dtac third quarter 2015

Transcription

1 dtac third quarter Oct 2015 Investor Relations E: T:

2 key highlights 21.9m DTN subs 88% of sub base THB7.8b data revenues 47% of service revenues ex. IC THB7.1b EBITDA 36% EBITDA margin THB7.6b CAPEX 39% to total revenues THB0.72 per share dividend 138% payout ratio 2

3 operational highlights

4 network has improved significantly reached an all-time high of 93% population coverage launched a nationwide campaign to bridge perception gap 16,475 3G sites 300 4G sites 88% pop cov 23,553 3G sites 3,446 4g sites 93% pop cov to switch on 1800MHz LTE on concession network to enhance 4G offering q314 Q315 continue on expansion to reach 95% population coverage by year end

5 cluster model is on track cluster model implementation progress as planned expansion of distribution network into underserved areas and along with network coverage expansion Regions Zones Clusters ongoing personnel training and processes optimization 5

6 continue balancing acquisition and data monetization acquisition campaigns 4G festival for postpaid free calls or data when purchase new SIM for prepaid worry-free price plans love & roll non-stop for postpaid Max Net & Max Combo for prepaid control mechanism implemented to avoid abuses contextual marketing campaign to improve data monetization and upsell 6

7 prepaid handset subsidy sharply declined -76% lower level of prepaid handset subsidy as planned Q115 Q215 Q315 no. of subsidized prepaid handset units sold new generation of dtac phones introduced device remains an important element in growing data users Eagle Blade 4G Eagle Blade Joey Jet 7

8 update on prepaid registration approx. 1.3 million prepaid subscribers have been suspended in accordance with regulatory requirement the suspension has limited impact on revenue the registration requirement continues to have impact on industry gross sale 8

9 financial highlights

10 arpu and mou stabilized qoq dtac vs dtn subscribers arpu mou million subs THB/sub/month QoQ YoY mins/sub/month QoQ YoY w/ IC w/o IC +1.2% +3.3% +1.2% +3.7% w/ IC w/o IC +0.9% +0.1% -10.0% -12.2% dtac DTN ARPU incl. IC ARPU ex. IC MoU incl. IC MoU ex. IC extra prepaid churns due to end of prepaid registration period postpaid sub base slightly increase from last quarter slight increase in ARPU both QoQ and YoY due to decline in prepaid sub base MoU stabilized QoQ due to decline in prepaid sub base 10

11 service revenue stabilized QoQ service revenues ex. ic data revenue data revenue breakdown THB billion QoQ YoY % of service revenues ex. IC % of vas revenues -0.2% -1.5% % 42.3% 43.3% 44.5% 46.3% 47.5% 15% 13% 12% 11% 10% 8% 6% 6% 5% 4% 4% 3% 79% 82% 83% 85% 86% 89% voice data others mobile internet messaging others decline in voice revenue has slowed down data revenue continued to grow demand for data services remain strong, driving proportion of data revenues towards 50% nearly 90% of data revenues come from mobile Internet 11

12 smartphone penetration surpassed 60% % smartphone handset revenue handset margin THB billion QoQ YoY 37.2% 41.2% 48.0% 52.4% 57.1% 60.7% % -23.5% % -4.3% -18.5% -17.8% -19.8% -19.1% % smartphone users continued to rise from handset campaigns and strong demand for data services lower revenue reflected the shift towards lower priced models and consumers awaiting new iphone model handset margin remained stable despite sharply lower amount of prepaid handset subsidy 12

13 cos declined both QoQ and YoY cost of services THB billion QoQ YoY -5.0% -4.6% * regulatory network opex others % cost of services % to service revenues ex. IC 22.5% 21.6% 21.2% 18.3% 18.8% 18.7% 6.8% 7.2% 7.6% 7.4% 8.8% 7.3% regulatory costs network opex regulatory cost slightly declined from previous quarter reversal of accrued expenses caused decline in network OPEX * excluding depreciation and amortization, and IC 13

14 higher SG&A SG&A expenses THB billion QoQ YoY +10.1% +33.8% * S&M bad debt gen admin % to total revenues % sg&a expenses 10.7% 7.5% 7.7% 7.3% 7.6% 7.7% 7.9% 6.9% 6.9% 7.2% 7.4% 6.0% S&M gen admin marketing expenses slightly declined from previous quarter in preparation for network campaign launch higher general admin from implementation of cluster model expansion of dtac branded shops IT service fees * excluding depreciation and amortization 14

15 ebitda improved from sharp decline in handset subsidy ebitda THB billion QoQ YoY +6.1% -9.1% ebitda margin EBITDA margin EBITDA margin ex handset 42.4% 44.9% 44.1% 39.0% 41.0% 41.6% 36.4% 37.3% 35.8% 32.2% 27.7% 30.5% EBITDA margin jumped 5.3pp from reduction in handset subsidy, lower cost of services, partly offset by higher SG&A expenses 15

16 net profit declined THB per share (top) THB billion (bottom) net profit QoQ YoY -10.7% -52.4% THB per share dividend 2.34 QoQ YoY -10.0% -54.1% decline in net profit as a result of higher D&A charges, higher interest expenses, and higher FX loss 138% dividend payout ratio 16

17 solid financial position THB billion operating cash flow operating CF (ebitda-capex) capex key financial ratios net debt:equity* net debt:ebitda operating cash flow turned negative due to high level of CAPEX financial ratios remained strong * excluding other component of shareholders equity. 17

18 strategic direction and outlook

19 key focus areas network sales and distribution subscriber acquisition network rollout and perception improvement distribution network expansion and processes optimization attractive offerings on devices and promotion packages 19

20 2015 outlook slightly below % 33% service revenues ex. IC EBITDA margin capex (in THB billion) 20

21 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 forward-looking 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. Investor Relations E: ir@dtac.co.th T: