Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Kuwait Telecommunications Company K.S.C.P (VIVA) — Q1 2018 Earnings Presentation
20 slides from Kuwait Telecommunications's earnings presentation, 2018
Slide 1: Investors Presentation Q1 - 2018
Investors Presentation Kuwait Telecommunications Company K.S.C.P Q1 - 2018 1 Investor Relations
Slide 2: Table of content
Table of content VIVA’s History in Brief 3 Key Milestones 4 Vision and Values 5 Shareholders' Structure 6 Population & Penetration 7 Competitive Strengths 8 Market Share 9 Financial Results 11 Financial Highlights 13 Stock Performance 15 Appendix – Balance Sheet & Income Statement 16 2 Investor Rela
Slide 3: VIVA's History in Brief
VIVA’s History in Brief 2007 Jun 2008 Sep 2008 Dec 2008 Dec 2014 Jun 2015 VIVA’s Stock under KSE15 Index VIVA Stock was listed on Kuwait Stock Exchange Commercial Launch of VIVA Operations in Kuwait Public placement of VIVA shares which was 2.4x oversubscribed. distributed among c. 1 million Kuwaiti
Slide 4: Key Milestones
Key Milestones 2008 2010 2012 2014 2016 2018 Partnership with Real Launches commercially VIVA launches Elite Program for Expand retail Madrid. Best Telecom Company by loyal, VIP and high value network and launch Arabian Business. VIVA abolishes incoming customers. joint promotions List
Slide 5: Vision and Values
Vision and Values Our vision is to provide unique services and products that satisfy the aspirations of our clients and accommodate their needs, which in turn will earn us their trust. This is through presenting our customers with numerous telecommunications opportunities with the goal of boosting o
Slide 6: Shareholders' Structure
Shareholders' Structure Saudi Telecom 52% Kuwaiti Government 24% Public Shareholders 24% STC, the leading regional telecom The Kuwaiti government holds 24% Public Share holders consists of operator, won the bid for third mobile of VIVA through different companies, portfolios, funds and license
Slide 7: Population & Penetration
Population & Penetration Kuwait population since 2010 is growing at the same level of 2.8% yearly and the growth is forecasted by IMF at 2.8% over the next 5 years compared to almost 1% for the global population growth. This growth coupled with rising income levels will propel growth in consumer spe
Slide 8: Competitive Strengths
Competitive Strengths STC (the largest telecom company in the region) will continue to be a major shareholder and VIVA will continue to benefit from being a member of the STC group. Through this relationship, VIVA has access to technical support, industry best practice for provision of telecom servi
Slide 9: Market Share
Market Share Total Subscriber Base in Kuwait (Mn) 10 Total Subscirbers in kuwait (Mn) VIVA Subscribers (Mn) 7.6 7.7 7.7 7.2 7.3 6.41 5.9 5.2 5 4.5 0.8 1.1 1.6 2.2 2.4 2.5 2.4 2.3 2.3 0 2010 2011 2012 2013 2014 2015 2016 2017 Mar-2018 Telecom Sector Revenues in Kuwait (KWD Mn) Total Telecom Revenue i
Slide 10: Market Share vs. peer group
Market Share vs. peer group Subscriber Market Share – Mar 2018 Revenue Market Share – Q1 2018 VIVA VIVA Ooredoo 32% Ooredoo 27% 32% 30% Zain Zain 38% 40% EBITDA Market Share – Q1 2018 Net Profit Market Share – Q1 2018 Ooredoo Ooredoo 10% VIVA VIVA 21% 32% 34% Zain Zain 56% 47% 10 Investor Relations
Slide 11: Financial Results
Financial Results In Quarter 1 2018, the company has Q1-2017 (Restated) Key Figures & Ratios Q1-2018 Change applied IFRS 15 ‘Revenue from Contracts with Customers “and IFRS Subscribers (Mn) 2.27 2.32 2.2% 9 “Financial Instruments” which are Revenue (KD Mn) 68.1 77.6 13.9% effective from 1st Januar
Slide 12: Financial Results – IFRS 15 & 9 impact
Financial Results – IFRS 15 & 9 impact In Quarter 1 2018, the company has applied IFRS 15 ‘Revenue from Contracts with Customers “and IFRS 9 “Financial Instruments” which are effective from 1st January 2018 and opted for full retrospective approach. The new standards has been adopted to bring consis
Slide 13: Financial Highlights
Financial Highlights Revenue (KD Million) EBITDA (KD Million) EBITDA (KWD Million) EBITDA Margin (%) 400 150.0 50% 47% 47% 47% 288 45% 300 277 279 40% 239 112.6 100.0 35% 30% 200 26% 25% 23% 25% 131.0 131.9 20% 78 50.0 100 68 15% 71.1 10% 17.6 18.0 5% 0 0.0 0% 2014 2015 2016 2017 Q1- 2017 Q1-2018 20
Slide 14: Financial Highlights
Financial Highlights Total Assets (KD Million) Total Debt / Equity (KD Million) Total Debt (KWD Million) Debt to Equity Ratio (x) 300 267 273 275 100 6.9 86 8.00 263 7.00 250 214 80 72 66 6.00 200 179 60 5.00 47 150 4.00 40 1.7 3.00 100 20 0.8 2.00 50 0.4 9 4 1.00 0.1 0 0 0.0 - 2013 2014 2015 2016 2
Slide 15: Stock Performance
Stock Performance Closing Price (KD) 0.950 PE (X) 11.9 Market Cap (KD Million) 474 PB (X) 3.09 Data as of 29 March 2018 Rebased Index Since VIVA’s Listing Date 14 Dec 2014 – Stock Performance vs. KSE and Telecom weighted Indices VIVA's Stock Price (KWD) KSE Weighted Index Telecom Weighted Index 180
Slide 16: Appendix
Appendix Balance Sheet (2014 – Mar 2018) Income Statement (2014 – Q1 2018) 16 Investor Relations
Slide 17: Balance Sheet (2014 –Mar 2018)
Balance Sheet (2014 –Mar 2018) 2014 2015 2016 *2017 (restated) *March 2018 Balance Sheet KD Mn KD Mn KD Mn KD Mn ASSETS Property and equipment 113.1 125.4 137.7 145.0 139.8 Intangible assets 36.3 50.6 47.5 - - Other non-current assets 0.7 - - - - Non-current assets 150.1 175.9 185.2 145.0 139.8 Inve
Slide 18: Income Statement (2014–Q1 2018)
Income Statement (2014–Q1 2018) *2017 *Q1-2017 Income Statement 2014 2015 2016 (Restated) (Restated) *Q1-2018 KD Mn KD Mn KD Mn KD Mn KD Mn KD Mn Revenue 239.0 276.9 279.1 287.7 68.1 77.6 Operating expenses (126.3) (145.8) (147.0) (216.4) (50.5) (59.6) Depreciation and amortization (67.6) (82.2) (88
Slide 19: VIVA IR
VIVA IR Awarded best IR Corporate in Kuwait for the year 2016 and nominated to be best IR Corporate in Kuwait for the year 2017 Proud to Serve our Investors and the Investment Community. First company in Kuwait to launch a mobile application for investor relations During December 2016. Revam
Slide 20: Thank you
Thank you Investor Relations Department: E-mail: Investor.relations@viva.com.kw Tel : +965 5000 1911 www.viva.com.kw 20 Investor Relations
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