first quarter 2015 - listed companydtac.listedcompany.com/misc/fs/2015/20150424-dtac... ·...
TRANSCRIPT
key highlights
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23.5m DTN subs
83% of sub base
14.9m smartphone users
52% of sub base
THB7.5b data revenues
44% of service revenues ex. IC
THB7.4b EBITDA
32% EBITDA margin
THB5.5b CAPEX
24% to total revenues
THB0.89 per share dividend
92% payout ratio
experience dtac4G in bangkok and over 40 cities nationwide
operational highlights
key development in Q115
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• completed on schedule
• further investment needed to
take leading data position
• dtac drives the industry
towards limited data plans
• industry partly follows
network pledge
data monetization
handset campaigns
299
399
599
799
999
THb/month
100 mins 1.5GB free
150 mins 3.0GB free
300 mins 5.0GB free
400 mins 7.0GB free
900 mins 9.0GB free
• device important to drive data
penetration and ARPU
• subsidy level on prepaid
device a concern
Bangkok
Phuket Chiang Mai Khon Kaen Ubon
Ratchathani
network pledge accomplished beyond what has been pledged
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• 6,700 BTS covering 40 cities
• THB 10 billion CAPEX
• 4G rollout to capitalize on device growth
– 100% 4G LTE coverage in BMA
– approx. 2.1 million 4G devices on dtac
network and growing rapidly
– approx. 1 million 4G users
data monetization adjust price plans to better monetize data growth
• for postpaid
– new postpaid tariff ‘love & roll’ launched
– new sale of only ‘limited data’ price plans
• for prepaid
– started introducing ‘limited data’ price plans
– price changes on selected toppings for
better monetization
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handset campaigns device important to drive data penetration and ARPU
• 4G
– to enhance customer experience on dtac’s
4G offering
• 3G
– retention & loyalty programs for mid- to
high-end segment
– increase data and smartphone users for
low-end segment
• prepaid device subsidy remained
intense upcountry
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financial highlights
83% of sub base ported to dtn
12.4 8.9 8.0 7.8 4.9
15.9 19.1 19.7 20.2 23.5
28.2 28.0 27.8 28.0 28.4
Q114 Q214 Q314 Q414 Q115
dtac DTN
224 224 218 222 215
208 203 197 200 195
Q114 Q214 Q314 Q414 Q115
ARPU incl. IC ARPU ex. IC
250 236 231 229 216
207 194 188 186 174
Q114 Q214 Q314 Q414 Q115
MoU incl. IC MoU ex. IC
dtac vs dtn subscribers arpu mou million subs THB/sub/month mins/sub/month
• positive net adds continued for both
prepaid and postpaid
• MoU further declined as voice usage
has been substituted with data
QoQ YoY
w/ IC
w/o IC
-3.0%
-2.6%
-4.0%
-6.2%
QoQ YoY
w/ IC
w/o IC
-5.9%
-6.4%
--13.7%
-16.0%
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• ARPU dropped as increase in data
could not compensate decline in voice
9.4 9.2 8.4 8.2 7.8
6.6 6.9 7.0 7.3 7.5
1.4 1.2 1.2 1.4 1.6
17.4 17.3 16.6 16.9 16.8
Q114 Q214 Q314 Q414 Q115
voice data others
service revenues ex. ic data revenues
78% 79% 82% 83% 85%
7% 6% 6% 5% 4%
15% 15% 13% 12% 11%
Q114 Q214 Q314 Q414 Q115
mobile internet messaging others
data revenues breakdown
37.8% 39.6%
42.4% 43.4% 44.5%
Q114 Q214 Q314 Q414 Q115
THB billion % of service revenues ex. IC % of vas revenues
• high demand for data services
continued to drive proportion of data
revenues
• popular mobile apps have constantly
driven up mobile Internet usage and
revenue
QoQ YoY
-0.7% -3.6%
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• avg. daily service revenues improved
from last quarter
• YoY development also improved from
last quarter, but still in negative
data proportion continued to rise
3.3 2.8 2.5
6.6
4.4
Q114 Q214 Q314 Q414 Q115
% smartphone handset revenue
33.9% 37.2%
41.2%
48.0% 52.4%
Q114 Q214 Q314 Q414 Q115
handset margin
-0.8% -4.9%
-18.5%
-4.3%
-17.8%
Q114 Q214 Q314 Q414 Q115
THB billion
• higher sale of dtac-branded and
other phones compared to last year
• revenue decline QoQ from high
volume of iPhone sale last quarter
• handset margin deteriorated QoQ
from lower iPhone sale and higher
prepaid subsidy
• success of handset campaigns
increases number of smartphone
users
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more than half of sub base using smartphone
QoQ YoY
-33.0% +34.6%
4.5 3.9 3.6 3.6 3.1
1.1 1.2 1.2 1.3 1.2
0.8 1.0 0.9 0.9 1.1
6.4 6.1 5.7 5.8 5.4
Q114 Q214 Q314 Q414 Q115
regulatory network opex others
cost of services % cost of services THB billion % to service revenues ex. IC
25.6% 22.6% 21.6% 21.2%
18.3%
6.3% 6.8% 7.2% 7.6% 7.4%
Q114 Q214 Q314 Q414 Q115 regulatory costs network opex
• regulatory cost further
declined from progressive
porting of subs to 2.1GHz
• network opex under control
despite expansion
− approx. THB 100 million
reversal of accrued expenses
* excluding depreciation and amortization, and IC
*
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sharp decline in regulatory cost
QoQ YoY
-6.4% -15.1%
% sg&a expenses • selling and marketing expenses
declined sharply from high
spending level in Q414
• general admin under control
• continued to get results from
operational excellence
programs
SG&A expenses THB billion
5.7%
6.9%
7.3% 7.7%
6.0%
7.0%
7.5%
6.9% 7.2%
7.6%
Q114 Q214 Q314 Q414 Q115
S&M gen admin
% to total revenues
* excluding depreciation and amortization
*
1.3 1.5 1.5 1.9 1.4
0.2 0.2
-0.1
0.3 0.2
1.6 1.6 1.4 1.8
1.7
3.0 3.4 2.9
4.1 3.3
Q114 Q214 Q314 Q414 Q115
S&M bad debt gen admin
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SG&A dropped from high level in Q414
QoQ YoY
-17.9% +10.3%
ebitda margin rebounded from last quarter
8.3 8.0 7.8
7.0 7.4
Q114 Q214 Q314 Q414 Q115
ebitda ebitda margin THB billion
36.6% 36.4% 37.3%
27.7% 32.2%
43.0% 42.4% 44.9% 39.0%
44.1%
Q114 Q214 Q314 Q414 Q115
EBITDA margin EBITDA margin ex handset
• EBITDA margin is under
pressure from handset
business
• Excluding handset business,
EBITDA expanded 1.1pp YoY,
and 5.1pp QoQ
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QoQ YoY
+4.8% -10.9%
1.40 1.25 1.09 0.80 0.97
3.3 3.0 2.6 1.9 2.3
Q114 Q214 Q314 Q414 Q115
net profit dividend THB per share (top)
THB billion (bottom)
THB per share
1.42 1.58 1.57 2.34
0.89
Q114 Q214 Q314 Q414 Q115
• higher EBITDA and lower
D&A expenses contributed to
rebound in net profit
• partly offset by higher
interest expense and income
tax
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net profit improved QoQ
QoQ YoY
+21.2% -30.6%
QoQ YoY
-62.0% -37.3%
• operating cash flow pressured
by higher CAPEX
• strong financial ratios
• net debt to equity ratio
increased due to lower equity
from dividend payment, while
amount of net debt declined
5.3 3.3
5.8 2.7 1.8
3.0 4.6
2.0
4.4 5.5
8.3 8.0 7.8 7.0 7.4
Q114 Q214 Q314 Q414 Q115
operating CF (ebitda-capex) capex
operating cash flow key financial ratios THB billion
1.1 0.9 0.9
1.9 2.2
0.7 0.5 0.5 0.9 0.8
Q114 Q214 Q314 Q414 Q115
net debt:equity* net debt:ebitda
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strong financial position
* excluding other component of shareholders’ equity.
strategic direction and outlook
staying focused on 3 strategic pillars
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• 3G & 4G LTE network
• device bundles
• data-centric price plan
• digital services
• emotional connection
• simplified customer journey
• customer focused distribution
• systematic measurements
• regulatory cost reduction
• cluster-based operating model
• network sharing/rental
• efficiency in OPEX
internet for all
loved by customers
efficient operation
2015 network and 4g ambitions
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3G footprint covering
95% of population
fastest 4G network on
15MHz bandwidth
2.5 million 4G customers and
60% of customers using data
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low single digit
service revenues ex. IC growth
18 - 20
capex (in THB billion)
2015 outlook
in-line with previous
year
EBITDA margin
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.
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