Grameenphone Ltd. 1 st Quarter, 2020 Results Yasir Azman, CEO 22 - - PowerPoint PPT Presentation

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Grameenphone Ltd. 1 st Quarter, 2020 Results Yasir Azman, CEO 22 - - PowerPoint PPT Presentation

Sep 26, 2022 45 likes •262 views

Grameenphone Ltd. 1 st Quarter, 2020 Results Yasir Azman, CEO 22 April 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

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Grameenphone Ltd.

1st Quarter, 2020 Results Yasir Azman, CEO

22 April 2020

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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.

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Connecting 75.3 Mn customers and 40.4 Mn Data customers BDT 2,461 Cr. paid to National Exchequer in the first three months of 2020 50,000 medical-grade PPE and 10,000 PCR testing kits to support medical front liners to battle COVID-19 in Bangladesh Driving mass awareness in collaboration with a2i, DG Health, BTRC, WHO, UNICEF Efficient use of information technology in collaboration with a2i to tackle community spread Q1 2020

Empowering Societies

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Q1 2020

Highlights

Reduced Revenue Growth 14.2 Mn 4G Customers 10,200+ 4G/LTE Sites COVID-19 Situation

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Reduced growth momentum due to increasingly challenging environment

  • Rollout hampered due to halt on NOCs; only 197

4G/LTE sites rolled out

  • Strong drive on 4G conversion leading to 14.2 Mn

4G customers

  • Lower gross add due to number scarcity
  • Adaptation of digital platforms in our value chain
  • 40 new customer service points across the country
  • BDT 10 Bn deposited to BTRC, sustaining injunction
  • Partial NOCs released by BTRC following Hon’ble court
  • rder
  • GP still disputes the validity of the BTRC audit

NETWORK ROLLOUT MARKET OPERATIONS CHALLENGING REGULATORY ENVIRONMENT

Q1 2020

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COVID-19 Situation in Bangladesh

3,300+ cases 100+ deaths till 21 April* General Holidays declared until 25 April* Community lockdown in some areas; civilian movement restricted from 6 PM to 6 AM countrywide* Emergency and essential services operational, including telecommunications and related value chain Military is supporting civil administration to enforce social distancing Bangladesh has been declared at high risk on 16th April 2020*

Q1 2020

*IEDCR, News Sources

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COVID-19 Situation - Impact

Q1 2020

Barriers in Market Operations Reinforced Workforce Reinforced Point Of Sales

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Regulatory Landscape

Q1 2020

More details on Business Highlights

Tower Co Licensing BTRC Audit Significant Market Power

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Grameenphone Ltd.

1st Quarter, 2020 Results Jens Becker, CFO

22 April 2020

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Growth momentum in Q1’20 impacted amidst regulatory restrictions

4.1% YoY Growth

Subscription & Traffic Revenue*

4.8% YoY Growth

EBITDA **

7.0%

CAPEX/Sales***

7.92

Earnings Per Share

Q3 2019

*Revenues generated by own subscription (excludes interconnection) ** EBITDA before other items, as per IFRS 16 & Q1’19 restated ***Capex excluding license & lease; Capex/sales = moving average last 4 quarters

Q1 2020

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Subscriber acquisition negatively impacted by number series scarcity

Total Subscribers (Mn)

Q1 2020

99.6%

Population Coverage

96.0%

Geography Coverage

75.4%

4G Population Coverage

75.3 Q1’19 76.5 Q2’19 Q3’19 Q4’19 Q1’20 74.1 75.3 75.7

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3.0% growth in daily subscription & traffic revenue

*Daily revenues generated by own subscription (excludes interconnection)

Total Revenue (BDT Bn) and Growth (YoY)

Q1 2020

DSTR* (BDT Mn) and Growth (YoY)

34.9 36.0 36.6 36.2 36.2 Q3’19

6.6% 10.6% 11.6%

Q4’19 Q1’19 Q2’19

4.2% 3.7%

Q1’20 364 372 371 370 374 Q4’19 Q3’19

14.2%

Q2’19

4.8%

Q1’19

13.4% 6.7% 3.0%

Q1’20

  • 3% YoY growth in daily subs & traffic revenue

mainly contributed by growth in data revenue

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Strong YoY growth in data revenue (+24.6%)

Q1 2020

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

  • Data revenue growth mainly driven by 16.1%

growth in data ARPU

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

  • Number series scarcity affected data user growth
  • Continued expansion of 4G network along with 4G conversion

Active Data Users** (Mn) and % of Sub-base 6.9 7.2 7.8 8.0 8.5 Q3’19 Q2’19 Q1’19 20.0% 20.2% 24.0% 21.7% 22.5% Q4’19 Q1’20 +24.6% 38.2 39.8 40.6 40.6 40.4 Q4’19 53.7% 51.6% Q3’19 Q1’19 Q2’19 52.8% 53.1% 53.6% Q1’20 +5.7%

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

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Stable service ARPU along with continued growth in data usage

Service ARPU, AMPU and APPM

Q1 2020

156 159 158 156 156 216 220 219 213 215 Q2’19 Q4’19 Q1’19 0.72 0.72 0.72 Q3’19 0.73 Q1’20 0.73

Data ARPU, AMBPU and APPMB

61 62 64 66 71 0.04 2,225 Q3’19 Q1’19 0.04 0.03 Q4’19 0.03 1,912 Q1’20 Q2’19 0.04 1,418 1,576 1,763 +56.9%

ARPU (BDT) AMBPU APPMB (BDT)

  • 56.9% growth in AMBPU mainly driven by 4G

conversion

ARPU (BDT) AMPU APPM (BDT)

  • AMPU growth impacted by prolonged winter & general

holidays triggered by COVID-19

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Efficient opex management supporting EBITDA development

Q1 2020

Opex (BDT Bn) and Margin**

*EBITDA before other items **As per IFRS 16, Q1’19 restated

EBITDA* (BDT Bn) and Margin**

11.1 11.0 10.9 11.1 11.1 31.8% Q3’19 30.6% 29.7% Q1’19 Restated Q2’19 Q4’19 30.7% 30.8% Q1’20 +0.2%

Opex (BDT Bn) Margin %

21.8 22.9 23.4 23.0 22.9 64.0% Q2’19 63.7% 62.5% Q4’19 63.5% Q1’19 Restated Q3’19 63.2% Q1’20 +4.8%

EBITDA (BDT Bn) Margin %

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Q1’20 investment impacted by regulatory restrictions

Q1 2020

  • 197 new 4G sites and 34 new 3G sites rolled out
  • Total number of sites stand at 16,542 along with

10,219 4G sites

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

*Capex (BDT Bn) and Capex/Sales%

4.2 3.8 2.1 3.9 0.4 Q2’19 Q3’19 9.7% Q1’19 12.6% 11.8% 9.8% Q4’19 Q1’20 7.0%

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Net profit positively impacted by FX gain and prior periods’ one-off

Q1 2020

NPAT (BDT Bn) and Margin*

*As per IFRS-16, Q1’19 restated

Earnings Per Share (BDT)*

8.5 9.6 7.3 9.2 10.7 Q1’19 Restated 24.4% Q4’19 26.5% Q2’19 25.4% 19.9% Q3’19 29.6% Q1’20 +25.8%

NPAT (BDT Bn.) Margin %

6.29 7.07 5.38 6.81 7.92 Q1’20 Q1’19 Restated Q2’19 Q4’19 Q3’19

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OCF growth driven by lower capex

Q1 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**

17.7 19.2 21.3 19.0 22.5 Q4’19 50.6% 58.3% Q1’19 Restated 53.2% 52.6% Q2’19 Q3’19 62.1% Q1’20

OCF OCF/Sales %

(5.3) 8.0 (3.2) (3.9) (3.4) Q1’19 Restated

(0.06) 0.09

Q3’19 Q2’19 Q4’19

(0.04) (0.04)

Q1’20

(0.04) Net Debt Net Debt/EBITDA

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Contribution to National Exchequer

  • BDT 24.6Bn (equaling 68% of total revenues)

contributed to national exchequer in Q1’20

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

license/spectrum fees & revenue share

Q1 2020

51.1 58.6 61.8 84.2 85.0 24.6 2015 2016 2019 2017 2017 Q1’20

12.7Bn 4G license payment

779.1 Total

Figures in BDT Bn.

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Growth momentum negatively impacted due to increasingly challenging environment Committed to contributing to society and using our technology expertise to battle COVID-19 Building network for better data experience and strong distribution ecosystem remains

  • ur focus for future growth and

efficiency

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Thank You

Q1 2020 *In consideration of the local regulations, Grameenphone

  • Ltd. does not provide any forward looking statements.