Dialog Axiata PLC · CSELK:DIAL.N0000

Dialog Axiata — FY2008 Earnings Presentation

23 slides from Dialog Axiata's earnings presentation, 2008

  1. Slide 1: Investor Forum

    Investor Forum Financial Year Ended 31 December 2008

  2. Slide 2: Growth Highlights – Subscribers & Revenues

    Growth Highlights – Subscribers & Revenues ƒDialog subscriber base grew 29% to 5.51 Mn. ƒCompany Revenue grew by 1% to Rs. 33.11 Bn. for FY 2008 ƒGroup Revenue up 6% to Rs. 36.17 Bn. ƒDialog Broadband revenue up 129% to Rs. 2.40Bn. ƒCDMA & Broadband subscribers up 5 x ƒPay TV revenue up 91% to Rs. 1

  3. Slide 3: Dialog Telekom PLC (Company) Snapshot

    Dialog Telekom PLC (Company) Snapshot Change YoY Growth % CELLULAR SUBSCRIBERS 5.51 Mn. 1.25 Mn. 29 Change Change KEY FINANCIALS USD Mn Rs Bn. YoY YoY REVENUE 293.77 33.11 Rs. 320.54 Mn. 1% EBITDA 74.27 8.37 (Rs. 5,959.13 Mn.) -42% PAT -3.44 -0.39 (Rs. 10,514.46 Mn.) -104% ^Exchange rates applied fo

  4. Slide 4: P&L Highlights-Company

    P&L Highlights-Company (All figures in Rs.Mn. COMPANY except for ratios) 2008 2007* Change(%) Net Revenue 33,108 32,787 1 Direct Costs 17,630 11,882 48 Gross Profit 15,478 20,906 (26) Gross Margin (%) 47 64 OPEX 14,357 10,575 36 EBITDA 8,370 14,329 (42) EBITDA Margin (%) 25 44 PBT 138 10,172 (99) PA

  5. Slide 5: PAT Reconciliation FY 2007 to FY2008

    PAT- FY 2007 10,127 Revenue 321 Values (Rs.Mn.) Direct Cost (3,595) Opex (1,768) Depreciation/Amortisation (2,006) Non Opex (1,511) Normalised PAT - 2008 1,567 Direct Cost (77) Opex (839) PAT Reconciliation FY 2007 to FY2008 Depreciation/Amortisation (1,245) 206 Non Opex Exceptional Provisions/Adjus

  6. Slide 6: Revenue Drivers & Dynamics

    Revenue Drivers & Dynamics Revenue Drivers •Market Leadership with sustained growth in subscribers •Total subscriber growth of 29% •Enhanced Portfolio of Value Added Services •Prepaid subscriber base growth of •Coverage and Quality of Service Improvements 32% •Postpaid subscriber base growth of Reve

  7. Slide 7: Revenue Trends - Company

    Revenue Trends - Company Quarterly Revenues* (Rs. Mn.) -7% •Revenues flat – increase of 1% YoY to Rs.33 Bn. -7% 8,590 •Aggressive pricing strategies aimed at increasing 8,546 affordability of services in the wake of waning consumer spending power 8,346 8,220 •Significant Tariff Reduction implemented

  8. Slide 8: Direct Costs

    Direct Costs Direct Cost Rs. Mn. Direct costs Performance relative to Revenue is mitigated mainly due to: 6,000 80% 67% 70% 5,000 54% 48% 60% ƒIncrease in Frequency fees (348 per cent YoY) 4,000 41% 45% 50% 3,000 40% ƒIncrease in Telco depreciation (50 percent YoY) 2,000 30% 20% 1,000 10% ƒIncrease

  9. Slide 9: Operating Costs

    Operating Costs Operating Costs ƒOperating expenses as a percentage of revenue increased by 11% Rs.Mn. 5,000 59% 70% ƒIncrease in Maintenance Costs of 50% YoY due to increase in non 60% 4,000 telco depreciation. 39% 38% 39% 38% 50% 3,000 40% ƒPrincipal cost lines show expansion due to inflationary p

  10. Slide 10: Remittances to Government of Sri Lanka (GoSL)

    Remittances to Government of Sri Lanka (GoSL) GoSL payments composition 2008 2007 4% 9% 5% 16% VAT 7% 18% ƒP&L impact of ITL GoSL remittances is 26% MSL Rs. 3.41 Bn. in FY 2008 compared TRC Frequency fee 34% to Rs. 1.68 Bn. in Other* 36% FY 2007. 45% (all figures in Rs.Mn.) 2008 2007 Change VAT 599

  11. Slide 11: EBITDA, PAT & Margins

    EBITDA, PAT & Margins ƒOverall cost expansion of 15% on the backdrop of negative revenue growth (of 7%) due to tariff revisions in the month of October resulted in EBITDA dilution of 68% to Rs.740 Mn. in 4Q 08 compared to Rs.2,318 Mn. in 3Q 08. ƒ4Q 08 EBITDA incorporates exceptional charges and adju

  12. Slide 12: PAT Reconciliation - 4Q 2008

    PAT Reconciliation - 4Q 2008 •Revenue Reduction in 4Q 08 due to Significant Tariff Reduction implemented in October 08. •Depreciation of LKR by 5% against USD and 3% against the Euro in 4Q 08 Resulted in Significant Forex Loss Exceptional Provisions/Adjustments 377 (638) (127) (766) (87) (194) (1,43

  13. Slide 13: Capital Structure

    Capital Structure 2008 2007 YoY Capex 18,103 22,130 -18% Cash & Cash 1,545 6,062 -74% Equivalents Gross Debt 25,269 8,868 185% Net Assets 45,395 51,380 -12% Gross debt / 0.56 0.17 equity (x) Net debt / 2.83 0.20 EBITDA(x)

  14. Slide 14: Cash Flow Highlights

    Cash Flow Highlights (all figures in Rs. Mn.) 2008 2007 Net cash from operating activities 6,212 12,274 ƒOperating Cash flows mitigated Net cash used in investing activities (20,944) (25,270) mainly due to revenue remaining flat coupled with cost expansion. Net cash generated from financing activiti

  15. Slide 15: Funding Position

    Funding Position Credit Lines ƒUSD 150 Mn. Of undrawn facilities Summary of Outstanding borrowings - As at 31 December 2008 Institutions Type of Facility Currency Facilities Amt Principal Outstanding Less than one year More than one year USD Mn eqv. USD Mn eqv. USD Mn eqv. USD Mn. eqv. IFC Term Loan

  16. Slide 16: Group Performance Summary

    Group Performance Summary (in Rs. Bn) Consolidation KEY FINANCIALS Dialog DBN DTV Group Adjustments REVENUE 33.11 2.41 1.29 (0.63) 36.18 EBITDA 8.37 (0.11) (0.63) 0.16 7.79 PAT (0.39) (1.51) (0.93) (0.05) (2.88)

  17. Slide 17: P&L Highlights-Dialog Broadband

    P&L Highlights-Dialog Broadband Change YoY Growth CDMA & BROADBAND SUBSCRIBERS 176k 145k 5x Change Change KEY FINANCIALS USD Mn Rs Mn. YoY YoY REVENUE 21.36 2407 Rs. 1355 Mn 129% EBITDA (1.05) (118) (Rs. 282 Mn.) -172% PAT (13.37) (1,507) (Rs. 1189 Mn.) -374%

  18. Slide 18: Dialog Broadband – Subscribers & Revenues

    Dialog Broadband – Subscribers & Revenues Quarterly revenue growth 645 651 574 537 Revenue 371 (Rs. Mn.) • Revenue of Rs. 2.41 Bn. representing a growth of 129 % YoY • CDMA & Broadband Subscriber growth of 4.6x YoY • Resulting in a year end CDMA & broadband Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 subscriber b

  19. Slide 19: P&L Highlights-Dialog TV

    P&L Highlights-Dialog TV Change YoY Growth % PAY Tv SUBSCRIBERS 123k 67k 121 Change Change KEY FINANCIALS USD Mn Rs Mn. YoY YoY REVENUE 11.40 1285 Rs. 611 Mn 91% EBITDA (5.62) (633) (Rs. 2 Mn.) -0.32% PAT (8.29) (934) (Rs. 85 Mn.) -10%

  20. Slide 20: Dialog TV – Subscribers and Revenues

    Dialog TV – Subscribers and Revenues Quarterly revenue growth 347 374 323 241 Revenue (Rs. Mn.) 194 • Revenue of Rs. 1.29 Bn. representing a growth of 91% YoY • Subscriber growth of 121% YoY • Resulting in a year end Pay Tv subscriber Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 base of over 122,000 Cumulative sub

  21. Slide 21: Group Snapshot

    Group Snapshot Change Change KEY FINANCIALS USD Mn Rs Bn. YoY YoY Revenue 320.93 36.17 Rs. 2041.78 Mn. 6% EBITDA 69.03 7.78 (Rs. (6,140) Mn.) 44% PAT -25.55 -2.88 (Rs. (11,786) Mn.) 132% ^Exchange rates applied for Rupee Conversion are the monthly average rates published by Central Bank of SL.

  22. Slide 22: P&L Highlights - Group

    P&L Highlights - Group (All figures in Rs.Mn. GROUP except for ratios) 2008 2007* Change(%) Net Revenue 36,169 34,127 6 Direct Costs 19,989 13,154 52 Gross Profit 16,180 20,973 (23) Gross Margin (%) 45 61 OPEX 17,159 11,759 46 EBITDA 7,779 13,919 (44) EBITDA Margin (%) 22 41 PBT (2,372) 8,952 (126)

  23. Slide 23: Thank You

    Thank You TELEKOM

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