Post on 22-Jul-2020
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Grameenphone Ltd. 2nd Quarter, 2020 Results
Yasir Azman, CEO
15 July 2020
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Disclaimer
The following presentation is being made only to, and is only
directed at, persons to whom such presentation may lawfully be
communicated (’relevant persons’). Any person who is not a
relevant person should not act or rely on this presentation or any of
its contents. Information in the following presentation relating to the
price at which relevant investments have been bought or sold in the
past or the yield on such investments cannot be relied upon as a
guide to the future performance of such investments.
This presentation does not constitute an offering of securities or
otherwise constitute an invitation or inducement to any person to
underwrite, subscribe for or otherwise acquire securities in
Grameenphone Ltd. The release, publication or distribution of this
presentation in certain jurisdictions may be restricted by law, and
therefore persons in such jurisdictions into which this presentation is
released, published or distributed should inform themselves about,
and observe, such restrictions.
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Q2 2020
Highlights
YoY Revenue degrowth due to COVID-19
Gradual recovery from May following strong decline in April
Business Continuity Planning
Regulatory Impositions
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Revenue de-growth due to COVID-19
• Rollout resumed in June; 132 4G/LTE sites added
• Fast recovery from Cyclone Amphan
• VOLTE launched in June
• Lockdown and lower economic activity
• Supplementary Duty increased to 15% from June
• Digital reload mix improved 10.0 pp from Feb’20
• Remaining BDT 10 Bn deposited to BTRC, sustaining injunction; GP still disputes the validity of this audit
• SMP directives imposed and implemented under protest
NETWORK
ROLLOUT
MARKET
OPERATIONS
CHALLENGINGREGULATORY
ENVIRONMENT
Q2 2020
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“Dakche Amar Desh” initiative with BRAC to
provide emergency food assistance to 100,000
affected families
50,000 PPE for medical front-liners
“Bangladesh Challenge” in partnership with a2i,
Google and ICT Division to identify essential and
emergency locations
30 GB data @ BDT 1 for 6 months for 25,000
doctors; opted in by 19,000 doctors
10 Cr. free minutes to 1 Cr. prepaid customers
Affordable connectivity with reduced call rate for
all 74.5 Mn customers
Work from home, digital enablement, PPE for
employee well-beingQ2 2020
Empowering Societies
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COVID-19 Situation & Impact
Q2 2020
Barriers in Market Operations
Reinforced Workforce
Reinforced Point Of Sales
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Regulatory Landscape
Q2 2020 More details on Business Highlights
Tower CoLicensing
Significant Market Power
BTRC Audit
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Grameenphone Ltd. 2nd Quarter, 2020 Results
Jens Becker, CFO
15 July 2020
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Q2’20 financial performance impacted by countrywide general holidays under COVID-19
-8.1% YoY GrowthSubscription & Traffic Revenue*
-10% YoY GrowthEBITDA **
6.3% CAPEX/Sales***
5.38Earnings Per Share
Q3 2019
*Revenues generated by own subscription (excludes interconnection)** EBITDA before other items, as per IFRS 16 ***Capex excluding license & lease; Capex/sales = moving average last 4 quarters Q2 2020
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Subscriber base decreased by 0.8Mn while reaching 15.2Mn 4G data users
Total Subscribers (Mn)
Q2 2020
99.6%Population Coverage
96.0%Geographic Coverage
77.14%4G Population
Coverage
75.375.3
Q2’19 Q1’20Q3’19 Q4’19
75.7
76.5
Q2’20
74.5
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Gradual recovery in subscription & traffic revenue after hitting rock bottom in April 2020
*Daily revenues generated by own subscription (excludes interconnection)
Q2 2020
• Gradual recovery from May’20 onwards after the sharp decline in Apr’20
• Yet to reach positive YoY growth by the end of Jun’20
Jan'20 Feb'20 Mar'20 Apr'20 May'20 Jun'20
Y-Y Subs & Traffic Revenue growth trend in 2020
0%
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De-growth in daily subscription & traffic revenue due to general holidays
*Daily revenues generated by own subscription (excludes interconnection)
Total Revenue (BDT Bn) and Growth (YoY)
Q2 2020
DSTR* (BDT Mn) and Growth (YoY)
36.0 36.6 36.2 36.2 33.1
Q3’19
10.6%
Q4’19Q2’19
6.6%4.2% 3.7%
Q1’20 Q2’20
-8.2%
372.3 371.2 369.5 374.4342.3
4.8%
Q3’19Q2’19
13.4%
6.7%
Q4’19
3.0%
Q1’20 Q2’20
-8.1%
• -8.1% YoY growth in daily subs & traffic
revenue mainly contributed by de-growth in
voice revenue
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Continued YoY growth in data revenue despite two months of general holidays (+16.7%)
Q2 2020*Revenues generated by own subscription (includes interconnection)** Minimum 150 KB usage within last 3 months
• Data revenue growth mainly driven by 11.7%
growth in data ARPU
Data Revenue (BDT Bn) and % of Service Revenue*
• 0.5Mn data users added in Q2’20
• Continued expansion of 4G network along with 4G
conversion
Active Data Users** (Mn) and % of Sub-base
7.2 7.8 8.0
8.5 8.4
21.7%20.2%
Q2’19
22.5%
Q3’19 Q4’19
24.0%
Q1’20 Q2’20
25.7%
+16.7%
39.8 40.6 40.6 40.4 40.9
53.7%52.8% 53.6%
Q2’19 Q3’19
53.1%
Q4’19 Q1’20 Q2’20
54.8%
+2.8%
Data Revenue (Bn) % of Service Revenue Active Data User % of Sub-base
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Service ARPU impacted by lower contribution from voice
Service ARPU, AMPU and APPM
Q2 2020
159 158 156 156146
220 219 213 215201
0.72
Q3’19Q2’19
0.72
Q4’19
0.73 0.73
Q1’20 Q2’20
0.73
Data ARPU, AMBPU and APPMB
62 64 66 71 69
0.04
1,912
Q1’20Q2’19
0.04 0.03
Q3’19
0.03
2,225
Q2’20
2,603
0.031,576
Q4’19
1,763
+65.1%
ARPU (BDT) AMBPU APPMB (BDT)
• 65.1% growth in AMBPU mainly driven by 4G
conversion
ARPU (BDT) APPM (BDT)AMPU
• AMPU growth impacted by general holidays triggered
by COVID-19
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Efficient opex management despite CSR contribution under COVID-19
Q2 2020
Opex (BDT Bn) and Margin**
*EBITDA before other items**As per IFRS 16
EBITDA* (BDT Bn) and Margin**
11.0 10.9 11.1 11.1 10.3
30.6%
Q4’19Q2’19
29.7% 30.7%
Q3’19
30.8%
Q1’20 Q2’20
31.1%
-6.7%
Opex (BDT Bn) Margin %
22.9 23.4 23.0 22.9
20.6
63.5%63.7%
Q2’19
64.0%
Q3’19 Q4’19
63.2%
Q1’20 Q2’20
62.4%
-10.0%
EBITDA (BDT Bn) Margin %
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Investment resumed with gradual NOC approval from regulator
Q2 2020
• 132 new 4G sites rolled out
• Total number of sites stand at 16,557 along with
10,351 4G sites
*Capex excluding license & leaseCapex/sales = moving average of last 4 quarters
*Capex (BDT Bn) and Capex/Sales%
3.8
2.1
3.9
0.4
2.5
9.7%
Q4’19Q2’19
11.8%
Q3’19
9.8% 7.0%
Q1’20 Q2’20
6.3%
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Net profit negatively impacted by lower revenue under COVID-19, modernization, & finance cost
Q2 2020
NPAT (BDT Bn) and Margin*
*As per IFRS-16
Earnings Per Share (BDT)*
9.6
7.3
9.2
10.7
7.3
26.5%
Q2’19 Q4’19
19.9%
Q3’19
25.4%29.6%
Q1’20
22.0%
Q2’20
-23.9%
NPAT (BDT Bn.) Margin %
7.07
5.38
6.81
7.92
5.38
Q3’19Q2’19 Q2’20Q4’19 Q1’20
-23.9%
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OCF de-growth driven by lower EBITDA
Q2 2020
*OCF (BDT Bn) and OCF/Sales%
*OCF equals EBITDA minus Capex (excluding license & lease) as per IFRS 16**Net Debt = Short term debt + Long term debt - Cash and Cash equivalents (excl. restricted cash) ; 12 months rolling restated EBITDA as per IFRS 16
Net debt (BDT Bn) and Net debt/EBITDA**
19.2 21.3
19.0
22.5
18.1
62.1%
Q3’19
53.2%
Q4’19Q2’19
58.3%
52.6%
Q1’20
54.8%
Q2’20
OCF/Sales %OCF
8.0
(3.2)(3.9)
(3.4)
0.9
(0.04)
Q3’19
0.09
Q2’19
(0.04)
Q4’19
(0.04)
Q1’20 Q2’20
0.01
Net Debt Net Debt/EBITDA
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Contribution to National Exchequer
• BDT 46.4Bn (equaling 67% of total revenues) contributed to national exchequer in 1H’20
• Contribution in the form of taxes, VAT, duties, license/spectrum fees & revenue share
Q1 2020
58.6 61.8
84.2 85.0
46.4
20172016 2017 2019 1H 2020
12.7Bn 4G license payment
801
Total
Figures in BDT Bn.
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1H 2020
Recommended 130% of PuC cash interim dividend for 2020
BDT 13.00Dividend Per Share
2020 (interim)
98%Payout Ratio2020 (interim)
BDT 13.30Earnings Per Share
2020 (interim)
• Shareholders as of the record date 05 August 2020 will be entitled
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Growth momentum negatively impacted due to COVID-19
We are committed to contributing to society and using our technology expertise to battle COVID-19
Continued growth in data reinforces our focus on strengthening our network with planned investment
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Thank You
Q2 2020
*In consideration of the local regulations, Grameenphone Ltd. does not provide any forward looking statements.