Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q1 2022 Earnings Presentation
24 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, Apr 29, 2022
Slide 1: Q1 2022 results
Q1 2022 results Emirates Integrated Telecommunications Company PJSC 29 April 2022 Emirates Integrated Telecommunications Company PJSC
Slide 2: Disclaimer
Disclaimer This document has been prepared by Emirates Integrated Telecommunications Company PJSC (the “Company”) solely for presentation purposes. The information contained in this document has not been independently verified and no representation or warranty, expressed or implied, is made as to, a
Slide 3: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 3 Emirates Integrated Telecommunications Company PJSC
Slide 4: Q1 2022 highlights: Recovery is gaining pace
Q1 2022 highlights Recovery is gaining pace Macro update Company update • Population recovery • Mobile customer base continues its growth trajectory – Rebuild of the population following the release of – Postpaid customer base at an all-time high restrictions – UAE’s wide-ranging reforms are support
Slide 5: Highlights
Financial review Highlights Revenues EBITDA Net profit (AED million) (AED million) (AED million) +8.5% +13.3% +21.0% 3,128 1,269 311 2,883 1,120 257 Q1’21 Q1’22 Q1’21 Q1’22 Q1’21 Q1’22 Capex OpFCF (AED million) (AED million) -46.5% +75.0% 569 964 305 551 Q1’21 Q1’22 Q1’21 Q1’22 5 Emirates Integrated
Slide 6: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 6 Emirates Integrated Telecommunications Company PJSC
Slide 7: Operating review: Mobile services customer base
Operating review Mobile services: customer base +10.4% +10.4% +3.3% Mobile customer base(*) (000s) • Mobile net-adds +237,000 7,253 7,489 – Postpaid +34,000 6,784 6,565 6,451 – Prepaid + 202,000 • Postpaid segment Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 – Customer base at an all-time high – Handset financing
Slide 8: Operating review: Fixed services customer base +76.7%
Operating review Fixed services: customer base +76.7% Fixed customer base(*) (000s) • Our Broadband strategy continues to deliver +76.7% – Net-adds (+48,000) remain solid +12.3% – Market share gains across all service categories • Unabated demand for our consumer broadband services – Continued expan
Slide 9: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 9 Emirates Integrated Telecommunications Company PJSC
Slide 10: Revenues
Financial review Revenues +8.5% • Mobile services +1.9% – Postpaid and Prepaid revenues are recovering… – … thanks to re-alignment of offering • Fixed services – Delivering on our strategy with innovative products 3,070 3,128 – Solid commercial performance 2,883 2,855 2,874 • Other revenues – Wholes
Slide 11: Mobile revenues are recovering
Financial review Mobile revenues are recovering and confirm Q4’21 growth trend +6.9% • Q3’21 was an inflection point +0.9% – Q1’22 performance confirms the mobile service revenues growth seen in Q4’21 • Several commercial initiatives were launched to support this growth Mobile service (AED million)
Slide 12: Sustained growth in fixed revenues
Financial review Sustained growth in fixed revenues +22.8% +6.8% • Consumer segment was the main growth driver – Fibre network expansion… – … and attractive and innovative offering… – … are contributing to sustained net-adds (+48,000) (AED million) Fixed service Revenues • Demand for Enterprise serv
Slide 13: Other revenues
Financial review Other revenues +0.4% -0.6% • Equipment revenues continued its growth path – 5G handsets continue to sell at same pace • Wholesale revenues stabilised Other Revenues (AED million) • Roaming activity is increasing 908 917 911 873 839 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 13 Emirates Integrate
Slide 14: EBITDA
Financial review EBITDA +13.3% +2.1% 1,242 1,269 • Growth in service revenues contributed to increase in profit 1,120 1,130 1,100 – Margin improvement +172bp • Cost control also contributed to EBITDA improvement (AED million) • Step change in underlying EBITDA confirmed in Q1’22 38.8% 39.6% 38.3% 40
Slide 15: Net profit: improvement due to higher EBITDA
Financial review Net profit: improvement due to higher EBITDA +21.0% • 21% increase in net profit due to 13% growth in EBITDA 321 311 283 • Depreciation charges: increase due to previous capex spend 257 107 +46.1% 240 70 (AED million) • Federal royalty expense: increase due to improved Net profit pr
Slide 16: Capex and operating free cash flow
Financial review Capex and operating free cash flow 1,014 (AED million) 650 Capex 569 • Lower Capex due to seasonality 33.0% – 2022 spend is skewed towards the second half 22.8% 374 19.7% 305 – Capital intensity is starting to normalize 13.0% 9.7% Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 • Operating free cash
Slide 17: Strong balance sheet and high liquidity
Financial review Strong balance sheet and high liquidity (AED million) Gross debt Cash & Term deposits 2,584 2,460 5,584 2,016 3,569 1,224 995 2,016 200 200 200 200 Cash & Term Undrawn facility Total liquidity Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 deposits 17 Emirates Integrated Telecommunications Company P
Slide 18: Outlook
Outlook 2022 • Return to normality – Authorities are gradually peeling remaining social distancing measures • Macro – Oil prices are supportive of UAE’s fiscal position – Macro data points to acceleration of recovery – Social and economic reforms will cement the UAE’s position as a global hub • Our
Slide 19: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 19 Emirates Integrated Telecommunications Company PJSC
Slide 20: Appendix: Operating KPI
Appendix Operating KPI 2020 2020 2020 2020 2021 2021 2021 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Mobile customers ('000s), of which 7,440 6,418 6,594 6,658 6,784 6,565 6,451 7,253 7,489 Postpaid 1,363 1,262 1,265 1,271 1,313 1,285 1,298 1,337 1,371 Prepaid 6,077 5,156 5,330 5,386 5,471 5,280 5,153 5,9
Slide 21: Appendix: P&L
Appendix P&L Summary P&L 2021 2022 AED million Q1 Q1 change Revenues 2,883.3 3,128.1 8.5% Direct costs -1,077.9 -1,132.4 5.1% Indirect costs -685.5 -726.9 6.0% Other income 0.1 0.2 133.1% EBITDA 1,120.0 1,268.9 13.3% margin 38.8% 40.6% 1.7% Depreciation, amortization -383.5 -423.4 10.4% Goodwill imp
Slide 22: Appendix: Cash flow statement
Appendix Cash flow statement 2021 2022 2021 2022 AED million Q1 Q1 Q1 Q1 Net profit 257 311 Purchase of property, plant and equipment -596 -503 Adjustments for non-cash items Purchase of intangible assets -39 -42 Finance costs 4 6 Proceeds from disposals of property, plant and equipment 0 0 Finance
Slide 23: Appendix: Balance sheet
Appendix Balance sheet As at As at As at As at AED million 31-Dec-21 31-Mar-22 AED million 31-Dec-20 30-Jun-21 Property, plant and equipment 9,068 8,955 Share capital 4,533 4,533 Right-of-use assets 1,650 1,603 Share premium 232 232 Retained earnings 1,748 1,530 Intangible assets 446 442 Statutory r
Slide 24: Thank you.
Thank you. Emirates Integrated Telecommunications Company PJSC
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