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Q2 2017
an axiata company
Dialog Group Performance
Subsidiary Performance
2
Dialog Group Performance Highlights – Q2 2017
Strong 2nd Quarter Performance on the back of Aggressive Revenue and Cost Initiatives
Solid Growth in Q2 backed by Strong Recovery in Core Revenue Streams and Aggressive Cost Initiatives
• Q2 2017 Group Revenue at Rs23.0Bn, grew 4% QoQ
• Q2 2017 Group EBITDA at Rs8.1Bn, grew 13% QoQ
• Q2 2017 Group PAT grew significantly by 52% QoQ to reach Rs2.3Bn
Notwithstanding YTD Revenue and EBITDA improvement, NPAT Impacted by Higher Finance Cost and Depreciation
• 1H 2017 Group Revenue at Rs45.2Bn, grew 7% YTD
• 1H 2017 Group EBITDA at Rs15.4Bn, increased by 9% YTD; Group EBITDA Margin improved to 34%
• 1H 2017 Group PAT declined 21% YTD to reach Rs3.9Bn
Majority of Investments Focused Towards Expanding Data Network including Internet Data Centre (IDC)
• 1H 2017 Capex of Rs9.5Bn – up 34% YTD; Capex Intensity at 21%
All Business Units Continued to Consolidate Performance Amidst Aggressive Competitive Environment
• Dialog Mobile continued to grow Subscriber Market Share and Data adoption – Data Growth of 12% QoQ and 44% YTD
• Dialog Broadband Networks (DBN) – Second consecutive quarter of positive PAT (Rs568Mn for 1H 2017)
• Dialog Television (DTV) – EBITDA growth of 70% in Q2 2017 with Net Loss declining QoQ
3
Group Financial Summary
Strong Q2 Performance Amidst External Challenges
QoQ : All Key Performance Indicators improved on a QoQ basis; Uplift in Revenue and efficient
cost management driving QoQ performance, further benefited by lower unrealised forex losses
YTD : Revenue and EBITDA Improved by 7% and 9% respectively while PAT impacted by
increase in depreciation, net finance cost and unrealised forex losses
Q2 17 Q1 17 Q2 16 1H 17 1H 16
Increase in Consumption Taxes continued to moderated revenue growth across Mobile, Fixed, Broadband and Pay
Television Businesses
Mobile Data continued its upward trend, recording a growth of 12% QoQ and 44% YTD driven by increased
Smartphone penetration and improved coverage
Mobile Voice recovered to 2% QoQ albeit declined 1% YTD
Drop in International Termination Revenue curtailed to 2% QoQ through partnerships with key International
Retail Operators
4G LTE coverage Expansion driving Fixed Home Broadband Revenue growth of 7% QoQ and 62% YTD
Television Revenue grew 1% QoQ on the back of strong growth in Pre-paid subscribers and stabilising ARPUs
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Q2 Profitability Growth Delivered on Solid Revenue Growth and Cost Efficiencies;
EBITDA Margin Improved 2.8pp QoQ
Strong EBITDA Growth and Improved EBITDA PAT Improved by 52% QoQ while YTD Decline
Margins led by Higher Depreciation and Finance Cost
(Rs Mn) (Rs Mn)
+15% +9% +3% -21%
+13% +52%
18,000
15,351 4,958
16,000
14,076 4,800
30.0%
14,000
45.0%
4,200
3,893 25.0%
12,000
3,600
8,130
20.0%
10,000
7,221 7,057
3,000
2,346 2,287
8,000 15.0%
1,546
2,400
35.0%
6,000
1,800
35.3%
10.0%
4,000
10.9% 11.7%
2,000
10.2% 8.6%
5.0%
7.0%
600
0 25.0% - 0.0%
Q2 17 Q1 17 Q2 16 1H 17 1H 16 Q2 17 Q1 17 Q2 16 1H 17 1H 16
EBITDA EBITDA Margin PAT PAT Margin
Total Cost as a % of Revenue Improved by 2.8pp QoQ on the back of Aggressive Cost Initiatives
with Realised Cost Savings of Rs1.3Bn in 1H 2017
Q2 17 As % of Q1 17 As % of Q2 16 As % of YTD 17 As % of QoQ YoY YTD
revenue revenue revenue revenue
Total Cost Rs14,882Mn 64.7% Rs14,944Mn 67.4% Rs14,007Mn 66.5% Rs29,825Mn 66.0% -0.4% 6% 6%
Sales & Marketing 14.2% 15.2% 13.8% 14.7% -3% 13% 15%
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Dialog Contributed Rs19.1Bn to Government Revenue in 1H 2017, Up 13% YTD
Dialog Group remitted a total of Rs19.1Bn to GoSL during the six months ended 30th June 2017. Total
remittances included direct taxes and levies as well as consumption taxes collected on behalf of the GoSL
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Focused Capex Investments to Support Rapid Growth in Mobile Broadband and
Home Broadband Revenues. Capex Intensity for 1H 2017 at 21%
Capex Investment Focused towards Coverage Positive OFCF with Strong Operating
Expansion for 4G and Fixed LTE Cashflows and Focused Capex
(Rs Mn)
(Rs Mn)
+33% +34% -84% -60%
12,0 00
+39% -80%
10,0 00
9,528 4,257
4,300 20%
8,00 0
7,091 3,800
18%
16%
5,534
3,300
14%
2,800
4,148
6,00 0
1,429
2,300
10%
1,800
4,00 0
8%
Capex
1,300
280 8% 10% 6%
2,00 0
1% 6% 4%
Intensity
4%
300
2%
- Q2 17 Q1 17 Q2 16 1H 1 7 1H 1 6
(200) 0%
Q2 17 Q1 17 Q2 16 1H 17 1H 16 Q2 17 Q1 17 Q2 16 1H 17 1H 16
OFCF As % of revenue
*Capex excluding CPE (Customer Premises Equipment) investments, capex for spectrum acquisition and license renewal
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Group Net Debt to EBITDA Maintained Below 1.0x with Improved Profitability and
Working Capital Management
Group continued to maintain a strong balance sheet, with Net Debt to EBITDA maintained at below
1.0x
Demonstrates the Group’s financial strength and capacity to drive business growth via timely and
aggressive investments
9
Dialog Group Performance
Subsidiary Performance
10
Dialog Axiata PLC (Company)
Dialog Continues to Capture Market Share Despite Aggressive Competitive Environment;
Data Driving Recovery in QoQ ARPUs
Revenue Grew 4% QoQ Driven by Data up Data ARPU1 Driving ARPU Growth Supported by
12% and Voice up 2% 4G Conversion and Coverage Expansion
(Rs Mn)
+8% +5%
450 10%
37,370 35,639
350
6%
35, 000
300
250
4% 2%
4%
30, 000
200
0% 2%
20, 000
15, 000
- -6%
Q2 17 Q1 17 Q2 16 1H 17 1H 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17
Blended ARPU Blended MOU Blended ARPU Growth
2,0 00
0
PAT Margin % 12.3% +2.8pp 10.9% -4.1pp
Q2 16 Q3 16 Q4 16 Q1 17 Q2 17
Postpaid Subs Prepaid Subs
*Restated 11
Dialog Group Performance
Subsidiary Performance
12
Dialog Television
Significant Improvement in QoQ EBITDA and PAT Amidst Affordability Pressure and
Aggressive Competition
TV Revenues Grew QoQ and YTD Despite QoQ EBITDA Expanded on the back of Growth
Unfavorable Macro Conditions in Revenue and Aggressive Cost Initiatives
(Rs Mn)
(Rs Mn) Q2 17 QoQ 1H 17 YTD
-3% | norm1 +4% -4% | norm1 +4%
3,0 00
+1% EBITDA 110 70% 174 -18%
3,015 3,140
2,5 00
1,0 00
PAT Margin % -14.3% +6.4pp -17.5% -10.3pp
Q2 17 Q1 17 Q2 16 1H 17 1H 16
5,0 00
4,5 00
4,355
4,0 00
3,028 2,912
3,5 00
3,0 00
2,260 EBITDA Margin % 54.5% +3.0pp 53.0% +12.1pp
2,5 00
2,0 00
1,5 00
1,0 00
PAT Margin % 10.9% +2.8pp 9.6% +10.5pp
Q2 17 Q1 17 Q2 16 1H 17 1H 16
Strong growth in HBB Revenue driving QoQ and YTD Revenue improvement
On the back of healthy EBITDA performance, DBN recorded its second consecutive quarter of
positive PAT. Net profit of Rs568Mn for 1H 2017
14
Thank You
15