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Financial & Operational Performance for Financial Period Ended 30 September 2013
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Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

May 14, 2020

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Page 1: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

Financial & Operational Performance for Financial Period Ended 30 September 2013

Page 2: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

Forward Looking Statements

This presentation and the following discussion may contain forward looking statements by Green Packet Berhad that reflect management’s current expectation, beliefs, hopes, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially from those discussed in the forward looking statements. Such statements are not and should not be construed as a representation as to the future performance or achievements of Green Packet Berhad and Green Packet Berhad assumes no obligation to update any such statements.

2

Page 3: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

Highlights of 3Q13

3

Green Packet Group’s 3Q13 EBITDA grew 30% YoY and 28% QoQ to RM12million, 8th consecutive EBITDA positive quarter.

Positive EBITDA growth across business pillars:

Solution Pillar: RM1.7million, increased by 750% YoY and 667% QoQ.

P1 Pillar: RM8.8million, increased by 5% YoY and 4% QoQ.

Alternative Services: RM1.5million, increased by 114% YoY and 25% QoQ.

Page 4: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

Solution Pillar Operational Performance

6

Page 5: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

189 198 204

212

91.0 121.4

181.8 190.2

103.8

156.1

111.6

Q1 Q2 Q3 Q4

Year 2011 Year 2012 Year 2013

Device Shipments in 3Q13

*Green Packet ,March 2013

Q313: 111,582 units > -39% YoY Increase > -29% QoQ Increase

WiMAX Device Shipments Slows as LTE Picks Up Steam.

Page 6: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

60 TD-LTE 51 TD-

LTE 46 TD-LTE

LTE Gaining Traction From Trial To Commercial

15 WiMAX

+ LTE

20 WiMAX

+ LTE

8 Trials

Clients

11 Trial

Clients

21 WiMAX

+ LTE

13 Trial

Clients

2012 Q1-Q2 2013

*GSA, WiMAX Forum, Green Packet Records - Includes commercial, committed and planned networks

Soft Launch of Green Packet’s and

the industry’s 1st LTE+WiMAX Device

@ Singapore

Commercial Launch of the Green Packet

POD and OD portfolio

Preview Launch of Green Packet’s 1st

LTE Device @ MWC Barcelona

Q3 2013 61 TD-

LTE

21 WiMAX

+ LTE

13 Trial

Clients

2 Commercial Clients

Page 7: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

Continues to Supply to Leading WiMAX Operators

*Selective PO Obtained In Q3 2013

IPI-9 Gabon

~U$0.5 mil

ARIA Telecom Italy

~U$2.3 mil

Digicel Jamaica

~U$0.8 mil

SMART Communications Philippines

~U$1.5 mil

Page 8: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

4Q13 Focus

Launch LiTE series

Modems

Obtain significant

orders for LTE devices

Close >150K Wimax Orders

Single Mode , Single Band Modems

MAINTAIN WIMAX GROW LTE

TM

Page 9: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

P1 Pillar Operational Performance

16

Page 10: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

Private & Confidential. Powered by Packet One Networks 10

Total Sites as of 3Q13

916 1009 1083 1171 1527 1610 1678 1791 1868 1881 1902

93 74 88 356

83 68 113 77 13 21 4

1009 1083 1171

1527 1610 1678 1791 1868 1881 1902 1906

0

500

1000

1500

2000

1Q'11(A)

2Q'11(A)

3Q'11(A)

4Q'11(A)

1Q'12(A)

2Q'12(A)

3Q'12(A)

4Q'12(A)

1Q'13(A)

2Q'13(A)

3Q'13(A)

Num

ber o

f site

s

Existing Sites New Sites Total Sites

Cumulative sites as at end Q313: 1,906

Minimal New WiMAX Capacity Sites in View of LTE Migration in 2014

Page 11: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

Private & Confidential. Powered by Packet One Networks 11

Total Subscribers as of 3Q13

304.77 337.84 355.46 388.55 399.05 409.95 434.90 433.49 448.98 454.66 453.21

14.21 19.14 20.88

26.88 47.06 57.45 70.72 83.64 92.26 98.41 99.87

318.97 356.98 376.33 415.43 446.11 467.41

505.61 517.13 541.24 553.07 553.09

0

100

200

300

400

500

600

1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13

Num

ber o

f Sub

s (T

hous

ands

)

Broadband Net Subs Voice Net Subs Total Subs

Q313 Total Net Subscribers (broadband & voice): 553.09K

Marginal Net Adds In Line with Tapering Investment in New WiMAX sites.

Page 12: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

ARPU & Churns

Churn (%) ARPU (Postpaid, RM)

5.3 4.8 2.7

4.9 3.5 3.5 3.8

78 80

78

81 83 83 82

2013 Focus on Improving ARPU & Churn Pays Off

Page 13: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

Revenue & EBITDA as of 3Q13

56.2

68.0 71.9 79.7 79.2 80.9

76.1 78.7 80.5 73.6 75.5

- 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13

Net

Rev

enue

(RM

’mil)

Net Revenue

-25.8

-19.4 -16.6

-7.6

2.2 5.1 7.9 8.0 9.2 9.5 10.0

-30

-20

-10

0

10

20

1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13

Net

Rev

enue

(RM

’mil)

Net EBITDA

EBITDA-driven Business Transformation Strategy Delivers

Page 14: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

Private & Confidential. Powered by Packet One Networks 14

3Q13 Marketing Campaigns Target Quality Subs

Increase ARPU per subscriber

Customer education through radio tie-ups

Targeted marketing through strategic partnerships

Page 15: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

Group Financial Performance

For the period ended

30 September 2013

23

Page 16: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

Key Financial Highlights 3Q 2013 Revenue (‘million) EBITDA (‘million)

Group 142

P1 76

(54%)

Alt Svs 40

(28%)

Solution 26

(18%)

Group 12.0

P1 8.8

Alt Svs 1.5

Solution 1.7

Revenue

RM142m Decreases by 11% YoY

EBITDA

RM12m Improves by 30% YoY

Page 17: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

Revenue

3Q13 Vs. 3Q12 : • Software & Devices: declines RM14.5million with slow down in WiMAX device shipment • Broadband Services: declines RM6.7million attributed to marginal growth and a strong

3Q12 due to bulk project deals and Universal Service Provision project revenue. • Communication/Voice Services: increases RM2.9m

-11% YoY growth

-6% QoQ growth

Page 18: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

Results from Operational Units

YoY Group EBITDA margin improves 30% due to higher communication services revenue; and cost and operational efficiency which resulted in:

Lower overall operating expenses in P1 & GP Lower sales & marketing costs in P1 & GP Lower direct costs in P1

QoQ growth +10% +114% +80% -55%

EBITDA +28% +27%

EBIDTA margin

EBITDA is before depreciation of PPE and amortisation of modem

Page 19: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

Operational Losses

Operational Losses (After MI)

-40% YoY negative growth

+6% QoQ positive growth

-39% YoY negative growth

+19% QoQ positive growth

Results from Operational Units

• Losses decrease in 3Q13 as a result of cost optimization measures. • Broadband services losses increase for 3Q13 mainly due to higher interest costs from Kendall Court

and MDV financing amounting to a total of RM5.4 million.

Page 20: Financial & Operational Performance · WiMAX + LTE . 20 . WiMAX + LTE . 8 . Trials Clients . 11 . Trial Clients . 21 WiMAX + LTE . 13 . Trial Clients . 2012 Q1-Q2 2013 *GSA, WiMAX

C o p y r i g h t @ 2 0 1 3 G r e e n p a c k e t . A l l R i g h t R e s e r v e d .

2012 Financial Performance

Thank You