Grameenphone Ltd. · DSEBD:GP
Grameenphone — Q1 2020 Earnings Presentation
21 slides from Grameenphone's earnings presentation, Apr 22, 2020
Slide 1: Grameenphone Ltd. 1st Quarter, 2020 Results
Grameenphone Ltd. 1st Quarter, 2020 Results Yasir Azman, CEO 22 April 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: Empowering Societies
Empowering Societies Connecting 75.3 Mn customers and 40.4 Mn Data customers BDT 2,461 Cr. paid to National Exchequer in the first three months of 2020 50,000 medical-grade PPE and 10,000 PCR testing kits to support medical front liners to battle COVID-19 in Bangladesh Driving mass awareness in coll
Slide 4: Highlights
Highlights Reduced Revenue Growth 14.2 Mn 4G Customers 10,200+ 4G/LTE Sites COVID-19 Situation Q1 2020 Sensitivity: Open
Slide 5: Reduced growth momentum due to increasingly challenging environment
Reduced growth momentum due to increasingly challenging environment • Rollout hampered due to halt on NOCs; only 197 NETWORK 4G/LTE sites rolled out ROLLOUT • Strong drive on 4G conversion leading to 14.2 Mn 4G customers • Lower gross add due to number scarcity MARKET • Adaptation of digital platfor
Slide 6: COVID-19 Situation in Bangladesh
COVID-19 Situation in Bangladesh 3,300+ cases 100+ deaths till 21 April* General Holidays declared until 25 April* Community lockdown in some areas; civilian movement restricted from 6 PM to 6 AM countrywide* Emergency and essential services operational, including telecommunications and related valu
Slide 7: COVID-19 Situation - Impact
COVID-19 Situation - Impact Barriers in Market Operations Reinforced Workforce Reinforced Point Of Sales Q1 2020 Sensitivity: Open
Slide 8: Regulatory Landscape
Regulatory Landscape Significant BTRC Tower Co Market Audit Licensing Power Q1 2020 More details on Business Highlights Sensitivity: Open
Slide 9: Grameenphone Ltd. 1st Quarter, 2020 Results (CFO)
Grameenphone Ltd. 1st Quarter, 2020 Results Jens Becker, CFO 22 April 2020 Sensitivity: Open
Slide 10: Growth momentum in Q1'20 impacted amidst regulatory restrictions
Growth momentum in Q1’20 impacted amidst regulatory restrictions 4.1% YoY Growth 4.8% YoY Growth Subscription & Traffic Revenue* EBITDA ** 7.0% 7.92 CAPEX/Sales*** Earnings Per Share *Revenues generated by own subscription (excludes interconnection) ** EBITDA before other items, as per IFRS 16 & Q1’
Slide 11: Subscriber acquisition negatively impacted by number series scarcity
Subscriber acquisition negatively impacted by number series scarcity Total Subscribers (Mn) 76.5 75.7 75.3 75.3 74.1 99.6% 96.0% 75.4% Population Geography 4G Population Coverage Coverage Coverage Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1 2020 Sensitivity: Open
Slide 12: 3.0% growth in daily subscription & traffic revenue
3.0% growth in daily subscription & traffic revenue Total Revenue (BDT Bn) and Growth (YoY) DSTR* (BDT Mn) and Growth (YoY) 36.0 36.6 36.2 36.2 34.9 364 372 371 370 374 11.6% 10.6% 14.2% 13.4% 6.6% 4.2% 3.7% 4.8% 6.7% 3.0% Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 • 3% YoY growth i
Slide 13: Strong YoY growth in data revenue (+24.6%)
Strong YoY growth in data revenue (+24.6%) Data Revenue (BDT Bn) and % of Service Revenue* Active Data Users** (Mn) and % of Sub-base +5.7% +24.6% 8.5 39.8 40.6 40.6 40.4 8.0 38.2 7.8 6.9 7.2 52.8% 53.7% 53.1% 53.6% 51.6% 21.7% 22.5% 24.0% 20.0% 20.2% Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1’19 Q2’19 Q3’19
Slide 14: Stable service ARPU along with continued growth in data usage
Stable service ARPU along with continued growth in data usage Service ARPU, AMPU and APPM Data ARPU, AMBPU and APPMB +56.9% 2,225 216 220 219 213 215 1,912 156 159 158 156 156 1,763 1,576 0.73 0.04 0.04 0.04 0.72 0.72 0.72 0.73 0.03 0.03 1,418 61 62 64 66 71 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1’19 Q2’19
Slide 15: Efficient opex management supporting EBITDA development
Efficient opex management supporting EBITDA development Opex (BDT Bn) and Margin** EBITDA* (BDT Bn) and Margin** +0.2% +4.8% 11.1 11.0 10.9 11.1 11.1 22.9 23.4 23.0 22.9 21.8 63.7% 64.0% 63.5% 63.2% 62.5% 31.8% 30.6% 29.7% 30.7% 30.8% Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Resta
Slide 16: Q1'20 investment impacted by regulatory restrictions
Q1’20 investment impacted by regulatory restrictions *Capex (BDT Bn) and Capex/Sales% 4.2 • 197 new 4G sites and 34 new 3G sites rolled out 3.8 3.9 • Total number of sites stand at 16,542 along with 10,219 4G sites 12.6% 11.8% 2.1 9.7% 9.8% 7.0% 0.4 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 *Capex excluding lic
Slide 17: Net profit positively impacted by FX gain and prior periods' one-off
Net profit positively impacted by FX gain and prior periods’ one-off NPAT (BDT Bn) and Margin* Earnings Per Share (BDT)* +25.8% 7.92 10.7 7.07 6.81 9.6 9.2 6.29 8.5 5.38 7.3 29.6% 24.4% 26.5% 25.4% 19.9% Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Restated Restated NPAT (BDT Bn.) Mar
Slide 18: OCF growth driven by lower capex
OCF growth driven by lower capex *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 17.7 62.1% 58.3% 50.6% 53.2% 52.6% (0.04) (0.04) (0.04) (0.06) (3.2) (3.4) (3.9) Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 (5.3) Restated Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Restated OCF
Slide 19: Contribution to National Exchequer
Contribution to National Exchequer 779.1 84.2 85.0 • BDT 24.6Bn (equaling 68% of total revenues) contributed to national exchequer in Q1’20 61.8 58.6 51.1 • Contribution in the form of taxes, VAT, duties, 12.7Bn 4G license payment license/spectrum fees & revenue share 24.6 2015 2016 2017 2017 2019 Q
Slide 20: Growth momentum negatively impacted due to increasingly challenging environment
Growth momentum negatively impacted due to increasingly challenging environment Committed to contributing to society and using our technology expertise to battle COVID-19 Building network for better data experience and strong distribution ecosystem remains our focus for future growth and efficiency
Slide 21: Thank You
Thank You Q1 2020 *In consideration of the local regulations, Grameenphone Ltd. does not provide any forward looking statements. Sensitivity: Open