dtac first quarter 2010 - listed companydtac-th.listedcompany.com/misc/financial/2010/... · • Higher prepaid net adds from sharp ... healthy cash flow and solid financial position

dtac

first quarter 2010

30 Apr 2010

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 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.

Investor Relations: www.dtac.co.th

E-mail: [email protected]

Tel: 662 202 8882

2

Q110 Highlights

THB 6.0 bln EBITDA, and

THB 2.4 bln Net ProfitSuccessful

iPhonelaunch to sustain data growth momentum



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3

Further

COST

Improvement

Strong Growth in

Net Adds

operational highlightsoperational highlights



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4

net adds

630

119

34

1

469

263

255

386

631

net adds (in thousand)

• Higher prepaid net adds from sharp

reduction in inactive subs:

- economic recovery, and

- usage-stimulating promotion.350 389

221117

426

-126

34

-46 -41

71

Q408 Q109 Q209 Q309 Q409 Q110

Prepaid Postpaid Total



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5

- usage-stimulating promotion.

• Stable postpaid sub base.

• Continued focus on sub quality.

blended MOU and ARPU

250 249 240 240 270 274

61 58 54 5454 52

311 307 294 294324 326

62 59 56 55 56 54

281 279 271 271 278 272

blended MOU (mins / month / sub)

+6.1 %

blended ARPU (THB / month / sub)

-2.5 %

+0. 5% -2.1 %

250 249 240 240 270 274

Q408 Q109 Q209 Q309 Q409 Q110

incoming outgoing

• Outgoing minutes continued to grow.

• ARPU slightly declined from higher on-net traffic and larger sub base.

Investor relations: www.Dtac.Co.Th


Tel: 662 202 8882

219 220 215 216 222 218

Q408 Q109 Q209 Q309 Q409 Q110

incoming outgoing

Financial highlightsFinancial highlights



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3,405 3,266 3,149 3,140 3,174 3,181266 254 206 212

329 70416,391 16,501 16,029 16,212

16,94317,607

12,000

14,000

16,000

18,000

15,000

20,000 • Strong YoY service revenue growth.

• IC revenue was stabilizing QoQ but

total revenue up 6.7% YoY

(THB million)

+6.7%+3.9%

12,720 12,981 12,674 12,861 13,440 13,722

0

2,000

4,000

6,000

8,000

10,000

0

5,000

10,000

Q408 Q109 Q209 Q309 Q409 Q110

Service revenue excl IC IC Revenue Handset & Other

• IC revenue was stabilizing QoQ but

declining YoY.

• Strong growth in sale of handsets.



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service revenue breakdown

16.7%

46.5%

10.4%2.8%4.8%

18.8%

17.2%

46.1%

10.3%2.9%4.4%

19.1%

17.9%

44.6%

9.5%

3.4% 4.4%

20.1%

• Higher prepaid voice portion from on-net off-peak promotion.

• YoY increase in non-voice portion from focus on smart phone and data usage.



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9

Postpaid airtime

Prepaid airtime

InterconnectionVAS

International

Roaming (IR)Others

46.5%

Q110Q409

46.1%44.6%

Q109*

* calculated from figures after

adjustment of VAS discount.

cost efficiency programs continued to pay off

42.5% 41.7% 40.5% 40.3% 40.4% 38.8%

38.5%

43.5%

48.5%

cost of services (THB million)

excluding amortization

27.4% 27.9%26.9% 26.8% 26.4% 26.3%

25.0%

30.0%

% to service revenue (excl IC)

-1.7 %

-2.0 %



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5,403 5,413 5,139 5,184 5,431 5,322

-1.5%

3.5%

8.5%

13.5%

18.5%

23.5%

28.5%

33.5%

Q408 Q109 Q209 Q309 Q409 Q110

Total % to service rev (excl IC)

7.7% 7.4% 7.0% 7.2% 7.6% 6.6%

7.4% 6.4% 6.6% 6.3% 6.4% 5.9%10.0%

15.0%

20.0%

Q408 Q109 Q209 Q309 Q409 Q110

Network Opex Other cost Regulartory cost

further reduction in net IC cost

-145 -100

-50

-

net IC cost (THB million)

• Continued improvement in net IC

balance.

• This was mainly driven by lower



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11

-240

-272

-320

-240

-184

-145

-350

-300

-250

-200

-150

Q408 Q109 Q209 Q309 Q409 Q110

• This was mainly driven by lower

outgoing off-net traffic.

sharp YoY reduction in SG&A

2,821 2,705 2,649 2,577 2,506 2,503

17.2% 16.4% 16.5% 15.9%14.8% 14.2%

- 7.5 %

-0.1 %

5.9%

3.9%

5.8%

4.7% 5.1% 5.1% 4.9%

11.3% 11.3%12.0% 11.6%

10.2% 9.9%

SG & A (THB million)

2,821 2,705 2,649 2,577 2,506 2,503

Q408 Q109 Q209 Q309 Q409 Q110

SG&A % of total rev



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Note : SG&A expenses include impairment of goodwill & intangible

asset, but exclude depreciation and amortization (A&D).

5.1% 4.5% 4.3% 4.6% 4.3%3.9%

Q408 Q109 Q209 Q309 Q409 Q110

Selling and Marketing expenses as % of total revenues

Bad debt as % of postpaid revenues

Admin excl A&D as % of total revenues

EBITDA margin continued to improve

4,820 5,064 5,559

6,037

8,000.00

10,000.00

12,000.00

14,000.00

27.0%

29.1% 29.6%

31.1%

32.6%

34.2%

30%

35%

40%

45%

+25.2 %

+8.6 %

EBITDA (THB million) EBITDA margin

4,465 4,820 4,772 5,064 5,559

0.00

2,000.00

4,000.00

6,000.00

Q408 Q109 Q209 Q309 Q409 Q110

27.0%

20%

25%

Q408 Q109 Q209 Q309 Q409 Q110



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net profit up 66.3% YoY

2,476 2,4102,571 2,499 2,541 2,556

+6.1 %+0.6 %

A&D (THB million)

1,2391,470 1,364

1,629

2,151

2,445

net profit (THB million)

+66.3 % +13.7 %

Q408 Q109 Q209 Q309 Q409 Q110

A&D - SG&A A&D - cost of service



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14

1,2391,364

Q408 Q109 Q209 Q309 Q409 Q110

healthy cash flow and solid financial position

financial ratios

67.8 67.761.6

79.5 87.3 84.5

12.7 12.711.6 12.1

14.8

17.7

0.9 0.7 0.6 0.3 0.6 0.2

0.4 0.3 0.2 0.1 0.2 0.1

Q408 Q109 Q209 Q309 Q409 Q110

FFO to Total Debt

(%)

Interest Coverage

Ratio

Net debt to EBITDA

Net debt to Equity

4.5 4.8 4.8 5.05.6

6.0

2.61.3 1.5

1.12.0

0.6

1.9

3.53.3 3.9 3.6

5.4

Q408 Q109 Q209 Q309 Q409 Q110

EBITDA Capex Operating FCF

operating FCF(THB billion)

28.1 27.4 26.5 24.8

19.0 18.3

Q408 Q109 Q209 Q309 Q409 Q110

1.2

4.2

1.1

6.55.2

0

2

4

6

8

Q210 Q310 Q410 2011 2012-2015



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15

interest-bearing debt (THB billion) debt maturity profile (THB billion)

regulatory updateregulatory update



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16

regulatory update

• The chairman has been elected and royally endorsed.

• New 3G time frame is under review by new NTC board. NTC

• Under review by section 22 committee.

• Time frame imposed by economic ministers was Concession



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17

• Time frame imposed by economic ministers was

extended by 60 days (May 2010).

Concession

amendment

• NTC ordered the service launch by Aug 2010.

• The implementation of clearing house is in progress.MNP

Outlook



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18

outlook for 2010 unchanged



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19

Appendix



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20

Appendix

more traffic kept on-net

69% 71% 71% 72% 75% 76%

31% 29% 29% 28% 25% 24%

outgoing on : off-net traffic off-net incoming : outgoing traffic

47% 47% 47% 47% 46% 46%

Q408 Q109 Q209 Q309 Q409 Q110

off-net on-net



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21

53% 53% 53% 53% 54% 54%

Q408 Q109 Q209 Q309 Q409 Q110

outgoing incoming

postpaid

506 528 524 524 514 502 620 650 656 658 666 662

net adds (000 subs) MOU (mins/month/sub) ARPU (bt/month/sub)

- 4.9 % +1.7 %119

341

-2.3 % - 0.6%

398 423 418 417 408 396

107 105 106 107 106 106

506 528 524 524 514 502

Q408 Q109 Q209 Q309 Q409 Q110

incoming outgoing

511 543 548 548 557 553

109 107 108 110 109 109

620 650 656 658 666 662

Q408 Q109 Q209 Q309 Q409 Q110

incoming outgoing



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22

-126

-46 -41

Q408 Q109 Q209 Q309 Q409 Q110

prepaid

350389

426

630

234 228 221 221 229 224

54 47 46

284 277 264 264300 304

net adds (000 subs) MOU (mins/month/sub) ARPU (bt/month/sub)

+9.9 %-1.8 %+1.4 % -1.9 %

350389

221

117

Q408 Q109 Q209 Q309 Q409 Q110

178 176 172 173 181 178

56 52 49 48 48 46

228 221 221 229 224

Q408 Q109 Q209 Q309 Q409 Q110

outgoing incoming



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23

230 226 217 217 253 259

54 51 47 4747 46

264 264

Q408 Q109 Q209 Q309 Q409 Q110

outgoing incoming

registered vs active subs (in million)

20.2 20.9 21.1 21.5 21.8 22.2 22.6

16.717.4

18.2 18.7 18.9 19.2 19.3 19.720.3

18.1 19.2 20.2 20.9 21.1 21.5 21.8 22.2 22.6

Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110

registered subs active subs



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dtac first quarter 2010 - listed companydtac-th.listedcompany.com/misc/financial/2010/... · • Higher prepaid net adds from sharp ... healthy cash flow and solid financial position