Provider - Amazon S3
Transcript of Provider - Amazon S3
Enriching Sri Lankan Lives
Dialog Axiata PLCSri Lanka's Premier Connectivity Provider
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Investor Forum Q3 2011.. Investor Forum Q3 2011
an axiata company
Dialog Axiata Group
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Q3 2011 Group Performance Highlights
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Strong Financial Performance
Healthy growth in Group revenue driven by growth at Company and Subsidiary level
Group revenue up 5% QoQ and 10% YoY
EBITDA at Rs 4.3Bn increased by 14% QoQ; EBITDA margin strengthened by 2ppts to 37%
Exceptional gain in Q3 2011 due to recognition of TDF refund of Rs 342Mn normalised EBITDA growth of 5% QoQ.
Group PAT at Rs 1.4Bn up 1% QoQ and 4% YoYPAT growth inhibited by expansion of non-operating costs
Subsidiaries Consolidate EBITDA Performance DBN - 6th consecutive quarter of positive EBITDADTV - Consistent delivery of 20% EBITDA margin over 4 quarters
Group FCF comfortably positive for the seventh consecutive quarter with Q3 2011 FCF recorded at Rs 3.2Bn (3 fold increase QoQ)
Subscriber Growth Parameters
Mobile subscribers up 4% YoY
Pay TV subscriber base surpasses 200k in Q3 2011
Dialog Group: P&L HighlightsGrowth Momentum Consolidated with Strong 3rd Quarter
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(All figures in Rs Mn)
• Q3 Group EBITDA increase is due to the improved EBITDA at Company
• Group PAT increase QoQ by 1ppt due to higher EBITDA partly offset by higher depreciation, forex loss in Q3 and increase in deferred taxation charge
Q3 11QoQ
Change
YoY
Change9M 11
YTD
Change
Revenue 11,648 +5% +10% 33,664 +10%
EBITDA 4,339 +14% +8% 11,714 +5%
EBITDA Margin 37% +2pp -1pp 35% -2pp
PAT 1,392 +1% -18% 3,935 +4%
PAT Margin 12% -1pp -4pp 12% 0pp
1,384
520
(103)
(236) (168) (5)
1,392
PAT Q2 2011 Var. EBITDA Var. Depreciation Var. Net finance cost Var. Tax Var. Other operating income PAT Q3 2011
Rs Mn
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Group PAT
Forex loss in Q3 (Rs. 232Mn)
Higher depreciation charge in line with network expansion
Group EBITDA and PAT
Higher network cost in line with expansion in thenetwork foot print, increased customer relatedexpenses and higher interconnect cost
Group EBITDA
3,819
585
(330) (77)
3,997 342 4,339
EBITDA Q2 2011 Var. Revenue Var. Direct cost Var. Opex Normalised EBITDA Q3 2011
one off TDF refund Reported EBITDA Q3 2011
Rs Mn +9%+5%
Higher deferred taxation charge
Group EBITDA Margin Analysis – Q3 2011
34.5%EBITDA Margin Q2 2011
N t k t
+ EBITDA margin impact (%)‐ EBITDA margin impact (%)
-0.4%
0.2%
-0.3%
Network cost
Regulatory cost
Direct cost
0.7%
0.7%
Staff related cost
Bad debt
0.2%
-1.0%
-0 3%
Other costs
Sales and marketing
Local interconnect cost
Higher advertising and marketing spend
-0.3%
34.3%
2.9%
Local interconnect cost
Normalised EBITDA Margin Q3 2011
One off TDF refund QoQ margin remains flat when normalized for TDF refund of Rs 342Mn
37.2%Reported EBITDA Margin Q3 2011
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Seventh Consecutive Quarter of Positive FCF
Capex* Free cash Flow (FCF)**
+13%
Free cash Flow (FCF)
Rs MnRs Mn
+73% +6% ‐31%
45%
55%
6,500 28% 27%
24%26%
36%
5,500
6,500
7,500 ‐61% +>100%
10%
28%23%
27%
10%13%
20%
15%
25%
35%
2,500
3,500
4,500
5,500
7,336
5,0469% 10%7%
15%16%
2,500
3,500
4,500
1,025 3,017 2,495
3,010
1,163 3,855
6,668
-5%
5%
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 YTD 10 YTD 11
500
1,500
Capex Capex/Revenue
2,995
915 1,061 809
3,1767%
-4%
6%
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 YTD 10 YTD 11(500)
500
1,500
FCF FCF/RevenueCapex Capex/Revenue FCF FCF/Revenue
Higher free cash flow in Q3 2011 due EBITDA growth and relatively low capex spending
Drop in QoQ capex based on project execution cycleand stringent monitoring of capital inventory
7* Capex - Additions to PPE & CWIP** FCF = EBITDA – Capex
capex spending
Gross Debt Position* 27,557 27,636 28,307 27,654 27,244
Gross Debt to EBITDA** 1.71 1.76 1.99 1.81 1.57
Net Debt to EBITDA** 1.47 1.41 1.43 1.26 0.99
Free Cash Flow (FCF) 2,995 915 1,061 809 3,176
FCF to Debt 43% 13% 15% 12% 47%
Current Ratio 0.93 0.88 0.90 0.82 0.95
Group Balance Sheet Deleveraged via Healthy FCF and Repayment of Borrowings
* Borrowings includes short term open LCs
**Annualized EBITDA = 4 times of quarterly EBITDA
(All figures in Rs. Mn.)
except for ratio’s Q3 10 Q1 11Q4 10 Q2 11 Q3 11 Trend
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Gross debt in Q3 2011 includes USD37.5Mn and Rs 3.7Bn interest-free loans from parent Axiata, Rs1.25Bn of redeemable preference shares, USD124.3Mn loan from OCBC and open LCs of Rs3.7Bn
USD8.2Mn OCBC loan was repaid in July 2011
Net debt to EBITDA improved to 0.99X in Q3 2011 from 1.26X in Q2 2011
Dialog Axiata PLC – Company
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Dialog Company: P&L HighlightsImproved EBITDA Driven by Growth in Revenue and TDF Refund in Q3
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(All figures in Rs Mn)
Increase in Q3 EBITDA due to higher revenue and TDF refund amounting to Rs 342Mn
Marginal decline in YTD EBITDA due to increase in operating costs by 16% due to;Costs expansion in revenue linked expenses and network operating costs in line with network expansionNon recoverable VAT expenditure arising from changes in VAT laws since January 2011
YTD PAT down 7% relative to the corresponding period in 2010, driven largely by higher deprecation arising fromexpansion of the access network and lower forex gain
Q3 11QoQ
Change
YoY
Change9M 11
YTD
Change
Revenue 10,677 +5% +10% 30,854 +10%
EBITDA 4,064 +15% +8% 10,882 -0.1%
EBITDA Margin 38% +3pp -1pp 35% -4pp
PAT 1,663 +3% -13% 4,649 -7%
PAT Margin 16% 0pp -4pp 15% -3pp
5,949 6,056 6,230 6,148 6,160
767
773 780 799 829
5,300
5,500
5,700
5,900
6,100
6,300
6,500
6,700
6,900
7,100
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11
Postpaid Subs. Prepaid Subs.
Company – Operational PerformanceSteady Growth in RPM, MOUs and ARPUs Despite Intense Competition
No of Subscribers Pre : Post mix 88%
Post-paid
12%
Pre-paid
Blended ARPUs & RPM (Rs)
6,716
6,990
Total subs growth +4% yoy; +1% qoq
Postpaid subs growth +8% yoy; +4% qoq
Prepaid subs growth +4% yoy; 0.2% qoq
303 304 305
315
340
2.09 2.07 2.06 2.05
2.11
-
0.50
1.00
1.50
2.00
2.50
280
290
300
310
320
330
340
350
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11
RP
M –
Rs.
AR
PU
-R
s.
Blended ARPU Blended RPM
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Subsidiary Performance
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Dialog Television (DTV): P&L HighlightsSteady Growth in Subscriber Base Driving up Revenue
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(All figures in Rs Mn)
6% QoQ increase in revenue on theback of 9% increase in subscriber base
7% QoQ decrease in EBITDA mainlydue to higher channel expenses509 503
561 564
598
16%
42%
23% 23%20%
-9%
15%
0% -2% -2%
-10%
0%
10%
20%
30%
40%
50%
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11
440
460
480
500
520
540
560
580
600
620
Revenue - Rs Mn EBITDA margin PAT Margin
Q3 11QoQ
Change
YoY
Change 9M 11YTD
Change
Revenue 598 +6% +17% 1,722 +13%
EBITDA 118 -7% +47% 377 +>100%
EBITDA Margin 20% -3pp +4pp 22% +13pp
PAT (9) +21% +80% (23) +90%
Pay Tv Subscribers (‘000) 200 +9% +32%
Dialog Broadband Networks (DBN): P&L HighlightsSixth Consecutive Quarter of Positive EBITDA; Higher Opex Impacting Q3 EBITDA
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(All figures in Rs Mn)
604 589 584 580 608
29%20%
25% 27% 25%
-24%
-59%
-34% -35%-42%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
0
100
200
300
400
500
600
700
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11
Revenue- Rs Mn EBITDA Margin PAT Margin
Higher operating cost drove thedecrease in EBITDA QoQ
PAT impacted by lower EBITDA andhigher depreciation in tandem withhigher assets capitalised in the quarter
Q3 11QoQ
Change
YoY
Change 9M 11YTD
Change
Revenue 608 +5% +1% 1,772 +0.1%
EBITDA 154 -3% -13% 456 +>100%
EBITDA Margin 25% -2pp -4pp 26% +17pp
PAT (256) -25% -76% (658) +31%
CDMA & Broadband Subscribers (‘000) 198 +1% +5%
Thank You
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