Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q1 2014 Earnings Presentation
24 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, May 2014
Slide 1: Q1 2014 Results
Q1 2014 Results Emirates Integrated Telecommunications Company PJSC May 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 Q1 Results 4 Market Information 6 Financial Summary 8 Strategy and Outlook 22 3
Slide 4: Q1 Financial Highlights
Q1 Financial Highlights Total Revenue EBITDA Net Profit before Free Cash Flow Mobile 90 day net (AED M) Royalty (AED M) (AED M) customer additions (AED M) (000s) +12.5% +12.3% +15.1% -11.3% +68.1% 1,183 2,955 865 549 306 487 182 1,053 752 2,626 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013
Slide 5: Contents
Contents Slide Highlights of Q1 Results 4 Market Information 6 Financial Summary 8 Strategy and Outlook 22 5
Slide 6: 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% 80.0% 52.7% 70.0% 69.6% 50.0% 47.3% 60.0% 40.0% 50.0% 30.0% 40.0% 20.0% 30.0% 30.4% * 20.0%
Slide 7: Contents
Contents Slide Highlights of Q1 Results 4 Market Information 6 Financial Summary 8 Strategy and Outlook 22 7
Slide 8: Total Revenues
Total Revenues Mobile and fixed business main drivers of revenue growth Quarterly Revenue (AED M) Like for Like Revenue Breakdown Quarter Change (AED M) +12.5% 2,955 2,626 113 47 -4 2 171 2,869 2,955 2,626 2,660 2,643 51.9% 34.3% 14.4% -1.2% 0.6% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Year to Date
Slide 9: Revenue Drivers - Mobile
Revenue Drivers - Mobile Mobile revenue continues to grow, increasing competition driving ARPU trend Quarterly Mobile Revenues (AED M) Year to Date Mobile Revenues (AED M) +8.3% 8,365 7,632 2,195 2,228 6,541 2,057 2,066 2,047 5,058 2,057 2,228 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 FY 2010 FY 2011
Slide 10: Revenue Drivers - Mobile
Revenue Drivers - Mobile In line with global trend of rising demand for data Quarterly Mobile Service Data Revenues (AED M) +21.3% Mobile data continues to be a key market driver 616 648 639 • Mobile service data revenues achieved double digit 573 30.00% 600 527 growth from 527m in Q1 2013 to AED 63
Slide 11: Revenue Drivers – Mobile
Revenue Drivers – Mobile Post-paid 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 700 605 605 593 611 114.7% 569 600 500 400 46.8% 300 200 223 224 221 221 207 10
Slide 12: 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) +28.3% 612 511 458 599 416 439 399 588 578 572 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Year to Date
Slide 13: Revenue Drivers – Broadcast & Wholesale
Revenue Drivers – Broadcast & Wholesale Strong growth in wholesale driven by international hubbing Quarterly Wholesale Revenues (AED M) Quarterly Broadcast Revenues (AED M) +37.8% -8.8% 173 45 46 46 141 39 41 126 133 111 136 83 89 99 72 43 44 39 41 37 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q1 2013
Slide 14: Gross Margin
Gross Margin Steady gross margin performance Quarterly Gross Margin (AED M) and Gross Margin % Year to Date Gross Margin (AED M) and Gross Margin % +9.3% 1,950 1,919 1,915 80.0% 8,000 75.0% 7,247 6,897 1,900 7,000 73.0% 1,850 5,901 75.0% 6,000 71.0% 1,794 1,782 1,800 1,752 5,000 4,600 70.1% 69.0% 67
Slide 15: Gross Margin – Breakdown by Segment
Gross Margin – Breakdown by Segment Strong growth in overall fixed business Quarterly Mobile Gross Margin (AED M) Quarterly Fixed Gross Margin (AED M) +3.6% +34.0% 1,556 450 411 100.0% 1,600 1,506 400 365 367 1,500 1,454 1,472 75.0% 335 95.0% 1,431 350 306 1,400 300 90.0% 72.3% 72.7% 70.0% 250 71.3%
Slide 16: Overheads
Overheads Continuing improvement in operational efficiencies Quarterly Overheads (AED M) 900 839 40.0% Overheads as a % of Revenue Q1 2013 Q4 2013 Q1 2014 800 718 732 38.0% 698 700 Manpower 12.1% 14.2% 12.0% 700 36.0% 34.0% Teleco license & related fees 2.7% 2.4% 2.4% 600 29.2% 32.0% Sales & marketi
Slide 17: Profitability
Profitability Solid performance with increased EBITDA and profitability Quarterly EBITDA (AED M) Quarterly Net Profit before Royalty (AED M) +12.3% +15.1% 1,000 40.0% 1,200 1,183 42.0% 865 900 778 38.0% 752 768 41.0% 800 716 36.0% 1,150 41.1% 700 34.0% 1,094 40.0% 600 32.0% 1,100 40.1% 40.2% 1,081 1
Slide 18: 2014 Royalty Regime
2014 Royalty Regime Impact of royalty regime between 2013 and 2014 normalised for comparison purposes Quarterly Net Profit after Royalty (AED M)* Quarterly Royalty Compared (AED M)* +16.3% 375 488 506 498 330 339 337 447 337 490 421 439 430 271 270 380 264 270 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Slide 19: Capital Investments
Capital Investments Quarterly CapEx Additions (AED M) Year to Date CapEx Additions (AED M) 2,000 30.0% 1,800 1,720 686 1,563 25.0% 1,600 1,400 1,291 17.5% 1,244 20.0% 1,200 15.1% 15.9% 14.0% 368 1,000 18.3% 15.0% 323 800 188 600 10.0% 368 3.9% 116 400 5.0% 200 116 0 0.0% Q1 2013 Q2 2013 Q3 2013 Q4 2
Slide 20: Cash & Debt Overview
Cash & Debt Overview Q2 2014 is scheduled royalty and TRA payments Quarterly Free Cash Flow (AED M) Year to Date Free Cash Flow (AED M) 2,000 2,000 4,000 4,000 1,500 1,500 3,000 2,329 3,000 1,098 1,748 787 2,000 1,377 2,000 1,000 1,000 549 549 1,523 487 1,000 487 1,000 1,587 1,006 500 1,041 500 2,92
Slide 21: Contents
Contents Slide Highlights of Q1 Results 4 Market Information 6 Financial Summary 8 Strategy and Outlook 22 21
Slide 22: 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 23: dll Lay Listig
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