PT Indosat Tbk 1Q 2015 Results

Size: px

Start display at page:

Download "PT Indosat Tbk 1Q 2015 Results"

Damon Phillips
5 years ago
Views:

1 PT Indosat Tbk 1Q 2015 Results

2 Agenda Financial and Operational Highlights Management Focus and Key Updates Supplemental Information 2

3 Financial and Operational Highlights 3

4 1Q15 QoQ Overview Consolidated Revenue decreased 4.3% to IDR 6,093 billion EBITDA increased 5.9% to IDR 2,604 billion, EBITDA Margin reached 42.7% Loss Attributable to Owners of The Company decreased to a loss of IDR 456 billion Free Cash Flow increased to IDR 481 billion 4

5 1Q15 YoY Overview Consolidated Revenue increased 5.5% to IDR 6,093 billion EBITDA flat at IDR 2,604 billion, EBITDA Margin reached 42.7% Profit Attributable to Owners of The Company decreased to a loss of IDR 456 billion Free Cash Flow decreased to IDR 481 billion 5

Financial Highlights in IDR billion 1Q-14* 1Q-15 YoY 4Q-14 1Q-15 QoQ Operating Revenue 5,773 6,093 5.5% 6,368 6,093-4.3% EBITDA 2,607 2,604-2,459 2,604 5.9% EBITDA Margin 45.2% 42.7% -2.5ppt 38.6% 42.

6 Financial Highlights in IDR billion 1Q-14* 1Q-15 YoY 4Q-14 1Q-15 QoQ Operating Revenue 5,773 6, % 6,368 6, % EBITDA 2,607 2,604-2,459 2, % EBITDA Margin 45.2% 42.7% -2.5ppt 38.6% 42.7% 4.1ppt Profit /Loss Attributable to Owners of the Company % % * Restated due to implementation of PSAK 24 (revised 2013) Network modernization completion leading to revenue growth YoY EBITDA margin pressure due to higher operational costs from network expansion 6

7 Segment Revenue Overview Operating Revenue Breakdown in IDR billion +5.5% YoY 6,056 5,773 5,840 6, % QoQ 6,368 6, QoQ / YoY +10.8% / +11.4% -1.8% / +4.5% 4,895 4,651 4,714 4,925 5,190 4, % / +5.4% 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 Fixed Voice Fixed Data Cellular All revenue segments developing well in Q1 compared to same period last year 7

8 Cellular revenue performance 1Q15 YoY 1Q15 QoQ Voice SMS -2.6% -3.3% -5.0% 0.5% Migration to data continues to impact voice and SMS usage and revenue Data 54.5% 0.6% Increase data usage from attractive data offerings. VAS 28.6% -4.0% Increase VAS usage from various gaming & content packages 8

9 Cellular customer base Number of cellular customers in million +11.4% YoY +5.3% QoQ Net cellular customers additions in million Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 Significant customer additions due to aggressive acquisition campaigns following improved network quality perception 9

10 ARPU decreased in 1Q15 in thousand IDR (ARPU) in IDR (ARPM) ARPU and ARPM Voice traffic and MOU in billion minutes (Voice Traffic) in minute/subscriber (MOU) % YoY -14.2% QoQ -2.4% YoY -3.2% QoQ Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 ARPU ARPM Voice Traffic MOU ARPU decline temporarily due to increasing customer base MOU decreasing in line with expectation and general industry trend 10

11 Strong data usage in TByte Data usage in billion SMS delivered % YoY +33.4% QoQ -6.4% YoY -4.6% QoQ 29,891 39, ,871 15,372 19,185 20,911 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 Number of data users growing, stimulated by improved network and customer experience and higher smartphone penetration 11

12 Operational expenses as percentage of revenue 4Q-13 1Q-14* 2Q-14* 3Q-14* 4Q-14* 1Q-15 Cost of Service (CoS) Personnel 42.4% 8.7% 41.4% 7.3% 43.4% 7.4% 42.7% 7.4% 45.2% 6.9% 42.9% 7.4% Marketing General and Administration 4.0% 5.1% 2.8% 3.4% 3.6% 4.1% 4.9% 3.0% 5.9% 3.8% 3.0% 3.8% Total Operating Expenses 60.2% 54.9% 58.6% 58.0% 61.7% 57.3% Depreciation and Amortization 38.9% 34.4% 33.6% 33.4% 35.1% 33.9% Provision for IM2 Legal Case 23.3% Total Expenses 99.1% 89.3% 115.5% 91.4% 96.8% 91.2% * Restated due to implementation of PSAK 24 (revised 2013) Network related expenses increasing with a wider modernized network Moderate go to market expenses in Q1 vs. a traditional festive Q4 season 12

13 EBITDA Performance EBITDA and EBITDA margin in IDR billion 45.1% 41.5% 42.1% 42.7% 39.8% 38.6% -0.1% YoY +5.9% QoQ 2,410 2,607 2,425 2,569 2,459 2,604 1Q15 EBITDA margin in line with guidance Revenue development improving with continued good cost management 4Q-13 1Q-14* 2Q-14 3Q-14 4Q-14 1Q-15 EBITDA EBITDA Margin * Restated due to implementation of PSAK 24 (revised 2013) 13

14 Normalized net profit Net profit % YoY % YoY 797 Normalized net loss bridge in IDR billion in IDR billion 1Q Q-13 1Q-14* 1Q-15 Reported Net FX Loss Normalized 1Q15 net loss impacted mainly by IDR depreciation * Restated due to implementation of PSAK 24 (revised 2013) 14

15 Balance sheet Gross debt* and gross debt/ebitda in IDR billion % YoY 25,042 27,174 27,398 Net debt* and net debt/ebitda in IDR billion % YoY ,226 23,649 23,924 1Q-13 1Q-14 1Q-15 Gross Debt Gross Debt/EBITDA 1Q-13 1Q-14 Net Debt 1Q-15 Net Debt/EBITDA Slight increase on debt level YoY due to Rupiah depreciation * IDR 3.4tn, IDR 3.7tn and IDR 4.1tn of obligation under finance lease are included in 1Q13, 1Q14 and 1Q15 respectively 15

16 Free Cash Flow & Capex in IDR billion Free cash flow Capex and Capex/Revenue in IDR billion , ,452 1,590 1,669 1,566 1,618 1, Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15-1,045 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 Capex Capex/Revenue FCF strengthening with improved operating CF generation and moderating capex Capex to revenue trend improving 16

17 Network Development Number of BTS +55.2% YoY +1.3 QoQ 40,229 40,756 37,382 33,913 15,962 18,063 18,544 24,280 26,255 13,328 5,409 6,363 18,871 19,892 20,585 21,420 22,166 22,212 Cellular Revenue per BTS In IDR million Q-13 1Q-14 2Q-14 3G 2G 3Q-14 4Q-14 1Q-15 1Q 2014 Telkomsel Indosat XL 1Q 2015 Network modernization, phase 2 in Java, to be completed in Q Strong network performance in already modernized areas 17

18 1Q in summary 18

19 Management Focus and Key Updates

monetization on the strong growth of data users and increasing traffic Increase

20 Our Focus Leverage modernized network and improved customer experience driving revenue growth LTE roll out to further enhance data experience Improve monetization on the strong growth of data users and increasing traffic Increase cost efficiencies enabling continued investments Develop adjacent and new businesses 20

21 2015 Guidance FY 2014 Actual FY 2015 Guidance Consolidated Revenue Growth 1.0% In line with market EBITDA Margin* 41.7% Low to Mid 40 s Cash CAPEX IDR 6.4 trillion IDR trillion * Restated due to implementation of PSAK 24 (revised 2013) 21

22 Thank You Any further questions? Indosat Investor Relations Jl. Medan Merdeka Barat No. 21 Jakarta Tel: Investor@indosat.com Upcoming events AGMS

23 Disclaimer PT Indosat Tbk ( Indosat or Company ) cautions investors that certain statements contained in this document state its management's intentions, hopes, beliefs, expectations, or predictions of the future are forward-looking statements The Company wishes to caution the reader that forward-looking statements are not historical facts and are only estimates or predictions. Actual results may differ materially from those projected as a result of risks and uncertainties including, but not limited to: The Company s ability to manage domestic and international growth and maintain a high level of customer service Future sales growth Market acceptance of the Company s product and service offerings The Company s ability to secure adequate financing or equity capital to fund our operations Network expansion Performance of the Company s network and equipment The Company s ability to enter into strategic alliances or transactions Cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our equipment Regulatory approval processes Changes in technology Price competition Other market conditions and associated risks The company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information, or otherwise Please be also advised that the information provided herein are merely issued to coincide with the release of Ooredoo QSC (formerly known as Qatar Telecom QSC) results for the year ended 31 December 2013, as the Company s indirect majority shareholder that consolidates Indosat s results in its financial statements. Subject to the completion of, including but not limited to the audit by the Public Accountant Firm on the Company s consolidated financial statements which are prepared in accordance with the Indonesian Financial Accounting Standards (IFAS), Indosat expects to file and release its consolidated financial statements for the year ended 31 December 2013 on 30 April 2014 at the latest ( Indosat s Official Release ). Accordingly, the information provided herein may differ from what is contained in Indosat's Official Release. 23

25 Supplemental Information

IM2 case development On September 16, 2014, the South Jakarta Attorney Office ( Kejaksaan Negeri Jakarta Selatan ), without preliminary notification, executed the Supreme Court s Decision on Mr.

26 IM2 case development On September 16, 2014, the South Jakarta Attorney Office ( Kejaksaan Negeri Jakarta Selatan ), without preliminary notification, executed the Supreme Court s Decision on Mr. Indar Atmanto. The execution was done based on a quotation of the Supreme Court s Decision, which states, among others, that (i) Mr. Indar Atmanto is found guilty and sentenced to eight years imprisonment and charged with penalty of Rp300,000,000,- (if the penalty is not paid, Mr. Indar Atmanto would serve an additional six months imprisonment), and (ii) IM2 pay the losses sustained by the State amounting to Rp1,358,343,346,674,-. Subsequently, on January 16, 2015, Mr.Indar Atmanto and/or his lawyer or IM2 received the document on the Supreme Court s decision regarding the litigation case. As of the issuance date of the consolidated financial statements, Mr. Indar Atmanto and IM2 plan to conduct further legal act by submitting a reconsideration request peninjauan kembali ( PK ). On March 16, 2015, Mr. Indar Atmanto s submission of judicial review [Peninjauan Kembali ( PK )] was officialy registered at the Corruption Court under No. 08/AKTA.PID.SUS/PK/TPK/2015/PN.Jkt.Pst. 26

Credit ratings improved Upgrade to AAA by Pefindo On 1 April 2015, Moody's Investors Service says that PT Indosat Tbk's (Ba1 stable) overall FY2014 financial performance is in line with expectations,

On 27 March 2015: Fitch Ratings has affirmed PT Indosat Tbk's (Indosat) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'BBB'.

27 Credit ratings improved Upgrade to AAA by Pefindo On 1 April 2015, Moody's Investors Service says that PT Indosat Tbk's (Ba1 stable) overall FY2014 financial performance is in line with expectations, with an improved operating performance in the second half of the year offsetting a weaker first half. On 27 March 2015: Fitch Ratings has affirmed PT Indosat Tbk's (Indosat) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'BBB'. The agency has also affirmed the Indonesiabased company's National Long-Term Rating at 'AAA(idn)'. The Outlook is Stable on the IDR and the National Long-Term Rating. Fitch has also affirmed the foreign-currency senior unsecured rating of 'BBB' and the National Long-Term Ratings on its IDR9trn bond programme and IDR1trn sukuk ijarah programme at 'AAA(idn)'. On 3 February 2015, PEFINDO has affirmed idaaa rating of PT. Indosat Tbk s Bond VI Year 2008 Seri B amounting to IDR320 billion that will mature on April 9, ISAT should be able to repay the maturing bond using its internal fund. At the end of 2014, it had cash and cash equivalent amounting to IDR3.5 trillion and unused credit facilities totalling almost IDR3.0 trillion. On 7 January 2015, Standard and Poor s ( S&P ) has affirmed its rating and outlook on Indosat (BB+/Stable/NR; axbbb+/--). The stable outlook reflects the outlook on the sovereign credit rating on Indonesia (BB+/Stable/B; axbbb+/axa-2). S&P expects Indosat's operating performance to remain stable over the next two years, given the company's focus on the data business. S&P assess Indosat's liquidity as "adequate" because the company's sources of liquidity are likely to cover its needs by more than 1.2x in the 12 months to Sept. 30,

28 Debt maturity profile In IDR trillion 1.92 Debt maturity profile* IDR USD in IDR * Excluding obligation under capital lease 28

0 10.0 - * Telkom and Bakrie Telekom have the same spectrum, differentiated by its operational areas **

29 Spectrum overview for top 4 cellular operators in Mhz 850 Mhz 900 Mhz 1800 Mhz 2100 Mhz 2300 Mhz Indosat ** Telkomsel * ** XL Axiata Hutchison * Telkom and Bakrie Telekom have the same spectrum, differentiated by its operational areas ** Indosat/IM2: West Java exclude Bogor, Depok & Bekasi ; Telkom/Telkomsel: Maluku & North Maluku 29

PT Indosat Tbk 1H 2014 Results

PT Indosat Tbk 1H 2014 Results Agenda Financial and Operational Highlights Management Focus and Key Updates Supplemental Information 2 Financial and Operational Highlights 1H14 YoY Overview Consolidated