View
0
Download
0
Category
Preview:
Citation preview
dtac second quarter 2015
20 July 2015
Investor Relations
E: ir@dtac.co.th T: +662 202 8882
key highlights
2
23.5m DTN subs
87% of sub base
15.4m smartphone users
57% of sub base
THB7.6b data revenues
46% of service revenues ex. IC
THB6.7b EBITDA
30.5% EBITDA margin
THB3.2b CAPEX
14% to total revenues
THB0.80 per share dividend
138% payout ratio
operational highlights
network rollout on schedule
• continued improvement on 3G/4G
• network quality perception
• limited short-term impact from the
admin court’s injunction
4
13.8 15.8 16.5 17.5 19.6 20.8
0.3 0.3 1.1
2.9 3.4
13.8 16.1 16.8 18.6
22.5 24.2
Q114 Q214 Q314 Q414 Q115 Q215
4G 3G
No. of base stations (in thousands)
in transition to cluster-based model
• reselection of distributors going as
planned
• full organizational structure
already in place, need time to – train personnel, and
– streamline processes
• prepaid registration also impacted
level of gross adds
5
Regions Zones Clusters
Jan Feb Mar Apr May Jun
prepaid gross adds
-37%
prepaid registration on track
• approx. 5.7 million prepaid active
SIM unregistered
• unregistered subs unable to make
calls or use data service after
31 July
• more than 62,000 touch points
available for registration
6
4,001 5,677
no. of subs registered inJun-15
outstanding unregisteredsubs at end of Jun-15
prepaid handset subsidy to slow down
• subsidy level on prepaid segment
the main concern
• prepaid handset subsidy expected
to slow down in the second half
• handset still important for ARPU
development and loyalty
7
33.9% 37.2% 41.2% 48.0% 52.4% 57.1%
Q114 Q214 Q314 Q414 Q115 Q215
smartphone penetration rate
Apr-15 May-15 Jun-15
no. of prepaid subsidized phones sold
-50%
balancing data monetization and acquisition
• maintain ‘love & roll’ limited data
price plans
• reintroduce non-stop data price
plans at selected price levels for
competitiveness
• control mechanism needed to
avoid abuses
8
financial highlights
87% of sub base ported to dtn
12.4 8.9 8.0 7.8 5.0 3.5
15.9 19.1 19.7 20.2 23.5 23.5
28.2 28.0 27.8 28.0 28.4 26.9
Q114 Q214 Q314 Q414 Q115 Q215
dtac DTN
224 224 218 222 215 218
208 203 197 200 195 198
Q114 Q214 Q314 Q414 Q115 Q215
ARPU incl. IC ARPU ex. IC
250 236 231 229 216 206
207 194 188 186 174 165
Q114 Q214 Q314 Q414 Q115 Q215
MoU incl. IC MoU ex. IC
dtac vs dtn subscribers arpu mou million subs THB/sub/month mins/sub/month
• decline in prepaid sub base due to
SIM registration requirement
• postpaid sub base continued to rise
• MoU further declined as voice usage
has been substituted with data
QoQ YoY
w/ IC
w/o IC
+1.2%
+1.3%
-2.5%
-2.4%
QoQ YoY
w/ IC
w/o IC
-4.6%
-5.3%
-12.9%
-14.8%
10
• slight increase in ARPU QoQ due to
decline in prepaid sub base
9.4 9.2 8.4 8.2 7.8 7.3
6.6 6.9 7.0 7.3 7.5 7.6
1.4 1.2 1.2 1.4 1.6 1.5
17.4 17.3 16.6 16.9 16.8 16.4
Q114 Q214 Q314 Q414 Q115 Q215
voice data others
service revenues ex. ic data revenues
78% 79% 82% 83% 85% 86%
7% 6% 6% 5% 4% 4% 15% 15% 13% 12% 11% 10%
Q114 Q214 Q314 Q414 Q115 Q215
mobile internet messaging others
data revenues breakdown THB billion % of service revenues ex. IC % of vas revenues
• strong demand for data services
continued to drive data revenues • popular mobile apps have constantly
driven up mobile Internet usage and
revenue
QoQ YoY
-2.0% -5.3%
11
• data revenue surpassed voice
revenue for the first time
data proportion continued to rise
37.8% 39.6%
42.4% 43.4% 44.5% 46.3%
Q114 Q214 Q314 Q414 Q115 Q215
3.3 2.8 2.5
6.6
4.4 3.8
Q114 Q214 Q314 Q414 Q115 Q215
% smartphone handset revenue
33.9% 37.2%
41.2% 48.0%
52.4% 57.1%
Q114 Q214 Q314 Q414 Q115 Q215
handset margin
-0.8% -4.9%
-18.5%
-4.3%
-17.8% -19.8%
Q114 Q214 Q314 Q414 Q115 Q215
THB billion
• dtac-branded phones continued to
sell quite well
• lower revenue reflected the shift
towards lower priced models
• handset margin remained in negative
from aggressive prepaid handset
campaigns
• smartphone users continued to rise
from handset campaigns and strong
demand for data services
12
smartphone users continued to rise
QoQ YoY
-14.0% +37.6%
4.5 3.9 3.6 3.6 3.1 3.1
1.1 1.2 1.2 1.3 1.2 1.4
0.8 1.0 0.9 0.9 1.1 1.2
6.4 6.1 5.7 5.8 5.4 5.7
Q114 Q214 Q314 Q414 Q115 Q215
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% 18.8%
6.3% 6.8% 7.2% 7.6% 7.4% 8.8%
Q114 Q214 Q314 Q414 Q115 Q215 regulatory costs network opex
• slight increase in regulatory
cost from higher domestic
roaming and numbering fee
• higher network opex from
expansion of 3G and 4G
networks
* excluding depreciation and amortization, and IC
*
13
higher cos from network expansion
QoQ YoY
+4.7% -6.8
% sg&a expenses
• higher selling and marketing
expenses to stay competitive
• general admin under control
SG&A expenses THB billion
5.7%
6.9%
7.3% 7.7%
6.0%
7.4%
7.0% 7.5%
6.9% 7.2%
7.6% 7.7%
Q114 Q214 Q314 Q414 Q115 Q215
S&M gen admin
% to total revenues
* excluding depreciation and amortization
*
1.3 1.5 1.5 1.9 1.4 1.6
0.2 0.2
-0.1
0.3 0.2 0.2
1.6 1.6 1.4 1.8
1.7 1.7
3.0 3.4 2.9
4.1 3.3 3.5
Q114 Q214 Q314 Q414 Q115 Q215
S&M bad debt gen admin
14
stable SG&A
QoQ YoY
+6.2% +4.9%
ebitda margin under pressure
8.3 8.0 7.8 7.0 7.4 6.7
Q114 Q214 Q314 Q414 Q115 Q215
ebitda ebitda margin THB billion
36.6% 36.4% 37.3%
27.7% 32.2% 30.5%
43.0% 42.4% 44.9% 39.0%
44.1% 41.0%
Q114 Q214 Q314 Q414 Q115 Q215
EBITDA margin EBITDA margin ex handset
• lower revenue and higher costs
depressed EBITDA margin
• EBITDA margin was also under
pressure from handset
business
15
QoQ YoY
-9.1% -16.2%
1.40 1.25 1.09 0.80 0.97
0.58
3.3 3.0 2.6 1.9 2.3 1.4
Q114 Q214 Q314 Q414 Q115 Q215
net profit dividend THB per share (top)
THB billion (bottom)
THB per share
1.42 1.58 1.57 2.34
0.89 0.80
Q114 Q214 Q314 Q414 Q115 Q215
• decline in net profit as a
result of
− lower EBITDA,
− higher D&A charges, and
− loss on foreign exchange
• 138% dividend payout ratio
16
net profit declined
QoQ YoY
-40.0% -53.4%
QoQ YoY
-10.1% -49.4%
• higher debt level pushed up
both net debt to equity and
net debt to EBITDA ratios
• financial ratios remained
strong
5.3 3.3
5.8 2.7 1.8
3.5
3.0 4.6
2.0
4.4 5.5 3.2
8.3 8.0 7.8 7.0 7.4 6.7
Q114 Q214 Q314 Q414 Q115 Q215
operating CF (ebitda-capex) capex
operating cash flow key financial ratios THB billion
1.1 0.9 0.9
1.9 2.2
2.5
0.7 0.5 0.5 0.9 0.8 1.0
Q114 Q214 Q314 Q414 Q115 Q215
net debt:equity* net debt:ebitda
17
strong financial position
* excluding other component of shareholders’ equity.
strategic direction and outlook
Top priorities for 2nd half 2015
19 19
Network
• 3G/4G rollout
• network optimization
• network perception campaign
Sales & distribution
• cluster operating model
• branded retail shop expansion
• digital distribution
Data monetization
• 4G data initiatives
• device strategy
• CLM engine
Customer experience
• brand refreshment
• net promoter score/closed
feedback loop
• customer service experience
20
slightly below
2014
service revenues ex. IC
18 - 20
capex (in THB billion)
2015 outlook
EBITDA margin
31% – 33%
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.
21
disclaimer
Investor Relations
E: ir@dtac.co.th T: +662 202 8882
Recommended