Pakistan Telecommunication Co. Ltd. Class A · PSX:PTC
Pakistan Telecommunication Co. Ltd. Class A — Q3 2018 Earnings Presentation
29 slides from Pakistan Telecommunication Co. Ltd. Class A's earnings presentation, Oct 15, 2018
Slide 1: PTCL Investor Call: Financial Results for Q3 2018
PTCL Investor Call Financial Results for Q3 2018 15th October, 2018 www.ptcl.com.pk 0
Slide 2: Disclaimer
Disclaimer Pakistan Telecommunications Company Limited (PTCL) and its subsidiaries have prepared this presentation in good faith, however, no warranty or representation, express or implied is made as to the adequacy, correctness, completeness or accuracy of any numbers, statements, opinions or estim
Slide 3: Business Overview
Business Overview Dr. Daniel Ritz President & Chief Executive Officer PTCL Group www.ptcl.com.pk 2
Slide 4: PTCL Group
PTCL Group PTCL Group PTCL • PTCL • Retail • DSL • Wireless Data • Voice • Ufone • IPTV • Corporate • ICT Services • Ubank • Cloud & Data Services • Managed Services • Wholesale • Others* • Carrier services • International business * Other subsidiaries include DVCOM and SmartSky www.ptcl.com.pk 3
Slide 5: Nine Months Headlines
Nine Months Headlines • PTCL Group: Revenue grew 6% YoY and 11% for Q3 2018 Vs 2017 EBITDA grew 5% YoY Net Profit grew 27% YoY like-for-like • PTCL: Stable revenue overall YoY DSL revenue in transformed exchanges grew 15% YoY, Corporate grew 14% YoY Net Profit of PKR 4.8 B for the period
Slide 6: JCR-VIS Assigns Medium to Long Term Rating of AAA to PTCL
JCR-VIS Assigns Medium to Long Term Rating of “AAA” to PTCL JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned initial long term entity rating of ‘AAA’ (Triple A) and short term rating of ‘A-1+’ (A-One Plus) to Pakistan Telecommunication Company Limited (PTCL). Long term rating of AAA sign
Slide 7: PTCL Group: 11% YoY and 6% QoQ Topline Growth in Q3 2018
PTCL Group 11% YoY and 6% QoQ Topline Growth in Q3 2018 Change % 9M 2018 Change % PKR Million Q3 2018 YoY QoQ Rs. M YoY Revenue 32,545 11% 6% 93,208 6% EBITDA 10,940 10% 8% 31,293 5% EBITDA Margin 34% -0.1 p.p 0.6 p.p 34% -0.3 p.p Net Profit 1,808 22% 60% 3,946 -26% Net Profit Margin 6% 0.5 p.p 1.9
Slide 8: PTCL revenue stable YoY, decline QoQ due to seasonality
PTCL PTCL revenue stable YoY, however decline in QoQ due to seasonality Change % 9M 2018 Change % PKR Million Q3 2018 YoY QoQ Rs. M % Revenue 17,265 0% -3% 52,623 0% EBITDA 5,045 -10% -7% 16,216 -7% EBITDA Margin 29% -3 p.p -1.3 p.p 31% -2.1 p.p Net Profit 1,089 -40% -42% 4,780 -26% Net Profit Margi
Slide 9: Revenue Segments Composition and Growth
PTCL Revenue Segments Composition and Growth Nine Months Ended 2018 Vs 2017 75 69% Growing Segments • Revenue Contribution 63% 60 • CAPEX Spend 88% 45 30 25% 15% 14% 15 Growth (%) 5% 1% 0% 0 -5% -6% -6% -15 -30 Shrinking Segments -68% • Revenue Contribution 37% -45 • CAPEX Spend 12% -60 -75 Charji I
Slide 10: Key Strategic & Operational Highlights
Key Strategic & Operational Highlights • Network transformation project for top 100 exchanges continues – subscriber and revenue growth • Corporate segment continues to grow - mainly driven by Managed Services and Cloud based solution • Grey Traffic impacting international traffic, Supreme court has
Slide 11: Financial Overview
Financial Overview Nadeem Khan Chief Financial Officer PTCL Group www.ptcl.com.pk 10
Slide 12: PTCL Group Key Financials
PTCL Group Key Financials Net Profit growth of 22% YoY and 60% QoQ driven by healthy growth in revenues Revenue (PKR M) EBITDA & Margin Net Profit & Margin +11% +6% +10% +8% 32,545 10,940 9,917 10,111 30,612 34% 34% 33% +22% +60% 29,374 1,808 1,486 1,131 6% 5% 4% Q3 2017 Q2 2018 Q3 2018 Q3 2017 Q2 2
Slide 13: Group Revenue Evolution YoY
PTCL Group – Revenue Evolution YoY Revenue growth of 11% despite tough competition in cellular market and decline in fixed voice +11% PKR Million X% YOY % Change 55% 21% 32,545 409 59 0% 2,751 29,374 48 Q3 2017 PTCL Ufone Ubank Eliminations Q3 2018 www.ptcl.com.pk 12
Slide 14: Group EBITDA Evolution YoY
PTCL Group – EBITDA Evolution YoY Growth of 10% mainly driven by growth in revenues PKR Million +10% 250% 35% 10,940 67 7 9,917 -10% 1,499 534 Q3 2017 PTCL Ufone Ubank Eliminations Q3 2018 www.ptcl.com.pk 13
Slide 15: Group Net Profit Evolution YoY
PTCL Group – Net Profit Evolution YoY Net Profit for Q3 2018 improved by 22% compared to Q3 2017 (like-for-like basis improved by 18%) X% YOY % Change PKR Million +22% 68% 1,808 256% 44 9 +18% 1,486 -40% 1,425 164 1,212 1,009 724 1,572 424 602 Q3 2017 PTCL Ufone Ubank DVCOM Q3 2018 EBITDA D&A Non Ta
Slide 16: PTCL Key Financials
PTCL Key Financials Higher SAC, Cable & Media, Fuel & Power and PKR devaluation put pressure on EBITDA Revenue (PKR M) EBITDA & EBITDA Margin Net Profit & Margin 0% -3% -10% -7% 17,779 5,579 5,430 5,045 -40% -42% 17,313 17,265 1,813 1,873 32% 31% 29% 11% 1,089 10% 6% Q3 2017 Q2 2018 Q3 2018 Q3 2017
Slide 17: PTCL Revenue
PTCL Revenue Wireline Data, CharJi and Corporate continue to grow (Share of growing segments up from 59% to 63% YoY) Change % PKR Million Q3 2018 YoY QoQ Wireline Data 6,721 5% 0% Wireless Data 735 -33% -10% CharJi 564 48% -1% EVDO 171 -76% -31% Voice 3,480 -9% -4% Retail 10,935 -3% -2% Corporate Se
Slide 18: DSL Revenue
DSL Revenue Higher than average DSL revenue growth in transformed exchanges Avg. Subscribers (‘000) ARPU (PKR) Revenue (PKR M) 3% 2% 5% 1,428 1,480 1,506 6,451 1,380 6,131 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 www.ptcl.com.pk 17
Slide 19: CharJi Revenue (LTE)
CharJi Revenue (LTE) Double Digit Growth Continues Avg. Subscribers (‘000) ARPU (PKR) Revenue (PKR M) 106% -28% 48% 233 1,128 564 808 381 113 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 www.ptcl.com.pk 18
Slide 20: Corporate Revenue
Corporate Revenue Accelerating Growth by Offering New Services PKR Million 15% 1,793 7 176 28 1,560 37 Q3 2017 Managed Services Leased Lines Cloud Voice Q3 2018 & Services & IP Bandwidth Others www.ptcl.com.pk 19
Slide 21: PTCL EBITDA Evolution YoY
PTCL – EBITDA Evolution YoY Higher SAC, Cable & Media, Fuel & Power and PKR devaluation put pressure on EBITDA PKR Million -10% 5,579 48 211 275 5,045 Q 3 2017 Revenue Cost of Sales OPEX Q3 2018 www.ptcl.com.pk 20
Slide 22: PTCL Net Profit Evolution YoY
PTCL – Net Profit Evolution YoY Lower Net Profit mainly due to one-off impairment and non operating favorable one-offs in Q3 2017 PKR Million -15% -40% 1,813 1,851 105 226 1,570 534 602 1,089 415 364 138 Q 3 2017 EBITDA D&A Non Taxation Q3 2018 Impairment Non Tax Impact Q3 2018 Q3 2017 Operating Ope
Slide 23: Balance Sheet & Cash Flow Statement
PTCL Balance Sheet & Cash Flow Statement Strong Unleveraged Balance Sheet Balance Sheet Cash Flow Statement Sep-17 Sep-18 Dec-17 Sep-18 Description Description PKR Million PKR Million Cash generated from operations 22,942 15,311 Non Current Assets 116,098 117,515 Employees retirement benefits paid (
Slide 24: Dividend
Dividend PTCL announced PKR 1 interim dividend per share for the year 2018, equates to PKR 5.1 B dividend payout Dividend Yield 14% 12.1% 12% 10.9% 10% 9.4% 7.7% 8% 5.8% 6% 4% 2% 0% 2014 2015 2016 2017 2018 www.ptcl.com.pk 22 23
Slide 25: Summary & Conclusion
Summary & Conclusion Dr. Daniel Ritz President & Chief Executive Officer PTCL Group www.ptcl.com.pk 24
Slide 26: Summary & Conclusion
Summary & Conclusion • PTCL Group has delivered significant revenue growth with all three operating companies • PTCL Group Net Profit significantly up by 27% YoY on like-for-like basis • PTCL growing segments have increased from 59% to 63% for Q3 2018 Vs Q3 2017 • DSL revenue in transformed exchange
Slide 27: Questions & Answers
Questions & Answers www.ptcl.com.pk 26
Slide 28: Investor Relations
Investor Relations PTCL Investor Relations Email: [email protected] www.ptcl.com.pk 27
Slide 29: Thank You
THANK YOU www.ptcl.com.pk 28
Pakistan Telecommunication Company — Q3 2018 Earnings Presentation on 6ix