Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
1Q14 Results Presentation 14 April 2014
1
Forward looking statements – Important note
This presentation and the following discussion may contain forward looking statements
by M1 Limited (“M1”) relating to financial trends for future periods
Some of the statements contained in this presentation or arising from this discussion
which are not of historical facts are statements of future expectations with respect to
financial conditions, results of operations and businesses, and related plans and
objectives. Such forward looking statements are based on M1’s current views and
assumptions including, but not limited to, prevailing economic and market conditions
and currently available information. These statements involve known and unknown risks
and uncertainties that could cause actual results, performance or achievements to differ
materially from those in the forward looking statements. Such statements are not, and
should not be construed, as a representation as to future performance or achievements
of M1. In particular, such statements should not be regarded as a forecast or projection
of future performance of M1. It should be noted that the actual performance or
achievements of M1 may vary significantly from such statements.
2
Overview
Service revenue increased 2.1% YoY to S$204m
EBITDA margin at 40.0% of service revenue
Net profit after tax increased 4.4% YoY to S$43m
Mobile customer base stable at 2.10m
Customer acquisition cost decreased 3.1% YoY to S$309
Fibre customer base grew to 90,000
Moderate growth in FY2014 net profit after tax
Performance
highlights
for 1Q14
Outlook
Financial
highlights
for 1Q14
3
Financial highlights
Performance highlights
Developments and outlook
Agenda
4
Operating revenue (S$m)
162 163 164156 162
607644
28 27 2429 30
117114
16 1636
14 15
4862
36 72
1643 37
305 188
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
Handset sales
Fixed services
International call services
Mobile services
-1.2%
-13.8%
240245 242243
279
1,077
1,008
-6.4%
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
Service revenue (S$m) 200 207 206 207 204 772 820
5
Cost of sales (S$m)
7 8 97 8 25 31101018
11 9
41 391917
917 15
64 7062 64 60
98
57
385
284
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
Handset costs
Traf f ic Expenses
Other costs
Wholesale costs of f ixed services
-6.5%
-33.3%
96
-17.7%
100 9589
515
424
134
6
Other operating expenses (S$m)
53
733 13 135 4 3 76
22 2477 6
6622 258 88 2 8
32 2520 192020
19
76 7826 2729 28
27
97109
28 29 31 2727
111115
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
Depreciation & amortisation
Staf f costs
Facilities expenses
Leased circuit costs
Advertising & promotion
Other G&A expenses
Doubtful debt provision
+1.2%
+0.4%
9796
373388
97 99 97
+3.9%
7
EBITDA & net profit after tax
EBITDA (S$m) & margin
on service revenue
Profit after tax (S$m) & margin
on service revenue
77 78 79 8279
312300
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
+3.2%
+3.1%
+4.1%
3941 40 41 43
160
147
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
+4.4%
+5.7%
+9.4%
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
EBITDA margin
(on service revenue)39.5% 37.1% 37.7% 38.2% 40.0% 38.9% 38.1%
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
PAT margin
(on service revenue)20.5% 18.9% 19.2% 19.6% 21.0% 19.0% 19.5%
8
Capex & free cash flow
Capex (S$m) Free cash flow (S$m)
5559 57
5
41
152
176
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
-25.0%
+742.9%
+15.5%
12
21
46 46
33
123125
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
+163.3%
-29.0%
+2.3%
9
Financial leverage
S$m 1Q2013 1Q2014 Change
Cash & cash equivalents 53.9 103.9 92.8%
Net debt 196.1 146.1 -25.5%
Net assets 398.4 446.3 12.0%
Net debt/equity (x) 0.5 0.3 -33.5%
Net debt/EBITDA (x) 0.6 0.5 -28.5%
EBITDA/Interest (x) 61.0 83.1 36.2%
Net assets per share (cents) 43.4 48.2 11.1%
EPS - diluted (cents) 4.5 4.6 3.3%
10
Financial highlights
Performance highlights
Agenda
Developments and outlook
11
Mobile customers
Postpaid customer base (‘000) Prepaid customer base (‘000)
1,107 1,116 1,125 1,130 1,138
1Q13 2Q13 3Q13 4Q13 1Q14
938 985 1,007
979 966
1Q13 2Q13 3Q13 4Q13 1Q14
12
Postpaid mobile
Postpaid mobile revenue (S$m) Postpaid monthly ARPU (S$)
135 140 140 143 145
530 558
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
+7.1%
+1.6%
+5.4%
52.0 53.6 53.4 54.4 55.1 52.8 53.4
62.3 62.261.8 62.3 61.1 61.8 62.7
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
ARPU allocated to handset sales
+0.2%
+2.0%
-1.4%
13
Prepaid mobile
Prepaid mobile revenue (S$m) Prepaid monthly ARPU (S$)
2122 22
21 19
77
86
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
-10.4%
-8.8%
+10.9%
15.5 15.6 14.7
13.6 12.6
15.4 14.8
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
-7.4%
-18.7%
-3.9%
14
Mobile market share
Overall market share* Postpaid & prepaid market share*
* - Based on published statistics available at the time of submission
25.3% 25.7% 25.6% 25.1% 24.9%
1Q13 2Q13 3Q13 4Q13 Jan-14
25.7% 25.6% 25.3% 25.0% 24.8%
1Q13 2Q13 3Q13 4Q13 Jan-14
Postpaid
25.0% 25.7% 25.8% 25.2% 25.1%
1Q13 2Q13 3Q13 4Q13 Jan-14
Prepaid
15
Postpaid mobile
Acquisition cost
per postpaid customer (S$) Monthly churn rate (postpaid)
Note: Cash basis
319332 326
396
309
371
346
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
-3.1%
-22.0% -6.7%
1.1% 1.1%1.0%
1.2%1.1%
1.3%
1.1%
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
16
Mobile data ARPU & non-voice contribution
Data plan ARPU (S$) Mobile data and SMS contribution
to service revenue
26.5% 28.4% 29.7% 31.0% 32.7%
24.1%28.9%
13.0%12.8%
12.6%12.4%
12.3%
13.6%
12.7%
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
SMS
Mobile Data
39.5%41.2%
42.3% 41.6%
45.1%43.4%
37.6%
22.0 21.3
20.4 19.6 19.5
23.2
20.8
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
-11.4%
-0.5% -10.3%
17
Fibre monthly ARPU (S$) Fibre Customer base (‘000)
Fixed services
48.2 47.3 46.243.6
41.7
50.8
46.1
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
-13.5%
-4.4% -9.3%
60
67
77
8590
1Q13 2Q13 3Q13 4Q13 1Q14
18
International call services
International retail minutes
(million mins)
International call services
revenue (S$m)
313329 314
337 324
1,303
1,186
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
+0.3%
-3.1%
+9.8%
29 3028
2427
117114
1Q13 2Q13 3Q13 4Q13 1Q14 FY12 FY13
-17.2%
-11.9%
-2.1%
19
Financial highlights
Performance highlights
Developments and outlook
Agenda
20
Developments and outlook for 2014
Continual network investments
Plan to launch VoLTE in the coming months
Upgrade to LTE-Advanced by end-2014
Mobile
services
Enterprise segment
Incentives for SMEs to take up high-speed connectivity and
ICT solutions
Enhance our product and service offerings
Fixed
services
Capex to be around S$130m
Estimate moderate growth in FY2014 net profit after tax
Financial
guidance
21
Thank you