Q303 Operating Result Conference Call November 18, 2003 - - PowerPoint PPT Presentation

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Q303 Operating Result Conference Call November 18, 2003 - - PowerPoint PPT Presentation

Dec 24, 2023 179 likes •369 views

Q303 Operating Result Conference Call November 18, 2003 Participants: Mr. Vichai Bencharongkul, Co-CEO Mr. Sigve Brekke, Co-CEO Mr. Grant Ferguson, CFO Mr. Premon Pinskul, ACFO Mr. Petter-Borre Furberg, ACFO In Summary Revenue growth

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SLIDE 1

Q303 Operating Result Conference Call

November 18, 2003

Participants:

  • Mr. Vichai Bencharongkul, Co-CEO
  • Mr. Sigve Brekke, Co-CEO
  • Mr. Grant Ferguson, CFO
  • Mr. Premon Pinskul, ACFO
  • Mr. Petter-Borre Furberg, ACFO
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SLIDE 2

Page 2

In Summary

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7

Revenue growth driven by increasing usage by existing and new customers Postpaid customer base stable Prepaid customer base still growing but at slowing rate More competitive market environment but maintained focus on services and revenues Costs remain under control and margins maintained Discussions continue on regulatory issues but as yet no changes announced

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SLIDE 3

Page 3

Q303 Services Revenues

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7

Service revenues increased 8% QoQ due to an increase in voice revenues as well as revenues from international roaming and value added services.

MM THB

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Page 4

Q303 Cost of Services

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7

Cost of services increased by 10% QoQ primarily as a result of an increase in concessionary costs, production cost and sales margin of refill vouchers and network maintenance costs.

MM THB

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Page 5

Q303 SG&A

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7

SG&A increased by 5% QoQ due to an increase in the change in provision for doubtful accounts, advertising and promotional expenses and general administrative expenses.

MM THB

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Page 6

Q303 Operating Result

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7

EBITDA increased by 7% QoQ largely due to an increase in operating profit.

MM THB

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Page 7

YoY Operating Result (3 months)

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7

EBITDA increased by 26% YoY primarily due an increase in operating profits and a decrease in provisions for doubtful accounts receivable.

MM THB

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SLIDE 8

Page 8

YTD CAPEX was THB 4.6 billion (approx). Revised CAPEX budget in 2003 is THB 6.6 billion.

Sources and Uses of Fund (9 months to 30 September 2003)

Investor Relations: IR@DTAC.co.th

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

* including changes in accounts payable for capital items.

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SLIDE 9

Page 9 Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7

Financial Profile

  • Weighted average cost of fund as at 30 September 2003 was 4.9% (Q203: 5.5%)

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

Undrawn facilities NIB THB 1.27 bn.

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Page 10

Debt Refinancing

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7

As part of the ongoing liability management program to optimize the cost of funding realign debt maturities and provide greater risk management flexibility, DTAC has recently completed the issuance and offer for the sale of new unsecured and unsubordinated debentures as follows: A) 5-Year Tranche: THB 5.5 Billion Bullet repayment with the mix of fixed and floating rate of 3.30% and 6M THBFIX+0.95% B) 7-Year Tranche: THB 3.5 Billion Bullet payment with fixed coupon rate at 3.90%

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 7 8 9

Average Life

Baht Bond 1 Baht Bond 2 Baht Bond 3 Yankee06 TH B Syndicated FE C A FE C B E C GD E C D #1 P /N 5yrs Baht Bond 7yrs Baht Bond 2yrs B/E

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Page 11

Revenue Growth

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7
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Page 12

Customers

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7

Net addition to postpaid subscriber base has continued to be positive for 5 consecutive months as a result of both stable level of new customers and an improving rate of churned customers. Despite slower pace of market growth, net addition to prepaid customer base is still at sustainable level due to an improving rate of customer churn.

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Postpaid Services

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7

What’s happened? Update on “my” package

  • Provides the catalyst for certain segments to refocus
  • n postpaid market
  • Represents over 50% of new postpaid sales each month
  • More than 200k subs in customer base

What’s next?

  • Continue to develop innovative packages
  • Focus on market and customer segmentation
  • Strengthen position in corporate segment by promoting corporate solutions

What’s New? Another innovative postpaid offering: “Family Special”

  • Up to 2 supplementary “my” subscriptions on any postpaid

package on one single bill

  • Supplementary subscriptions starting with special minimum

payment of 250 Baht/month bundled with 75 minutes

  • Aimed at strengthening relationship with more-committed

customers

  • Focused on additional revenues rather than additional subs
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Page 14

“Happy” Prepaid

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7
  • Happy Dprompt was launched on May 21, 2003. Happy customers had reached 2.6 million as of end Oct 03.

Innovative Branding, Promotion and Distribution:

  • Teamed up with Five Star Network to introduce a localized marketing campaign, using outdoor theatre as a means to capture

new customers in the provinces.

  • Alliance with Nestle to offer customers more channels to buy refill vouchers and win prizes.
  • Offered customers chance to collect points for free movie ticket for any movie at any showtime (200 seats per day at Grand

EGV)

  • Offered special discount for tickets to “Happy with Doraemon Show 2003”, a grand show from Japan using technique,

interactive light and sound, during 10-19 October 03.

  • Supported U-league football by offering special privileges to participating students, plus sponsoring a “Miss Happy Vote”

voting in The Miss U-League competition.

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Page 15

MOU*

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7

* Actual usage outgoing minutes (voice only)

Postpaid average monthly MOU per sub was stabilizing while prepaid average monthly MOU increased by 18% and resulted in an increase in prepaid ARPU.

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ARPU

Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831, 31846-7
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SLIDE 17

Page 17 Investor Relations: IR@DTAC.co.th

  • Tel. (66) 2 202-8000 ext. 31831,31846-7

Disclaimer

Certain forward looking statements may be made in the course of the

  • presentation. These forward- looking statements generally can be

identified by use of statements that include words or phrases such as DTAC or its management “believes,” “expects,” “anticipates,” “intends,” “plans,” “foresees,” or other words or phrases of similar

  • import. Similarly, statements that describe DTAC’s objectives, plans or

goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. The forward-looking statements contained in the slides are not and should not be constructed as representations of the future performance of DTAC and that such statements are an expression of the Company’s reviews based on its current view and certain assumptions including, but not limited to, prevailing economic and market conditions and currently available information.