Q302 Financial and Operational Highlight Conference Call 18.11.02 - - PowerPoint PPT Presentation

▶
q302 financial and operational highlight conference call
SMART_READER_LITE
LIVE PREVIEW

Q302 Financial and Operational Highlight Conference Call 18.11.02 - - PowerPoint PPT Presentation

Feb 23, 2023 680 likes •869 views

Q302 Financial and Operational Highlight Conference Call 18.11.02 Participants: Mr. Grant Ferguson - CFO Ms. Helene Sandberg - COO Mr. Petter-Borre Furberg - ACFO Mr. Premon Pinskul - ACFO Ms. Kulvadee Kanjanabose - ACFO Market Mobile

slide-1
SLIDE 1

Q302 Financial and Operational Highlight Conference Call

18.11.02

Participants:

  • Mr. Grant Ferguson - CFO
  • Ms. Helene Sandberg - COO
  • Mr. Petter-Borre Furberg - ACFO
  • Mr. Premon Pinskul - ACFO
  • Ms. Kulvadee Kanjanabose - ACFO
slide-2
SLIDE 2

Market

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page 2

  • Mobile industry has moved from a growing market to a maturing market.
  • DTAC has adjusted its strategy to focus on CRM programs to retain both postpaid and prepaid

customers, such as “Dflex,” “Care Plus” for premium customers, and brand development initiatives, such as “make it EASY” = Effective Accessible Sincere Yours

Acquisition Orientation Customer Retention Orientation

  • In Oct 02, DTAC introduced one sim price for all postpaid starter kit packages to enhance

subscriber productivity and profitability.

  • In Nov 02, DTAC offered new prepaid voucher card structure to encourage refill and usage.

Focus on Market Share Focus on Revenue and Margin

slide-3
SLIDE 3

Subscribers

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page 3

  • Total subscribers as of 30 September 2002 was 5,130,308 with 72.65% prepaid customers.
  • Total net additional subscribers acquired in Q302 and 9M02 were 878,776 and 2,392,710,

respectively

  • In Q302, total prepaid subscribers increased by 1,065,833 while postpaid subscribers reduced

by 187,057.

Net Additional and Total Subscribers Postpaid VS Prepaid (%)

2,300 ,244 2,737 ,598 3,225 ,567 4,251 ,532 5,130 ,308

  • 400,000
  • 200,000

200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Q301 Q401 Q102 Q202 Q302

  • 400,000

600,000 1,600,000 2,600,000 3,600,000 4,600,000 5,600,000 Net addition - Postpaid Net addition - Prepaid Tota Subscribers

81% 68% 55% 37% 27%

19% 32% 45% 63% 73%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Q301 Q401 Q102 Q202 Q302

Postpaid Prepaid

slide-4
SLIDE 4

Breakdown of Subscriber Base

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page 4

  • As of Sep 30, 2002, the number of Dprompt subscribers increased significantly, but Dlite

and Non-D package, who typically pay fixed monthly fees, decreased substantially.

  • As of Sep 30, 2002, after only one month in the market, Dflex has attracted 82,000

customers.

100 200 300 400 500 600 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Dlite Dflex Non-Dpackage

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02

Dprompt Postpaid

slide-5
SLIDE 5

Network

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page 5

  • Efficient network utilization. Approximately 87% of all sectors have satisfactory utilization

and minimum congestion in the peak hours.

3,684 3,470 3,433 GSM No. of Cell Sites 6,710,000 5,510,000 4,560,000 GSM Switching Capacities 24 22 20 GSM Switching Centers Q302 Q202 Q102

slide-6
SLIDE 6

2002 YTD Operating Result

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page 6

  • Consolidated revenue increased 19% YoY, primary due to a 20% improvement in telephone service revenue.
  • Service revenue was largely driven by the increase in the customer base.
  • Cost of telephone services rose 28% YoY, primarily due to the amortization of deferred rights (network

depreciation).

  • Selling and administrative expenses, excluding the effect of increased provisions for doubtful accounts,

increased by 8%.

  • EBITDA increased 18% YoY, and the net earnings rose 17%.

Million THB 6,591 4,890 7,892 15,871 21,547 7,842 5,584 10,106 18,988 25,550 5,000 10,000 15,000 20,000 25,000 30,000

Total revenue Service revenue Cost of telephone service SG&A EBITDA 9M01 9M02

slide-7
SLIDE 7

Q3 Operating Result

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page 7

  • Total revenue decreased 14% YoY and 28% QoQ, primary due to the discontinuance of handset

business in May 2002.

  • Cost of telephone services rose 12% YoY, generally consistent with the corresponding changes

in the constituent part of total revenue.

  • Selling and administrative expenses decreased by 5%.
  • EBITDA dropped 3% YoY, and the net earnings decreased 36% YoY.

Million THB

7,622 3,017 1,812 2,434 598 378 2,348 1,717 3,379 6,573

1,500 3,000 4,500 6,000 7,500 9,000

Total revenue Cost of telephone service SG&A EBITDA Net Earnings 3M01 3M02

slide-8
SLIDE 8

Q302 Revenue

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page 8

  • Revenues from sales of telephone sets and SIM cards declined 83% YoY and 90% QoQ caused

by the discontinuance of handset business in May 2002

  • Revenues from telephone services increased 3% YoY, but dropped 8% QoQ
  • 8%
  • 89%

Million THB

  • 34%

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Q202 Total Rev.

  • Rev. from
  • Tel. Service
  • Rev. from

Sales Others Q302 Total Rev.

slide-9
SLIDE 9

Q302 Service Revenues

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page 9

  • Prepaid revenues increased by 4% QoQ as a combined result of:

Gross airtime revenues rose by 10% Amortization of airtime promotions peaked in Q302, an increase of 26% QoQ

  • Revenues from postpaid airtime reduced 11% QoQ from a combination of internal rotation and

external churn

  • Monthly fees from Dlite and non-Dpackage subscribers, including many Analog customers,

decreased 24%.

+10%

  • 11%
  • 24%

Net Prepaid Rev. = +4%

Million THB

  • 1,000

2,000 3,000 4,000 5,000 6,000 7,000 Q202 Service Rev. Prepaid Gross Rev. Amort of promotion Postpaid Rev. Monthly Fee Q302 Service Rev.

slide-10
SLIDE 10

ARPU

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page 10

  • Postpaid ARPU in Q302 increased to Baht 1,079 compared to Baht 1,028 in Q202. However, full

diluted prepaid ARPU for Q302 dropped 32.4% to Baht 177 from Baht 262 in Q202.

  • Excluding the effect of promotional airtime, prepaid ARPU in Q302 was approximately Bt. 227.

Baht

1,016 1,010 1,027 1,028 1,079 400 177 262 300 354 227 289 428 577 728 839 908

200 400 600 800 1,000 1,200 Q301 Q401 Q102 Q202 Q302

ARPU -Postpaid ARPU -Prepaid ARPU -Prepaid bef promotion Blended

slide-11
SLIDE 11

Average Prepaid Accum. Sub. VS Prepaid Gross Revenue

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page 11

  • Due to the effect of the validity period of activated SIM cards and subscriptions activated by

dealers before they are sold, prepaid gross revenue from May 02 – Sep 02 showed little growth despite the growth in the subscriptions sold.

  • In October prepaid gross revenue increased 14% from September due to pre-activated

subscriptions being sold to customers and higher airtime usage by prepaid subscribers. Subs (m) Baht

1,500 3,000 4,500 Jan- 02 Feb- 02 Mar- 02 Apr- 02 May- 02 Jun- 02 Jul-02 Aug- 02 Sep- 02 Oct- 02 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 Average Accum. Sub Gross Revenue

slide-12
SLIDE 12

Sources and Uses of Fund (9 Months)

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page12

3,093 12,806 6,050 21,949 12,267 2,210 4,809 19,286 2,663 CAPEX* Net financing costs Principal Repayment Total use of funds Cash ending Cash beginning Operating cashflow(Bf.interest) ECA financing Total source of funds Sources of Fund Uses of Fund

Million Baht

*Including changes in account payables for capital items. YTD, new commitments were THB 11,190 million.

Million Baht

slide-13
SLIDE 13

EBI TDA Margin

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page13

slide-14
SLIDE 14

Fixed 54% Floating 46%

Debt Refinancing

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page14

Average Interest Rate Average Interest Rate Average Interest Rate Average Interest Rate = = = = 5 5 5 5. . . .39 39 39 39 % % % % ( ( ( (as of the end of Oct as of the end of Oct as of the end of Oct as of the end of Oct. . . . 02 02 02 02) ) ) )

The debt refinancing was an integral part of DTAC’s proactive liability management plan, focusing on cost

  • ptimization, repayment profile and risk management.

A) THB 4 Billion Syndicated loan One of best local corporate deals in 2002 that can achieved a benchmark interest rate of THBFIX+1.65% with a 6 year tenor. B) THB 5 Billion Debenture Market leading bond deal with a 5.8% fixed coupon, 7 year bullet repayment and an A- credit rating.

Rate (%) Baht Bond #1 Baht Bond #2 Yankee 2006

  • Floating

THB Swap Rate 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 1 2 3 4 5 6 Rate (%) Baht Bond #1 Baht Bond #2 Yankee 2006

  • Baht Bond #1

Baht Bond #2 Yankee 2006

  • f

Fixed

Yankee 2006

  • FEC

Yankee 2006

  • FEC

Yankee 2006

  • FEC

THB Swap Rate

Refinancing

ECGD NIB New Syndicated Loans Baht Bond #3

Refinancing

7

Syndicated Loans #1 Syndicated Loans #2

slide-15
SLIDE 15

Financial Summary

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page15

* Net debt/Equity end of the period ** Net debt/EBITDA (rolling back 3 quarters) *** EBITDA/Interest expense for the period

slide-16
SLIDE 16

Debt Profile

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page16

  • Weighted average cost of fund at the end of September 2002 was 6.03%.

Note : (A) = Amortized repayment (B) = Bullet repayment

slide-17
SLIDE 17

Q302 Result Conference Call

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 30964-5, 30968

Page 17

Thank You

Investor Relations Department Tel: 66 2202 8000 Ext. 30964 – 5, 30968 Fax: 66 2202 8102 - 4 E-mail address: IR@DTAC.co.th

www.DTAC.co.th