Dialog Axiata Plc · CSELK:DIAL.N0000
Dialog Axiata — Q2 2020 Earnings Presentation
15 slides from Dialog Axiata's earnings presentation, 2020
Slide 1: Dialog Axiata PLC Q2 2020 Results
Dialog Axiata PLC Sri Lanka's Premier Connectivity Provider Q2 2020 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 2
Slide 3: Dialog Group Performance Highlights – Q2 2020
DIALOG GROUP PERFORMANCE HIGHLIGHTS – Q2 2020 Covid-19 Concessions Impact Dialog Revenues, Cost Control Sustains Profitability in Q2 2020 Capex Investments Directed to Mobile and TV Segment Aggressive Subscriber Fulfil Growing Demand for Revenue Impacted by Growth YTD QoQ YoY Data and Digitisation I
Slide 4: Group Financial Summary
GROUP FINANCIAL SUMMARY Rs Mn 1H 2020 YTD 2Q 20 QoQ YoY Revenue 57,424 -1% 28,174 -4% -3% EBITDA 22,867 -1% 10,702 -12% -3% PAT 3,800 -45% 2,311 +55% +16% OFCF 15,777 +37% 6,765 -25% +92% EBITDA Margin 39.8% 0.0pp 38.0% -3.6pp 0.0pp PAT Margin 6.6% -5.2pp 8.2% +3.1pp +1.3pp ROIC 9.7% -3.0pp 9.7% -2.
Slide 5: Group Revenue Impacted by Covid-19 Concessions
GROUP REVENUE IMPACTED BY COVID-19 CONCESSIONS… Revenue Impacted due to Concessions and Lockdown -1% -3% -4% 70, 000 58,104 57,424 60, 000 50, 000 40, 000 29,080 29,250 28,174 30, 000 20, 000 10, 000 0 1H 19 1H 20 Q2 19 Q1 20 Q2 20 Revenue Mobile Revenue declined 2% YTD and 9% QoQ, driven by decline
Slide 6: Challenged Top Line Impeding Profitability; Cost Focus and Forex Compensating
CHALLENGED TOP LINE PERFORMANCE IMPEDING PROFITABILITY; COST FOCUS AND FAVORABLE FOREX MOVEMENT COMPENSATING FOR TOP LINE SHORTFALL EBITDA Declined amid Slowdown in Core Revenues; YTD YTD PAT Declined due to Increase in Depreciation and lower EBITDA; Decline Limited to 1% due to Cost Controls QoQ Re
Slide 7: Total Cost to Revenue Ratio Remained Stable YTD
TOTAL COST TO REVENUE RATIO REMAINED STABLE YTD; PROVISION FOR BAD DEBTS INCREASED BY 2X Q2 20 As % of Q1 20 As % of Q2 19 As % of 1H 20 As % of QoQ YoY YTD revenue revenue revenue revenue Total Cost Rs17,471Mn 62.0% Rs17,108Mn 58.5% Rs18,032Mn Rs34,580Mn +3.5pp 0.0pp 0.0pp 62.0% 60.2% Direct Expens
Slide 8: Focused Capex Investments to Accommodate Urgent Network Upgrades
FOCUSED CAPEX INVESTMENTS TO ACCOMMODATE URGENT NETWORK UPGRADES Capex Intensity at 8% in 1H 2020; OFCF Increased to 15.8Bn for 1H 2020 Capex Investments Directed Towards Digitizing and Expanding Data Network; Mobile 4G and Fixed LTE PoP Coverage Reached 93% and 68% (Rs Mn) -45% -54% 12,0 00 +44% 10
Slide 9: Group's Net Debt to EBITDA Remained Healthy at 0.75x
GROUP’S NET DEBT TO EBITDA REMAINED HEALTHY AT 0.75X (Rs Mn) 30 Jun 20 31 Mar 20 31 Dec 19 30 Jun 19 Gross Debt 42,761 1 45,052 1 44,876 51,103 Net Debt 34,354 39,425 39,986 42,050 Cash and Cash Equivalents 8,407 5,628 4,890 9,053 Gross Debt / Equity (x) 0.58 0.59 0.60 0.73 Gross Debt/ EBITDA (x) 0.
Slide 10: Dialog Axiata Group Performance
Dialog Axiata Group Performance Dialog Axiata PLC - Company Performance Subsidiary Performance – Dialog Broadband and Dialog TV 10
Slide 11: Dialog Axiata PLC (Company): Core Revenues and Profitability Impacted
DIALOG AXIATA PLC (COMPANY) : DIALOG CORE REVENUES AND PROFITABILITY IMPACTED BY COVID CONCESSIONS AND DELAYS IN COLLECTION Revenue Decline due to Challenges on Core Revenue MOU’s Continue to Improve; ARPU Declined due to Drop in Voice Revenue (Rs Mn) -5% -8% 500 20% (Rs) 450 380 379 378 380 349 15%
Slide 12: Dialog Axiata Group Performance
Dialog Axiata Group Performance Dialog Axiata PLC - Company Performance Subsidiary Performance – Dialog Broadband and Dialog TV 12
Slide 13: Dialog Television
DIALOG TELEVISION Revenue Impacted in Q2 due to Covid-19 Concessions Q2 20 Revenue Impacted due to Provision of Free Access to Subscriber Growth led by Prepaid and Postpaid with Improved Churn Channels During Covid-19 Lockdown Period Management Drives Total subs growth +3% QoQ; +17% YoY (Rs Mn) Post
Slide 14: Dialog Broadband Networks
DIALOG BROADBAND NETWORKS Continuing to Deliver Strong Revenue Growth Strong Revenue Growth Driven by Growth in Fixed Broadband and Declining EBITDA Performance due to international business related International Wholesale Revenue cost; PAT Impacted by Higher Depreciation and Finance Cost (Rs Mn) +1
Slide 15: Thank you
Thank you For further information Contact : Investor relations Team, Dialog Axiata PLC Mobile : +94 777332052 Email : ir@dialog.lk Web site : www.dialog.lk 15