Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Q3 FY13 Earnings Presentation
27 slides from Singapore Telecommunications's earnings presentation, Feb 14, 2013
Slide 1: Financial Results Presentation
Financial Results Presentation Q3 FY13: Quarter ended 31 December 2012 14 February 2013 Chua Sock Koong Group CEO 1
Slide 2: Forward looking statement – important note
Forward looking statement – important note The following presentation contains forward looking statements by the management of Singapore Telecommunications Limited ("SingTel"), relating to financial trends for future periods, compared to the results for previous periods. Some of the statements conta
Slide 3: Agenda
Agenda 01 // Overview 02 // Singapore 03 // Australia 04 // Associates & Joint Ventures 05 // Financial Position 06 // Supplementary Information 3
Slide 4: Driving transformation for long term growth; Q3 FY13 stable operations
Driving transformation for long term growth; Q3 FY13 stable operations across Singapore, Australia & Associates Group Revenue S$4,597m Net profit S$827m performance › down 5% › down 8% Underlying net profit S$874m › down 2% Singapore1 Revenue S$1,697m EBITDA S$531m › up 1% › up 1% Optus Revenue A$2,
Slide 5: Q3 FY13: stable EBITDA
Q3 FY13: stable EBITDA 3 months 3 months YoY % 3 months Sequential to Dec 12 to Dec 11 change to Sep 12 % change Operating revenue 4,597 4,830 (4.8%) 4,572 0.5% EBITDA 1,262 1,256 0.5% 1,267 (0.3%) - margin 27.5% 26.0% 27.7% Associates pre-tax earnings 486 475 2.2% 574 (15.3%) EBITDA & share of asso
Slide 6: 9M FY13: Resilient earnings amid adverse currency movements
9M FY13: Resilient earnings amid adverse currency movements 9 months to 9 months to YoY % Dec 12 Dec 11 change Operating revenue 13,702 14,045 (2.4%) EBITDA 3,771 3,789 (0.5%) - margin 27.5% 27.0% Associates pre-tax earnings1 1,566 1,474 6.2% EBITDA & share of associates’ pre-tax earnings 5,337 5,27
Slide 7: Group Q3 FY13 highlights
Group Q3 FY13 highlights Group Consumer › Continued LTE expansion in Australia and Singapore Revenue › Bharti completed Infratel IPO, raising US$750m S$2,983m › Announced divestment of Warid Group Enterprise › Hosted Singapore’s largest ICT Revenue thought-leadership forum and unveiled S$1,547m 200
Slide 8: Agenda
Agenda 01 // Overview 02 // Singapore 03 // Australia 04 // Associates & Joint Ventures 05 // Financial Position 06 // Supplementary Information 8
Slide 9: Singapore: revenue growth from digital, mobile and ICT
Singapore: revenue growth from digital, mobile and ICT Revenue YoY Q3 FY13 Highlights S$m Change › up 3% excluding fibre rollout Total revenue 1,697 +1% › new digital business and continued strength in mobile & ICT › strong postpaid customer growth offsets Mobile 507 +3% lower roaming revenues › gro
Slide 10: Singapore – higher EBITDA on strong cost management
Singapore – higher EBITDA on strong cost management EBITDA up 1% to S$531m Operating expenses up 1% to S$1,175m › up 3% excluding Digital business › down 2% excluding Digital business Operating Expenses: Reported Excl Digital Selling & Admin +6% › higher customer connection costs in fibre Total Opex
Slide 11: Mobile: continued growth momentum
Mobile: continued growth momentum Mobile revenue S$507m Market share 46.6%1 › up 3% Mobile customers (‘m) Mobile revenue (S$m) Tiered data plans2 5.0 550 $507 › Postpaid customers on tiered plans 17% $491 4.0 $478 $479 $487 500 › Tiered plans customers who exceed 9% data bundles 450 3.0 1.92 1.95 1.
Slide 12: Data: Driving growth in Managed Services and ICT solutions
Data: Driving growth in Managed Services and ICT solutions Data & Internet revenue S$409m NCS Group revenue S$335m › stable › up 6% 409 409 NCS Group order book2 S$2.0b Data & Internet revenue (S$m) 112 118 Internet Key wins include: related1 › government contracts: 112 104 LLC • maintenance of busi
Slide 13: Owning the homes, leading the digital revolution
Owning the homes, leading the digital revolution Consumer home revenue1 S$118m Growing our digital presence › up 6% Revenue Customers (S$m) Customers on triple bundles (‘000) 140 360 S$118m mio TV revenue S$33m 120 S$111m 340 › up 18% 338 328 mio TV 320 100 319 300 mio TV customers 398k 80 305 Fixed
Slide 14: Agenda
Agenda 01 // Overview 02 // Singapore 03 // Australia 04 // Associates & Joint Ventures 05 // Financial Position 06 // Supplementary Information 14
Slide 15: Optus: transforming the business
Optus: transforming the business YoY Q3 FY13 A$m Highlights Change Total revenue A$2,283m -6% › focus on driving profitable growth and capitalising on data opportunities Total EBITDA A$576m +3% › margin: 25.2% (Q3FY12: 23.2%) Comprising: › Mobile v A$394m +4% › reduced traffic and selling expenses ›
Slide 16: Mobile: growing EBITDA with structural change
Mobile: growing EBITDA with structural change EBITDA +4% Total revenue A$1,501m › EBITDA margin up 2ppts to 26% › down 7% › MTR decline -3% › Equipment -3% (A$m) › DRP1 credits -2% 1,800 1,615 Postpaid 1,600 1,456 1,501 › ARPU A$58 1,430 1,432 - down 12% 1,400 › Net adds +58k 1,200 › Retail churn 1.
Slide 17: Fixed: protecting margins
Fixed: protecting margins Business and Wholesale Fixed Consumer and SMB Fixed (A$m) (A$m) 550 530 340 502 505 316 493 320 312 308 500 480 302 303 -3% -4% 300 -2% 160 +5% 80 150 131 129 126 124 64 64 56 58 60 52 100 40 50 20 0 0 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 EB
Slide 18: Focus on network investment and restructuring cost base
Focus on network investment and restructuring cost base Capital expenditure A$273m Operating expenses -8% › up 11% +11% 273 Selling & Admin -8% 247 › reduction in subsidy levels Mobile Mobile 51% 64% Cost of sales -11% › lower mobile equipment costs Other Other 49% 36% Traffic expenses -9% Q3FY12 Q3
Slide 19: Agenda
Agenda 01 // Overview 02 // Singapore 03 // Australia 04 // Associates & Joint Ventures 05 // Financial Position 06 // Supplementary Information 19
Slide 20: Regional mobile associates – strong performance
Regional mobile associates – strong performance 473 million mobile customers1… across 26 countries 4% 17% 189m Mobile customers (m) 21% 125m 7% 10% Growth in customers (%) 62m 36m 33m South Asia Africa 1. Group mobile subscribers, including SingTel, Optus, and Regional Mobile Associates. 20
Slide 21: Regional mobile associates – strong performance
Regional mobile associates – strong performance PBT1 % Change % Change Q3 FY13 Highlights (S$m) (S$) (local curr) Regional 455 +1% N.A. › up 11% in constant currency Mobile Telkomsel 250 +11% +25% › strong revenue growth across voice, SMS and data › lower financing costs on reduced borrowings AIS 10
Slide 22: Agenda
Agenda 01 // Overview 02 // Singapore 03 // Australia 04 // Associates & Joint Ventures 05 // Financial Position 06 // Supplementary Information 22
Slide 23: Sound financial position
Sound financial position Free cash flow S$2,493m Solid balance sheet +1% Net debt S$7.6b 2,463 2,493 Group free cash flow (S$m) Net gearing2 25% 793 1,012 Singapore › up S$219m Net debt: EBITDA & share of 1.1x associates’ pre-tax profits 958 Optus1 661 › down S$297m EBITDA & share of 23.4x associate
Slide 24: Agenda
Agenda 01 // Overview 02 // Singapore 03 // Australia 04 // Associates & Joint Ventures 05 // Financial Position 06 // Supplementary Information 24
Slide 25: Trends in constant currency terms
Trends in constant currency terms1 3Q FY13 YoY % change YoY % change 3 months to Dec 12 (reported S$m) (reported S$) (at constant FX)1 Group revenue 4,597 (4.8%) (3.3%) Group underlying NPAT 874 (2.3%) 1.7% Optus revenue 2,899 (8.1%) (5.7%) Regional Mobile Associates 455 1.2% 11.0% pre-tax earnings2
Slide 26: Foreign exchange movements
Foreign exchange movements Quarter ended 31 December 2012 Appreciation / (depreciation) Currency Exchange rate1 against S$ YoY QoQ 2 1 AUD S$1.2699 (2.6%) (2.0%) INR 44.2 (11.9%) – IDR 7,874 (12.6%) (3.1%) PHP 33.7 0.3% (0.3%) THB 25.1 (4.1%) – 1. Average exchange rates for the quarter ended 31 Dece
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Singapore Telecommunications Limited (SingTel) — Q3 FY13 Earnings Presentation on 6ix