Dialog Axiata PLC · CSELK:DIAL.N0000
Dialog Axiata — 9M 2008 Earnings Presentation
39 slides from Dialog Axiata's earnings presentation, 2008
Slide 1: Investor Forum Nine Months Ended 30 September 2008
Investor Forum Nine Months Ended 30 September 2008
Slide 2: Financials: Company Performance Overview
Financials Company Performance Overview
Slide 3: Snapshot – Company
Snapshot – Company Change YoY Growth % CELLULAR SUBSCRIBERS 4.98 Mn. 1.02 Mn. 26 Change Change% KEY FINANCIALS USD Mn Rs Bn. YoY YoY REVENUE 233.27 25.16 Rs. 913.81 Mn. 4 EBITDA 70.75 7.63 (Rs. 3,671.99 Mn.) 32 PAT 23.48 2.53 (Rs. 5,450.90 Mn.) 68 ^Exchange rates applied for Rupee Conversion are the
Slide 4: 4.98 million mobile subscribers, 26% growth
4.98 million. mobile subscribers 26% growth *as of 30 September 2008
Slide 5: Mobile: Strong growth in Mobile Subscribers
Mobile: Strong growth in Mobile Subscribers •Strong Market Share: 51% 3Q FY08 compared to 3Q FY07 26% •Revenue Share: 63% Mobile Subscribers Mobile subscriber Market Share Mobile Subscribers ‘000 4,978 49 3,963 51 27% 19% 30 Sep 2007 30 Sep 2008 Postpaid Prepaid Dialog Others SUBSCRIBER BASE UNITS 1
Slide 6: P&L Highlights
P&L Highlights (All figures in Rs.Mn. COMPANY except for ratios) 1-3Q 08 1-3Q 07 Change(%) Net Revenue* 25,156 24,242 4 Direct Costs 12,483 8,391 49 Gross Profit 12,672 15,851 (20) Gross Margin (%) 50 65 OPEX 9,473 7,265 30 EBITDA 7,630 11,302 (32) EBITDA Margin (%) 30 47 PBT 2,879 8,073 (64) PAT 2,
Slide 7: Revenue Dynamics
Revenue Dynamics Revenue Drivers •Market Leadership with sustained growth in subscribers • Enhanced Portfolio of Value Added Services •Coverage and Quality of Service Improvements Revenue Mitigators •Tariff reduction and other affordability enhancement strategies • General Inflation and Pressures on
Slide 8: Revenue
Revenue • Revenue growth of 3 per cent on adjacent quarter basis . • Revenue negative growth of 1 per cent in 3Q 2008 compared to 3Q 2007. • Revenue growth was mitigated in the main due to aggressive pricing strategies aimed at securing an increasing share of net subscriber additions. Company contin
Slide 9: Direct Costs
Direct Costs Direct costs Performance relative to revenue is mitigated mainly due to increases in frequency fees (306 per cent) telco depreciation (64 per cent) on the back drop of aggressive investment and other network costs in relation to site rentals (117 per cent), electricity charges( 83 per
Slide 10: Operating Costs
Operating Costs • Operating expenses as a percentage of revenue increased by 8 percentage points in 1-3Q 2008 vis-à-vis 1-3Q 2007. • In addition to inflationary pressure on principal cost lines, performance relative to revenue is mitigated due to escalation of energy driven costs. 39% 36% 39% 38% Op
Slide 11: Total Cost Variance 1-3Q 08 vs 1-3Q 07
Total Cost Variance 1-3Q 08 Vs 1-3Q 07 • Increase in network costs and telco depreciation as a % of total costs. • Network costs being the most significant contributor(37%) to variance in cash costs. Contribution to Total Cost Variance (1-3Q 08 vs 1-3Q 07) (all figures in Rs. Mn.) 1-3Q 08 1-3Q 07 Va
Slide 12: PAT and EBITDA Margins
PAT and EBITDA Margins • EBITDA/PAT performance in 3Q 2008 vis-à-vis 3Q 2007 has been mitigated : • Due to downstream of revenue performance, cost expansion driven in the main by general inflation (24 % YoY), energy derived costs (48% YoY), and expansion of the company’s Network infrastructure, with
Slide 13: EBITDA Analysis: 1-3Q 08 vs 1-3Q 07
EBITDA Analysis :1-3Q 08 vs 1-3Q 07 (all figures in Rs. Mn.) 11302 7630 914 EBITDA (2616) (1970) 1-3Q 07 Variance in EBITDA Revenue Variance in Direct Variance in 1-3Q 08 OPEX
Slide 14: PAT Analysis: 1-3Q 08 vs 1-3Q 07
PAT Analysis :1-3Q 08 vs 1-3Q 07 PAT 1-3Q 07 Rs. 7,983Mn. EBITDA variance Rs. 3672 Mn. Negative Variance in Depreciation Rs. 1714 Mn. Negative Variation in Tax,Finance Cost, & other Operating Income Rs .65 Mn. Negative PAT 1-3Q 08 Rs. 2,532 Mn.
Slide 15: Balance Sheet
Balance Sheet 30th September 2008 31st December 2007 (all figures in Rupees '000) Company Company ASSETS Non Current Assets 60,265,617 49,527,591 Current Assets 19,042,803 20,379,238 Total Assets 79,308,420 69,906,829 EQUITY Capital and Reserves Attributable to Equity Holders of the Company Stated C
Slide 16: Cash Flow Highlights
Cash Flow Highlights • Operating Cash Flows was mitigated mainly due to reduction in earnings. • Cash used in Investing Activities increased by 39% YoY due to committed investments. Capex reassigned to priority areas. (all figures in Rs. Mn.) 1-3Q 08 1-3Q 07 Net cash from operating activities 3,689
Slide 17: Reconciliation of Cash Generated from Operations
Reconciliation of Cash Generated from Operations (all figures in Rs. Mn.) 1-3Q 08 1-3Q 07 Profit before Tax 2,879 8,073 Adjustments for: Interest Expenses 508 463 Depreciation 3,862 2,437 Amortisation 387 279 Impairment 180 - Retirement Benefit Obligation 77 24 Other Adjustments* (3,805) (1,209) Cas
Slide 18: Levies (Direct/Indirect) Composition
Levies (Direct/Indirect) Composition • The Company paid direct and indirect levies to the government amounting to Rs. 4.70 Bn. during the nine months ended 30 September 2008 compared to Rs. 2.20 Bn. for the nine months ended 30 September 2007. Composition of Levies Contribution to Variation (YoY) Ot
Slide 19: Lenders
Lenders Summary of Outstanding borrowings Institutions Type of Facility Currency Facilities Amt Principal Outstanding Less than one year More than one year USD Mn eqv. USD Mn eqv. USD Mn eqv. USD Mn. eqv. IFC Term Loan USD 70.00 50.00 - 50.00 DFCC Term Loan LKR 9.29 9.29 1.86 7.43 SCB* Loan Facility
Slide 20: Debt KPIs as at 30 September 2008
Debt KPIs as at 30 September 2008 Gearing 32% Net Debt : EBITDA 2.15x EBIT : Net Interest 6.30x Expense Triple AAA Fitch Rating *Debt includes bank borrowings and vendor financing.
Slide 21: Subsidiary Performance
Subsidiary Performance TELEKOM
Slide 22: CDMA and WiMAX subscriber growth
CDMA subscribers 1668% growth Wi Max subscribers 2520% growth *growth compared against 3Q 2007
Slide 23: Dialog Broadband Networks (Pvt) Ltd. [DBN]
Dialog Broadband Networks (Pvt) Ltd. [DBN] Revenue of Rs. 1755.73 Mn up 158 per cent relative to Rs. 681.68 Mn. recorded for the nine months ended 30 September 2007 . Net loss of Rs. 921.58 Mn. for the nine months ended 30 September 2008 vis-à-vis a loss of Rs. 96.55 Mn recorded for the nine mon
Slide 24: Revenue Growth - DBN
Revenue Growth - DBN • DBN has recorded a revenue growth of 158 per cent YoY. • DBN revenue components include Transmission and Infrastructure Business, Fixed Telephony (CDMA WLL), Data communication services, and Broadband and Internet services. DBN3Q DBN Revenue Revenue 07‐3Q 08 DBN Revenue Compon
Slide 25: Pay TV Subscribers 197% YoY growth
117,512 Pay TV Subscribers 197% YoY growth *growth compared against 3Q 2007
Slide 26: Dialog Television (Pvt) Ltd.
Dialog Television (Pvt) Ltd. DTV Group (inclusive of subsidiaries Communiq Broadband Network (Pvt) Ltd (CBN) and CBN SAT (Pvt) Ltd) recorded a revenue of Rs. 911.34 Mn for the nine months ended 30 September 2008 The company recorded a net loss of Rs. 542.07Mn. for the nine months ended 30 Septembe
Slide 27: Revenue Composition - DTV
Revenue Composition - DTV Revenue comprises of initial connection fees and monthly subscription rentals. The revenue generated from monthly subscription contributes to 60 per cent of total revenue. Connection fee revenue represented 40 per cent of total revenue. Pay TV Subscriber registered a
Slide 28: Group Performance
@S Dialog TELEKOM Group Performance TELEKOM
Slide 29: Performance Synopsis
Performance Synopsis Revenue Growth YoY- Dialog - 4% DBN - 158% DTV – 90% Subscriber Growth – Mobile - 26% YoY CDMA - 1668% YoY Wi Max – 2520% YoY Pay TV – 197% YoY
Slide 30: Snapshot – Group
Snapshot – Group Change Change% KEY FINANCIALS USD Mn Rs Bn. YoY YoY Revenue 253.96 27.39 Rs. 2258.82 Mn. 9 EBITDA 68.64 7.40 (Rs. 3,505.62 Mn.) 32 PAT 9.56 1.03 (Rs. 6,272.87 Mn.) 86 ^Exchange rates applied for Rupee Conversion are the monthly average rates published by Central Bank of SL.
Slide 31: P&L Highlights - Group
P&L Highlights -Group (All figures in Rs.Mn. GROUP except for ratios) 1-3Q 08 1-3Q 07 Change(%) Net Revenue* 27,386 25,127 9 Direct Costs 14,044 9,380 50 Gross Profit 13,343 15,747 (15) Gross Margin (%) 49 63 OPEX 11,418 7,817 46 EBITDA 7,402 10,907 (32) EBITDA Margin (%) 27 43 PBT 1,398 7,377 (81)
Slide 32: Balance Sheet - Group
Balance Sheet - Group 30th September 2008 31st December 2007 (all figures in Rupees '000) Group Group ASSETS Non Current Assets 67,357,437 54,585,098 Current Assets 13,449,447 17,140,415 Total Assets 80,806,884 71,725,513 EQUITY Capital and Reserves Attributable to Equity Holders of the Company Stat
Slide 33: Operational Updates
@S Dialog TELEKOM Operational Updates TELEKOM
Slide 34: New products and Promotions in Q3
New products and Promotions in Q3 M-cert Re-registration Bill summary Dial 444 Room service Hotel reservation / overseas travel requisites M ticket Directory services Phone Backup Dialog Messenger Lifetime Discount NEWS services Per second billing 5 for 50
Slide 35: New products and Promotions in Q3 - Cont.
New products and Promotions in Q3- Cont. 3G Roaming – 50 countries Broadband – HSPA Unlimited offer / Students package Kidz Connection Blaster Package (Per second – post paid) Family Package
Slide 36: Product Information - DBN
Product Information - DBN Products Launched in Q3 Product Description Home Net Ideal Broadband solution for home internet users (light to medium user of internet.), at economical rates. Down link -512kbps Up link – 128kbps Dynamic IP 01 email box Access Technology WiMAX Dialog IP VPN Fully converged
Slide 37: Product Information - DTV
Product Information - DTV New Channels added during Q3 Channel Launch Date NDTV Good Times 1St July 2008 Kalaignar TV 8th August 2008 Bloomberg TV 24th September 2008 Total no of channels by end September 58 New Set Plans added during Q03 Set Plan Channels Launch Date Set 14 HBO Channels 7th August
Slide 38: Corporate Responsibility
Corporate Responsibility SME Toolkit launched As part of the existing “Viyapara Diriya” supply chain workshop series, Dialog Telekom, with funding from International Finance Corporation (IFC) has launched a new web site called “SME toolkit”. This will support small and medium scale entrepreneurs fo
Slide 39: Thank you
TELEKOM Thank you TELEKOM