Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — M1 — Q3 2012 Earnings Presentation
22 slides from Singapore Exchange's earnings presentation, Oct 15, 2012
Slide 1: 3Q12 Results Presentation
3Q12 Results Presentation 15 October 2012
Slide 2: Forward looking statements – Important note
Forward looking statements – Important note This presentation and the following discussion may contain forward looking statements by M1 Limited (“M1”) relating to financial trends for future periods Some of the statements contained in this presentation or arising from this discussion which are not o
Slide 3: Overview
Overview Financial Service revenue increased 2.8% to S$577m highlights EBITDA margin at 38.0% of service revenue for 9 months 2012 Net profit after tax decreased 14.1% to S$109m Mobile customer base increased 24,000 to 2.06m Operating SAC increased QoQ to S$370 highlights for 3Q12 Churn improved QoQ
Slide 4: Agenda: Financial performance
Agenda Financial performance Operating performance Developments and outlook 3
Slide 5: Operating revenue (S$m)
Operating revenue (S$m) +0.2% 748 749 Handset sales 186 172 +4.0% 28 36 Fixed services +9.6% 94 90 317 International call 263 255 services 245 128 232 56 71 59 42 11 11 12 11 13 452 Telecommunications 30 31 31 29 31 441 Services 148 147 149 151 152 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths 9 mths FY11 FY12 No
Slide 6: Cost of sales (S$m)
Cost of sales (S$m) +6.7% 395 370 Handset costs +16.3% 237 222 Other costs +16.6% 196 Traf f ic Expenses 140 137 118 118 Leased Circuit 144 65 Costs 58 88 83 68 66 Wholesale 48 48 costs of fixed 20 20 22 20 23 services 15 16 16 26 24 16 16 68 78 78 79 87 16 22 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths 9 mths
Slide 7: Other operating expenses (S$m)
Other operating expenses (S$m) -1.5% 221 217 Depreciation & +0.6% amortisation 79 81 Staf f costs +9.1% Facilities expenses 76 77 76 72 72 70 73 Advertising & promotion 28 28 26 28 27 Doubtf ul debt 27 provision 25 25 26 28 25 22 20 Other G&A 10 10 10 16 9 9 expenses 5 7 5 43 6 13 10 34 44 24 4 34 1
Slide 8: EBITDA (S$m) & margin (%)
EBITDA (S$m) & margin (%) -7.3% 237 219 -11.8% -3.4% EBITDA 79 77 74 72 70 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths 9 mths FY11 FY12 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths FY11 9 mths FY12 EBITDA margin 42.1% 39.2% 40.1% 38.0% 35.8% 42.1% 38.0% (on service revenue) 7
Slide 9: Profit after tax (S$m) & margin (%)
Profit after tax (S$m) & margin (%) -14.1% 126 -19.5% 109 -6.0% PAT 41 40 38 35 33 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths 9 mths FY11 FY12 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths FY11 9 mths FY12 PAT margin 21.8% 19.9% 21.0% 18.5% 16.9% 22.5% 18.8% (on service revenue) Note: Figures may not add up due to rounding
Slide 10: Capex & free cash flow
Capex & free cash flow Capex (S$m) Free cash flow (S$m) +46.5% Cost of additional 3G spectrum 169 +12.4% / -16.5% +56.3% -57.3% 115 22 +35.5% -58.5% 83 62 71 53 63 46 39 40 40 24 14 17 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths 9 mths 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths 9 mths FY11 FY12 FY11 FY12 9
Slide 11: Financial leverage
Financial leverage 9 months ended S$m FY2011 FY2012 Change Cash & cash equivalents 5.2 23.8 @ Net debt 337.8 245.7 -27.3% Net assets 283.7 309.3 9.0% Net debt/equity (x) 1.2 0.8 -33.3% Net debt/EBITDA (x) 1.1 0.8 -22.3% EBITDA/Interest (x) 52.9 52.4 -0.9% Net assets per share (cents) 31.2 33.9 8.7%
Slide 12: Agenda: Operating performance
Agenda Financial performance Operating performance Developments and outlook 11
Slide 13: Mobile customer base & revenue mix
Mobile customer base & revenue mix Mobile telecommunications Customer base (‘000) revenue mix (S$m) Prepaid Postpaid 2,035 2,059 2,009 2,015 2,014 Prepaid Postpaid 19.4 19.3 19.5 13% 19.9 19.5 981 48% 974 969 961 971 127.6 127.4 129.6 131.2 132.7 87% 1,053 1,064 1,078 52% 1,035 1,046 3Q11 4Q11 1Q12
Slide 14: Mobile market share
Mobile market share Overall market share* Postpaid & prepaid market share* Postpaid 26.1% 26.0% 25.9% 25.8% 25.8% 26.2% 26.0% 25.9% 25.9% 25.9% 3Q11 4Q11 1Q12 2Q12 Aug-12 Prepaid 26.4% 26.0% 25.8% 26.1% 26.1% 3Q11 4Q11 1Q12 2Q12 Aug-12 3Q11 4Q11 1Q12 2Q12 Aug-12 * - Based on published statistics ava
Slide 15: Postpaid acquisition cost & churn
Postpaid acquisition cost & churn Acquisition cost Monthly churn rate (postpaid) per postpaid customer (S$) +29.4% +15.6% +15.8% 423 363 370 352 320 304 1.5% 286 1.4% 1.3% 1.3% 1.3% 1.2% 1.2% 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths 9 mths 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths 9 mths FY11 FY12 FY11 FY12 Note: Cash
Slide 16: Postpaid monthly ARPU & MOU
Postpaid monthly ARPU & MOU Postpaid monthly ARPU (S$) Postpaid monthly MOU per sub (mins) ARPU offset against handset subsidy -6.8% -2.0% -3.3% -5.3% -1.9% -1.3% 359 360 360 343 346 341 335 63.3 64.0 63.3 63.3 62.0 63.7 62.9 53.9 53.0 52.9 53.0 52.7 55.1 52.9 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths 9 mths
Slide 17: Prepaid monthly ARPU & MOU
Prepaid monthly ARPU & MOU Prepaid monthly ARPU (S$) Prepaid monthly MOU per sub (mins) +30.2% +9.9% +18.3% +22.4% 368 335 329 +5.1% +11.8% 285 292 283 278 16.5 15.7 15.3 13.5 13.8 14.0 13.7 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths 9 mths 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths 9 mths FY11 FY12 FY11 FY12 16
Slide 18: Mobile data ARPU & non-voice contribution
Mobile data ARPU & non-voice contribution Mobile data and SMS contribution Data plan ARPU (S$) to service revenue Mobile Data SMS 36.9% 37.3% 38.0% 37.4% 35.9% 36.2% 35.4% +3.7% -2.9% +6.9% 23.7% 24.3% 20.6% 23.7% 21.2% 22.2% 23.1% 23.1 23.6 23.7 23.1 23.5 22.2 22.0 14.7% 14.0% 13.8% 13.6% 13.7% 14.
Slide 19: International call services
International call services International retail minutes International call services (million mins) revenue (S$m) +1.5% -3.5% 864 877 94 90 -1.3% +1.2% +3.8% +7.0% 305 300 287 290 301 30 31 31 31 29 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths 9 mths 3Q11 4Q11 1Q12 2Q12 3Q12 9 mths 9 mths FY11 FY12 FY11 FY12 Not
Slide 20: Agenda: Developments and outlook
Agenda Financial performance Operating performance Developments and outlook 19
Slide 21: Developments and outlook for 2012
Developments and outlook for 2012 Strong take-up of 4G service More efficient carriage of data traffic Developments Introduced new smartphone and mobile broadband plans Tiered data bundles Better data usage experience for all customers Capex of around S$120m Financial guidance 4Q12 performance to im
Slide 22: Thank you
Thank you 21