Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — FY2010 Earnings Presentation
23 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, March 2011
Slide 1: FY 2010 Results
FY 2010 Results Emirates Integrated Telecommunications Company PJSC March 2011
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 for the full year & quarter 4 Market Information 6 Financial Summary 8 Strategy & Outlook 18 3
Slide 4: 2010 Year In Review
2010 Year In Review Evolving and growing through value creation Record results & strengthened market position EBITDA Net profit • Market share grew significantly to 40.2% of the market – 4.3 million active mobile subscribers • Expanded product portfolio - More than one new product and service offeri
Slide 5: Full Year Financial Highlights
Full Year Financial Highlights Strong full year EBITDA and Net Profit growth Total Revenue EBITDA Net Profit before royalty Mobile Customers (AEDm) (AEDm) (AEDm) Cumulative (Milllions) +25% +32% +90% +132% 7,074 1,226 4,333 5,339 2,018 3,477 1,064 528 FY 09 FY 10 FY 09 FY 10 FY 09 FY 10 FY 09 FY 10
Slide 6: Q4 Financial Highlights
Q4 Financial Highlights Customer acquisition sustained - 252,000 mobile customers added Total Revenue EBITDA Net Profit before royalty Mobile Customer (AEDm) (AEDm) (AEDm) Net Additions (Millions) +34% +84% +106% 675 431 2,046 337,900 1,530 366 209 252,000 Q4 09 Q4 10 Q4 09 Q4 10 Q4 09 Q4 10 Q4 09 Q
Slide 7: Contents
Contents Slide Highlights for the full year & quarter 4 Market Information 6 Financial Summary 8 Strategy & Outlook 18 7
Slide 8: Market overview
Market overview Strengthened market position UAE Mobile Subscribers Market share evolution 80% (Source: TRA) 70% • Fair competition in a two-player market 60% 59.8% • Characterised by high penetration rate and 50% attractive ARPU levels 40% 40.2% 30% • Regulatory development du market share 20% Etis
Slide 9: Contents
Contents Slide Highlights for the full year & quarter 4 Market Information 6 Financial Summary 8 Strategy & Outlook 18 9
Slide 10: Revenues
Revenues Record full year revenues driven by mobile Revenue Quarterly Revenue (AEDm) Revenue Year on Year Change (AEDm) Year over year change +27% +34% +42% 70 1 +17% -21 466 2046 1,530 2,046 1,530 1,580 1,703 1,745 Q4 Q1 Q2 Q3 Q4 2009 2010 Q4 2009 Tel (Mobile) Tel (Fixed) Wholesale Broadcasting Q4
Slide 11: Revenue Drivers - Mobile
Revenue Drivers - Mobile Full year revenues reach AED 5.3 billion Quarterly- Mobile Revenue mobileRevenues (AEDm) Yearly Mobile Revenues (AEDm) +42% +20% +43% 1,576 1,309 1,167 1,260 5,312 1,110 3,727 2,628 703 Q4 Q1 Q2 Q3 Q4 FY 07 FY 08 FY 09 FY 10 2009 2010 Mobile Subscribers Mobile ARPU (AED) Mob
Slide 12: Revenue Drivers – Fixed
Revenue Drivers – Fixed Total fixed lines increased 38% year on year closing with 561,000 lines; 45,500 40% growth in fixed line subscriber base lines added during the quarter Quarterly Net Fixed Revenue (AEDm) Fixed lineLine Fixed subscription Subscribers (,000) +38% +33% 600 500 400 314 318 239 24
Slide 13: Revenue Drivers: Wholesale & Broadcasting
Revenue Drivers Wholesale & Broadcasting Revenue - Wholesale Quarterly Broadcast Revenues (AEDm) Quarterly Wholesale Revenues (AEDm) 123 113 108 102 103 41 40 40 38 40 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2009 2010 2009 2010 Yearly Wholesale Revenues (AEDm) Yearly Broadcast Revenues (AEDm) Decrease partial
Slide 14: Gross Margin
Gross Margin Solid year-on-year margin growth Quarterly Gross Margin (AEDm) Yearly Gross Margin (AEDm) 1,400 +32% 100% 5,000 +31% 100% +16% 1,200 1,306 90% 4,000 80% 1,000 1,127 1,126 80% 993 1,042 70% 800 3,000 60% 60% 600 4,600 50% 2,000 40% 3,507 400 40% 2,511 1,000 20% 200 30% - 20% 0 0% Q4 Q1 Q
Slide 15: Overheads
Overheads Contained despite significant growth in subscribers and revenues Overheads Overheads (AEDm) 700 45% Overheads as a percentage of revenue 680 40% 35% Q4 09 Q410 FY 09 FY 10 660 30% Payroll & Employee related expenses 13% 10% 30% 31% 640 25% Consulting, contracting & 4% 4% 10% 15% 620 676 67
Slide 16: Profitability
Profitability Robust financial health EBITDA (AEDm) +90% +84% 800 +29% 50% 675 700 45% 600 523 40% 500 454 366 366 35% 400 2,018 30% 300 200 25% 1,064 100 20% 369 0 15% Q4 Q1 Q2 Q3 Q4 FY 07 (607) FY 08 FY 09 FY10 2009 2010 EBITDA EBITDA Margin • Strong EBITDA growth of 84% year-on-year to reach AED
Slide 17: Profitability
Profitability Robust financial health - 132% increase in full year net profit before royalty Net Profit before royalty (AEDm) Royalty update • 15% for 2010 • 2011 onwards to be confirmed at a later date +106% +32% • Net profit after royalty was AED 912 million for the quarter and AED1,310 million 50
Slide 18: Capital Investments & Cash Flow
Capital Investments & Cash Flow Capex remains focused on infrastructure build-out of fixed line and mobile Capex additions (AEDm) AED 1.2 billion spent on enhancing coverage and quality in 2010 3,000 2,500 2,000 960 1,500 369 374 2,338 2,427 341 1,000 161 1,635 1,244 500 Q4 Q1 Q2 Q3 Q4 - 2009 2010 F
Slide 19: Cash & Debt overview
Cash & Debt overview Achieved free cash flow positive status Free cash flow (AEDm) Debt maturity profile 2,000 4,000 1,500 3,500 1,584 1,000 3,000 Millions (AED) 973 2,500 500 508 33 0 2,000 -528 3,510 -1,742 1,500 (500) -2,102 -1,029 -1,551 1,000 (1,000) -769 1,839 500 (1,500) 337 -1,557 -1,594 - (
Slide 20: Contents
Contents Slide Highlights for the full year & quarter 4 Market Information 6 Financial Summary 8 Strategy & Outlook 18 20
Slide 21: Strategy & Outlook
Strategy & Outlook Growth through efficiency • Increase penetration of high-value consumer and enterprise accounts • Focus on profitable growth and increase of value share • Excel in customer experience and increase brand engagement • Revenue diversification through mobile data and broadband • Conti
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Slide 23: Stal Lay Latig
ov Stal Lay Latig add life to life
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