Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Kuwait Telecommunications Company K.S.C.P. (stc) — 6M 2020 Earnings Presentation
22 slides from Kuwait Telecommunications's earnings presentation, 2020
Slide 1: Investors Presentation
Investors Presentation Kuwait Telecomunications Company K.S.C.P Kuwait Telecommunications Company K.S.C.P. 6M- 2020
Slide 2: Table of content
Table of content stc’s History in Brief 3 Key Milestones 4 Vision, Mission & Values 5 Shareholder’s Structure 6 Population & Penetration 7 Competitive Strengths 8 Our 2020 Strategy 9 Market Share 10 COVID-19 Impacts on Kuwait Society 11 Financial Results 12 Cash Dividends 17 Stock Performance 18 App
Slide 3: stc's History in Brief
stc’s History in Brief Kuwait Telecommunications Company (stc) is a Kuwaiti shareholding organization fused as per Amiri Decree No. 187 on 22 July, 2008, to work and deal with the third GSM versatile system in Kuwait according to Law No. 2 of 2007. Appropriately, stc propelled its tasks in December
Slide 4: Key Milestones
Key Milestones Best Network Development Award at 5G MENA Launches Partnership with Real commercially stc launches Elite Expands retail Madrid Best Telecom Company stc Reap Three Accolades Program for loyal, VIP and network and by Arabian Business at ME Call Centre Awards stc Group wa
Slide 5: Vision, Mission & Values
Vision, Mission & Values Values Vision A world-class digital leader providing innovative services and platforms to our customers and enable the digital transformation in Kuwait. stc is keen to present its customers with numerous telecommunications opportunities with the goal of boosting existing rel
Slide 6: Shareholders' Structure
Shareholders' Structure 52% 24% 24% Kuwaiti Governmental Saudi Telecom Public Shareholders Entities stc KSA, the leading regional The Kuwaiti government holds Public Share holders consists telecom operator, won the bid for 24% of stc’ capital through of companies, portfolios, third mobile lice
Slide 7: Population & Penetration
Population & Penetration Current Population Current Penetration 4.8 Million 155% Kuwait Population (Million) & Penetration Rate (%) 6.0 250% 205% 200% 5.0 194% 182% 176% 200% 172% 171% 4.0 155% 152% 155% 133% 150% 3.0 93% 4.6 4.8 4.8 100% 4.2 4.4 4.5 2.0 3.8 3.9 4.1 3.4 3.5 3.6 3.7 50% 1.0 57% 0.0 0
Slide 8: Competitive Strengths
Competitive Strengths Relation-ship stc (the largest telecom company in the region) will continue to be a major shareholder and will continue to with benefit from being a member of stc group. Through this relationship, stc has access to technical support, industry best practice for provision of tele
Slide 9: Our 2020 Strategy
Our 2020 Strategy …..aims to position stc at the center of Kuwait’s digital ambitions and is built upon 5 strategic pillars I II III IV V Uplift and Capture Transform Revamp Enhance Innovate Enterprise Technology Enabling Employee on Consumer Opportunities Capabilities Capabilities Potential Value
Slide 10: Market Share
Market Share Total Subscriber Base in Kuwait (Mn) Telecom Sector Revenues in Kuwait (KWD Mn) Total Subscribers in kuwait (Mn) stc Subcribers (Mn) Total Telecom Revenue in Kuwait (KWD Mn) stc's Revenue (KWD Mn) 841 860 859 7.6 7.7 7.7 799 7.2 7.1 7.4 788 753 6.7 690 717 6.41 684 5.9 627 5.2 4.5 393 2
Slide 11: COVID-19 Impacts on Kuwait Society
COVID-19 Impacts on Kuwait Society As Coronavirus disease started to spread out across the State of Kuwait starting February 2020, the Council of Ministers has adopted a number of preventive and health protection measures illustrated by the lockdown stages as shown below: 12 March – 20 21 April – 7
Slide 12: Financial Results
Financial Results stc’s revenue declined by 2.3% during the Key Figures & Ratios 6M-2019 6M-2020 Change six months period ended 30 June 2020 to reach KD 136.4 mn as compared to KD 139.6 Subscribers (Mn) 2.05 1.72 -16.3% mn recorded during the six months period Revenue (KD Mn) 139.6 136.4 -2.3% ended
Slide 13: Financial Impact and steps taken by stc to reduce economic impact of the outbreak
Financial Impact and the taken steps by stc to reduce The following are the most important the economic impact of the steps taken by the company: Corona virus outbreak Ensure the continuity of providing all the services to company’s At the beginning of the crisis, the company established a committ
Slide 14: Financial Results - Highlights Annual and YTD-20
Financial Results - Highlights Annual and YTD-20 Revenue (KD Million) EBITDA (KD Million) EBITDA (KD Million) EBITDA Margin (%) 288 288 294 277 279 47% 47% 50% 140 120 40% 29% 28% 100 25% 27% 26% 140 136 30% 80 131 131.9 60 20% 77.8 83.8 40 71.1 10% 38.6 35.9 20 0% 0 2015 2016 2017 2018 2019 6M-19 6
Slide 15: Financial Results - Highlights Quarterly
Financial Results - Highlights Quarterly Revenue (KD Million) EBITDA (KD Million) 78.1 EBITDA (KD Million) EBITDA Margin (%) 76.1 72.9 72.2 66.6 64.2 35% 30% 25 28% 28% 29% 27% 30% 24% 20 25% 20% 15 15% 23.7 19.8 21.5 10 18.8 17.0 18.9 10% 5 5% 0% 0 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q1-19 Q2-19 Q3
Slide 16: Financial Results - Highlights
Financial Results - Highlights Total Assets (KD Million) Total Debt / Equity (KD Million) 391 404 Total Debt (KD Million) Debt to Equity Ratio (x) 0.8 0.9 80 305 273 0.7 70 263 267 0.4 60 0.5 50 0.3 0.1 0.1 0.1 0.0 40 0.1 72 30 -0.1 47 20 -0.3 20 10 0 14 -0.5 9 0 2015 2016 2017 2018 2019 Jun-20 2015
Slide 17: Cash Dividends
Cash Dividends Cash Dividends Per Share (Fils) Dividends Payout Ratio (%) 57% 50 40 40% 35% 30 10 13% 2016 2017 2018 2019 2016 2017 2018 2019 Stock Price vs. Dividends Yield stc has been distributing a growing Stock Price (KD) Div. Yield (%) dividends since 2016 reaching 50 fils in 10.00% 0.853 0.
Slide 18: Stock Performance
Stock Performance Closing Price (KD) 0.853 PE (X) 10.8 Paid up Capital (KD Million) 49.9 PB (X) 2.07 Market Cap (KD Million) 426 Dividend Yield (%) 6.0% Data as of 30 June 2020 Rebased Index Since stc’s Listing Date 14 Dec 2014 – Stock Performance vs. KSE and Telecom weighted Indices STC's Stock Pri
Slide 19: Appendix
Appendix Balance Sheet (2017 – June 2020) Income Statement (2017 – 6M 2020) Page | 19
Slide 20: Balance Sheet (2017–June 2020)
Balance Sheet (2017–June 2020) Balance Sheet 2017 2018 2019 June 2020 KD Mn KD Mn KD Mn KD Mn ASSETS Property and equipment 145.0 150.5 193.5 197.2 Goodwill and Intangible assets - - 26.2 25.6 Total non-current assets 145.0 150.5 219.7 222.8 Inventories 12.9 6.9 9.1 8.6 Prepayments and other current
Slide 21: Income Statement (2017–6M 2020)
Income Statement (2017–6M 2020) Income Statement 2017 2018 2019 6M-2019 6M-2020 KD Mn KD Mn KD Mn KD Mn KD Mn Revenue 287.7 287.9 293.7 139.6 136.4 Operating expenses (145.5) (139.3) (148.5) (69.7) (68.9) Staff costs (20.4) (21.7) (24.6) (11.8) (12.2) Expected credit losses on trade & other receivab
Slide 22: Thank you
Thank you Investor Relations Department: : Investor.relations@stc.com.kw : +965 5000 1911 : www.stc.com.kw stc Kuwait Kuwait Telecommunication Company (stc) stc_Kuwait @stc_Kuwait
Kuwait Telecommunications Company K.S.C.P. (stc) — 6M 2020 Earnings Presentation on 6ix