Dialog Axiata PLC · CSELK:DIAL.N0000
Dialog Axiata — Q3 2010 Earnings Presentation
26 slides from Dialog Axiata's earnings presentation, 2010
Slide 1: Investor Forum Q3 2010
Investor Forum Q3 2010 Enriching Sri Lankan Lives
Slide 2: Dialog Group
Dialog Group 2 Dialog
Slide 3: Impressive improvement in EBITDA Margins due to re-scaled operating cost structure
EBITDA Margin YoY* Impressive improvement in EBITDA Margins due to re-scaled operating Dialog Company DBN DTV Dialog Group cost structure 8pp 41pp 16pp 11pp Increase in EBITDA margin Rs. 81Mn Rs. 3.75Bn Rs. 176Mn Rs.4.00Bn NPAT – 9M 2010 Robust NPAT improvement at Rs. 4.99Bn Rs. 3.77Bn Group and Com
Slide 4: QoQ and YoY Performance Overview
QoQ Performance Overview YoY Performance Overview* (Q3 10 Vs. Q2 10) (Q3 10 Vs. Q3 09) Revenue EBITDA NPAT Revenue EBITDA NPAT Dialog Axiata 4% 0% 5% 47% >400% 16% PLC (Company) Dialog Broadband 432% 57% 355% 77% 5% 4% Networks (DBN) Dialog Television 3% 173% 48% 24% >1000% 58% (DTV) Dialog Group 4%
Slide 5: Group Revenue up 16% YoY and 4% QoQ
Group Revenue up 16% YoY and 4% QoQ Group costs declined by 4% relative to 9M 09 and up 3% QoQ mainly due to interconnection costs EBITDA improved by 5% QoQ and 74% relative to 9M 09 NPAT improved by 23% a on a QoQ basis (All figures in Rs. Mn.) QoQ Q3 10 Vs. YTD Q3 10 change Q3 09 YTD 10 ch
Slide 6: Group EBITDA and NPAT
Group EBITDA and NPAT* (Rs. Mn.) 4,400 38% 38% 42% 33% 33% EBITDA margin 38% 3,824 4,004 32% 3,400 27% 3,324 • Up 11% pts Vs Q3 09 (Norm) 3,176 2,400 16% 22% • EBITDA growth of 74% YTD and 2,438 14% 5% Vs. Q2 10 1,400 8% 7% 12% 400 -2% 761 705 1,374 1,693 2% NPAT margin 16% (600) (198) -8% • Up 18%
Slide 7: Dialog Axiata PLC - Company
Dialog Axiata PLC - Company 7 Dialog
Slide 8: Company revenue grew 16% YoY and 4% QoQ
Revenue grew 16% YoY and by 4% QoQ EBITDA improved by 59% relative to 9M 09 and remained flat QoQ NPAT improved by 5% a on a QoQ basis (All figures in Rs. Mn.) QoQ Q3 10 Vs. YTD Q3 10 change Q3 09 YTD 10 change Revenue 9,671 4% 16% 28,068 16% 7% 3% 2% Total Cost* 5,921 17,217 0% 47% 59% EBITDA
Slide 9: Company Revenue
Company Revenue 16% Pre-paid revenue dominant contributor to revenue Amidst intense competition Increase in Inbound roaming revenue Post-paid revenue continued to increase International voice termination up 25% YoY Non voice revenue account for 10% of total revenue Interconnection reve
Slide 10: Subscribers, ARPU, MOU and RPM
Marginal drop in RPM’s & ARPU’s due to transient Pre : Post mix 89% 11% impact of downward tariff adjustments Pre-paid Post-paid MOU (Minutes) & RPM (Rs.) No of Subscribers & ARPUs 1,500 6.0 150 3.0 1,300 5.0 135 No of subscribers – ‘Mns 2.5 1,100 Blended RPM – Rs. 120 Blended MoU- Min. 1,104 4.0 1,
Slide 11: Direct Cost trends
Direct Cost grew by 4% YTD and 7% QoQ driven by Interconnection Charge Direct Costs excluding interconnection Levies remained flat YTD due to reduction in dropped by 1% QoQ international telecommunication levy (ITL) Origination cost up by 47% YTD in line with increased international traffic Netw
Slide 12: Operating costs as a % of revenue
Operating Costs declined by 10% YTD Decline in operating costs were driven by reduction in operating overheads, Operating cost as a % of revenue administration & manpower related expenses • 26% in Q3 10 Increase in facilities & incidental cost due to rise in consultancy fees • Improved by 5% po
Slide 13: EBITDA Margin Movement 9M 2009 to 9M 2010
EBITDA Margin Movement 9M 2009 to 9M 2010 - EBITDA margin impact (%) + EBITDA margin impact (%) Drop in network maintenance costs due to renegotiation of AMCs Increase in VGF cost in line with higher terminated minutes offset by the reduction in international Increase due to the rise in telecommunic
Slide 14: EBITDA movement YTD and NPAT movement YTD
EBITDA movement YTD Reduction in net finance NPAT movement YTD cost due to repayment of Loans and forex gains 14 14
Slide 15: Dialog Company EBITDA and NPAT
Dialog Company EBITDA and NPAT* (Rs. Mn.) 40% 39% 37% 42% 4,400 36% EBITDA margin 39% 31% 3,400 3,757 3,750 32% • Up 8% pts Vs Q3 09 (Norm) 3,170 3,344 • EBITDA growth of 59% YTD 20% 20% 2,400 2,546 22% 14% 14% 1,400 12% NPAT margin 20% 4% 1,901 1,813 400 370 1,213 1,276 2% • Up 16% pts Vs Q3 09 (No
Slide 16: Dialog Broadband Networks (DBN)
Dialog Broadband Networks (DBN) (Fixed Telephony and Broadband Services) 16 Dialog
Slide 17: DBN revenue, EBITDA and NPAT
Revenue improved by 5% QoQ and 4% relative to Q3 09 EBITDA up 432% QoQ and 355% relative to Q3 09 due to continuous cost management efforts NPAT improved by 57% on a QoQ basis and 77% relative to Q3 09 (All figures in Rs. Mn.) QoQ Q3 10 Vs. YTD Q3 10 change Q3 09 YTD 10 change Revenue 604 5% 4
Slide 18: Broadband & ISP revenue and subscribers
Broadband & ISP revenue increased by 19% YoY driven by increase in usage revenues CDMA & Broadband subscriber base increased by 4% YoY and remained flat QoQ CDMA & Broadband Subscribers ’000 4% 189 189 186 184 182 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 18
Slide 19: Dialog Television (DTV)
Dialog Television (DTV) 19 Dialog
Slide 20: DTV revenue, EBITDA and NPAT
Revenue improved by 28% YTD and dropped marginally by 3% QoQ EBITDA up 173% QoQ and 157% YoY NPAT improved by 48% on a QoQ basis and 58% relative to Q3 09 (All figures in Rs. Mn.) QoQ Q3 10 Vs. YTD Q3 10 change Q3 09 YTD 10 change Revenue 509 3% 24% 1,520 28% EBITDA 81 173% >1000% 134 157% NPA
Slide 21: DTV revenue and subscriber growth
DTV Revenue grew by 24% YoY Increase in subscription revenue due to subscriber growth of 8% YoY and increase in usage revenues Subscribers ’000 8% 160 160 152 149 141 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 21
Slide 22: Dialog Group - Balance Sheet KPIs
Dialog Group - Balance Sheet KPls 22 Dialog
Slide 23: Group Capex and Free Cash Flow
Group Capex declined by 15% QoQ and 60% relative to Q3 09 due to return based capex spending Capex/revenue ratio of 10% in Q3 10 Free cash flows grew by 14% QoQ and steady increase in free cash flows to revenue, up 30% pts relative to Q3 09 2% Capex (Rs. Mn.) and Capex/Revenue (%) Free cash Fl
Slide 24: Debt facilities outstanding and maturity
Facility Outstanding Mn. Maturity as at 30 Sep 2010 Lending Institution Type of Currency Amount Less than More than Q3’09 Q4’09 Q1’10 Q2 ‘10 Q3 ‘10 Loan Mn. One year one year Preference RCRPS Investors ** LKR 5,000 3,750 3,750 3,750 2,500 2,500 1,250 1,250 Shares Axiata Advance LKR 3,724 3,724 3,724
Slide 25: Dialog Group Balance Sheet Recovery
Fitch ratings upgraded Dialog’s National Long term Credit rating to ‘AAA(lka)’ on the backdrop of a strong balance sheet and positive outlook on free cash flows High interest bearing local debt of $41 Mn. has been redeemed during 9M of 2010 Dialog Group Balance Sheet Recovery (All figures in Rs.
Slide 26: Thank You
Thank You 26 Dialog