dtac third quarter Oct 2009

Transcription

1 dtac third quarter Oct 2009

2 Disclaimer Certain forward looking statements may be made in the course of the presentation. These forward- looking statements generally can be identified by use of statements that include words or phrases such as DTAC or its management believes, expects, anticipates, intends, plans, foresees, or other words or phrases of similar import. Similarly, statements that describe DTAC s objectives, plans or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forwardlooking statement. The forward-looking statements contained in the slides are not and should not be constructed as representations of the future performance of DTAC and that such statements are an expression of the Company s reviews based on its current view and certain assumptions including, but not limited to, prevailing economic and market conditions and currently available information. 2

3 summary of third quarter Service revenues rebounded QoQ. Slight pick up in revenue from international roaming service. EBITDA improved from lower net negative IC balance and operating expenses. Focus on retention resulted in stable ARPU and MOU. Cash flow target revised up. 3

4 operational highlights 4

5 MOU and ARPU flat QoQ blended MOU blended ARPU -8.4 % -0.2 % -9.8 % +0.1 % outgoing incoming outgoing incoming Unchanged calling rate and flat MOU resulted in stable ARPU. 5

6 on-net traffic slightly up outgoing on:off-net traffic off-net incoming:outgoing traffic 33% 32% 31% 31% 29% 29% 28% 45% 45% 45% 47% 47% 47% 47% 67% 68% 69% 69% 71% 71% 72% 55% 55% 55% 53% 53% 53% 53% Q108 Q108 on-net off-net incoming outgoing 6

7 postpaid net adds (000 subs) MOU (mins/month/sub) ARPU (bt/month/sub) % -0.1 % % % outgoing incoming outgoing incoming Net adds turned negative while MOU and ARPU stabilized. 7

8 postpaid direction Focus on profitability Profitability across Focus all areas Customer segments Products Distribution channels Key Areas Level of service based on customer segment and profit contribution. Offer proper add-on features and more focus on data services. More emphasis on distribution channels that attract high quality customers. 8

9 prepaid net adds (000 subs) MOU (mins/month/sub) ARPU (bt/month/sub) % % -0.1 % +0.3 % outgoing incoming outgoing incoming Higher outgoing revenue was offset by lower incoming revenue. 9

10 financial highlights 10

11 service revenues up 1.1% QoQ 10.1% 2.7% 4.0% service revenues (THB million) 19.6% -2.5 % +1.1 % 45.6% 18.0% 16,632 16,415 16,125 16,247 15,823 16,000 3,886 3,629 3,405 3,266 3,149 3, % Q % 3.9% Q309 * 11.5% Q % 4.5% 12,746 12,786 12,720 12,981 12,674 12, % 22.1% 14.3% 13.9% Service revenue IC revenue 46.0% Postpaid airtime Prepaid airtime VAS International Roaming (IR) 45.1% Interconnection Others * Postpaid VAS discount has been netted against VAS revenue instead of voice starting from Q309 11

12 QoQ revenue change illustrated 16,212 16,029 Q209 Higher domestic revenue Higher IR Higher other Higher handset & operating income Lower IC revenue Q309 12

13 regulatory cost revenue share & numbering fee (THB million) +1.2 % 3,396 3,404 3,481 3, % 3,404 3,445 Regulatory cost increases QoQ and YoY from service revenue growth Note: Comprise revenue share to CAT and numbering fee to NTC 13

14 CoS flat QoQ network OPEX and other cost of services 1, % 1,922 1, % 1,795 1,735 1,739 Q308 Q209 Q309 No. of new sites Total sites on air 9,395 9,871 9, , Slight increase in network opex is compensated by the decline in other CoS due mainly to lower prepaid voucher cost Network OPEX Others Note: Other CoS consists mainly of prepaid voucher, roaming & IDD charges, and others. 14

15 SG&A continued to improve QoQ SG&A excl. A&D (THB million) SG&A excl. A&D as % of total revenues % -2.7 % 2,509 2,554 2,821 2,705 2,649 2, % 9.9% 11.3% 11.3% 12.0% 11.6% 14.9% 15.3% 17.2% 16.4% 16.5% 15.9% 5.1% 4.5% 5.3% 5.3% 5.9% 3.9% 5.1% 5.8% 4.7% 4.5% 5.1% 4.3% SG&A SG&A of total rev S&M of total rev. Admin excl A&D of total rev Prov for doubtful account Note : SG&A include impairment of goodwill & intangible asset. Note : Provision for doubtful account is in percentage to postpaid revenue. 15

16 A&D slightly declined A&D - deferred right, PPE, and SG&A 2, % 2,335 2,476 2,410 A&D cost of service slightly down -2.8 % QoQ from full amortization of some 2,571 2,499 non-concessionary assets. A&D SG&A declined QoQ from a onetime write-off of Chai building s leasehold improvement in Q2. A&D - cost of service A&D - SG&A 16

17 EBITDA margin up 1.5pp EBITDA (THB million) net profit (THB million) -1.3 % % 7, % % 32.1% 5,458 5, % 4, % 4,820 4, % 29.6% 5, % 3,905 2,053 1,836 1,239 1,470 1,364 1,629 EBITDA EBITDA ex DPC EBITDA margin ex DPC Net Profit Net Profit ex DPC 17

18 QoQ EBITDA change illustrated 5,064 4,772 Q209 Higher domestic Higher IR & Other Lower net IC cost Lower SG&A Increase CoS & Q309 revenue Revenue other 18

19 healthy operating free cash flow Operating free cash flow (THB billion) 7.9 YTD free cash flow is 10.7 bn baht EBITDA Capex Operating FCF 19

20 maintain ample liquidity interest-bearing debt (THB billion) financial ratios FFO to Total Debt (%) Interest Coverage Ratio Net debt to EBITDA Net debt to Equity debt maturity profile (THB billion) Q409 H110 H Cash on hand of THB 19.0 billion (incl short-term investment). Undrawn committed facilities of THB 6.0 billion. Issuance of THB 2 billion debenture. 20

21 regulatory updates & other issues 21

22 regulatory updates & other issues 3G 850 MHz Non-commercial trial launched on 31 Aug. To study usage pattern of wireless broadband users. MNP MNP regulation published in the Royal Gazette on 3 Aug, allowing 3 months of service implementation period. The central clearing house to be jointly set up by operators. Operators asked NTC for months of implementation time. New Frequency Act The draft s being reviewed by the ad-hoc committee of the house of representative. Expect to pass the Lower House within this session. 22

23 outlook 23

24 outlook for 2009 net adds Revise down to 2-3 million net adds for the industry. dtac expects to maintain market share. operating free cash flow Target is revised up to approximately THB 13.0 billion. 24

25 appendix 25

26 income statement Q309 Q209 QoQ Q308 YoY THB million Service revenues (w/o IC) 12,861 12, % 12, % IC revenues 3,140 3, % 3, % Total revenues 16,212 16, % 16, % Operating Costs (w/o IC) 10,320 10, % 10, % IC Costs 3,380 3, % 3, % EBITDA 5,064 4, % 5,130 EBITDA margin 31.1% 29.6% +1.5pp 30.3% -1.3% +0.8pp EBIT 2,596 2, % 2, % Financial Costs % % Income tax % % Net profit 1,629 1, % 1, % 26

27 net adds (in thousand) Prepaid Postpaid Total 27

28 registered vs active subs (in million) Q108 registered subs active subs 28