Grameenphone Ltd. Second Quarter Michael Patrick Foley, CEO - - PowerPoint PPT Presentation

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Grameenphone Ltd. Second Quarter Michael Patrick Foley, CEO - - PowerPoint PPT Presentation

Apr 14, 2023 281 likes •493 views

Grameenphone Ltd. Second Quarter Michael Patrick Foley, CEO 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

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Grameenphone Ltd. – Second Quarter

Michael Patrick Foley, CEO

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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 otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise 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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Highlights 2.3 Mn new data subscribers Seasonality and market competition Crossed 2 Mn 4G subscribers

2Q 2018

Healthy growth with solid margins

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Healthy topline growth in a challenging quarter

  • Heavy rainfall, storm and

commercial power outage

  • Impact of Ramadan & World Cup
  • Ongoing competition intensity
  • Optimization of offers
  • Positive engagement with ½

paisa/second on-net offer

  • Improving revenue generating

base and usage

  • Implementation of regulatory

directive in Pay Per Use limit

  • Offering new value proposition
  • 1 GB at BDT 16
  • 2 GB at BDT 42
  • 6 GB at BDT 199

Seasonality and market competition Stable voice price Competitive pressure

  • n data price

2Q 2018

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Crossed 2 Mn 4G subscriber milestone

3000+ 4G sites rollout* 37% 4G devices with 4G SIM

  • Avg. 27% data volume

growth after conversion 3G volume growth after 4G conversion

*As of 15 July 2018

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MyGP: Growing MAU with enriched features for engagement

2Q 2018

1.6 1.6 2.1 2.1 2.5 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

  • Cross channel promotion i.e. Bioscope, WowBox
  • Capability of contextual product offering
  • Fully digitized loyalty program (Star) and in-App

redemption

  • 60% growth (YoY) in MAU*
  • 4.4 Mn transactions during June’18
  • Contribution in savings as well as in revenue

*Considered end of period Figure in Mn

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Regulatory landscape

  • BTRC published the TVAS

guideline on 31 May’ 18

  • MNOs can provide services

to their own subscribers

  • Majority of the other

concerns are addressed

  • MNOs are eligible to apply

for license to offer operator agnostic services

  • Evaluating different options

for license application

  • During Apr’18 a revised

deadline of 31 Jul’18 was agreed with BTRC in presence of ICT adviser

  • Issued new directive giving

the ported number routing responsibility to MNOs

  • Raising concerns, a joint

letter from all CEOs of MNOs was sent to BTRC

  • BTRC is working to revise

tariff circuit in order to introduce single floor price for all MNOs

  • GP opposed this proposal
  • Engagement efforts are on-

going

  • Government is yet to come

up with the final decision

Tariff Circuit Revision of Voice Tower Co. licensing guideline Telecom VAS guideline

  • Licensing guideline was

published on 1 Apr’18

  • MNOs will not be eligible to

participate

  • BTRC received 8

applications as per media reports

  • Writ petition filed by GP

before the Hon’ble High Court challenging few provisions

  • Hon’ble High Court issued

rule to Government and BTRC

Mobile Number Portability Services (MNPS)

2Q 2018

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Priorities going forward

  • Planned rollout completion, modernization and capacity enhancement to

maintain network superiority

  • Continued drive on quality subscriber acquisition
  • Optimization of voice offers and usage stimulation with new data value

proposition

  • Focus on organizational efficiency initiatives
  • Regulatory engagement for upcoming developments
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Grameenphone Ltd. – Second Quarter

Karl Erik Broten, CFO

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EBITDA growth with solid margins

3.3% Subscription and Traffic revenue growth* 60.6% EBITDA margin** 11.6% Capex/Sales*** BDT 8.00 Earnings per share

*Revenues generated by own subscription (excludes interconnection)

**As per IAS 18 **Capex excluding license fees; Capex/sales = moving average last 4 quarters

2Q 2018

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4.7% normalized subscription and traffic revenue growth*

  • 3.8% normalized total revenue growth*
  • 1.0% voice revenue growth
  • BDT 1.4 Bn lower content and device revenue

*Normalized for accounting practice changes **Daily revenues generated by own subscription (excludes interconnection)

2Q 2018

DSTR** (BDT Mn) and Growth (YoY) Revenue (BDT Bn) and Growth (YoY) 32.4 33.2 32.2 31.2 32.6 15.5% 12.8% 8.0% 2.0% 0.5%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 318 323 317 319 328 18.0% 15.3% 12.4% 5.7% 3.3% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

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28% data subscriber and 91% volume growth

2Q 2018

Active Data Users** (Mn) and % of Sub-base Data Revenue (BDT Bn) and % of Service Revenue*

  • Competitive data offers driving user growth and

customer experience

*Revenues generated by own subscription (includes interconnection) ** Minimum 150 KB usage within last 90 days

  • 18.5% data revenue growth

5.1 5.7 5.6 5.8 6.1 16.5% 17.8% 17.9% 18.7% 19.0%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

27.0 30.0 31.2 32.2 34.5 43.9% 46.9% 47.7% 47.8% 49.9%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

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171 170 161 155 156 261 257 247 246 245 0.65 0.66 0.65 0.63 0.64 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 ARPU (BDT) AMPU APPM (BDT) 660 754 807 851 986 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

ARPU (BDT) AMBPU APPMB (BDT)

8.6% service ARPU and 7.2% data ARPU drop from competitive offers

2Q 2018

63 63 60 60 59 0.10 0.08 0.07 0.07

Data ARPU, AMBPU and APPMB Service ARPU, AMPU and APPM

  • 6.0% service AMPU decline mainly from lower

interconnection minutes

  • 9.2% outgoing MoU growth
  • 50% AMBPU growth along with 28% user growth
  • 38% APPMB decline from competitive offers

0.06

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19.9 19.5 19.0 18.0 19.6 61.2% 58.7% 58.8% 57.6% 60.6% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

BDT 1.0 Bn normalized EBITDA uplift with solid margin

  • Normalized opex growth of 1.4%***

*EBITDA before other items

**As per IAS 18 ***Normalized for Q2’17, one-off items and IAS 18

2Q 2018

11.9% YoY

  • Normalized EBITDA growth of 5.4% and margin

improvement of 2.8 pp***

1.3% YoY 9.2% YoY

EBITDA* (BDT Bn) and Margin** Opex (BDT Bn) and Margin**

10.0 11.0 11.0 11.6 11.2 30.9% 33.2% 34.1% 36.9% 34.0% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

3.3% QoQ

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Investment mainly for 4G rollout and network modernization

2Q 2018

*Capex (BDT Bn) and Capex/Sales%

  • 4G site rollout along with network modernization
  • 288 2G and 203 3G sites addition
  • Total number of 2G and 3G sites stands at

13,585 and 12,719

  • Investment to continue to provide superior

network experience

*Capex excluding license fees

Capex/sales = moving average last 4 quarters

3.3 2.1 4.7 3.8 4.5 12.4% 12.0% 11.3% 10.7% 11.6% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

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Normalized earnings growth of 12.3%*

2Q 2018

Earnings Per Share (BDT)** NPAT (BDT Bn) and Margin**

  • One-off reversals of excess tax provisions
  • Normalized NPAT margin of 25%*
  • Accelerated depreciation for network modernization

69.0% QoQ

*Normalized for one-off tax reversals, IAS 18 and Q2’17 one-off items

**On reported basis

7.9 7.0 6.0 6.4 10.8 24.4% 21.0% 18.5% 20.4% 33.1% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

36.3% YoY 69.0% QoQ 36.3% YoY

5.87 5.16 4.42 4.74 8.00 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

  • Normalized EPS of BDT 6.04*
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BDT 15.2 Bn OCF and Net debt/EBITDA of 0.12

2Q 2018

Net debt (BDT Bn) and Net debt/EBITDA** *OCF (BDT Bn) and OCF/Sales%

*OCF equals EBITDA minus Capex on a reported basis

**Net Debt = Short term debt + Long term debt - Cash and Cash equivalents 12 months rolling EBITDA

16.6 17.5 14.3 14.1 15.2 51.2% 52.5% 44.2% 45.2% 46.5%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 7.3 12.2 1.8 3.4 9.2 0.10 0.16 0.02 0.04 0.12 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

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125% cash interim dividend for 2018

2Q 2018

Payout Ratio Earnings and Dividend per Share (BDT)

  • Consistent high dividend payout
  • Shareholders as of the record date 05 August 2018 will be entitled

14.67 14.59 16.68 20.31 12.74 16.00 14.00 17.50 20.50 12.50

2014 2015 2016 2017 2018(Interim) EPS DPS

109% 96% 105% 101% 98% 2014 2015 2016 2017 2018(Interim)

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Summary

*In consideration of the local regulations, Grameenphone Ltd. does not provide any forward looking statements.

  • Healthy topline growth in a challenging quarter
  • Data user growth with SIM market share improvement
  • EBITDA uplift with solid margin
  • Positive end to the quarter with improving performance
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