Grameenphone Ltd. · DSEBD:GP
Grameenphone — Q2 2011 Earnings Presentation
18 slides from Grameenphone's earnings presentation, Jul 19, 2011
Slide 1: Grameenphone Ltd. Second Quarter 2011
Grameenphone Ltd. Second Quarter 2011 July 19, 2011 Tore Johnsen Chief Executive Officer
Slide 2: Strong business performance
Strong business performance ● Competitive market with net add of + 28% 3.5 million + 6% ● GP’s addition of 1.8 million 33.82 subscriptions, reaching deep in rural 31.98 29.97 28.65 ● Retained market leadership, increase 26.46 in market share ● Strong revenue growth (10%), driven by subscription grow
Slide 3: Focus on better customer experience
Focus on better customer experience ● Retail channel and distribution expansion through increase in POS by 80,000 in remote areas ● 78,000 calls answered per day through human agents ● More competitive consumer pricing with off-net FnF numbers ● Refreshed postpaid product with zero line rent, increa
Slide 4: Leap forward in innovation
Leap forward in innovation ● Branded android handset “Crystal”, pioneer to introduce smart-phone at low cost ● “Q100” handset with QWERTY keypad ● Low-cost “C200” handsets through rural retail channels ● Internet mini-pack for social networking ● Credit line for postpaid connections in collaboration
Slide 5: Network Modernization, Going Green
Network Modernization, Going Green ● 26 solar, 1 wind-power sites ● Network swap: future proof architecture and less carbon footprint ● 4,000 air conditioners taken out, savings in power consumption 25MW ● Core network swap completed, BTS swap ongoing ● Continuous monitoring to measure network perfo
Slide 6: Socially responsible company
Socially responsible company ● Network operations support from local entrepreneurs, reducing cost while helping local community ● Cleaning up Dhaka city to create awareness ● Community Power Project (CPP), jointly with University of Oslo; 136 households getting power in the evenings in the pilot pha
Slide 7: Contribution to National Exchequer
Contribution to National Exchequer ● Highest corporate tax payer 13,993 ● Higher payment against SIM tax 9,984 9,834 9,442 ● Payment of BDT 3.9 billion on account 9,176 of income tax in Q2’11 ● Higher duty paid due to higher network equipment import ● Cumulative contribution BDT 208 billion since in
Slide 8: Awards and Achievements
Awards and Achievements ● “Emerging Market Service Provider of the Year” for its 2010 business performance by Frost & Sullivan in Asia Pacific ICT Awards 2011. ● “Best Telecom Brand 2010” by the Bangladesh Brand Forum and Nielson Bangladesh for securing largest market share, network and services ami
Slide 9: Regulatory Landscape
Regulatory Landscape ● National Budget 2011-12 − Long awaited reduction in SIM tax − Growth in telecom industry will accelerate the digitalization of the country ● 2G License and Spectrum Renewal − Authorities in the verge of finalizing renewal guideline and spectrum pricing − High and asymmetric pr
Slide 10: Financial Results
Financial Results Second Quarter 2011 Raihan Shamsi Deputy CEO and Chief Financial Officer
Slide 11: Boost in Revenue
Boost in Revenue ● BDT 2,061 million increment from Q1’11 + 21% + 10% ● Subscription growth escalated revenues 22,732 ● Union Council elections 20,672 18,768 19,338 19,585 ● Growth in SMS and VAS due to several occasions e.g. Bangla new year, SSC results and Council elections ● Attractive campaigns
Slide 12: Increased profitability
Increased profitability + 51% + 22% 12,066 ● BDT 2,180 million increment in 10,042 9,552 9,886 EBITDA, BDT 1,031 million increment 7,971 in net profit ● Revenue growth and controlled opex line through cost efficiency initiatives 51.9% 48.8% 47.8% 53.1% 42.5% driving profitability ● BDT 1,651 million
Slide 13: Capex for modernization and efficiency
Capex for modernization and efficiency ● BDT 3,451 million investment for the + 76% quarter in line with plan + 67% 3,998 ● 134 new base stations to expand 3,451 coverage and capacity ● Capex mainly for network swap equipments 1,957 2,061 1,342 ● Investment on business intelligence tool for better c
Slide 14: Financial KPIs
Financial KPIs Earnings Per Share NOCF and NOCF/Share 2.89 9,549 8,788 8,969 2.15 2.20 7,663 2.12 6,730 1.24 7.07 6.51 6.64 5.67 4.98 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 EPS (BDT) NOCF (Mn BDT) NOCF per Share (BDT) NAV and NAV/Share* 52,133 50,374 53,241 ● Impressive earnings
Slide 15: Half Yearly Results
Half Yearly Results Revenues EBITDA 43,404 21,952 38,924 19,594 35,810 17,407 + 21% + 12% 48.6% 50.3% 50.6% 1H'10 2H'10 1H'11 1H'10 2H'10 1H'11 Revenues (Mn BDT) EBITDA (Mn BDT) EBITDA margin Net Profit After Tax Compared to 1H’10, 6,766 5,872 ● BDT 7,595 million (21%) increment in 4,833 revenues ag
Slide 16: Half Yearly Results
Half Yearly Results Earnings per Share NOCF and NOCF/Share 5.01 17,757 16,279 4.35 14,998 3.58 13.15 11.11 12.06 1H'10 2H'10 1H'11 1H'10 2H'10 1H'11 Earnings per Share (BDT) NOCF (Mn BDT) NOCF per Share (BDT) NAV and NAV/Share* 49,227 50,374 ● Steady growth in Earnings per share over the 45,662 peri
Slide 17: Interim Dividend for 2011
Interim Dividend for 2011 ● In the Board meeting held on 18th July 2011, the Board of Directors has declared interim dividend at the rate of 140% in cash (i.e. BDT 14 per share). ● The interim dividend has been considered as per the company’s approved dividend policy which allows special dividend of
Slide 18: Thank You
Thank You