Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q3 2012 Earnings Presentation
23 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, October 2012
Slide 1: Q3 2012 Results
Q3 2012 Results Emirates Integrated Telecommunications Company PJSC October 2012
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 Fi Financial i l Summary S 9 gy & Outlook Strategy 21 3
Slide 4: Q3 Financial Highlights
Q3 Financial Highlights Total Revenue EBITDA Net Profit before Mobile Customers Free Cash Flow (AEDm) (AEDm) (AEDm) Royalty Net Additions (000s) (AEDm) +12.9% +26.1% +33.8% +40.5% ‐0.3% 228 509 507 2,521 654 957 489 162 759 2,234 Q3 '11 11 Q3 '12 12 Q3 '11 11 Q3 '12 12 Q3 '11 11 Q3 '12 12 Q3 '11 11
Slide 5: 9 Months Financial Highlights
9 Months Financial Highlights Total Revenue (YTD) EBITDA (YTD) Net Profit before Free Cash Flow Mobile Customers (AEDm) (AEDm) Royalty (YTD) (AEDm) Additions (Cumulative) (AEDm) (000s) +15.1% +36.5% 2,823 +49.9% +61.5% +23.1% 745 1,227 7,419 1,971 605 2,068 1,315 760 6,443 9 mths 11 9 mths 12 9 mths
Slide 6: Contents
Contents Slide Highlights of the Third Quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 21 6
Slide 7: UAE Market overview
Market overview Strengthened g market position p – focus on ggainingg revenue share UAE Mobile Subscribers ‐ Market share quarterly evolution UAE Telecom Market ‐ Revenue share quarterly evolution 70% 90% 60% 80% 52.8% 70% 71.0% 50% 47.2% 60% Etisalat 40% 50% du 30% 40% 20% Etisalat 30% 29.0%* du 20
Slide 8: Contents
Contents Slide Highlights of the Third Quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 21 8
Slide 9: Revenues
Revenues Stable mobile revenues Revenue Quarterly Revenue (AEDm) +2.8% Revenue Year on Year Change (AEDm) Year over year change 2,521 37 223 27 +12.9% ‐0.40 2,233 2,233 2,411 2,447 2,452 2,521 Q3 Q4 Q1 Q2 Q3 Q3 2011 Tel (Mobile) Tel (Fixed) Wholesale Broadcasting Q3 2012 2011 2012 Year to Date Reven
Slide 10: Revenue Drivers - Mobile
*Q1 2012 positively impacted by one‐off promotion. Revenue Drivers ‐ Mobile **Monthly data does not include data in monthly packages (i.e. Elite 100 Plan contains data which is not included). Data revenues growing, reflecting partial shift of voice revenues to data Quarterly RevenueMobile Revenues (
Slide 11: Revenue Drivers – Mobile
Revenue Drivers – Mobile Post‐paid p customer base continues to grow g in importance p Contribution to YoY growth in mobile revenues (excluding inbound roaming and handset revenue) Minutes of use by customer segment Revenue ‐ mobile 750 Prepaid, 647 655 38% 635 594 575 550 350 Postpaid, 262 258 62%
Slide 12: Revenue Drivers – Fixed
*Reduction in fixed revenue associated with a drop in Revenue Drivers – Fixed calling card. *Quarterly Fixed Revenue (AEDm) Fixed line subscription Quarterly Fixed Line Subscribers (‘000) +7.9% +7.2% 380 391 409 410 *408 514 531 545 547 555 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2011 2012 2011 2012 Year to D
Slide 13: Revenue Drivers - Wholesale & Broadcasting
*Q2 12 broadcast revenues benefitted from a one‐off Revenue Drivers customer penalty of AED 5 million that was charged. Wholesale & Broadcastingg businesses remain steadyy Revenue *Quarterly ‐ Wholesale Broadcast Revenues (AEDm) Quarterly Wholesale Revenues (AEDm) ‐1.0% +37.6% 86 35 43 28 32 42 45 3
Slide 14: Gross Margin
Gross Margin *Excludes handsets and wholesale. Steadyy growth g in gross g margin g for the q quarter *Quarterly Gross Margin (AEDm) Year to Date Gross Margin (AEDm) +2.1% 7,000 90.0% 1,750 80.0% +16.2% 1 700 1,700 6,000 85.0% 75.0% *72.66% 1,650 *72.38% 80.0% 68.90% 69.21% 5,000 68.29% 67.80% 70.0%
Slide 15: Gross Margin by Segment
Gross Margin *Wholesale gross margin was affected by an increase in international hubbing revenue share which has a lower margin By Segment (Quarterly) Quarterly Q t l Mobile M bil Gross G Margin M i Quarterly Fixed Gross Margin (AEDm) before handset subsidy(AEDm) +13.1% +20.2% 330 100.0% 1,500 90.0
Slide 16: Overheads
Overheads Control on overheads maintained Overheads Quarterly Overheads (AEDm) Overheads as a percentage of revenue Q3 '11 Q3 '12 900 40.0% 800 Manpower 14.74% 13.54% 700 33.73% 35 0% 35.0% Telecommunications license & related 600 31.86% 31.42% fees 2.38% 2.54% 29.90% 29.83% 500 30.0% Sales & Market
Slide 17: Profitability
Profitability *Higher depreciation due to accelerated CapEx realization. EBITDA and Net Profit before Royalty remain strong Q Quarterly l EBITDA (AED (AEDm)) *Q *Quarterly l Net N PProfit fi bbefore f R Royalty l (AED (AEDm)) +33.8% +0.4% +1.7% 1200 70.0% 700 50.0% +26.1% 600 1000 60.0% 40.0% 800 50
Slide 18: Capital Investments
Capital Investments Guidance remains AED 1.3bn to AED 1.6bn Quarterly Capex additions (AEDm) Yearly Capex additions (AEDm) Capex Additions % of revenue 3,000 70.0% 59.2% 2,500 60.0% 45.5% 50.0% 2,000 40.0% 1,500 , 30.0% 270 330 335 444 318 1,000 17.6% 14.6% 20.0% Q3 Q4 Q1 Q2 Q3 500 10.0% 2011 2012 2
Slide 19: Cash & Debt overview
Cash & Debt overview Quarterly Free Cash Flow (AEDm) Year on Year Free Cash Flow (AEDm) Net Cash Operations Net Cash Investments FCF Net Cash Operations Net Cash Investments FCF 1,200 3,500 1,000 2 500 2,500 800 617 2,923 509 507 1,227 600 414 1,500 760 306 400 1,587 1,377 500 973 2,143 200 508 36 1
Slide 20: Contents
Contents Slide Highlights of the Third Quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 21 20
Slide 21: Strategy & Outlook
Strategy & Outlook Growth through efficiency • Focus on profitable growth and increase of value share • Grow the mobile postpaid base by further pushing into the high‐end market whilst hil t protecting t ti position iti in i the th low l end d market k t • Increased focus on mobile data and bundled
Slide 22: du - add life to life
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Slide 23: Slide 23
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