Analyst Meet. Q4 & FY08 Results. Tata Teleservices (Maharashtra) Limited. 27 May 2008

Transcription

1 Analyst Meet Q4 & FY08 Results Tata Teleservices (Maharashtra) Limited 27 May

2 Disclaimer Certain statements in this release concerning our Company objectives, future prospects, expectations may be forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Tata Teleservices (Maharashtra) Limited may, from time to time, make additional written and oral forward looking statements, including our reports to shareholders. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company. 2

3 Telecom Overview Indian Telecom Scenario World's fastest growing market: Addition of over 8 million subscribers per month The Wireless Teledensity is 23% Half a billion subscribers expected by the year 2010 World's lowest voice tariffs and lowest priced handsets Vision of 20 million Broadband subscribers by 2010 from the present 3.4 million broadband connections Maharashtra India Mumbai (excl. Mumbai) Population as on July 2007 (Mln) Wireless Base as on March 2008 (Mln) Wireless Teledensity 23% 21% 76% Subscriber growth (YoY) 57% 65% 38% Source: Department of Economics & Statistics, Tata Services Ltd. & TRAI Subscriber Report 3

4 Product & Services Wireless Prepaid Mobile Postpaid Mobile Prepaid Walky Postpaid Walky Pay Telephone Booth VData Cards Wireline Fixed Wireline Audio / Video Conference ADSL Toll Free Leased Line Leased Line Internet Port 4

5 Distribution Channels Exclusive Tata Indicom outlets Multi-Branded Outlets (MBO) 5

6 TTML The Story So Far FY Company Acquired Basic crossed provider License 100,000 Wireline in Maharashtra subscriber (1996) mark (2001) Commenced CDMA Wireless operations in Maharashtra (2003) Hughes Tele.com formed (1997) Hughes Tele.com launched TDMA Services in October (1998) Tatas acquired Hughes Tele.com and Tata Teleservices (Maharashtra) Ltd. was formed (2002) Launch of Prepaid Offerings (2005) Sub Base crossed 1 million (2005) Exited EBITDA Positive (2005) 6

7 TTML The Story So Far FY 2006 (222 Towns) FY 2007 (410 Towns) FY 2008 (565 Towns) Tata Teleservices (Maharashtra) Ltd Became 1000Cr Company EBITDA of Rs Crs. Sub Base Crossed 3 million EBITDA of Rs. 303Crs. Sub Base Crossed 5 Million EBITDA of Rs. 486Crs. Exited Cash Positive 7 Cash Profit of Rs. 131Crs. Cash Profit of Rs. 315Crs.

8 FY08 Incremental Wireless Market Share MTNL 3.3% BSNL 8.2% TTML 15.8% Idea 16.7% BPL 1.9% Airtel 18.2% Vodafone 20.4% Reliance 15.6% Source: TRAI Subscriber Report 8

9 FY08 EOP Wireless Market Share BSNL TTML 10.4% 13.5% MTNL 5.6% Idea 14.1% Airtel 19.0% BPL 3.7% Vodafone 17.5% Reliance 16.4% Source: TRAI Subscriber Report 9

10 TTML EOP Wireless Revenue Market Share (April 07 Mar 08) Idea 12% Airtel 22% Vodafone 25% BPL 5% BSNL 6% Reliance 17% MTNL 4% TTML 9% * Wireline figures not removed for Reliance & Airtel Source: TRAI Revenue reports 10

11 Key Priorities Optimize Costs & Enhance Margins Build Indicom Brand Enhance Network Coverage Focus on Customer Service 11

12 Cost Optimization & Margin Enhancement Improved monetization of assets e.g. sale of Towers Reduced reliance on free on-net calling as a subscriber acquisition tool, and close monitoring of rate per minute; e.g. withdrawal of the Go Super starter pack, last year s best selling product Increased focus on Value Added Services (VAS) 12

13 Marketing Campaign - Mumbai Billboard at Andheri Lokhandwala (Size 40 x 20) Billboards 13

14 Marketing Campaign - Mumbai Traffic Pedestal at Kalanagar Bandra Back-Lit Shelter Juhu Centaur Hotel Traffic Pedestals Bus Shelters 14

15 Marketing Campaign - Mumbai Bridge panel:sukhsagar ET Size: 111 x

16 Marketing Campaign - Mumbai Plug 2 Surf Wiz Creative On Hoarding Haji Ali Junction MT Size: 40 x 60 16

17 Marketing Campaign Rest Of Maharashtra Kolhapur 17

18 Marketing Campaign Rest Of Maharashtra Mumbai Pune Express Highway 18

19 TTML Fiber Backbone March Kilometers

20 TTML Fiber Backbone March 2008 TTML is the largest private Wireline service provider for voice and data in Mumbai and Maharashtra 20

21 Enhance Network Coverage CAPEX spends of 850 Crs without GSM outlay Plan to increase wireless coverage from 60% to 95% of all census towns and 75% of population Key priority will be upgrading Mumbai fiber network, which supports over 2,50,000 bluechip corporate and SME customers; selective enhancement of fiber network in major parts of Maharashtra Increased focus on enterprise solutions and high bandwidth applications 21

22 Focus on Customer Service Improved customer segmentation, and loyalty programs Youth offering through the Virgin brand Close attention to Churn control New devices, and exchange offers Creative use of IT tools, in partnership with TCS 22

23 Key Priorities Optimize Costs & Enhance Margins Build Indicom Brand Enhance Network Coverage Focus on Customer Service 23

24 Financials 24

25 SCORECARD FY08 vs FY07 FY 07 FY 08 EOP Sub Base (Nos. in million) Net Additions (Nos. in million) Total Revenue (Rs.Crs.) EBITDA (Rs.Crs.) EBITDA Margin % 21% 27% Cash Profit (Rs.Crs.) PAT (Rs.Crs.) (310.6) (125.7) 25

26 TTML - Financials Subscriber Base (Million) Revenue (Rs. Crs) FY 05 FY 06 FY 07 FY 08 FY 05 FY 06 FY 07 EBITDA (Rs. Crs) Cash Profit (Rs. Crs) * FY FY 06 FY 07 FY 08 FY 05 FY 06 FY 07 FY FY 05

27 Yearly Comparison : Actual FY 07 Vs FY 08 Particulars FY-07 Actual Rs. Cr FY-08 Actual EOP ( In Lacs) Net Sales/Income from Telecommunication services 1,424 1,790 Operating Costs Network operations costs (Incl. Revenue Share) Interconnect and other access costs Payments to and provisions for employees Administration and Customer Service expenses Marketing and Sales promotion expenses (Net) Total Cost 1,122 1,304 EBITDA EBITDA Margin 21% 27% Interest & Other Finance Charges Cash Profit Depreciation Fringe Benefit Tax 1 1 Extraordinary items (5) Loss after Tax (311) (126) 27

28 Profit & Loss Statement : Quarterly Rs. Cr Particulars Q1 08 Q2 08 Q3 08 Q4 08 FY 08 Gross Revenue ,790 NW Operations Cost Interconnect and other access costs Employees cost Administration and other expenses Marketing and business promotion expenses * Operating Expenses ,304 EBITDA Finance & Treasury Charges Cash Profit Depreciation Fringe Benefit Tax PAT (28) (49) (27) (21) (126) * Includes Handset Subsidy: Q4 average below Rs. 500 per unit 28

29 Balance Sheet Debts & Assets Gross Debt = Rs Crs. * Net Debt = Rs Crs. Gross Block (including Capital WIP) = Rs Crs.** * Including debt for GSM Spectrum fees of Rs. 393 Crs. ** Fully depreciated TDMA Assets retired during the year 29

30 Key parameters Particulars Units For the Quarter Ended Year Ended Jun-07 Sep-07 Dec-07 Mar-08 FY-08 Wireless Services Customers Nos. '000 3,170 3,794 4,333 4,683 4,683 Prepaid customers as a % of total customers % 82% 85% 86% 86% 86% Wireless Subscribers Market Share % 12.7% 13.6% 13.9% 13.5% 13.5% ARPU ** Rs. per month Avg. MOU per User Minutes Rate per Minute Rs Postpaid Voluntary Churn % 1.1% 0.8% 0.7% 1.1% 0.9% Postpaid Company Initiated Churn % 2.3% 2.3% 1.7% 1.4% 1.9% Prepaid Churn % 1.1% 1.1% 1.8% 2.2% 1.6% Non Voice Revenue as a % of Total Wireless Revenue % 5.1% 5.1% 6.1% 7.2% 6.0% Wireline Services Customers Nos. ' ARPU Rs. per month 1,449 1,411 1,284 1,269 1,324 * Q4-08 ARPU includes Rs. 17Crs. of USO Subsidy received of previous two quarters 30

31 Traffic, Coverage & Network details Particulars Units Year Ended FY-08 Wireless Services (in Mn Min) Mn Min 15,145 Wireless Services Census Towns Nos. 287 Population Coverage Nos. lacs 602 Network Sites Nos Passive Infrastructure Services (Owned) Total Towers Nos Ground Based Towers Nos. 373 Roof Top Towers and Others Nos. 799 Optic Fibre Network Km

32 32 Thank You