Maxis Bhd. · MYX:MAXIS
Maxis Bhd — Q4 2010 Earnings Presentation
19 slides from Maxis Bhd's earnings presentation, Feb 28, 2011
Slide 1: Fourth Quarter and 2010 Annual Results
Maxis Berhad MAXIS BERHAD FOURTH QUARTER AND 2010 ANNUAL RESULTS FEBRUARY 28, 2011
Slide 2: 2010 Performance: Strong finish
Maxis Berhad 2010 Performance Strong finish Market leadership consolidated 41% market share* Outstanding EBITDA 49.8%, Strong cash flows Broadband strongly revived 330k net adds, RM354m revenues Executed planned data & broadband network penetration; Transformation to Integrated Communications Servic
Slide 3: 2010 Performance Highlights
Maxis Berhad 2010 Performance Highlights Widened subscription gap over competition 13.95m subscribers, prepaid base crossed 10m Leadership incremental revenue share* 50.5% in 2H 2010 Continued strong growth momentum in Non-voice revenues 22% YoY growth, RM3.2b, >50% of subs use data Improved Broadba
Slide 4: Q4 Performance
Maxis Berhad Q4 Performance Sterling Quarter Highest ever quarterly revenue of RM2.3b 4% QoQ growth EBITDA, EBITDA margins strong despite margin pressure RM1,168m; 50.6% Strong profitability maintained PAT RM610m; 26.4% Non-voice revenues among global best 41.5% mobile revenue contribution Broadband
Slide 5: FY 2010 & Q4 Results
Maxis Berhad FY 2010 & Q4 Results Leading industry in financial performance RM million (for P&L nos) Growth Growth 3Q10 4Q10 YTD 09 YTD 10 QoQ YoY Revenue 2,216 2,310 +4.2% 8,611 8,869 +3.0% EBITDA 1,138 1,168 +2.6% 4,337 4,416 +1.8% EBITDA Margin 51.4% 50.6% -0.8pp 50.4% 49.8% -0.6pp PAT 601 610 +1
Slide 6: Dividend
Maxis Berhad Dividend Promise delivered Declared / Proposed Dividends (Since IPO) Cumulative RM mn 450 675 600 600 600 1,200 4,125 8 sen 55 sen 3 sen 8 sen 8 sen 8 sen 8 sen 6 sen 6 sen Final Dividend Declared Interim Results for 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 Dividend Announced Nov 09 Feb 10 M
Slide 7: Mobile Subscriptions
Maxis Berhad Mobile Subscriptions Touching 14 million maxis : +10% Hotlink (Prepaid) Cumulative Base Hotlink : +15% maxis Total : +14% maxis : +2% Hotlink : +4% Total : +3% 12,291 12,691 12,971 13,525 13,954 10,687 13.95m subscriptions 10,324 9,667 9,836 9,316 Market leading share* of net adds 44%,
Slide 8: Revenue
Maxis Berhad Revenue Record quarterly results Total Revenue (RM mn) +4.5% +3.0% +4.2% 8,869 8,611 2,310 2,211 2,216 2,191 2,152 Maxis returned a strong 4.2% revenue growth over Q3 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 2009 2010 Growth driven by innovative data services, Revenue Breakdown (RM mn) enhanced us
Slide 9: ARPU & MoU
Maxis Berhad ARPU & MoU Postpaid : +7% Postpaid : 0% ARPU (RM/month) Prepaid : -3% Prepaid : -12% WBB : -9% WBB : -30% Blended : -1% Blended : -9% 107 108 102 103 101 104 104 Postpaid 97 85 Prepaid WBB 69 69 70 Blended 68 64 55 52 56 ARPUs in line with industry, 51 49 49 51 40 41 symptomatic of incr
Slide 10: Non-Voice Revenue
Maxis Berhad Non-Voice Revenue 41.5% of mobile revenue Non Voice Revenue (RM mn) Non-voice revenue crossed RM3b, 22% YoY 39.2% 41.5% 38.1% growth; ADS and broadband driving data 34.4% 34.8% 36.6% 32.4% revenue; >50% of subs using data 3,153 893 Move to offer largest market range of smartphones 809 p
Slide 11: Wireless Broadband
Maxis Berhad Wireless Broadband Turnaround since Q3 2009 WBB Subscription & ARPU WBB Revenue (RM mn) +125% +13% 594 +91% +78% 524 +5% 85 448 354 69 69 70 64 106 111 313 264 78 199 58 59 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 2009 2010 Net Adds 49 135 76 70 Largest wireless broad
Slide 12: EBITDA
Maxis Berhad EBITDA Continuous focus on cash flows EBITDA (RM mn) +5.6% +1.8% +2.6% 50.4% 49.8% Highest quarterly EBITDA of RM 1,168m 4,337 4,416 50.0% 50.3% 51.4% 50.6% 46.9% 4Q10 EBITDA margin of 50.6% 1,138 1,168 1,106 1,082 1,028 Planned EBITDA margin maintained However overall EBITDA & EBITDA m
Slide 13: Cost Structure
Maxis Berhad Cost Structure Cost management behind strong margins % of Revenue 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 Direct Expenses 32.6% 33.3% 34.7% 31.7% 33.7% Sales & Marketing 4.6% 3.9% 5.2% 4.8% 4.5% Higher direct expenses in 4Q10 from increased handset related costs Staff-Related Costs 4.1% 4.6% 4.7%
Slide 14: PAT
Maxis Berhad PAT Strong profitability maintained PAT (RM mn) +21.3% +2.8% +1.5% 25.9% 25.9% 27.1% 26.4% Profits up by 2.8% in line with revenue 25.7% 24.3% 2,232 2,295 22.7% 601 610 552 532 Healthy balance maintained between optimising 503 earnings from maturing mobile business, while continuing to
Slide 15: CAPEX
Maxis Berhad CAPEX Building platform for strong data networks Capex (RM mn) 1,444 1,243 Fastest & widest wireless broadband network 596 513 covering 76% of population 489 307 Continuing investment begun in 2009, to increase 3G footprint (now HSPA), transmission 135 networks, fixed access, quality &
Slide 16: Cash Flows & Ratios
Maxis Berhad Cash Flows & Ratios 1Q10 2Q10 3Q10 4Q10 2010 Gearing Level 3Q10 4Q10 Cash flow from operating activities 798 1,064 1,112 1,117 4,091 Changes in working capital (171) 113 219 148 309 Debt # 5,462 5,498 Cash 964 898 Cash flow used in investing activities (154) (314) (473) (514) (1,455) Pu
Slide 17: Integrated Service Provider
Maxis Berhad Integrated Service Provider Multiple Play Mobile Phone TV Screen via Wireless Fixed Line Voice Set-Top Box via HSBB (1.3m Homes by 2012) WBB Life Services Interactive: Games, Music, Health, Education, Books, Finance Machines 2 Machine via Own fibre via TNB Poles Cloud Computing FBB Tabl
Slide 18: Outlook
Maxis Berhad Outlook Integrated communications Commercialisation of Home services Regulatory update High speed spectrum allocation 2011 Outlook 18
Slide 19: Disclaimer
Maxis Berhad DISCLAIMER This presentation by Maxis Berhad (“Maxis”) contains forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”,