4Q 2014 Results OPEN 4 th Quarter 2014 Results Lars Ake Norling, CEO 9 February 2015
Disclaimer This presentation and the following discussion may contain forward looking statements by Digi.Com Berhad (Digi) related to financial trends for future periods. Some of the statements contained in this presentation or arising from this discussion which are not of historical facts are statements of future expectations with respect to financial conditions, results of operations and businesses, and related plans and objectives. Such forward looking statements are based on Digi’s current views and assumptions including, but not limited to, prevailing economic and market conditions and currently available information. These statements involve known and unknown risks and uncertainties that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not and, should not be construed, as a representation as to future performance or achievements of Digi. In particular, such statements should not be regarded as a forecast or projection of future performance of Digi. It should be noted that the actual performance or achievements of Digi may vary significantly from such statements. 2
Key highlights Financials and regulatory updates 2015 guidance Q&A 3 3
4Q 2014 Consistently drive solid performance 2014 Actual Delivered 2014 financial guidance Guidance 4-6% Revenue 4.2% growth 39.6% internet revenue growth Sustain EBITDA 45% in 2014 margin at 2013 level 2.7% sequential growth on service revenue Robust data network coverage (86%: 3G; 32%: LTE) 11.4 million subscribers on Digi’s modernised network 7.2 sen dividend per share Total dividend up 22.1% y-o-y 4
4Q 2014 Leading revenue growth backed by steady EBITDA margin FY 2014 4Q 2014 Revenue RM1,799 million RM7,019 million +3.8% y-o-y +4.2% y-o-y Service RM1,627 million RM6,333 million +3.2% y-o-y Revenue +3.3% y-o-y EBITDA 45% Margin 45% Margin RM801 million RM3,163 million 32% Margin 32% Margin Ops Cash-Flow RM568 million RM2,259 million PAT 31% Margin 29% Margin RM560 million RM2,031 million 5
4Q 2014 Solid foundation to deliver earnings growth Modernised Competitive 3G rollout New billing LTE network platform data network expansion DiGi Bite-sized Digital Affordable Smartplan internet services bundles 3G population coverage Subscribers Revenue Revenue (RM bln) Subscribers (mln) 87% 86% RMS Smartphone penetration 82% 7.0 7.2 0.4 11.4 0.38 Peers 86% 7.0 11.6 0.7 6.7 0.36 11.4 11.0 0.34 0.6 6.8 80% 11.2 6.4 0.32 0.5 10.5 11.0 6.6 0.3 0.4 49% 10.8 0.28 0.3 29%* 38% 6.4 DiGi 10.6 0.26 28% 27% 0.2 10.4 0.24 68% 26% 6.2 0.1 10.2 0.22 10.0 0 6.0 0.2 2012 2013 2014 2012 2013 2014 2012 2013 2014 6 * Estimated revenue market share
4Q 2014 Launched Digi ‘Let’s Inspire’ brand We believe that everyone should have access to inspiring mobile LET’S internet content – wherever, whenever. INSPIRE We also believe that the more people are inspired, the more they will share what they find and inspire others Source of inspiring internet content. along the way. LET’S Highly engaging, highly infectious INSPIRE Forefront of Consistent and Better value for Most consistent bringing the seamless money and internet latest and most customer affordable experience inspiring experience, mobile internet content and and best self- access differentiated serve channels product 7
4Q 2014 Enabling more customers on Digi’s modernised network • Positive demand from iPhone 6 launch Capturing data growth opportunities and prepaid XL internet combo packages • Attractive data offerings and year end promotions • Extensive on ground activities and micro–campaigns • Progressively expand LTE footprint, focusing on areas with strong demand for LTE services, ready availability of devices, and where Digi can make a real difference – LTE available in 9 locations ie Klang Valley, Penang, Kampar, Johor Bahru, Kuching, Miri, Kota Kinabalu, Tawau, and Labuan 8
4Q 2014 Successfully drive higher smartphone and internet adoption Smartphone and Solid growth trajectory for both • % internet penetration [1] internet and smartphone penetration 2 to 3pp higher q-o-q – 56.5% 53.0% 11 to 12pp higher y-o-y – 49.4% 46.6% 44.8% 49.3% 47.0% 41.9% Supported by significant improvement 38.1% 38.4% • in network performance and coverage, 4Q13 1Q14 2Q14 3Q14 4Q14 easy access to a wide range of Internet Smartphone affordable smartphones bundles and digital service innovation No. of smartphones & devices sold ‘000 Lower affordable smartphone volumes • sold as focus tactically shifted to 453 support new iPhone and Samsung 328 launches 200 Will continue to offer affordable and 102 • 90 relevant smartphone bundles as part of the Internet For All focus 4Q13 1Q14 2Q14 3Q14 4Q14 9 [1] Subscribers with at least 150kb for the last 3 months
4Q 2014 Stronger subscriber base for both prepaid and postpaid • Successful year end promotions and Subscriber development ‘000 new iPhone launch contributed to +3.9% additional 76K net adds for the quarter +0.7% 11,345 11,421 10,995 10,885 10,903 • Encouraging growth in both postpaid 1,721 1,698 1,700 1,686 1,696 and prepaid subscribers 9,647 9,700 9,295 9,199 9,207 +23K postpaid net adds – +53K prepaid net adds – 4Q13 1Q14 2Q14 3Q14 4Q14 Prepaid Postpaid • Additional 1.5 million active internet subscribers, from a year ago, to almost Internet [1] subscriber mix ‘000 6.5 million +31.0% Contributing positively to internet – +7.3% revenue and top line revenue 6,452 6,011 growth 5,384 5,072 4,926 241 217 222 221 226 6,211 5,794 5,162 4,851 4,700 • Slight re-bound on BB subscribers contributed by prepaid internet drive 4Q13 1Q14 2Q14 3Q14 4Q14 MI BB 10 [1] Subscribers with at least 150kb for the last 3 months
4Q 2014 Resilient ARPU development over 11.4 million subscribers • Sustained ARPU levels amidst Blended ARPU composition RM competition and expansion of subscriber base 48 47 48 47 47 – Prepaid ARPU at RM41; postpaid 2 2 1 1 2 4 4 4 5 4 ARPU at RM83 10 11 13 14 14 – Internet ARPU strengthened steadily, contributing close to 30% 31 30 29 28 28 of blended ARPU 4Q13 1Q14 2Q14 3Q14 4Q14 • Data traffic continued to grow 86% y-o- Voice Internet Messaging VAS y and 11% q-o-q from increasing internet adoption and usage, backed by Data traffic volume (‘000 TB) improved network quality and coverage 16.3 14.7 134% y-o-y and 13% q-o-q for – 12.1 9.9 prepaid 8.7 38% y-o-y and 6% q-o-q for – postpaid 4Q13 1Q14 2Q14 3Q14 4Q14 • Voice MOU remained fairly stable at 248, although gradually trending down Postpaid Prepaid 11
4Q 2014 Revenue growth continued to solidify Digi’s market position Revenue development RM mln +3.8% Service +3.3% 6,130 6,333 +2.4% Revenue 1,799 1,756 1,746 1,733 1,718 172 7,019 172 156 178 164 6,733 +4.2% 686 601 557 654 571 598 627 2,450 2,103 1,020 983 970 973 957 4,029 3,883 4Q13 1Q14 2Q14 3Q14 4Q14 FY 2013 FY 2014 Voice Data Device and others Voice Data Device and others 12
4Q 2014 Robust q-o-q service revenue growth Service revenue • Stronger subscriber base contributed to RM mln solid q-o-q service revenue trajectory +3.2% +2.7% 1,627 1,577 1,584 1,554 1,568 • Prepaid service revenue up 3.4% q-o-q 435 and 4.7% y-o-y, fueled by strong 431 439 433 427 subscriber growth from prior quarter 1,192 1,138 1,127 1,135 1,153 – maintained market leadership 4Q13 1Q14 2Q14 3Q14 4Q14 • Postpaid service revenue improved Prepaid Postpaid 0.9% q-o-q Voice revenue RM mln • Voice revenue for both postpaid and -4.6% prepaid improved q-o-q, resilient +1.7% 1,020 against increasing data adoption and 983 970 973 957 usage 214 199 196 198 194 806 784 777 • Full year voice revenue declined by 772 763 3.6% but well-cushioned by 16.5% data revenue growth 4Q13 1Q14 2Q14 3Q14 4Q14 Prepaid Postpaid 13
4Q 2014 Continued to benefit from internet growth opportunities Data revenue mix • Data revenue rose 17.4% y-o-y and 4.3% RM mln q-o-q +17.4% +4.3% 654 • Ubiquity of affordable smartphones and 627 598 571 557 48 ‘always-on’ internet demand supported 47 47 49 51 126 131 142 by robust data coverage continued to 148 158 generate higher internet revenue 480 449 409 374 348 4Q13 1Q14 2Q14 3Q14 4Q14 • Internet revenue climbed 37.9% y-o-y and 6.9% q-o-q Internet Messaging VAS – 39.6% growth for FY 2014 Internet penetration [1] % • Both prepaid and postpaid registered stronger internet penetration q-o-q 72% – +3pp for postpaid 69% 67% 65% 63% – +4pp for prepaid 54% 50% 46% • Positive trajectory towards enabling 43% 41% Internet For All 4Q13 1Q14 2Q14 3Q14 4Q14 Postpaid Prepaid 14 [1] Subscribers with at least 150kb for the last 3 months
Recommend
More recommend
