Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q1 2024 Earnings Presentation
25 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, Apr 30, 2024
Slide 1: Q1 2024 results
Q1 2024 results Emirates Integrated Telecommunications Company PJSC 30 April 2024 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 2024 key takeaways
Q1 2024 key takeaways • Outstanding profitability • Launch of “du Pay” an important step towards diversifying business activities • New royalty and corporate tax regime in place • Guidance re-affirmed highlighting confidence in executing our strategy 4 Emirates Integrated Telecommunications Company
Slide 5: Q1 2024 highlights: Supportive macro environment and continued commercial momentum
Q1 2024 highlights Supportive macro environment and continued commercial momentum Macro update Company update • Continuation of the commercial momentum • Comforting macro UAE data amid a volatile global environment • Network – Strong March UAE PMI reading – Mobile: further improvement in 5G Outdoor
Slide 6: Q1 2024 highlights: Launch of du Pay
Q1 2024 highlights Launch of du Pay 62.1 % of the UAE’s population is underserved with limited access to simple banking services ` Financially Have to pay fees Have to digital Limited pay fees to check balances Limited digital excluded - Limited to check balances access - take and access - take more
Slide 7: Q1 2024 highlights: Financial Performance
Q1 2024 highlights Financial Performance Revenues EBITDA Net profit (AED million) (AED million) (AED million) +4.1% +16.2% +62.7% 3,441 3,581 1,587 603 1,366 371 Q1’23 Q1’24 Q1’23 Q1’24 Q1’23 Q1’24 Capex OpFCF (AED million) (AED million) -12.0% 28.2% 408 1,229 359 958 Q1’23 Q1’24 Q1’23 Q1’24 7 Emira
Slide 8: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 8 Emirates Integrated Telecommunications Company PJSC
Slide 9: Mobile customer growth
Operating review 5.7% growth of mobile customer base +5.7% +1.3% Mobile customer base(*) (000s) • Strong net addition of 108,000 subscribers over the 8,554 8,662 quarter to 8.7 million subscribers 8,194 8,012 8,098 • 5.7% YoY growth in mobile subscriber base mainly driven by growth in postpaid Q1’23
Slide 10: 11.1% growth in fixed customer base
Operating review 11.1% growth in fixed customer base Fixed customer base(*) (000s) +11.1% • Q1 net additions of 12,000 subscribers over the +1.9% quarter to 616,000 subscribers • 11.1% subscriber base growth YoY driven by – the continuing success of our Home Wireless product 604 616 – sustained grow
Slide 11: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 11 Emirates Integrated Telecommunications Company PJSC
Slide 12: Revenues
Financial review Revenues +4.1% 3,558 3,581 3,441 +0.7% • Revenues: +4.1% YoY (+0.7% QoQ) 3,347 3,291 – Service revenues grew 5.6% YoY mainly driven by growth in Mobile revenues reflecting our continuous commercial momentum 2,426 2,529 2,563 – Other revenues remained broadly stable YoY 2,461 2,464 1
Slide 13: Service revenues: Mobile and Fixed
Financial review Service revenues +7.4% +2.7% +1.6% +0.8% Mobile Revenues Fixed Revenues (AED million) (AED million) 1,513 1,525 1,576 1,602 1,491 935 948 939 953 961 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Mobile revenues grew 7.4% YoY driven by higher customer Fixed revenues gr
Slide 14: Other revenues
Financial review Other revenues +0.3% • Other revenues remained broadly stable YoY: -1.0% (AED million) Revenues – Higher interconnect revenues, reflecting an increase in incoming traffic as a result of the higher mobile base 1,029 1,015 1,018 885 827 – Higher revenues from inbound roaming – Offset
Slide 15: Strong improvement of EBITDA
Financial review Strong improvement of EBITDA +16.2% 1,587 1,520 1,483 1,430 +11.0% • EBITDA grew by 16.2% YoY du to: 1,366 (AED million) • Increase in gross margin mainly driven by 39.7% 45.4% 45.1% 40.2% 44.3% – higher revenues in mobile and fixed segments – improved revenue mix (increase in power
Slide 16: Outstanding growth in net profit
Financial review Outstanding growth in net profit +62.7% 603 504 +52.0% 397 396 (AED million) 370 • 62.7% increase in net profit mainly due to higher EBITDA Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 16 Emirates Integrated Telecommunications Company PJSC
Slide 17: Capex and operating free cash flow
Financial review Capex and operating free cash flow Capex (AED million) 759 • Capex moderating on a YoY basis with Q1 reflecting the typical capex phasing 504 527 • Capex deployment for : 408 359 21.3% – 5G (covers 98.5% of population) 11.8% 15.1% 16.0% 10.0% – Continuous fibre deployment Q1’23 Q2’2
Slide 18: Unleveraged balance sheet and strong liquidity position
Financial review Unleveraged balance sheet and strong liquidity position (AED millions) Cash, cash equivalent and term deposit 2,648 4,629 1,926 1,937 1,981 2,648 1,079 383 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Cash & Term deposits Undrawn facility Total liquidity • Strong and debt free balance sheet and he
Slide 19: 2024 key priorities and guidance
Financial review 2024 key priorities and guidance 2024 key priorities • Generate profitable growth in the core (fixed and mobile connectivity) and non-core (ICT and others) • Continue managing efficiently the business to improve margins • Push further the digitalization through reinforcing our digit
Slide 20: Thank you.
Q&A Thank you. Emirates Integrated Telecommunications Company PJSC
Slide 21: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 21 Emirates Integrated Telecommunications Company PJSC
Slide 22: Appendix: Operating KPI
Appendix Operating KPI 2023 2023 2023 2023 2023 2024 Q1 Q2 Q3 Q4 Full-year Q1 Mobile customers ('000s), of which 8,194 8,011 8,097 8,554 8,554 8,662 Postpaid 1,528 1,541 1,573 1,636 1,636 1,683 Prepaid 6,666 6,470 6,524 6,918 6,918 6,979 Net-adds ('000s), of which 299 -182 86 456 658 108 Postpaid 48
Slide 23: Appendix: P&L
Appendix P&L 2023 2024 AED million Q1 Q1 Revenues 3,441 3,581 Direct costs -1,289 -1,226 Indirect costs -785 -769 Other income 0 1 EBITDA 1,366 1,587 Margin 39.7% 44.3% Depreciation, amortization -419 -430 Depreciation of right-of-use assets -94 -91 EBIT 853 1,066 Net finance income 14 20 Interest e
Slide 24: Appendix: Cash flow statement
Appendix Cash flow statement 2023 2024 AED million Q1 Q1 Net profit 370 603 Adjustments for non-cash items 602 1,059 Change in working capital 64 (328) Cash generated from operations 1,036 1,335 Royalty paid (net) - - Payment of employees' end of service benefits (7) (5) Net cash generated from oper
Slide 25: Appendix: Balance sheet
Appendix Balance sheet As at As at As at As at AED million 31-Dec-23 31-Mar-24 AED million 31-Dec-23 31-Dec-23 Property, plant and equipment 9,723 9,625 Share capital 4,533 4,533 Right-of-use assets 1,597 1,533 Share premium 232 232 Intangible assets 698 723 Retained earnings 2,227 1,878 Goodwill 41
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