Post on 27-Sep-2018
transcript
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.
key highlights
Investor Relations: www.dtac.co.th
E-mail: ir@dtac.co.th
Tel: 662 202 8882
Operating free cash flow of THB
5.5 billion (YTD: THB 18.4 billion)
Strong service revenue growth of
11.5% YoY
Success of 3G shown in data
revenue growth of 68.7% YoY
257 253 250 249 245 229
50 57 59 57 55 54
308 311 309 306 300 283
Q210 Q310 Q410 Q111 Q211 Q311
incoming outgoing
-9.0% -5.8%
blended MOU (mins / month / sub)
213 208 215 212 208 212
51 55 56 55 54 53
264 263 271 267 262 265
Q210 Q310 Q410 Q111 Q211 Q311
incoming outgoing
blended ARPU (THB / month / sub)
subscribers
352 296
685 725
384
136
20.6 20.9 21.6 22.3 22.7 22.9
Q210 Q310 Q410 Q111 Q211 Q311
Net add (in thousands) Accum subs (in millions)
Net adds slowed down as an
effect from seasonality and
flooding.
Higher contribution from non-
voice service
Investor Relations: www.dtac.co.th
E-mail: ir@dtac.co.th
Tel: 662 202 8882
5
+0.9% +1.3%
Challenges on
dtac’s nationality
• Complaints regarding dtac’s violation of Foreign Business Act
(“FBA”) and Telecom Act have been filed with authorities.
• On the basis of its register of shareholders at present, dtac
believes that it is in compliance with the laws and regulations.
• dtac affirms that its customers, partners, shareholders and all
stakeholders as well as its business operations will not be
affected by the ongoing entity investigation process.
• On 22 September 2011, one of the Company’s minority
shareholders (holding 100 shares) filed a complaint against
state agencies (Ministry of Commerce, NTC acting on behalf of
NBTC and SET) with the Central Administrative Court citing that
the Company is a “foreigner” under the FBA. Therefore, the
Central Administrative Court has issued a summon requesting the
Company to be a co-defendant to this case for the interest of
justice.
7 Investor Relations: www.dtac.co.th
E-mail: ir@dtac.co.th
Tel: 662 202 8882
8 Investor Relations: www.dtac.co.th
E-mail: ir@dtac.co.th
Tel: 662 202 8882
Foreign
Dominance
• NTC, acting NBTC, issued the foreign dominance notification
which became effective on 31 August 2011.
• dtac believes that the notification cannot be applied to dtac and
the existing licensees (e.g. dtac’s subsidiary, DTN).
• Also, the notification is unclear in many respects and may
contravene other legislations that have higher hierarchy of law.
• In light of these, dtac is working with new NBTC and MICT to
clear and resolve these legal uncertainties.
• dtac will keep updating on the progress of the matter.
Commercial 3G
850 MHz
• dtac obtained usage licenses for 3G 850 MHz from NBTC.
• CAT asked the Office of the Attorney General (OAG) whether the
commercial launch of 3G on 850 MHz by dtac would be in breach
of the concession contract.
• At present, the pressure against dtac’s 3G 850 MHz has been
eased with the recent OAG’s “neutral” decision.
13,319 14,353 14,848
3,393 3,599 3,600 790 1,764 1,150 17,503
19,717 19,598 18,352
Q210 Q310 Q410 Q111 Q211 Q311
Service revenue excl IC IC Revenue
Handset & Other Reported revenue
robust YoY revenue growth
service revenue (excl IC) breakdown quarterly revenue (THB million)
10
16.5%
3.7% 4.1%
57.0%
18.8%
VAS IR
Others Prepaid airtime
Postpaid airtime
Investor Relations: www.dtac.co.th
E-mail: ir@dtac.co.th
Tel: 662 202 8882
Q211
14.4%
3.8% 3.9%
56.9%
21.0%
Q310
+12.0%
+6.8% reported revenue -0.6%
17.4%
3.6% 4.1%
55.9%
19.0%
Q311
higher normalized revenue in most categories
Investor Relations: www.dtac.co.th
E-mail: ir@dtac.co.th
Tel: 662 202 8882
11
17,503
19,598
Tota
l nor
mal
ized
reve
nue
Q31
0
Hig
her
voic
e re
v
Hig
her
VAS
rev
Hig
her
IR
Hig
her
IDD
& O
ther
s
Hig
her
hand
set
and
star
ter
kit
sale
Hig
her
IC
Low
er o
ther
inco
me
Tota
l rev
enue
Q31
1
1,912
2,366 2,582
14.4%
16.5% 17.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
-100
400
900
1,400
1,900
2,400
2,900
Q210 Q310 Q410 Q111 Q211 Q311
VAS revenue % to Service rev excl IC
40%
30%
30%
Edge/GPRS Messaging
Others
47%
25%
28%
50%
23%
27%
Q311
strong growth in non-voice service
VAS breakdown VAS revenues (THB million)
12 Investor Relations: www.dtac.co.th
E-mail: ir@dtac.co.th
Tel: 662 202 8882
Q310 Q211
+9.1% +35.0%
6.4% 6.1% 5.1%
5.1% 5.3% 5.3% 6.4% 6.3% 6.7%
6.4% 6.7% 6.4%
26.4% 27.3% 27.5% 27.0% 27.1% 27.5%
10.0%
15.0%
20.0%
25.0%
30.0%
Q210 Q310 Q410 Q111 Q211 Q311
Network Opex Other cost Regulartory cost
CoS well contained
% to service revenue (excl IC) cost of services (THB million) excluding amortization, IC
13 Investor Relations: www.dtac.co.th
E-mail: ir@dtac.co.th
Tel: 662 202 8882
5,275 5,610 5,830
39.6% 39.1% 39.3%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
0
2,000
4,000
6,000
8,000
10,000
12,000
Q210 Q310 Q410 Q111 Q211 Q311
Total % to Service rev excl IC
+10.5% +3.9%
increasing net IC balance
normalized net IC cost (THB million)
-145 -82
142 245 238 260 320
Q110 Q210 Q310 Q410 Q111 Q211 Q311
14 Investor Relations: www.dtac.co.th
E-mail: ir@dtac.co.th
Tel: 662 202 8882
Net IC balance increased
from high volume of on-net
traffic due to our promotion.
higher marketing expenses from 3G launch
% to revenue SG&A (THB million) excluding amortization
15 Investor Relations: www.dtac.co.th
E-mail: ir@dtac.co.th
Tel: 662 202 8882
2,492 2,402 2,528
14.2%
12.2% 12.9%
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
5000000
Q210 Q310 Q410 Q111 Q211 Q311
SG&A % to total revenue
+1.5% +5.3%
10.0% 10.5% 10.2%
8.2% 8.9% 8.6%
3.8% 3.8% 3.7%
3.4% 3.3% 4.3%
5.0% 3.7% 4.1%
2.0% 1.5% 0.3%
Q210 Q310 Q410 Q111 Q211 Q311
Admin excl A&D as % of total revenues
Selling and Marketing expenses as % of total revenues
Bad debt as % of postpaid revenues
EBITDA and net profit growth
16 Investor Relations: www.dtac.co.th
E-mail: ir@dtac.co.th
Tel: 662 202 8882
net profit (THB million) EBITDA (THB million)
6,185
6,938 7,008 6,995
35.1% 34.9% 35.4%
10.00%
100.00%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Q210 Q310 Q410 Q111 Q211 Q311
EBITDA Reported EBITDA EBITDA margin
+1.0% +13.3%
+0.2% reported EBITDA
2,530
3,026 3,073 3,061
Q210 Q310 Q410 Q111 Q211 Q311
Net profit Reported net profit
+1.6% +21.5%
+0.4% reported net profit
healthy financial position debt repayment (THB billion) operating FCF (THB billion)
THB 27.3 billion cash on hand
financial ratios
5.0 6.1
5.0 6.9 6.0 5.5
1.0 0.9
1.6
0.3 0.9 1.5
Q210 Q310 Q410 Q111 Q211 Q311
Operating FCF (EBITDA - Capex) Capex
93.1 95.2
163.8 179.8 193.8
244.4
21.2 26.6 27.2 32.9 39.9 51.4
Q210* Q310* Q410* Q111* Q211* Q311*
Net debt to
EBITDA
Net debt to
Equity
FFO to Total
Debt (%)
Interest
Coverage Ratio
* Net cash 17
8.2
3.0
0.7 0.7 0.7 3.3
Q211 Q311 Q411 H112 H212 2013-
2015
Interest Bearing Debt Repayment
Free cash flow
Revenue growth
Approx. THB 20.0 billion CAPEX at THB 5.5 – 6.0 billion
High single digit
4.5 – 5.5 million net adds for the industry. Maintain sub market share, but Quality of sub is more important.
Net adds
19 Investor Relations: www.dtac.co.th
E-mail: ir@dtac.co.th
Tel: 662 202 8882