Grameenphone Ltd. 2 nd Quarter, 2020 Results Yasir Azman, CEO 15 - - PowerPoint PPT Presentation

▶
grameenphone ltd
SMART_READER_LITE
LIVE PREVIEW

Grameenphone Ltd. 2 nd Quarter, 2020 Results Yasir Azman, CEO 15 - - PowerPoint PPT Presentation

Dec 19, 2023 119 likes •358 views

Grameenphone Ltd. 2 nd Quarter, 2020 Results Yasir Azman, CEO 15 July 2020 Sensitivity: Open Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated

slide-1
SLIDE 1

Sensitivity: Open

Grameenphone Ltd.

2nd Quarter, 2020 Results Yasir Azman, CEO

15 July 2020

slide-2
SLIDE 2

Sensitivity: Open

Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (’relevant persons’). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in the following presentation relating to the price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such investments. This presentation does not constitute an offering of securities or

  • therwise constitute an invitation or inducement to any person to

underwrite, subscribe for

  • r
  • therwise

acquire securities in Grameenphone Ltd. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions.

slide-3
SLIDE 3

Sensitivity: Open

Q2 2020

Highlights

YoY Revenue degrowth due to COVID-19 Gradual recovery from May following strong decline in April Business Continuity Planning Regulatory Impositions

slide-4
SLIDE 4

Sensitivity: Open

Revenue de-growth due to COVID-19

  • Rollout resumed in June; 132 4G/LTE sites added
  • Fast recovery from Cyclone Amphan
  • VOLTE launched in June
  • Lockdown and lower economic activity
  • Supplementary Duty increased to 15% from June
  • Digital reload mix improved 10.0 pp from Feb’20
  • Remaining BDT 10 Bn deposited to BTRC, sustaining

injunction; GP still disputes the validity of this audit

  • SMP directives imposed and implemented under

protest NETWORK ROLLOUT MARKET OPERATIONS CHALLENGING REGULATORY ENVIRONMENT

Q2 2020

slide-5
SLIDE 5

Sensitivity: Open

“Dakche Amar Desh” initiative with BRAC to provide emergency food assistance to 100,000 affected families 50,000 PPE for medical front-liners “Bangladesh Challenge” in partnership with a2i, Google and ICT Division to identify essential and emergency locations 30 GB data @ BDT 1 for 6 months for 25,000 doctors; opted in by 19,000 doctors 10 Cr. free minutes to 1 Cr. prepaid customers Affordable connectivity with reduced call rate for all 74.5 Mn customers Work from home, digital enablement, PPE for employee well-being Q2 2020

Empowering Societies

slide-6
SLIDE 6

Sensitivity: Open

COVID-19 Situation & Impact

Q2 2020

Barriers in Market Operations Reinforced Workforce Reinforced Point Of Sales

slide-7
SLIDE 7

Sensitivity: Open

Regulatory Landscape

Q2 2020

More details on Business Highlights

Tower Co Licensing Significant Market Power BTRC Audit

slide-8
SLIDE 8

Sensitivity: Open

Grameenphone Ltd.

2nd Quarter, 2020 Results Jens Becker, CFO

15 July 2020

slide-9
SLIDE 9

Sensitivity: Open

Q2’20 financial performance impacted by countrywide general holidays under COVID-19

  • 8.1% YoY Growth

Subscription & Traffic Revenue*

  • 10% YoY Growth

EBITDA **

6.3%

CAPEX/Sales***

5.38

Earnings Per Share

Q3 2019

*Revenues generated by own subscription (excludes interconnection) ** EBITDA before other items, as per IFRS 16 ***Capex excluding license & lease; Capex/sales = moving average last 4 quarters

Q2 2020

slide-10
SLIDE 10

Sensitivity: Open

Subscriber base decreased by 0.8Mn while reaching 15.2Mn 4G data users

Total Subscribers (Mn)

Q2 2020

99.6%

Population Coverage

96.0%

Geographic Coverage

77.14%

4G Population Coverage

75.3 75.3 Q2’19 Q1’20 Q3’19 Q4’19 75.7 76.5 Q2’20 74.5

slide-11
SLIDE 11

Sensitivity: Open

Gradual recovery in subscription & traffic revenue after hitting rock bottom in April 2020

*Daily revenues generated by own subscription (excludes interconnection)

Q2 2020

  • Gradual recovery from May’20
  • nwards after the sharp decline in

Apr’20

  • Yet to reach positive YoY growth by

the end of Jun’20

Jan'20 Feb'20 Mar'20 Apr'20 May'20 Jun'20

Y-Y Subs & Traffic Revenue growth trend in 2020

0%

slide-12
SLIDE 12

Sensitivity: Open

De-growth in daily subscription & traffic revenue due to general holidays

*Daily revenues generated by own subscription (excludes interconnection)

Total Revenue (BDT Bn) and Growth (YoY)

Q2 2020

DSTR* (BDT Mn) and Growth (YoY)

36.0 36.6 36.2 36.2 33.1 Q3’19

10.6%

Q4’19 Q2’19

6.6% 4.2% 3.7%

Q1’20 Q2’20

  • 8.2%

372.3 371.2 369.5 374.4 342.3

4.8%

Q3’19 Q2’19

13.4% 6.7%

Q4’19

3.0%

Q1’20 Q2’20

  • 8.1%
  • -8.1% YoY growth in daily subs & traffic

revenue mainly contributed by de-growth in voice revenue

slide-13
SLIDE 13

Sensitivity: Open

Continued YoY growth in data revenue despite two months of general holidays (+16.7%)

Q2 2020

*Revenues generated by own subscription (includes interconnection) ** Minimum 150 KB usage within last 3 months

  • Data revenue growth mainly driven by 11.7%

growth in data ARPU

Data Revenue (BDT Bn) and % of Service Revenue*

  • 0.5Mn data users added in Q2’20
  • Continued expansion of 4G network along with 4G

conversion

Active Data Users** (Mn) and % of Sub-base 7.2 7.8 8.0 8.5 8.4 21.7% 20.2% Q2’19 22.5% Q3’19 Q4’19 24.0% Q1’20 Q2’20 25.7%

+16.7%

39.8 40.6 40.6 40.4 40.9 53.7% 52.8% 53.6% Q2’19 Q3’19 53.1% Q4’19 Q1’20 Q2’20 54.8%

+2.8%

Data Revenue (Bn) % of Service Revenue Active Data User % of Sub-base

slide-14
SLIDE 14

Sensitivity: Open

Service ARPU impacted by lower contribution from voice

Service ARPU, AMPU and APPM

Q2 2020

159 158 156 156 146 220 219 213 215 201 0.72 Q3’19 Q2’19 0.72 Q4’19 0.73 0.73 Q1’20 Q2’20 0.73

Data ARPU, AMBPU and APPMB

62 64 66 71 69 0.04 1,912 Q1’20 Q2’19 0.04 0.03 Q3’19 0.03 2,225 Q2’20 2,603 0.03 1,576 Q4’19 1,763 +65.1%

ARPU (BDT) AMBPU APPMB (BDT)

  • 65.1% growth in AMBPU mainly driven by 4G

conversion

ARPU (BDT) APPM (BDT) AMPU

  • AMPU growth impacted by general holidays triggered

by COVID-19

slide-15
SLIDE 15

Sensitivity: Open

Efficient opex management despite CSR contribution under COVID-19

Q2 2020

Opex (BDT Bn) and Margin**

*EBITDA before other items **As per IFRS 16

EBITDA* (BDT Bn) and Margin**

11.0 10.9 11.1 11.1 10.3 30.6% Q4’19 Q2’19 29.7% 30.7% Q3’19 30.8% Q1’20 Q2’20 31.1%

  • 6.7%

Opex (BDT Bn) Margin %

22.9 23.4 23.0 22.9 20.6 63.5% 63.7% Q2’19 64.0% Q3’19 Q4’19 63.2% Q1’20 Q2’20 62.4%

  • 10.0%

EBITDA (BDT Bn) Margin %

slide-16
SLIDE 16

Sensitivity: Open

Investment resumed with gradual NOC approval from regulator

Q2 2020

  • 132 new 4G sites rolled out
  • Total number of sites stand at 16,557 along with

10,351 4G sites

*Capex excluding license & lease Capex/sales = moving average of last 4 quarters

*Capex (BDT Bn) and Capex/Sales%

3.8 2.1 3.9 0.4 2.5 9.7% Q4’19 Q2’19 11.8% Q3’19 9.8% 7.0% Q1’20 Q2’20 6.3%

slide-17
SLIDE 17

Sensitivity: Open

Net profit negatively impacted by lower revenue under COVID-19, modernization, & finance cost

Q2 2020

NPAT (BDT Bn) and Margin*

*As per IFRS-16

Earnings Per Share (BDT)*

9.6 7.3 9.2 10.7 7.3 26.5% Q2’19 Q4’19 19.9% Q3’19 25.4% 29.6% Q1’20 22.0% Q2’20

  • 23.9%

NPAT (BDT Bn.) Margin %

7.07 5.38 6.81 7.92 5.38 Q3’19 Q2’19 Q2’20 Q4’19 Q1’20

  • 23.9%
slide-18
SLIDE 18

Sensitivity: Open

OCF de-growth driven by lower EBITDA

Q2 2020

*OCF (BDT Bn) and OCF/Sales%

*OCF equals EBITDA minus Capex (excluding license & lease) as per IFRS 16 **Net Debt = Short term debt + Long term debt - Cash and Cash equivalents (excl. restricted cash) ; 12 months rolling restated EBITDA as per IFRS 16

Net debt (BDT Bn) and Net debt/EBITDA**

19.2 21.3 19.0 22.5 18.1 62.1% Q3’19 53.2% Q4’19 Q2’19 58.3% 52.6% Q1’20 54.8% Q2’20

OCF/Sales % OCF

8.0 (3.2) (3.9) (3.4) 0.9

(0.04)

Q3’19

0.09

Q2’19

(0.04)

Q4’19

(0.04)

Q1’20 Q2’20

0.01 Net Debt Net Debt/EBITDA

slide-19
SLIDE 19

Sensitivity: Open

Contribution to National Exchequer

  • BDT 46.4Bn (equaling 67% of total revenues)

contributed to national exchequer in 1H’20

  • Contribution in the form of taxes, VAT, duties,

license/spectrum fees & revenue share

Q1 2020

58.6 61.8 84.2 85.0 46.4 2017 2016 2017 2019 1H 2020

12.7Bn 4G license payment

801 Total

Figures in BDT Bn.

slide-20
SLIDE 20

Sensitivity: Open

1H 2020

Recommended 130% of PuC cash interim dividend for 2020

BDT 13.00 Dividend Per Share

2020 (interim)

98% Payout Ratio

2020 (interim)

BDT 13.30 Earnings Per Share

2020 (interim)

  • Shareholders as of the record date 05 August 2020 will be entitled
slide-21
SLIDE 21

Sensitivity: Open

Growth momentum negatively impacted due to COVID-19 We are committed to contributing to society and using our technology expertise to battle COVID-19 Continued growth in data reinforces our focus on strengthening our network with planned investment

slide-22
SLIDE 22

Sensitivity: Open

Thank You

Q2 2020 *In consideration of the local regulations, Grameenphone

  • Ltd. does not provide any forward looking statements.