Singapore Telecommunications Limited · SGX:Z74
Singapore Telecommunications — Q2 FY2018 Earnings Presentation
21 slides from Singapore Telecommunications's earnings presentation, Nov 9, 2017
Slide 1: Q2FY18 Financial Results Presentation
Q2FY18 Financial Results Presentation For the quarter ended 30 Sep 2017 Chua Sock Koong, Group CEO 9 November 2017
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 Overview Business Units Supplementary Information
Slide 4: Record Net Profit
Record Net Profit % change % change (constant Q2FY18 (reported) currency)1 Strong core performance & scale in digital Revenue S$4,370m 7% 4% › Higher revenue contribution, largely from completion of Turn acquisition in April 2017 EBITDA 5% 2% S$1,292m › Strong customer growth in Optus’ postpaid mobi
Slide 5: Foreign Exchange Movements
Foreign Exchange Movements Quarter ended 30 September 2017 Half year ended 30 September 2017 Exchange Increase/ (decrease) Exchange Increase/ (decrease) Currency against S$ rate1 against S$ rate1 YoY QoQ YoY 2 1 AUD 1.0744 4.8% 2.8% 1.0601 4.0% 3 1 USD 1.3615 0.6% (2.2%) 1.3764 1.6% IDR 9,770 (0.6%)
Slide 6: Group Q2FY18 Highlights
Group Q2FY18 Highlights Group › Interim dividend of 6.8 cents per share › Special Dividend of 3.0 cents per share Group Consumer › SG: Launched 5G Centre of Excellence to pilot 5G solutions 5G & support Smart Nation initiatives › SG: Strong take up of data add-on plans › AU: Optus turned on the worl
Slide 7: H1FY18: Record Net Profit
H1FY18: Record Net Profit 3 months to 6 months to Sep 17 Sep 161 YoY % Sep 17 Sep 161 YoY % Operating revenue 4,370 4,086 6.9% 8,602 7,994 7.6% EBITDA 1,292 1,233 4.8% 2,561 2,469 3.7% - margin 29.6% 30.2% 29.8% 30.9% Associates pre-tax earnings2 648 725 (10.6%) 1,382 1,478 (6.5%) EBITDA & share of
Slide 8: Solid Financial Position
Solid Financial Position Free Cash Flow S$2,011m Balance Sheet +7% 2,011 Net debt1 S$9.4b 1,874 Singapore Net debt gearing2 23.8% 508 › Up S$103m Group free cash flow (S$m) 405 Net debt: EBITDA & share of 1.2x Australia associates’ pre-tax profits 321 411 › Up S$90m EBITDA & share of 21.1x associate
Slide 9: Agenda
Agenda Overview Business Units Supplementary Information
Slide 10: Singapore Consumer
Singapore Consumer S$m -2% 576 Mobile communications revenue down 3%3 12 564 14 Others1 › Continued voice to data substitution 41 34 Int’l Tel 57 › Data growth mitigated decline in voice & roaming 54 Sale of equipment › Dilution from increased mix of SIM-only plans 141 145 Fixed2 Home services4 up 3
Slide 11: Australia Consumer
Australia Consumer A$m -1% Mobile service revenue up 6% ex-DRP1 1,719 › Strong postpaid customer growth 1,702 Mobile 49 51 Incoming › Up 2% on reported basis Service Mobile handset customers › Postpaid up 69k 870 Mobile › Prepaid down 24k 887 Outgoing Service EBITDA Equipment sales down 20% margin ›
Slide 12: Regional Associates
Regional Associates PBT1 % Change % Change Q2FY18 Business Highlights (S$m) (S$) (local ccy) Regional Associates 620 -7% › Group’s customer base up 2% QoQ to 670m N.A. Ex-Airtel 537 +8% › Profits affected by competition in India › Extending 4G leadership with additional 30MHz of 2.3GHz spectrum from
Slide 13: Group Enterprise
Group Enterprise Group Enterprise Singapore & International1 S$m +6% +4% S$m 1,209 1,254 1,700 Cyber 1,612 EBITDA 141 Security ICT margin 135 +4% 546 610 +12% 36.0% 32.1% ICT +14% -8% 578 670 435 403 EBITDA Carriage 663 643 margin -3% 31.2% 28.0% Q2FY17 Q2FY18 Q2FY17 Q2FY18 -5% Revenue EBITDA 502 47
Slide 14: Group Digital Life
Group Digital Life Group Digital Life Digital Marketing S$m 299 › Strong growth momentum in Asia +89% 158 294 Amobee › Industry recognition for innovation & effective engagement in digital marketing 153 5 4 Others2 11 -9 -18 -25 Premium OTT Video -27 -14 Q2FY17 Q2FY18 Q2FY17 +50% Q2FY18 › Creating o
Slide 15: Agenda
Agenda Overview Business Units Supplementary Information
Slide 16: Singapore Mobile
Singapore Mobile Mobile communications Revenue S$506m 4G customers down 11k QoQ 2,656k Mobile revenue Mobile customers › 65% penetration (S$m) (m) $520 $526 $511 1 1 Average smartphone data usage 3.6Gb $506 $506 › Up from 2.8Gb in Sep 2016 quarter › Up from 3.5Gb in June 2017 quarter Postpaid ARPU d
Slide 17: Singapore Fixed
Singapore Fixed Singtel TV revenue S$64m Singtel TV Revenue1 Customers Singtel TV ARPU S$41 (S$m) (‘000) 64 › Down 2% 63 63 63 61 Singtel TV churn 1.2% › Down 0.3ppt Singtel Households on Triple/quad 505k services2 › Stable QoQ Singtel Fibre broadband customers3 580k 412 409 408 404 404 › Up 10k QoQ
Slide 18: Australia Mobile
Australia Mobile Service revenue A$991m Service revenue Mobile customers (A$m) (m) 4G customers1 up 176k QoQ 6,056k $991 $970 $966 $973 $977 › 62% penetration Postpaid › Handset ARPU A$46 5.08 75k 4.77 4.86 4.95 5.00 - down 3% QoQ - up 2% ex-DRP › Churn 1.4% 24k QoQ - up YoY & stable QoQ 3.64 3.68 3
Slide 19: Australia Fixed
Australia Fixed Mass market revenue A$353m Mass market revenue1 Customers (A$m) (‘000) $354 $353 $333 On-net BB ARPU A$54 $307 $315 1,147 1,174 1,206 64 › Up 3% 1,111 1,125 66 65 68 63 164 192 228 279 351 NBN BB Customers 351k › Up 72k QoQ 447 429 413 396 373 Resale DSL BB Customers 39k › Down 2k Qo
Slide 20: Trends In Constant Currency Terms
Trends In Constant Currency Terms1 Q2FY18 YoY % change YoY % change 3 months ended September 2017 (reported S$m) (reported S$) (at constant FX)1 Group revenue 4,370 6.9% 4.3% Group reported NPAT 2,889 197.1% 196.4% Group underlying NPAT 929 (4.1%) (4.9%) Optus revenue 2,275 5.0% 0.2% Regional Associ
Slide 21: Disclaimer
Disclaimer: This material that follows is a presentation of general background information about Singtel’s activities current at the date of the presentation. The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to
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