Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q3 2013 Earnings Presentation
25 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, October 2013
Slide 1: Q3 2013 Results
Q3 2013 Results Emirates Integrated Telecommunications Company PJSC October 2013
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 the Third Quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 22 3
Slide 4: Q3 Financial Highlights
Q3 Financial Highlights Total Revenue* EBITDA Net Profit before Free Cash Flow Mobile Customers (AEDm) (AEDm) (AEDm) Royalty (AEDm) Net Additions (000s) +8.0% +11.2% +17.4% +57.1% +6.1% 242 2,643 1,064 768 796 507 2,447 654 957 228 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Q3 2
Slide 5: 9 Months Financial Highlights
9 Months Financial Highlights Total Revenue* YTD EBITDA YTD Net Profit before Free Cash Flow YTD Mobile Customers Net (AEDm) (AEDm) Royalty YTD (AEDm) (AEDm) Additions – Cumulative (000s) +10.2% +13.7% +16.5% 0.3% -41.2% 745 3,211 2,297 1,226 1,231 7,930 438 7,193 2,823 1,971 9 mo 2012 9 mo 2013 9 m
Slide 6: Contents
Contents Slide Highlights of the Third Quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 22 6
Slide 7: UAE Market overview
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 80.0% 60% 70.0% 70.8% 53.6% 50% 60.0% 46.4% Etisalat 50.0% 40% du 40.0% 30% 30.0% 29.2%* 20% Etis
Slide 8: Contents
Contents Slide Highlights of the Third Quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 22 8
Slide 9: Revenues
Revenues Strong revenue performance Quarterly Total Revenue (AEDm) Revenue Breakdown Quarter Change (AEDm) +8.0% 2,643 2,447 35 -24 5 2,649 2,660 181 2,643 2,626 2,447 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q3 2012 Mobile Fixed Wholesale Broadcasting Q3 2013 Year To Date Total Revenue (AEDm) Revenu
Slide 10: Revenue Drivers - Mobile
Revenue Drivers - Mobile Growth supported by the continued increase of data revenues Quarterly Mobile Revenues (AEDm) Year to Date Mobile Revenue (AEDm) +9.7% +11.4% 2,092 2,057 2,066 7,632 2,047 6,541 6,170 5,540 5,058 3,536 1,866 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 FY 2009 FY 2010 FY 2011 FY 2
Slide 11: Revenue Drivers – Mobile
Revenue Drivers – Mobile Strong performance attributed to mobile data and the high-value postpaid customer base YoY Contribution to Mobile Revenue Growth Mobile Minutes of Use per Customer 627 594 605 605 569 Prepaid 41.1% Postpaid 58.9% 228 242 223 224 221 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 To
Slide 12: Revenue Drivers – Fixed
Revenue Drivers – Fixed Continued fixed line revenue growth Quarterly Fixed Revenue (AEDm) Fixed line subscription Quarterly Fixed Subscribers ('000s) +8.7% +5.9% 439 588 578 416 572 404 399 561 391 555 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Year to Date Fixe
Slide 13: Revenue Drivers – Wholesale & Broadcasting
Revenue Drivers – Wholesale & Broadcasting Stable growth of broadcasting revenue Revenue - Wholesale Quarterly Wholesale Revenue (AEDm) Quarterly Broadcasting Revenue (AEDm) 46.4 +11.8% 45.6 -18.4% 45.2 43.5 136 133 123 126 111 50 43 44 41.5 45 39 86 78 83 89 72 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 20
Slide 14: Royalty Overview
Royalty Overview Quarterly Royalty (AEDm) Quarterly Net Profit after Royalty (AEDm) 994 326 327 284 284 304 304 293 293 244 198 201 609 453 453 468 468 474 474 474 474 326 327 (142) Q2 2012 Q3 2012 Q42012 Q1 2013 Q2 2013 Q3 2013 Q2 2012 Q3 2012 Q42012 Q1 2013 Q2 2013 Q3 2013 Old Royalty Regime Calcu
Slide 15: Gross Margin
Gross Margin Gross margin increase year on year Quarterly Gross Margin (AEDm) Year to Date Gross Margin (AEDm) +4.3% 7,000 6,897 5,901 74.00% 1,840 1,821 6,000 5,327 * 74.00% 5,077 72.00% 1,820 1,794 5,000 4,600 69.1% 1,800 69.9% 1,782 72.00% 70.00% 1,780 68.7% 70.00% 4,000 3,507 67.5% 70.6% 1,752 6
Slide 16: Gross Margin By Segment
Gross Margin By Segment (Quarterly) Quarterly Mobile Gross Margin before Handset Subsidy Quarterly Fixed Gross Margin (AEDm) (AEDm) +3.2% +13.4% 380 100.00% 74.7% 365 1,500 1,486 76.00% 1,480 1,472 360 95.00% 71.9% 74.00% 1,454 1,431 335 1,460 72.00% 340 90.00% 1,440 72.3% 72.7% 322 71.3% 70.00% 314
Slide 17: Overheads
Overheads Continued focus on efficiency Overheads Quarterly Overheads (AEDm) Overheads as a % of Revenue Q3 2012 Q3 2013 -4.5% 800 40.00% Manpower 14.0% 12.0% 752 Teleco license & related fees 2.6% 2.5% 750 718 35.00% 30.7% 698 700 Sales & marketing 3.3% 2.3% 700 27.18% 30.00% Bad debts 1.0% 1.0% 64
Slide 18: Profitability
Profitability Strong EBITDA and Net Profit before Royalty Quarterly EBITDA (AEDm) Quarterly Net Profit before Royalty (AEDm) +11.2% +17.4% 1,400 60.00% 900 852 40.00% 1,176 778 768 55.00% 800 752 1,200 1,053 1,094 1,064 32.18% 35.00% 700 654 957 50.00% 28.63% 29.24% 29.04% 1,000 44.4% 600 26.72% 30.
Slide 19: Progressive dividend payment history
Progressive dividend payment history Strong Capital Position 1,600 Dividend Payment 0.35 1,371 1,400 0.30 0.30 1,200 0.25 1,006 1,000 0.20 AED Million 0.22 800 686 0.15 600 0.10 0.15 0.10 400 200 0.05 0.12 - 0.00 2011 2012 Q2-2013 Interim Dividend Dividend (AEDm) Interim Dividend Special Dividend Di
Slide 20: Capital Investments
Capital Investments Continued investment in operations Quarterly CapEx Additions (AEDm) Year to Date CapEx Additions (AEDm) 2,500 2,427 50.00% 622 45.00% 47.1% 2,000 1,720 40.00% 368 1,500 35.00% 318 323 1,244 1,291 1,098 30.00% 188 1,000 878 25.00% 18.3% 17.5% 20.00% 500 15.1% 15.3% 11.1% 15.00% Q3
Slide 21: Cash & Debt overview
Cash & Debt overview AED 838 million payment in royalty charges Quarterly Free Cash Flow (AEDm) Year to Date Free Cashflow (AEDm) 4,000 1,748 2,000 1,500 1,000.0 795.5 1,377 3,000 1,226 1,231 1,500 1,000 800.0 544.1 2,000 1,000 506.5 521.3 600.0 500 1,000 36 500 819 875 1,001 1,049 400.0 973 1,587 2
Slide 22: Contents
Contents Slide Highlights of the Third Quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 22 22
Slide 23: 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 • Maximize return on investments and cash flow generation for our shareholders • Sustained investment in
Slide 24: Stal Lay Latig
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