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Investor Presentation Advanced Info Service Plc. November 2018 Ticker: ADVANC (SET) AVIFY (ADR) Add AIS IR LINE@ AIS: Digital Life Service Provider Lead and digitally transform in Grow stronger in Partner to offer differentiated Mobile


  1. Investor Presentation Advanced Info Service Plc. November 2018 Ticker: ADVANC (SET) AVIFY (ADR) Add AIS IR LINE@

  2. AIS: Digital Life Service Provider Lead and digitally transform in Grow stronger in Partner to offer differentiated “ Mobile ” “ Fixed broadband ” “ Digital service ” Mobile revenue market share Focused on FOUR key areas Subscriber market share (approx.8.6mn) 29% 48% 33% 3Q18 22% 3Q18 24% 8% Mobile Video 38% money 3Q18 breakdown prepaid postpaid Bt31bn Enterprise IoT Others 3% 3% Business 4 th year of operation in 2018 20% 29% Voice 43% covering 50 key cities out of Non- 80% 68% voice 54% 77 provinces expect to cover 6mn homepass* Mobile revenue subs % to mobile 40.6mn out of total 21.5m households revenue Digital life service provider with convergence products Mark leadership in mobile data Aim to be a significant player in Pursue long-term growth with • Nationwide 4G/3G/2G coverage 2020 integrated services • Leverage existing nationwide fibre • Emphasize partnership & with focus on network quality • Focus on scale to maintain cost infrastructure ecosystem • Defensive value to core mobile • Leverage the large sub base and advantage business telecom infrastructure *Homepass is defined as a number of households within AIS fibre service area. This includes the homes that require additional investment i.e. port, last miles to be able to get connected. 2

  3. AIS’ digital transformation toward 2020 1 2 3 4 5 Digital Enterprise Full Service NFV& Organization Convergence Segments Digitization Cloudification Transformation & CVM • Provide shops & • Move to ARPH • Expand revenue • > 90% cloudification • Data-driven Target 2020 • Improve revenue • Network services that contribution of organization & never sleep assurance and enterprise business virtualization ready culture add valued users for 5G • Digitize all • Data-driven • 5G future-proof • Organization New opportunities • IoT Strategy toward 2020 customer journeys networks readiness for analysis based • SME & R-SME digital disruption on customer • AI/Chatbots • Managed • IT legacy insights: • Leverage embedded into all Security transformed to • Bundle mobile, • Mobile Digital self-service Cloud-friendly capabilities and fibre & content channels Marketing network create synergies in via FMC architecture value chain • Maximize value • Deployment of supporting digital of contents in • AI for network OMNI channels business customer operation objectives retention and branding Please learn more about AIS’ digital transformation at http://advanc.listedcompany.com/wp.html/t/vdo/e/am2q2018 -en 3

  4. 9M18 Performance Snapshot OPEX and marketing expense under control Growth remained in all segments • Targeted handset • Continued company- (Bt bn) 9M17 9M18 wide cost optimization subsidies, offset by higher staff cost 99 Total service ▲ 15% YoY 53 ▲ 8% YoY revenue 107 46 (Bt bn) ▲ 3.1% YoY 17 12 96 Core service 19.3 18.7 7.9 7.9 ▲ 3.9% YoY revenue 100 11 12 25 22 92 Mobile 7.6 6.8 ▲ 1.4% YoY 93 5.0 4.3 9M17 9M18 9M17 9M18 2.2 FBB Regulatory D&A N/W TOT & Marketing Admin & ▲ 48% YoY 3.2 fee Opex Others Others 1.8 Others 3.3 ▲ 79% YoY Back on profit improvement (Bt bn) • YTD, core service revenue grew 3.9%, driven by ▲ 7.1% YoY softened mobile revenue following popularity in • 46.2% EBITDA 56 52 fixed-speed unlimited plans margin , +150bps ▲ 2.1% YoY 23 22 • 18.2% NPAT margin , -100bps • • Acquired CSL and 2100MHz agreements invested in Rabbit effective since 1-Mar 9M17 9M18 LINE-Pay, totaling • Net cost of Bt3.9bn/year Bt5bn EBITDA NPAT 4

  5. Revised FY18 revenue guidance FY18 guided items Revised Previous Rationale guidance guidance • Market growth slowed down Core service revenue +3.5-4.5% YoY +5-7% YoY (service revenue excludes IC underpinned by mobile fixed-speed & equipment rental) unlimited plans • Expect the market to remain cautious SIM & device sale Decline with Decline with and margin near zero near zero on handset subsidies margin margin • Effective marketing spending to achieve EBITDA margin 45-47% 45-47% (excludes equipment rental) quality growth • Continue to optimize and digitize operation and processes • Investment plan remains unchanged Cash CAPEX Approx. Approx. (excludes spectrum payment) Bt25,000mn Bt25,000mn with focus on adding 4G capacity and Fibre to home connectivity • Preserve financial health and flexibility Dividend policy Minimum 70% Minimum 70% payout ratio payout ratio for future growth 5

  6. Mobile: Market competed on fixed-speed offerings Revenue softened from fixed-speed unlimited Net addition continued to improve Mobile revenue (Bt bn) 4G Penetration on total base +1.4% YoY 57% -0.2% YoY 55% 50% 46% 42% -1.1% QoQ 92.0 93.2 Net subscriber addition (‘000) 31.2 30.9 30.9 360 Prepaid 235 227 163 206 9M17 9M18 192 3Q17 2Q18 3Q18 Postpaid -161 -233 -294 -523 Geared to uplift fixed-speed unlimited plans 3Q17 4Q17 1Q18 2Q18 3Q18 • Maintained strong postpaid acquisition Monthly Unlimited Voice call (mins) Content Fee (Bt) Fixed-speed supported by handset campaigns and prepaid- to-postpaid migration • 600 6Mbps On-net: Unlimited Focused on prepaid segmentation and churn 5am - 5pm improvement Off-net: 200min 700 8Mbps 3 months • Managed to gradually seize low-tier plans • Current plan starts at Bt600, up from Bt299 Outbound Teens Inbound tourists tourists 6

  7. Mobile: Continued network and distribution enhancement Acquired 1800MHz license to provide most efficient 4G Largest bandwidth of 120MHz (2x60MHz) under operation newly acquired in Aug-18 900MHz 2100MHz 2100MHz License 1800MHz License License Partnership with TOT 2x10MHz 2x20MHz Until 2033 2x15MHz 2x15MHz Until 2031 Until 2027 Until 2025 • Largest bandwidth of 2x60MHz in industry • Most efficient 4G on contiguous 2x20MHz of 1800MHz • Up to 15-30% faster speed for all 4G users Expanded strategic distribution channel Localized campaigns targeted key cities • Exclusive partnership with Jaymart to expand • Continued strengthening customer acquisition in key competing areas brand awareness and customer perception % marketing spending to revenue • Marketing expense rose 6.8% 5.8% 5.1% QoQ to support handset • 400+ total branches with over 3,000 direct sales campaigns and localized activities. 3Q17 2Q18 3Q18 7

  8. FBB: Focused on quality amidst competition Focused on quality acquisition YoY growth remained strong Fixed broadband revenue (Bt mn) Subscriber (‘000) ARPU (Bt/month) 677 623 572 637 635 618 610 521 573 482 • FBB revenue increased 26% YoY and 2% QoQ from 1,117 1,094 1,013 956 886 increased subscribers while ARPU declined 6 . 2% QoQ from price competition 3Q17 4Q17 1Q18 2Q18 3Q18 3Q17 4Q18 1Q18 2Q18 3Q18 Net addition (‘000) • As of 3Q, FBB revenue 51 52 53 +48% YoY contributed 3.4% of core 40 36 3,224 service revenue. 2,172 • Contributed 34% of revenue increment for AIS in 9M18 3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18 Proportion on bundling gradually rose Geared toward efficient long-term growth • Of 677k subscribers Continued operational improvement to scale up FMC, 21% Coverage • Aimed to offer FMC to 50 cities serve customers with integrated benefits Enhancing Increasing Leveraging sales strategy integrated proposition utilization Non-FMC, 79% 8

  9. Digital service: New services to serve both Enterprise and Consumer Mobile e-wallet: continued strong take-up Explored IoT/Cloud solutions to enhance new growth 4.5 (mn users) 99.11% 4 2.8 Active 3.5 • Consol. Bt1.2bn from CSL as service revenue in 9M18 2 2.4 Registered, but not active 1.0 0.4 0 Feb-18 Sep-18 AIS started • Partnered to expand IoT/Cloud services for enterprise investment e.g. NB-IoT motor tracker, smart coin kiosk machine, • Expanded use case to transportation Public cloud for education etc. • A tie-up between RLP and sky train’s Rabbit card to combine Video platform: building up subscriptions wallet and allow payment directly from the wallet 1.8mn • Launched cross-border e-wallet active users (Sep’18) • Collaborated with Singtel to launch a cross - border mobile e - wallet • Live concert World-class content platform “VIA” Available on both on AIS PLAY application and • Facilitate seamless payment for mobile and FBB PLAYBOX both Thai and Singaporean travelers • Aim to provide cross-border • Exclusive operator billing, more gateway for other e-wallets PLAYBOX convenience for AIS’s customers AIS PLAY 9

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