Dialog Axiata PLC Sri Lanka's Premier Connectivity Provider

Transcription

1 Dialog Axiata PLC Sri Lanka's Premier Connectivity Provider Q Results 12 th May 2016 an axiata company

2 Dialog Group Performance Dialog Axiata Company Performance Subsidiary Performance 2

3 Dialog Group Performance Highlights Q Strong Operational Performance in Q1 driven by Revenue Growth Group Revenue at Rs21.2Bn, grew by 6% QoQ and 22% YoY Mobile, Fixed and TV revenues underpin QoQ and YoY revenue growth Strong growth in Q1 profitability driven by growth in Revenue, one-off charges in Q4 and lower forex losses Q1 Group EBITDA at Rs7.0Bn, increased by 25% QoQ and 17% YoY Q1 Group EBITDA Margin at 33.2% Q1 Group PAT at Rs2.7Bn, up 4 folds QoQ and 35% YoY Q1 Capex amounted to Rs2.9Bn, Capex Intensity of 14% Low gearing maintained with Net Debt to EBITDA at 0.78x as at end of March 2016 with Q1 OFCF positive at Rs2.6Bn Subsidiaries continue to consolidate performance DBN records solid EBITDA growth of 25% YoY DTV strong revenue growth of 8% YoY Aggressive Subscriber Growth Mobile subscriber base of 10.6Mn up by 8% YoY TV subscriber base of 701k with over 51k net adds during the quarter Fixed LTE subscriber base of 133k growth of 40% QoQ Dialog secured the distinction of winning a Global Mobile Award at the Mobile World Congress Global Award for Best Mobile Network Solution for Serving Customers - Dialog Self-Care Application Framework and Dialog Self Care App Sri Lankan Consumers Vote Dialog as No 1 (SLIM-Nielson People s Choice Awards) Telecom Service Provider of the Year Internet Service Provider of the Year 3

4 Group Financial Summary Growth Momentum Consolidates with Strong Q1 Results Rs Mn Q1 16 QoQ YoY Revenue 21,157 6% 22% EBITDA 7,019 25% 17% PAT 2,666 >100% 35% EBITDA Margin 33.2% 5.2 pp -1.3 pp PAT Margin 12.6% 9.5 pp 1.2 pp ROIC 17.3% 10.2 pp 2.5 pp All key Financial Indicators improved significantly QoQ and YoY 4

5 Group Revenue Continues Growth Momentum; Mobile, Fixed and Television Revenues drive QoQ Growth of 6% Group Revenue (Rs Mn) +22% +6% 17,331 17,745 18,816 20,039 21,157 Mobile Voice revenue grew by 3% QoQ and 12% YoY Mobile Data revenue improved significantly by 9% QoQ and 60% YoY on the back of higher subscriber additions and increased usage Fixed revenue grew by 7% QoQ and 25% YoY on the backdrop of strong growth in fixed LTE revenue Growth in Television revenue driven by subscription revenue which grew by 5% QoQ and 16% YoY 5

6 9,00 0 8,00 0 7,00 0 6,00 0 5,00 0 4,00 0 3,00 0 2,00 0 1, Q1 Profitability Improvement underpinned by Growth in Revenue, One-off Charges in Q4 and Lower Forex Losses Group EBITDA and PAT (Rs Mn) +17% +25% 5,978 5,919 6,314 5,613 7,019 EBITDA (Rs Mn) PAT (Rs Mn) 1,982 1, ,666 EBITDA Margin % PAT Margin % 34.5% 33.4% 33.6% 28.0% 33.2% 11.4% 10.7% 3.6% 3.1% 12.6% Cost as a % of Revenue Q1 16 Q4 15 Q1 15 Total Group Cost 66.8% 72.0% 65.5% Direct Expenses 29.9% 28.5% 28.0% Sales & Marketing 13.7% 15.6% 12.3% Network Cost 9.6% 10.5% 10.9% Staff Cost 7.8% 9.9% 8.1% Bad debt 1.0% 1.1% 0.8% Overheads 4.7% 6.4% 5.3% EBITDA grew by 25% QoQ on the back of growth in revenue and Q4 being impacted by one-off charges YoY EBITDA improvement driven by increase in revenue PAT improved by 4 folds QoQ and 35% YoY on the back of strong EBITDA performance and lower forex losses 6

7 14, , ,0 00 8,00 0 6,00 0 4,00 0 2, % 150 % 100 % 50% 0% Focused Capex Investments to further strengthen the Group s Leadership in Sri Lanka s ICT sector Capex* (Rs Mn) & Capex Intensity (%) +69% -72% 10,618 3,536 3,683 2,942 1,740 53% 20% 20% 10% 14% CAPEX CAPEX Intensity Q1 16 Capex directed in the main towards, investments in high speed broadband infrastructure Extension of Optical Fibre Network (OFN) * Capex excluding CPE (Customer Premises Equipment) investments, capex for spectrum acquisition and license renewal 7

8 Structurally Strong Balance Sheet with Net debt to EBITDA Sustained Below 1.0x Financial Position (Rs Mn) 31 Mar Dec Mar 15 Cash & Cash Equivalents 9,741 4,429 11,481 Gross Debt 31,540 22,910 28,169 Gross Debt / equity (x) Gross Debt/ EBITDA (x) Net Debt/ EBITDA (x) Solid balance sheet backed by low gearing; Net debt to EBITDA maintained at 0.78x Rs10Bn rupee loan drawn down in March 2016 to mitigate the impact of forex exposure on foreign currency borrowings 8

9 Dialog Group Performance Dialog Axiata Company Performance Subsidiary Performance 9

10 20, , , , , ,0 00 8,00 0 6,00 0 4,00 0 2, Dialog Axiata PLC (Company): Key Financial Highlights Strong Revenue Growth of 6% QoQ and 22% YoY +22% +6% 14,691 15,157 16,089 17,007 17,972 Revenue (Rs Mn) EBITDA (Rs Mn) PAT (Rs Mn) 5,053 4,905 5,581 1,945 1,831 1,050 4, ,283 3,028 EBITDA Margin % 34.4% 32.4% 34.7% 28.2% 35.0% PAT Margin % 13.2% 12.1% 6.5% 5.4% 16.8% YoY and QoQ Revenue improvement driven by growth in data, voice and VAS revenues EBITDA improved by 31% QoQ on the back of growth in revenue and Q4 being impacted by one-off charges EBITDA increased by 24% YoY in tandem with revenue growth PAT grew by 3 folds QoQ and 56% YoY driven by growth in EBITDA and and lower forex losses 10

11 10, 000 8,0 00 6,0 00 4,0 00 2, Mobile Subscriber Growth of 8% YoY No of Mobile Subscribers 000 Blended ARPU (Rs) & MOU Total subs growth -3% qoq; +8% yoy Postpaid subs growth +2% qoq; +7% yoy Prepaid subs growth -3% qoq; +8% yoy 10,312 9,807 10,142 1,085 1,112 1,135 10,872 10,590 1,141 1, ,722 9,030 9,177 9,731 9, Postpaid Subs Prepaid Subs Blended ARPUs Blended MOUs Growth in Pre paid segment underpins the YoY subscriber growth of 8% 3% decline in Pre paid subscribers QoQ due to change in basis for permanent disconnection ARPU increased by 4% QoQ driven by growth in Data, VAS and local voice 11

12 Dialog Group Performance Dialog Axiata Company Performance Subsidiary Performance 12

13 1,75 5 1,55 5 1,35 5 1, (4 5) (2 45) Dialog Television: Key Financial Highlights Continues to Consolidate Revenue Growth with Revenue increasing by 8% YoY +8% +4% 1,456 1,345 1,463 1,516 1,577 Revenue (Rs Mn) EBITDA (Rs Mn) PAT (Rs Mn) Q1 15 (26) Q2 15 Q3 15 Q4 15 Q1 16 (243) (184) (182) EBITDA Margin % 21.6% 15.0% 4.8% 1.5% 2.0% PAT Margin % 9.6% -1.9% -16.6% -12.1% -11.5% 13 No of Television Subscribers 000 Total subs growth +8% qoq; +39% yoy Postpaid subs growth +2% qoq; +11% yoy Prepaid subs growth +20% qoq; +138% yoy Post paid Pre Paid QoQ and YoY Revenue improvement driven by growth in subscription revenue QoQ EBITDA and PAT improved on the back of growth in revenue Cost expansion arising from aggressive customer acquisition alongside service and product expansion activities resulted in a medium term contraction of EBITDA on YoY basis PAT impacted YoY on the back of decline in EBITDA 13

14 2,80 0 2,30 0 1,80 0 1, (2 00) Dialog Broadband Networks: Key Financial Highlights EBITDA improved significantly by 25% YoY on the back of Growth in Revenue +21% +6% Revenue (Rs Mn) EBITDA (Rs Mn) PAT (Rs Mn) 1,733 1,791 1, ,969 2, (80) 128 (101) (80) (119) EBITDA Margin % 34.6% 44.8% 36.1% 41.4% 35.8% PAT Margin % -4.6% 7.1% -5.6% -4.1% -5.7% QoQ and YoY Revenue growth driven by strong growth in fixed LTE revenue YoY EBITDA improvement driven by growth in revenue; QoQ EBITDA impacted by increase in operating costs YoY PAT impacted by increase in depreciation stemming from Fixed 4G LTE related investments while QoQ decline in PAT due to decline in EBITDA 14

15 Thank You 15