Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Q1 FY11 Earnings Presentation
26 slides from Singapore Telecommunications's earnings presentation, Aug 12, 2010
Slide 1: Financial results presentation
Financial results presentation Q1 FY11: Quarter ended 30 June 2010 12 August 2010
Slide 2: Forward looking statements - important note
Forward looking statements - 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 cont
Slide 3: Asia's Leading Communications Company
Asia’s Leading Communications Company Chua Sock Koong Group CEO
Slide 4: Group Q1 FY11: strong revenue growth
Group Q1 FY11: strong revenue growth Group performance Revenue S$4,289m Underlying NPAT S$943m up 12% stable Singapore Revenue S$1,520m EBITDA1 S$591m up 10% up 2% Optus Revenue2 A$2,256m EBITDA2 A$553m up 3% up 10% Regional Mobile Customers3 351m Earnings4 S$525m up 34% down 16% 1. Excludes
Slide 5: Group Q1 FY11 highlights
Group Q1 FY11 highlights First to introduce Samsung Proportionate EBITDA1 Group Galaxy S : SingTel, Optus, AIS, 73% outside Singapore Globe and Telkomsel New & enhanced mobile apps for Others 1% music, lifestyle & social networking Singapore Optus 30% 42% NCS secures Ministry of S$850m Education SOE
Slide 6: Q1 FY11: lower associates contribution
Q1 FY11: lower associates contribution 3 months 3 months YoY % 3 months Sequential S$m to Jun 10 to Jun 09 change to Mar 10 % change Operating revenue 4,289 3,848 11.5% 4,471 (4.1%) Operational EBITDA 1,255 1,128 11.3% 1,336 (6.0%) - margin 29.3% 29.3% 29.9% Associates (ex exceptionals) 551 647 (14.
Slide 7: Foreign exchange movements
Foreign exchange movements Currency appreciation / Exchange rate1 (depreciation) against S$ Currency S$ 1.00 YoY QoQ 2 1 AUD S$ 1.2276 9.5% (3.2%) INR 32.8 0.9% (0.3%) IDR 6,536 8.5% 0.7% PHP 32.7 (0.6%) 0.3% THB 23.3 1.3% 0.4% BDT 49.8 (6.2%) (1.0%) PKR 60.6 (10.4%) (0.7%) 1. Average exchange rates
Slide 8: Trends in constant currency terms
Trends in constant currency terms1 1Q FY11 YoY % change YoY % change 3 months to Jun 10 (reported S$m) (reported S$) (at constant FX)1 Group revenue 4,289 11.5% 5.2% Group underlying NPAT 943 (0.2%) (4.0%) Optus revenue 2,769 12.3% 2.6% Associates earnings2 551 (14.8%) (18.4%) 1. Assuming constant e
Slide 9: Singapore
Singapore a) SingTel
Slide 10: Singapore: strong growth in IT&E and mobile
Singapore: strong growth in IT&E and mobile Revenue YoY Q1 FY11 Highlights (S$ m) Change Total revenue 1,520 10% • strong growth in IT & Engineering and Mobile Mobile 432 14% • postpaid customer growth and higher ARPU • continued migration to IP VPN and Ethernet Data & Internet 395 1% services offse
Slide 11: Data & Mobile: leading & shaping the market
Data & Mobile: leading & shaping the market Corporate data services S$286m Mobile revenue S$432m revenue Postpaid ARPU at S$89 • up 8% excluding data-only SIMs 6% +1% Wireless BB subs1 567k 283 286 Others Data services revenue (S$m) 48 47 38 3.18 49 2.99 3.10 3.12 3.11 ILC & Prepaid2 73 88 Managed 4
Slide 12: Delivering integrated ICT & multimedia services
Delivering integrated ICT & multimedia services IT & Engineering revenue1 S$346m mio TV revenue S$14m Fibre rollout revenue S$73m mio TV customers2 220k up 29,000 NCS Group revenue S$273m up 6% mio Plan & mio Home 199k customers3 up 12,000 Infrastructure services 67% 33% Business solutions NCS
Slide 13: Increase in Singapore EBITDA
Increase in Singapore EBITDA S’pore Biz EBITDA 2% Operating expenses 15% • EBITDA margin 38.9% S’pore Biz EBITDA S$591m Selling & Admin • higher mobile subscriber 20% acquisition & retention costs Telco 91% • mio TV content & programming costs IT&E 9% Cost of sales 35% • fibre-rollout and higher 1%
Slide 14: Capturing value from Next Generation National Broadband Network
Capturing value from Next Generation National Broadband Network Next Generation National Broadband Network structure Retail Services • Leverage high speed network to deliver new value-added services Wholesale services: active infrastructure • May deploy own OpCo and/or buy OpCos from winning OpCo Wh
Slide 15: Optus
Optus
Slide 16: Optus: building on mobile growth momentum
Optus: building on mobile growth momentum Revenue YoY Q1 FY11 Highlights A$m change Total revenue 2,256 3% • continued momentum in mobile • double digit service revenue growth Mobile 1,424 7% • strong growth in postpaid customers • lower equipment revenue Business & • lower ICT and Managed Services
Slide 17: Mobile: strong revenue and earnings momentum
Mobile: strong revenue and earnings momentum Double digit service revenue Double digit EBITDA growth growth 11% • EBITDA margin up 1 ppt to 26% 11% • 7th consecutive quarter Strong customer growth 190k • postpaid customer base increase 16% Postpaid ARPU at A$69 2% • up 6% excluding wireless BB Total
Slide 18: Business & Wholesale Fixed: EBITDA growth with increased on-net mix
Business & Wholesale Fixed: EBITDA growth with increased on-net mix Business: impacted by prior year Wholesale: higher satellite revenue one-off ICT project revenues -7% (+3% excluding one-off impact) 353 168 Wholesale Fixed revenue (A$m) 328 166 Business Fixed revenue (A$m) 94 36 Voice 5% 40 10% 10
Slide 19: Consumer & SMB Fixed: on-net strategy delivers profitable growth
Consumer & SMB Fixed: on-net strategy delivers profitable growth Broadband ARPU drives on-net EBITDA growth 10% 1m growth • EBITDA margin up 1 ppt to 16% Consumer & SMB Fixed revenue (A$m) 345 339 18% 16% 16% 70 16% 15% 15% 15% 65 14% EBITDA margin (%) EBITDA (A$ m) On-net 12% 57 60 261 5% 274 10% 5
Slide 20: Operating costs: prudent cost management while maintaining competitiveness
Operating costs: prudent cost management while maintaining competitiveness Continued customer acquisition Operating expenses flat despite flat costs Net adds Operating Costs Selling & Admin ('000) (A$m) •higher subscriber acquisition & 4% retention costs 1,030 1,010 1,066 •network-related property e
Slide 21: Associates and joint ventures
Associates and joint ventures
Slide 22: Regional Mobile: significant footprint across Asia & Africa
Regional Mobile: significant footprint across Asia & Africa PBTL 73% Mobile Africa penetration (%) 36.4 India, Bangladesh Mobile Sri Lanka 16% customers (m) 177.0 140.6 107% 88.3 89% 79% 2% 8% 60% Growth in 54% 5% 2% customers (%) 30.0 36% 24.6 2.0 16.9 Effective 32.0% 35.0% 47.3% 21.3% 45.0% 30.0%
Slide 23: Regional Mobile Associates earnings impacted by competition & fair value losses
Regional Mobile Associates earnings impacted by competition & fair value losses PBT1 % Change % Change Q1 FY11 Highlights (S$ m) (S$) (local curr) Regional 16% 525 NA • 5% decline excluding fair value losses Mobile • South Asia: EBITDA stable despite price 23% 24% competition in India Bharti 210 • o
Slide 24: Financial position & Outlook
Financial position & Outlook
Slide 25: Strong financial position
Strong financial position Generating strong free cash flow1 Strong balance sheet Net debt S$5.6bn +36% 776 Net gearing 19% Group free cashflow (S$m) 572 330 Singapore S$1m Net debt:EBITDA 0.8x 329 238 Optus S$77m EBITDA:net interest 21x 161 expense 208 Assoc div S$125m 83 S&P’s Moody’s Q1 FY10 Q1 FY
Slide 26: Asia's Leading Communications Company
SingTel Asia’s Leading Communications Company www.singtel.com
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