Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q3 2014 Earnings Presentation
26 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, October 2014
Slide 1: Q3 2014 Results
Q3 2014 Results Emirates Integrated Telecommunications Company PJSC October 2014
Slide 2: Disclaimer
Disclaimer • Emirates Integrated Telecommunications Company PJSC (hereafter ”du”) is a telecommunication services provider in the UAE. • du cautions investors that certain statements contained within this document state management’s intentions, hopes, beliefs, expectations or predictions of the futu
Slide 3: Contents
Contents Slide Highlights of Q3 Results 4 Market Information 7 Financial Summary 9 Strategy and Outlook 24 3
Slide 4: Q3 Financial Highlights
Q3 Financial Highlights Total Revenue EBITDA Net Profit before Free Cash Flow Mobile 90-day active (AED M) Royalty (AED M) (AED M) subscribers (AED M) (000s) +14.8% +21.4% +26.6% +39.1% +8.9% 3,034 1,292 1,095 7,513 2,643 1,064 972 787 6,896 768 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 201
Slide 5: 9 months Financial Highlights
9 months Financial Highlights Total Revenue EBITDA Net Profit before Free Cash Flow Mobile Customer Net (AED M) Royalty (AED M) (AED M) Additions - Cumulative (AED M) (000s) +13.7% +17.2% +21.3% +1.2% -38.7% 9,013 3,765 2,786 1,245 3,211 2,297 1,231 438 7,930 269 9 mo 2013 9 mo 2014 9 mo 2013 9 mo 2
Slide 6: Contents
Contents Slide Highlights of Q3 Results 4 Market Information 7 Financial Summary 9 Strategy and Outlook 24 6
Slide 7: Market Overview UAE
Market Overview Market share consolidation – increasing emphasis on growing revenue share UAE Mobile Subscribers - Market share quarterly evolution* UAE Telecom Market - Revenue share quarterly evolution 60.0% 75.0% 69.7% 55.0% 60.0% 54.2% 50.0% 45.0% 45.0% 45.8% 30.0% 30.3% 40.0% 15.0% Etisalat du
Slide 8: Contents
Contents Slide Highlights of Q3 Results 4 Market Information 7 Financial Summary 9 Strategy and Outlook 24 8
Slide 9: Total Revenues
Total Revenues Mobile and Fixed revenues contributing to growth in revenue Quarterly Revenue (AED M) Like for Like Revenue Breakdown Quarter Change (AED M) +14.8% 3,034 3,024 3,034 2,643 188 160 44 -6 5 2,955 2,869 48.2% 40.8% 11.3% -1.5% 1.3% 2,643 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Yearly Rev
Slide 10: Revenue Drivers - Mobile
Revenue Drivers - Mobile Steady growth compared to Q3 2013, seasonality contributed to slight decrease in revenue compared to Q2 2014 Quarterly Mobile Revenues (AED M) Yearly Mobile Revenues (AED M) +9.2% +9.0% 8,365 2,263 7,632 2,228 2,235 6,541 6,726 2,195 6,170 5,058 2,047 Q3 2013 Q4 2013 Q1 2014
Slide 11: Revenue Drivers - Mobile
Revenue Drivers - Mobile Double digit growth despite seasonality effects Quarterly Mobile Service Data Revenues (AED M) +11.0% Mobile data continues to be a key market driver 800 30.0% • Mobile service data revenues continues to maintain 680 684 double digit growth from 616m in Q3 2013 to AED 684m 7
Slide 12: Revenue Drivers – Mobile
Revenue Drivers – Mobile Postpaid continues to be a focus for growth Postpaid contribution to growth Y on Y to mobile revenues (excluding inbound roaming and handset revenue) Quarterly Minutes of Use by Customer Segment 800 59.8% 611 625 569 593 584 600 58.9% 400 253 255 245 249 232 200 221 221 207
Slide 13: Revenue Drivers – Fixed
Revenue Drivers – Fixed Strong growth in overall fixed business Quarterly Fixed Revenue (AED M) Fixed line subscription Quarterly Fixed Line Subscribers (‘000) +36.4% 598 626 541 619 511 614 439 458 599 588 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Yearly Fixed
Slide 14: Revenue Drivers – Broadcast & Wholesale
Revenue Drivers – Broadcast & Wholesale Strong wholesale growth, broadcasting stabilized after termination of TV services in Q4 2013 Quarterly Wholesale Revenues (AED M) Quarterly Broadcast Revenues (AED M) +39.5% -12.8% 173 177 46 155 141 37 41 40 41 58 39 111 52 41 39 136 120 99 104 72 Q3 2013 Q4
Slide 15: Gross Margin
Gross Margin Strong growth in gross margin performance Quarterly Gross Margin (AED M) and Gross Margin % Yearly Gross Margin (AED M) and Gross Margin % +14.3% +11.9% 2,100 80.0% 8,000 7,247 75.0% 2,037 6,897 2,050 2,012 7,000 5,963 2,000 5,901 75.0% 6,000 5,327 1,950 1,919 1,915 70.0% 5,000 4,600 1,
Slide 16: Gross Margin – Breakdown by Segment
Gross Margin – Breakdown by Segment Mobile, Fixed, Wholesale steady growth performance from Q3 2013 Quarterly Mobile Gross Margin (AED M)* Quarterly Fixed Gross Margin (AED M) +6.2% +33.2% 1,600 1,578 75.0% 600 100.0% 71.3% 1,556 487 1,550 500 431 95.0% 1,520 411 1,506 365 367 71.0% 70.0% 400 90.0%
Slide 17: Overheads
Overheads Continuing improvement in operational efficiencies Overheads as a % of Quarterly Overheads (AED M) Q3 2014 Q2 2014 Q3 2013 Revenue +3.7% Manpower 11.0% 11.2% 12.0% 860 839 40.0% Teleco license & 840 2.6% 2.7% 2.5% related fees 820 800 35.0% Sales & marketing 2.0% 1.9% 2.3% 780 760 745 Bad
Slide 18: Profitability
Profitability Strong performance in EBITDA and Net Profit Quarterly EBITDA (AED M) Quarterly Net Profit before Royalty (AED M) +21.4% +26.6% 1,400 1,290 1,292 43.5% 1,183 1,200 40.0% 1,200 1,081 972 1,064 949 42.7% 42.0% 1,000 865 1,000 42.6% 768 716 35.0% 40.5% 800 800 600 40.2% 600 32.0% 30.0% 40.
Slide 19: Net Profit after Royalty
Net Profit after Royalty Impact of royalty regime between 2013 and 2014 normalised for comparison purposes Quarterly Net Profit after Royalty (AED M) Quarterly Royalty Compared (AED M)* +29.8% 500 55.0% 43.3% 42.3% 42.5% 498 37.6% 45.0% 447 548 559 400 35.1% 401 413 490 375 35.0% 430 300 380 25.0% 2
Slide 20: Capital Investments
Capital Investments Quarterly CapEx Additions (AED M) Year to Date CapEx Additions (AED M) +162.6% +2.3% 686 2,000 30.0% 1,720 1,564 493 1,500 1,291 1,244 20.0% 1,000 878 899 289 18.3% 17.5% 188 15.1% 14.5% 10.0% 116 500 11.1% 10.0% 0 0.0% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 FY 2010 FY 2011 FY 2
Slide 21: Cash & Debt Overview
Cash & Debt Overview Strong cash generation Quarterly Free Cash Flow (AED M) 2,000 1,098 1,095 1,200 787 1,000 1,500 800 1,000 484 600 1,523 400 500 887 (69) 200 1,041 1,577 0 - (254) (425) (403) (263) (482) (200) (500) (400) (333) (1,000) (600) Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Net Cash from
Slide 22: Cash & Debt Overview
Cash & Debt Overview Debt Maturity Profile (AED M) 1,631 1,324 663 574 - FY14 FY15 FY16 FY17 FY18 and beyond Bank Facilities Loan Sources (AED Millions) Available Drawn ECA - NSN Nordea 73 73 ECA - NSN KFW 299 299 Vendor - CISCO Capital 14 14 DBS - Bilateral Loan 551 544 SCB-Bilateral Loan 1,102 617
Slide 23: Contents
Contents Slide Highlights of Q3 Results 4 Market Information 7 Financial Summary 9 Strategy and Outlook 24 23
Slide 24: Strategy and Outlook
Strategy and Outlook Efficiency and value creation: Positioning the company for success in a continually evolving telecommunications market • Focus on profitable growth and increased value share • Increase focus on mobile data and bundled offerings supported by continued emphasis on data network inv
Slide 25: add life to life
add life to life
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