Half Year 2014 · Key Highlights : Lao Telecom • Owned through Shenington Investments Pte., (49%)...
Transcript of Half Year 2014 · Key Highlights : Lao Telecom • Owned through Shenington Investments Pte., (49%)...
Half Year 2014
19th August 2014
Stock Exchange of Thailand
190
320287
399
498
Q2'13 Q3'13 Q4'13 Q1'14 Q2'14
Strong Growth in Consolidated Net Profit
Consolidated Results :MTHB
162% growth compared with Q2’13
Generate profit for 12 quarters in a row.
Fully recognized cost of interim satellite
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Agenda
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• Key Highlights
• Broadcast Landscape in Thailand
• Financial Highlights
• Moving Forward
Key Highlights of Half Year 2014
Continued positive financial performance• Consolidated net profit of Q2’14 grew 162% YoY.
THAICOM 8 breakthrough• NBTC awarded a license @78.5E for THAICOM 8; expect to launch in 1H’16
Additional revenue from Conventional • Commercialized services to support Digital Terrestrial TV (DTT)
• For MUX operators (TV5 and MCOT) since Mar’14• For Must Carry channels (26 C & 26 Ku) since Apr’14
• Number of satellite TV channels @78.5E increased from 641 channels in 2013 to 677 channels (116 HD channels) in 1H’14
End-to-End solutions• Signed service agreement with Nok Air for In-flight Connectivity solution in
Mar; expected to start the service in Q3’14• Launched a 2nd Screen App “MCONNECT” for MCOT in May’14
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Broadcast Landscape
in Thailand
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200+
Broadcast Landscape in Thailand
400+
190+
600+
70+
Satellite TV Situation after NCPO
~20 ~20
400+
22 May 3 Jun 31 Jul
Active Channels
Suspended Channels
Terminated Channels
Satellite TV channels resume broadcasting after being suspended:
Thai chs SD, 472
Thai chs HD, 110
Foreign chsSD , 89
Foreign chsHD, 6
1H14
677 chs
Satellite TV channels on THAICOM @78.5E
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Broadcast Landscape in ThailandC
apac
ity
for
Gro
wth
Coverage NationwideNo Coverage
Low
High
Satellite TV Positioning
1 year 2 yearsCoverage
Capacity
for
Growth
Content
Key Success Factors
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Financial Highlights
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3,567
1,465
706
1,758
521
4,824
1,976
1,099
2,398
897
Revenues GP EBIT EBITDA NET PROFIT
1H13 1H14
Top & Bottom lines grew significantly
Key Financial Highlights (Consolidated.) :MTHB
↑72%YoY
↑35%YoY
Consolidated revenue grew significantly from the demand on more satellite capacity, especially for TC6, including broadband revenue from China, Japan and Australia
Net Profit increased 72% YoY since revenue increased considerably whereas SG&A increased only 8% due to well managed costs.
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1,594
2,235
1H13 1H14
26%
Half Year 2014: Strong revenue growth led
by conventional satellite at 47% YoY
Satellite Revenues MTHB
Satellite EBITDA increase 40% YoYConventional revenue boost up from TC6
1H13 1H14
47%
4,261
3,129
36%
Broadband
Conventional
51%
49%
47%
53%
Satellite EBITDA MTHB
40%
Satellite EBITDA Margin
53%
54%
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D/E Ratio at 0.59x 1
Financial position remains strong
1H14 results of strong cash from
operationUnit: MTHB
Assets 2
24,208
Liabilities 3
3,748
Interest
bearing debt
9,448
Equity
16,004 Consolidated CF 1H13* 1H14
CF from Operating 1,962 2,549
CF from Investing (794) (2,829)
CF from Financing (368) 459
Cash Ending 2,880 2,330
Cash 4
4,992
* Restated
1. Interest-bearing Debt / Equity
2. Exclude Cash and Current Investment
3. Exclude Interest-Bearing Debt
4. Include current investments from Synertone shares and B/E, total of 2,662 MTHB.
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Moving Forward
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Broadcast Service:To support HD & Ultra HD broadcasting
Higher Broadcast Resolution
SD HD 4K 8K
Source : Value Partners
Projected pay DTH channels in ThailandHD channels to grow 45% CAGR, 2012-2020and 8% CAGR, 2020-2035Unit: channels
HD channels to replace all SD channels by 2030
138
650
957
136
223
352
217
54
2035
9570
2025
866
2015
490
2013
277
2012
160
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HDSD
> 100TPEs
358 416 442567 561
011 23
74 116
0100200300400500600700800
2010 2011 2012 2013 1H14
SD channel HD channel
HD
57%
Number of Satellite TV channels on Thaicom @78.5E
Source : Thaicom PLC
Lower TV/IRD costs
More households
More channels
More demand for satellite bandwidth
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Broadcast Service:To support HD & Ultra HD broadcasting
FIFA 2014 World Cup (Jun-Jul):
3 matches , which include the final, were
covered in 4K
French Open (May-Jun): 1st 4K transmissions over
DTT network
Channel 4K (Jun):Japan launched the world’s first regular
4K television service, via JSAT
Sony has also partnered with FIFA
to produce the official World Cup film in 4K
Sony transmitted 2 World Cup games,
including final, in 4Kvia a Eutelsat satellite
to a Vue multiplex theater in London NHK broadcasted 9
World Cup games in 8K to 4 cities in Japan
& 3 locations in Rio de janeiro
4K Cable TV (Apr):Korean cable operator
UMAX launched the world’s first 4K
broadcasting services
DTH
DTH platform…to dominate UHD deployment
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Broadband Service:To support exponential growth in broadband services
Enterprise Data
Broadband Access
Source: NSR
More Data Consumption
Mobility Services:
Business Continuity & Resiliency
More subscribers & consumption
More backhaul/offloading
Mobility requirements
Business continuity concerns
More demand for satellite bandwidth
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Source: Euroconsult, 2014
Convergence Value Added Service:
Euroconsult’s 2013 Figures:
59 airlines (3,000+ commercial
aircrafts) provide IFC through satellite or Air-to-Ground (ATG) networks
IFC services generated around
$440 million in revenue from
airline passengers
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%Germany’s 1-0 victory over Argentina in the World Cup final was watched in
real-time by 40,000airline passengers
To expand our In-flight Connectivity business
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Our first commercialized end-to-end 2nd Screen solution, MConnect for MCOT
Major Hollywood Studios Kantana Digital Distribution
Transponder & Uplink Services
Operation & Maintenance
Hardware & Site Installation
First to provide Digital Cinema Package (DCP) delivery, an end-to-end digital distribution of
Hollywood movies to cinemas, in Asia-Pacific; expected the service to start in Q4’14
Convergence Value Added Service:To expand our end-to-end Content Delivery Network solutions
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Appendix
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Monetize DTV platform with Pay-TV service
• Collaboration with True Visions to add True Visions’
content package as a Top-Up service over DTV’s customer
base (service starts Q3/2014)
Moving Forward
Expand DTV Platform customer base
• Create collaboration with content partners to expand more
to C-Band market
• Speed up HD Box deployment with new low cost HD-Box
• Continue to find additional partnerships with other
platforms to share common channels and strengthen
DTV’s platform
Key Highlights : DTV
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Key Highlights : Lao Telecom• Owned through Shenington Investments Pte., (49%)
• #1 position in market share
• Continuing revenue growth from increased voice and
data usage, with improved ARPU
• Service coverage and improved signal strength for 2G &
3G network was completed
• Second company in SE Asia to provide 4G service
Going Forward
• Continued focus on dealer network to ensure quality of
service and improved distribution
• Strengthen brand perception and recognition through
segment strategies
• Focus on provincial communities to protect our market
and regain subscribers
• Focus on value added service with enriched data content
and applications
• Improve network infrastructure and blind spot areas
• Customer-centric: enhance customer experience
Lao Mobile Market SHAREAs of June 2014
UNITEL
ETLBEELINE
# 1. LTC
43.66%
3.18 mil.
Subscribers
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TFRIC 12 Public-to-private service concession agreements
Only the satellite and equipment which are operated under operating
agreement and under construction progress must comply to TFRIC 12What must comply
YES
CONSOLIDATED
Q2'13 Q2'14
EBITDA margin after TFRIC 12 49% 54%
EBITDA margin before TFRIC 12 53% 54%
Net profit margin after TFRIC 12 10% 20%
Net profit margin before TFRIC 12 11% 20%
Impact to P/L NO IMPACT
NO IMPACT
Impact to Ratio
Impact to B/S
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