1Q02 Financial and Operational Review Conference Call 20.05.02 Participants : Mr . Grant Ferguson - CFO Ms . Helene Sandberg - COO Mr . Petter - Borre Furberg - ACFO Mr . Premon Pinskul - ACFO Ms . Kulvadee Kanajanabose - ACFO 1
Operational Highlights (1) Access Charge Dispute • January- DTAC terminated Access Charge agreement with TOT • March- TOT threatened to deny DTAC customer access to its network DTAC instigated Court proceedings against TOT • April- TOT withdrew the cut-off threat DTAC agreed to continue paying amounts due under the current system while both parties work to develop a more equitable and transparent basis for charging for interconnection between networks. 2
Operational Highlights (2) Handset Business Restructuring • March- United Communications (UCOM) announced the consolidation of its and DTAC’s handset distribution business under a new business unit • Effective May 20, DTAC’s handset business including all sales, logistics and distribution functions will be absorbed by United Distribution Business (UD), a new joint venture which will be 25% owned by DTAC and 75% by UCOM • In addition to the business contributed, DTAC will inject Bt50 mn into UD as paid-up capital. • All dealer account management functions will be carried out by DTAC to provide sales channel management and dealer development IMEI Unlock • To reduce barriers to entry, from April 1, DTAC opened its network to allow all GSM 1800 mobile phones purchased anywhere in the world, and which are not SIM card specific, to use DTAC’s network with the purchase of prepaid or postpaid subscription 3
Operational Highlights (3) Prepaid Starter Kit • To complement the unlocking of the IMEI and promote market development, on April 05, DTAC introduced a market leading Bt. 300 Dprompt starter kit including both a DTAC SIM-card, Bt. 300 worth of airtime and 100 free SMS Postpaid Starter Kit • On May 16, DTAC initiated another market leading development by introducing new postpaid starter kits Bt. 750 Dmedium and Bt. 1200 Dmax. These come with introductory minutes that allow subscribers to avail of double the amount of bundled airtime that is included in the standard Dmedium and Dmax packages 4
Subscriber Base Total subscribers at 31 March 2002 30 April 2002 was 3,225,567 and 3,513,378 � respectively. Prepaid customers amounted for 45% and 51% of total subscribers at 31 March and � 30 April respectively. Total net additional subscribers acquired in 1Q02 was 487,969.. � A decline in number of postpaid subscribers in 1Q02 was primarily due to internal � rotation from low ended postpaid subscribers to prepaid service. 4,000,000 1,500,000 3,513,378 1,300,000 3,500,000 3,225,567 1,100,000 3,000,000 2,737,598 900,000 2,500,000 2,300,244 700,000 2,011,789 2,000,000 1,709,800 500,000 61,800 1,500,000 87,151 574,257 116,539 441,321 300,000 1,000,000 343,844 244,800 214,897 100,000 171,916 -3,967 500,000 -100,000 -56,033 -86,288 0 -300,000 Q101 Q201 Q301 Q401 Q102 Apr02 Net addition - Postpaid Net addition - Prepaid Total Subscriber 5
Breakdown of Subscriber Base As of March 31, 2001, proportion of DTAC ’ s subscribers was � Dlite Dmedium Dmax Dprompt Non- Dpackage 31 Mar, 01 17% 16% 15% 45% 7% Development in the use of service packages 50 40 30 (%) 20 10 0 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Dlite Dmedium Dmax Dprompt Non-Dpackage 6
ARPU Postpaid ARPU for 1Q02 increased by 1.8% from Baht 1,010 of 4Q01 to Baht 1,028 � while prepaid ARPU for 1Q02 dropped 12.6% to Baht 277 from Baht 317 of 4Q01. The reduction in prepaid ARPU in 1Q02 was primarily due to the number of � customers utilizing promotional airtime. 1,200 1,121 1,038 1,028 1,016 1,010 1,000 1,034 941 898 800 814 704 600 464 407 381 400 317 277 200 0 Q101 Q201 Q301 Q401 Q102 ARPU -Postpaid ARPU -Prepaid Blended 7
Network In 1Q02, 79 new cell sites were installed � � 2002 Capex is budgeted at approximated Bt. 16 billion, primarily for network expansion, including capacity, indoor and outdoor coverage, for the GSM network. 8
Drop Call & Block Call � Network performance has stabilized as coverage development plans and optimization work has been completed. The current performance levels are comparable with international best in class operators. Drop Call & Block Call Rate 6 5 4 3 2 1 0 Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- 01 01 01 01 01 01 01 01 01 02 02 02 Drop Call Block Call Drop Call : ‘Drop Call’ is the average percentage of calls dropped during the day from all calls initiated by DTAC’s customers nationwide Block Call : ‘Block Call’ is the average percentage of calls blocked during the day from all calls initiated by DTAC’s customers nationwide 9
Financial Highlights - Company Only 10
Financial Highlight: Revenue 12,000.00 10,000.00 240.36 223.13 8,000.00 3105.71 192.8 2193.43 186.75 62 1,548.57 6,000.00 1,712.00 2,037.30 4,000.00 6424.86 6157.02 5,893.04 5,133.00 4,845.04 2,000.00 0.00 Q101 Q201 Q301 Q401 Q102 Other operating income & Other income Handset sales & Retail Service revenue 11
Operating Profit and EBITDA 3,000 60% 52% 51% 2,500 50% 49% 49% 48% 2,000 40% 31.87% 31.00% Million Baht 30.00% 27.63% 28.45% 1,500 30% 17.47% 16.79% 18.30% 17.11% 1,000 20% 14.27% 500 10% 7.15% 6.07% 5.54% 2.90% 2.60% 0 0% Q101 Q201 Q301 Q401 Q102 Operating Income EBITDA Operating Margin EBITDA Margin Handset Margin Service Margin 12
EBITDA Margin 13
Debt Profile, end of Mar 2002 Weighted average cost of fund at the end March 200 2 was 6. 46% � 14
Sources and Uses of Fund: Q102 Sources of Fund Uses of Fund THB Million Cash beginning 3,093 CAPEX 7,230 Operating cashflow ( Bf . interest ) 6,874 Net financing costs 724 Bond Issue & bank loan 2,784 Principal Repayment 998 Total source of funds 12,751 Total use of funds 8,952 Cash ending 3,799 Million Baht 15
Financial Summary • Net debt/Equity end of the period ** Net debt/EBITDA (rolling back 3 quarters) *** EBITDA/Interest expense for the period 16
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