Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q3 2011 Earnings Presentation
23 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, October 2011
Slide 1: Third Quarter 2011 Results
Third Quarter 2011 Results Emirates Integrated Telecommunications Company PJSC October 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 quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 20 3
Slide 4: Q3 Financial Highlights
Q3 Financial Highlights Revenue up 28% to AED 2.23 billion Total Revenue EBITDA Net Profit before Mobile Customer Free Cash Flow (AEDm) (AEDm) royalty (AEDm) Net Additions (000s) (AEDm) +45% 1.4% +28% +50% 2,234 907.9% 509 489 159.8 162.1 increase 1,745 759 326 523 (63) Q3 '10 Q3 '11 Q3 '10 Q3 '11 Q
Slide 5: 9 Months Financial Highlights
9 Months Financial Highlights Net profit up 65% YTD Total Revenue (YTD) EBITDA (YTD) Net Profit before Mobile Customer Free Cash Flow (AEDm) (AEDm) royalty (YTD) (AEDm) Additions (Cumulative) (AEDm) (000s) +54% +65% 0.2% 18.5 fold +28% 1,315 increase 760 2,068 605 6,443 795 604 5,028 1,343 41 9 mths
Slide 6: Contents
Contents Slide Highlights for the full year & quarter 4 Market Information 7 - Financial Summary 9 Strategy & Outlook 20 6
Slide 7: UAE Market overview
UAE Market overview Strengthened market position – focus on gaining revenue share UAE Mobile Subscribers - Market share evolution UAE Telecom Market - Revenue share evolution 80% 90% 70% 80% 70% 72.4% 60% 54.8% 50% 60% Etisalat - UAE revenue 40% 45.2% 50% 40% du revenue 30% Etisalat 30% 20% 27.6% 20
Slide 8: Contents
Contents Slide Highlights for the full year & quarter 4 Market Information 7 - Financial Summary 9 Strategy & Outlook 20 8
Slide 9: Revenues
Revenues Sustained revenue growth driven by mobile Revenue Quarterly Revenue (AEDm) Revenue Year on Year Change (AEDm) Year over year change +28% 84 4 2,234 404 -3 1,745 1,745 2,046 2,038 2,172 2,234 - Q3 Q4 Q1 Q2 Q3 Q3 2010 Tel (Mobile) Tel (Fixed) Wholesale Broadcasting Q3 2011 2010 2011 Year to D
Slide 10: Revenue Drivers - Mobile
Revenue Drivers - Mobile Data revenues improved Quarterly RevenueMobile Revenues (AEDm) - mobile Year To Date Mobile Revenues (AEDm) +31% +33% 1,309 1,576 1,576 1,664 1,713 703 2,628 3,727 5,312 3,736 4,953 Q3 Q4 Q1 Q2 Q3 - FY 07 FY 08 FY 09 FY 10 9 mths 10 9 mths 11 2010 2011 Mobile Subscribers Mob
Slide 11: Revenue Drivers – Mobile
Revenue Drivers – Mobile Growing contribution from post-paid customers Contribution Revenue to growth in mobile revenues - mobile Minutes of use by customer segment (excluding inbound roaming and handset revenue) Postpaid 700 551 554 572 575 customers 600 46% 480 500 Prepaid AED 37.8 m 400 customers
Slide 12: Revenue Drivers – Fixed
Revenue Drivers – Fixed Total fixed lines increased 24% year on year closing with 639,700 lines; 16,100 lines added during the quarter 28% growth in fixed line revenues Quarterly Fixed Revenue (AEDm) Fixed lineLine Fixed subscription Subscribers (‘000) 700 +24% +28% 600 500 400 300 200 100 296 326 3
Slide 13: Revenue Drivers: Wholesale & Broadcasting
Revenue Drivers Wholesale & Broadcasting Revenue - Wholesale Quarterly Broadcast Revenues (AEDm) Quarterly Wholesale Revenues (AEDm) 102 103 85 102 99 38 40 40 39 42 Q3 Q4 Q1 Q2 Q3 - Q3 Q4 Q1 Q2 Q3 2010 2011 2010 2011 Year to Date Wholesale Revenues (AEDm) Year to Date Broadcast Revenues (AEDm) 600
Slide 14: Gross Margin
Gross Margin Solid year-on-year margin growth Quarterly Gross Margin (AEDm) Year to Date Gross Margin (AEDm) +31% 1,600 80.00% 5,000 90.00% 4,500 +29% 1,400 85.00% 75.00% 4,000 1,200 80.00% 66.87% 70.00% 3,500 1,000 65.82% 3,000 75.00% 64.50% 63.83% 64.60% 800 65.00% 2,500 65.70% 65.03% 65.52% 65.79
Slide 15: Gross Margin by Segment
Gross Margin By Segment Mobile Gross Margin (AEDm) before handset subsidy Fixed Gross Margin (AEDm) Mobile gross margin before handset subsidy 300 100.00% 84.49% 90.00% 1,400 90.00% 250 * 74.24% 76.80% 74.97% 1,200 85.00% 80.00% 200 1,000 80.00% 70.00% 70.00% 70.58% 75.00% 150 59.22% 800 68.86% 68.4
Slide 16: Overheads
Overheads 270 basis point decrease in overheads year on year as a percentage of revenue Overheads Overheads (AEDm) 900 55.0% 800 50.0% Overheads as a percentage of revenue 700 Q3 10 Q3 11 45.0% 600 500 40.0% Manpower 17.7% 14.7% 35% 35% 34% 32.7%** 400 35.0% Telecommunications license & related fees
Slide 17: Profitability
Profitability Robust financial health – 65% increase in net profit before royalty year on year for the first 9 months EBITDA (AEDm) Net Profit before royalty (AEDm) 800 +45% 70% 600 50% 65% +50% 45% 700 60% 500 600 55% 40% 50% 400 35% 500 30% 45% 21.88% 400 29.96% 32.99% 30.45% 31.72% *33.97% 40% 35
Slide 18: Capital Investments
Capital Investments Capex focused on fixed line investment in Q3 Capex additions (AEDm) AED 1.2 billion spent on enhancing coverage and quality in 2010 3,000 2,500 2,000 1,500 1,000 161 374 477 213 270 - 500 Q3 Q4 Q1 Q2 Q3 1,635 2,338 2,427 1,246 871 960 2010 2011 - FY 07 FY 08 FY 09 FY 10 YTD '10 Y
Slide 19: Cash & Debt overview
Cash & Debt overview Continue to maintain free cash flow positive status Free cash flow (AEDm) Net cash Invest. Net cash Ops FCF Net cash Invest. Net cash Ops FCF 600 2,500 509 2,000 400 1,942 1,500 220 1,584 1,000 761 Millions (AED) 200 Millions (AED) 32 973 500 247 396 520 597 825 33 508 0 0 (528)
Slide 20: Contents
Contents Slide Highlights for the full year & quarter 4 Market Information 6 - Financial Summary 10 Strategy & Outlook 21 20
Slide 21: Strategy & Outlook
Strategy & Outlook Growth through efficiency • Focus on profitable growth and increase of value share • Introducing nation-wide competition in fixed-line telecommunications services • Excel in customer experience and increase brand engagement - • Revenue diversification through mobile data and broad
Slide 22: Sluall Lay Lag
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Slide 23: 螠Ж
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