Dialog Axiata Plc · CSELK:DIAL.N0000
Dialog Axiata — Q1 2024 Earnings Presentation
15 slides from Dialog Axiata's earnings presentation, 2024
Slide 1: Dialog Axiata PLC Q1 2024 Results
Dialog Axiata PLC Sri Lanka's Premier Connectivity Provider Q1 2024 Results an axiata company
Slide 2: Dialog Axiata Group Performance
Dialog Axiata Group Performance Dialog Axiata PLC - Company Performance Subsidiary Performance – Dialog Broadband and Dialog TV Dialog - Internal 2
Slide 3: Dialog Group Performance Highlights – Q1 2024
DIALOG GROUP PERFORMANCE HIGHLIGHTS – Q1 2024 Core Revenue Remains Resilient; EBITDA Margin Expand YoY; PATAMI Impacted by Higher Finance Cost Capex Investments Directed to All Key Business Segments Aggressive Subscriber Fulfil Growing Demand Delivered Strong Growth QoQ YoY Performance Revenue1 -0.5
Slide 4: Group Financial Summary
GROUP FINANCIAL SUMMARY Rs Mn Q1 24 QoQ YoY Revenue 1 43,168 -0.5% -14% Core Revenue 34,557 -2% +1% EBITDA 13,543 -20% +4% EBIT 2,640 -60% -4% Net Finance Cost 2,988 >+100% +41% PATAMI 2,769 -49% -69% OFCF 11,590 +57% >+100% EBITDA Margin 31.4% -7.8pp +5.4pp EBIT Margin 6.1% -9.3pp +0.6pp PAT Margin
Slide 5: Group Revenue
GROUP REVENUE Core Revenue up 1% YoY; Reported Group Revenue Impacted by Scaling down of Hubbing Business, VAT impact and Forex appreciation -14% | Core Rev +1% -0.5% | Core Rev. -2% 55, 000 50,067 43,390 50, 000 45, 000 43,168 40, 000 34,324 35,257 34,557 35, 000 30, 000 25, 000 20, 000 Q1 23 Q4 23
Slide 6: Group EBITDA, EBIT and PATAMI
GROUP EBITDA, EBIT AND PATAMI YoY EBITDA Growth Driven by Core Revenue Growth and Cost Rescaling Initiatives PATAMI Impacted by Lower EBIT and Higher Finance Cost; Forex Gain +4% Cushioning the Negative Impact (Rs Mn) -20% (Rs Mn) -69% | Norm >-100% 16,979 13,010 18, 000 16, 000 14, 000 13,543 130 .
Slide 7: Total Cost to Revenue Ratio Decrease 5.4pp YoY
TOTAL COST TO REVENUE RATIO DECREASE 5.4PP YOY OWING TO LAGGING (TIMING) OF COST RESCALING INITIATIVES (CRS Saving of Rs0.9Bn in Q1 2024) Q1 24 As % of Q4 23 As % of Q1 23 As % of QoQ YoY revenue revenue revenue Total Cost Rs29,725Mn 68.6% Rs26,411Mn 60.9% Rs37,0626Mn 74.0% +7.7pp -5.4pp Direct Expe
Slide 8: Focused Capex to Support Critical Infrastructure Upgrades
FOCUSED CAPEX TO SUPPORT CRITICAL INFRASTRUCTURE UPGRADES. Q1 2024 OFCF at Rs6.6Bn Capex Investments Directed Towards Expanding Data Network -38% (Rs Mn) -22% 18,0 00 16,0 00 14,0 00 12,0 00 10,0 00 8,00 0 5,349 4,212 6,00 0 3,280 Capex 4,00 0 10% 2,00 0 10% 8% Intensity - Q1 22 Q4 22 Q1 23 OFCF Inc
Slide 9: Strengthened Balance Sheet with Focus on Reduction of Forex Exposure
STRENGTHENED BALACE SHEET WITH FOCUS REDUCTION OF FOREX EXPOSURE; GEARING REMAINS LOW WITH NET DEBT TO EBITDA AT 1.32X (Rs Mn) 31 Mar 24 31 Dec 23 31 Mar 23 Gross Debt 112,919 113,787 103,109 USD denominated debt (in USD Mn’s) 156.0 156.0 190.5 Net Debt 71,656 73,174 68,955 Cash and Cash Equivalents
Slide 10: Dialog Axiata Group Performance
Dialog Axiata Group Performance Dialog Axiata PLC - Company Performance Subsidiary Performance – Dialog Broadband and Dialog TV Dialog - Internal 10
Slide 11: Dialog Axiata PLC (Company)
DIALOG AXIATA PLC (COMPANY) Increase in VAT by +3% and LKR appreciation Impacting Revenue Subscriber Growth Resuming QoQ Driven by Prepaid Growth Segment Total subs growth +2% QoQ; -5% YoY (In ‘000) Postpaid subs growth +1% QoQ; -3% YoY (Rs Mn) +0% Prepaid subs growth +2% QoQ; -5% YoY -3% 25,595 26,
Slide 12: Dialog Axiata Group Performance
Dialog Axiata Group Performance Dialog Axiata PLC - Company Performance Subsidiary Performance – Dialog Broadband and Dialog TV Dialog - Internal 12
Slide 13: Dialog Television
DIALOG TELEVISION Improved YoY Margin and Positive 1Q PAT Despite Affordability Challenges Affordability Challenges Impeding Subscribe base Growth; YoY Revenue growth continue driven by Advertising Revenue Maintained at 1.6m HH level Total subs growth -3% QoQ; -5% YoY (Rs Mn) +2% Postpaid subs growt
Slide 14: Dialog Broadband Networks
DIALOG BROADBAND NETWORKS Continuing to Deliver Strong Profitability YoY; Focus on Profitable Revenue Generation Improve Margins YoY Revenue Impacted due to Scaling Down of Low Margin Hubbing Profitability and Margins Improve on YoY Amid Improvement in Cost Business Along with Revenue Challenges in
Slide 15: Thank You
Thank You Dialog - Internal 15