease) Exchange Increase/ (decrease) Currency against S$ rate1 against S$ rate1 YoY QoQ YoY 2 1 AUD 0.9864 (5.2%) (1.3%) 0.9982 (5.2%) 3 1 USD 1.3722 1.2% 0.6% 1.3590 (0.7%) IDR 10,753 (7.5%) (1.1%) 10,638 (8.9%) IN
Slide 7: Group Q3FY19 Highlights
Group Q3FY19 Highlights Group Consumer › SG: Extended Premier League rights till 2022 & enhanced other TV content › SG: Entered electricity market › AU: Launched Australia’s first 5G commercial service › AU: Optus rated Australia’s strongest telecommunications brand1 Group Enterprise › Major data ce
Slide 8: Solid Financial Position
Solid Financial Position Free Cash Flow S$2,530m Balance Sheet S$m 2,806 ▼ 10% Net debt1 S$9.8b 2,530 783 Singapore Net debt gearing2 25.2% 586 ▼ S$198m Net debt: EBITDA & 1.58x share of associates’ 622 578 Australia pre-tax profits ▼ S$44m Credit Ratings: A+ S&P A1 Moody’s Associates’ dividends 1,4
Slide 9: Agenda
Agenda Overview Business Units Outlook Supplementary Information
Slide 10: Singapore Consumer
Singapore Consumer ▼ 6% S$m 634 598 Mobile revenue (incl equipment sales) down 6% › Voice erosion mitigated by growing data usage 273 › Higher amortisation of handset subsidies 261 EBITDA › Lower equipment sales on weaker demand for key ▼ 6% margin handset models Mobile Revenue 31.7% 32.5% Home serv
Slide 11: Australia Consumer
Australia Consumer ▲ 6% A$m 2,072 Mobile revenue (incl equipment sales) up 12% 1,955 › Equipment sales up 31% on higher take-up of Mobile premium handsets Service 897 › Lower service revenue on data price competition and 930 increased mix of SIM-only plans ▲ 12% Mobile EBITDA Mobile customers Revenu
Slide 12: Regional Associates
Regional Associates PBT1 % Change % Change Q3FY19 Business Highlights (S$m) (S$) (local ccy) Regional Associates 342 (35%) N.M. › Lower contribution from Airtel, Telkomsel and AIS › Revenue stable YoY; sequential quarter growth as SIM-card Telkomsel 305 (7%) (1%) registration exercise largely comple
Slide 13: Group Enterprise
Group Enterprise Cyber Security Revenue1 S$m ▲ 1% 1,606 S$m ▲ 10% 1,591 137 125 125 137 105 119 MST▲14% ICT ▲ 9% 584 633 21 18 PCI▼11% Q3FY18 Q3FY19 EBITDA margin 29.6% 26.7% ▼ 9% 471 Carriage 428 882 835 ▼ 5% Q3FY18 Q3FY19 Q3FY18 Q3FY19 Revenue EBITDA 1. Comprises Managed Security & Technology serv
Slide 14: Group Digital Life
Group Digital Life Group Digital Life Amobee ▲ 17% S$m 379 › Programmatic platform gains traction with key client wins 325 › Enhanced capabilities with data & channel 370 ▲ 15% partnerships Amobee 321 HOOQ Others1 20 › Growing distribution partnerships 5 9 8 -34 -24 -14 -16 Q3FY18 Q3FY19 Q3FY18 Q3FY
Slide 15: Agenda
Agenda Overview Business Units Outlook Supplementary Information
Slide 16: Outlook
Outlook1 › Revenue2 to grow by low single digit › EBITDA2 to decline by low single digit (Updated) Group › Cash and accrued capital expenditure to be ~S$2.2b › Free cash flow3 to be ~S$1.9b › Dividends from regional associates to be ~S$1.4b › Revenue2 to grow by low single digit › EBITDA2 to decline
Slide 17: Agenda
Agenda Overview Business Units Outlook Supplementary Information
Slide 18: Singapore Mobile
Singapore Mobile Mobile revenue S$696m 4G customers up 87k QoQ 3,101k Revenue Mobile customers (S$m) (m) › 74% penetration 732 696 Average quarterly smartphone data usage 4.5Gb 607 591 609 › Up from 3.7Gb in Dec 2017 quarter › Up from 4.4Gb in Sep 2018 quarter 436 421 409 411 410 Postpaid ARPU down
Slide 19: Singapore Fixed
Singapore Fixed Home service revenue S$133m Home service revenue Customers (S$m) (‘000) Singtel TV revenues S$54m 149 148 › Down 6% 135 133 135 1 134 1 133 Singtel TV ARPU S$41 › Stable Singtel TV churn 1.4% › Stable Singtel Fibre broadband customers 624k › Up 8k QoQ 510 509 510 513 515 › 99% of bro
Slide 20: Australia Mobile
Australia Mobile Mobile revenue A$1,652m 4G customers1 up 74k QoQ 6,557k › 64% penetration Revenue Mobile customers (A$m) (m) Postpaid › Handset ARPU A$41 $1,652 - down 7% $1,487 $1,422 - Pre-SFRS(I) ARPU down 5% to A$56 $1,383 $1,386 › Churn 1.4% $974 $959 $963 $943 $942 - down 0.1ppt YoY and up 0.
Slide 21: Australia Fixed
Australia Fixed Mass market revenue A$355m On-net BB ARPU A$57 Mass market revenue Customers (A$m) $389 (‘000) › Up 2% $355 $340 $336 $329 NBN BB Customers 540k $312 $312 $315 $313 $3111 › up 24k QoQ 1,223 1,245 1,249 1,257 1,247 47 TV Customers 513k 59 56 49 44 › Down 2k QoQ 416 453 483 516 540 354
Slide 22: Cost savings of S$320m in 9MFY19
Cost savings of S$320m in 9MFY19 Cost savings Customer experience 320 › Increase adoption of self-service channels › Integrate online & offline sales channels › Optimise customer acquisition costs 131 › Rationalise content portfolio Network & operations › Headcount efficiency from streamlining proce
Slide 23: Trends In Constant Currency Terms
Trends In Constant Currency Terms1 Q3FY19 YoY % change YoY % change Quarter Dec 2018 (reported S$m) (reported S$) (at constant FX)1 Group revenue 4,626 0.9% 3.7% Group reported NPAT 823 (14.2%) (11.9%) Group underlying NPAT 680 (28.4%) (26.9%) Optus revenue 2,386 (0.9%) 4.6% Regional Associates 342
Slide 24: 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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