dtac FY January 2018 Investor Relations E: T:

Transcription

1 dtac FY January 2018 Investor Relations E: T:

2 FY17 highlights 22.7m total subscribers 97.7% of sub base registered under DTN 72.8% smartphone penetration 50.5% penetration of 4G-enabled devices THB64.8b service revenues ex. IC 0.2%YoY growth THB30.4b EBITDA 38.9% EBITDA margin THB16.5b CAPEX 21.1% to total revenues THB0.24 per share dividend 26.9% of net profit 2

3 operational highlights

4 FY17 recap massive network densification highly-impactful campaigns and services digital transformation and disruption in thousand licensed concession Smooth network campaign digitization of core business personalized upsell in dtac app (using AI), dtac ONE, customer care no. of base stations 6 10 increase in base stations Go No Limit price plans transition to online channels targeted online ads, sale-oriented dtac website 4.6k new physical towers built in FY17 (vs 2.6k in FY16) 2300MHz partnership with TOT to increase 4G bandwidth dtac Reward customer loyalty program Line Mobile purely digital mobile services 4

5 solid postpaid and 4G development service revenues ex. IC annual postpaid revenues surpassed prepaid pre-to-post migration increase in postpaid ARPU continued improvement in network 4G subs (in million) postpaid prepaid FY16 FY % +17.9% -9.5% -12.7% 7.9 4G data usage (GB/sub/month) 1.7x strong growth in 4G sub and data usage substantial increase in 4G base stations more affordable 4G devices/device campaigns availability of free and paid content on various streaming platforms key focus areas to address challenges on prepaid best value position simplification of product portfolio loyalty program through dtac reward 5

6 on course to become no. 1 digital brand increase sales in digital channels personalized on-line offers upsell in dtac app Line Mobile engaging customer and retailer apps digitize all prepaid retailer trx thru dtac One app service, sales, and rewards thru dtac app digitization of customer care self service via IVR and app chat bot/ai dtac community engaging digital products thru partnerships direct operator billing video with iflix music with Joox dtac Accelerate program 5 th year of operation No. 1 startup incubator in Thailand and No. 3 in SEA 34 startups incubated and >10k jobs created grooming digital talents company-wide digital upskill on-line courses 40-hr challenge 6

7 2300MHz plan agreement with TOT awaiting approvals vastly increase amount of bandwidth in service initial rollout in densely populated areas minimize capex outlay and time to market by re-using existing infrastructure to be launched shortly after the agreement is signed 7

8 financial highlights

9 annual service revenues back to growth service revenues ex. IC THB billion YoY +0.2% QoQ YoY +1.7% +1.3% data usage GB/sub/month QoQ YoY +14.8% +86.3% ARPU THB/sub/month QoQ YoY w/ IC w/o IC +2.6% +2.7% % +8.1% voice data others ARPU incl. IC ARPU ex. IC data revenue proportion jumped from 55% to 67% of service revenues ex. IC strong postpaid revenue growth more than compensated decline in prepaid data consumption continued to grow strongly ARPU uplift from pre-to-post migration ARPU continues to rise from higher postpaid ARPU and mix of postpaid sub base 9

10 handset subsidies continue to decline 67.8% % smartphone handset margin 70.2% 70.3% 71.8% 72.8% THB billion ,505-2, % penetration of 4G-enabled devices continued focus on non-subsidy acquisition on a normalized basis (2016), handset margin would have been THB 2.0b in

11 cost of services well managed amid massive network densification THB billion cost of services QoQ YoY -2.0% -10.0% * YoY regulatory network opex others -6.1% % cost of services % to service revenues ex. IC 16.1% 15.8% 16.2% 13.3% 13.6% 13.4% 12.0% 9.7% 9.9% 9.8% 10.6% 10.6% 9.1% 10.8% regulatory costs network opex decline in regulatory cost from the reduction of license and USO fee rate, as well as DR rate network OPEX well contained despite ongoing densification lower IDD costs and prepaid commission also contributed to lower cost of services * excluding depreciation and amortization, and IC 11

12 sharp decline in SG&A expenses THB billion SG&A expenses QoQ YoY +14.9% -1.1% * S&M bad debt gen admin** YoY -11.4% 8.3% % SG&A expenses sharp drop in S&M expenses from transition to digital channels and efficiency improvement % to total revenues 9.7% 10.0% 9.9% 9.9% 11.1% 6.9% 6.3% 6.4% 5.3% 10.1% 10.2% 8.7% S&M gen admin 6.2% ## increase in provision for bad debt in line with strong growth in postpaid gen admin expenses declined from ongoing operational excellence programs * excluding depreciation and amortization ** excluding restructuring cost 12

13 EBITDA margin increased 5.1 percentage points EBITDA (before other item) THB billion YoY QoQ YoY +9.1% +1.2% +15.9% EBITDA margin 50.1% 49.3% 43.6% 45.4% 48.6% 48.3% 43.3% 41.0% 41.2% 38.6% 38.9% 31.5% 34.9% 33.8% EBITDA margin EBITDA margin ex handset sharp increase in EBITDA, mainly driven by service revenue growth lower regulatory costs network OPEX under control despite ongoing densification lower device subsidies lower SG&A expenses 13

14 dividend payment of THB 0.24 per share net profit operating cash flow key financial ratios THB million YoY THB billion YoY QoQ YoY -9.7% +1,700% +1.4% 2,086 2,115 QoQ YoY -18.3% +332% +82.9% operating CF (ebitda-capex) capex net debt:equity* net debt:ebitda net profit in Q417 benefited from 50% extra depreciation of qualified CAPEX for tax calculation in 2017 dividend payment of THB0.24 per share, subject to approval by shareholders at the AGM 2018 annual operating cash flow nearly doubled from higher EBITDA and lower CAPEX financial ratios continued to improve strong and flexible financial position * excluding other component of shareholders equity. 14

15 one-time provision for impairment of assets dtac stand-alone Separate financial statement dtac stand-alone non-cash item no impact on consolidated financial statements the provision was resulted from ongoing transfer of cash flow from dtac to DTN Amount (THB million) Provision for loss from impairment of deferred right to use of equipment 3,452 The provision resulted in retained earnings of comprising: - Statutory reserve - Unappropriated retained earnings 1, ,010 15

16 strategic direction and outlook

17 3 key strategic focuses Best Value Digital Leader Lean Operator 17

18 2018 outlook around previous year level around previous year level THB15 18 billion service revenues ex. IC EBITDA excluding payment to TOT on 2.3GHz deal capex 18

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20 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: