Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q2 2013 Earnings Presentation
25 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, July 2013
Slide 1: Q2 2013 Results
Q2 2013 Results Emirates Integrated Telecommunications Company PJSC July 2013
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 Second Quarter 4 Market Information 8 Financial Summary 10 Strategy & Outlook 23 3
Slide 4: Q2 Financial Highlights
Q2 Financial Highlights Total Revenue EBITDA Net Profit before Free Cash Flow Mobile Customers (AEDm) (AEDm) Royalty (AEDm) (AEDm) Net Additions (000s) +12.05% +16.19% +19.48% -134.43% -92.69% 778 1,094 196 2,660 414 651 2,374 941 14 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Q2 2012 Q2 2013 (1
Slide 5: 6 Months Financial Highlights
6 Months Financial Highlights Total Revenue YTD EBITDA YTD Net Profit before Free Cash Flow YTD Mobile Customers Net (AEDm) (AEDm) Royalty YTD (AEDm) (AEDm) Additions – Cumulative (000s) +11.39% +15.07% +16.13% -44.22% -61.96% 5,287 2,147 1,530 720 517 402 4,746 1,866 1,317 197 6 mo 2012 6 mo 2013 6
Slide 6: Progressive Dividend Payment
Progressive Dividend Payment Strong capital position Proposed* dividend payment Special dividend AED 0.10 per share (one-off payment Q3 2013) Interim dividend AED 0.12 per share Total AED 0.22 per share Focus on delivering shareholder value • Proposed return of approximately AED 1.0 billion to share
Slide 7: Contents
Contents Slide Highlights of the Second Quarter 4 Market Information 8 Financial Summary 9 Strategy & Outlook 22 7
Slide 8: UAE Market overview
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% 80.0% 53.5% 50% 70.0% 71.3% 46.5% 60.0% 40% Etisalat 50.0% du 30% 40.0% 30.0% * 20% Etisalat
Slide 9: Contents
Contents Slide Highlights of the Second Quarter 4 Market Information 8 Financial Summary 10 Strategy & Outlook 23 9
Slide 10: Revenues
Revenues Strong revenue performance Quarterly Total Revenue (AEDm) Revenue Breakdown Quarter Change (AEDm) +12.05% 2,660 2,660 2,649 2,374 2,626 17 -1 33 237 2,447 2,374 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q2 2012 Mobile Fixed Wholesale Broadcasting Q2 2013 Year to Date Total Revenue (AEDm) Reve
Slide 11: Revenue Drivers - Mobile
Revenue Drivers - Mobile Growth supported by the continued increase of data revenues Quarterly Mobile Revenues (AEDm) Year to Date Mobile Revenue (AEDm) +13.33% 2,092 2,057 2,066 +12.22% 7,632 6,541 5,058 1,866 4,123 1,823 3,536 3,674 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 FY 2009 FY 2010 FY 2011 F
Slide 12: Revenue Drivers – Mobile
Revenue Drivers – Mobile Solid performance attributed to the high-value postpaid customer base YoY Contribution to Mobile Revenue Mobile Minutes of Use (AED) 635 627 594 605 605 Postpaid 46.47% Prepaid 271 257 273 254 257 53.53% 240 228 242 223 224 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Total Minut
Slide 13: Revenue Drivers – Fixed
Revenue Drivers – Fixed Stable growth of fixed line revenues Quarterly Fixed Revenue (AEDm) Fixed line subscription Quarterly Fixed Subscribers ('000s) +2.66% +5.74% 41 6 405 404 578 572 399 561 391 555 547 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Year to Date
Slide 14: Revenue Drivers – Wholesale & Broadcasting
Revenue Drivers – Wholesale & Broadcasting Strong increase in wholesale revenue Revenue - Wholesale Quarterly Wholesale Revenue (AEDm) Quarterly Broadcasting Revenue (AEDm) 46.2 +33.05% 45.6 45.2 -1.22% 123 126 133 43.5 136 50 43 100 45 41.5 57 47 32 43 86 78 83 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 20
Slide 15: Royalty Overview
Royalty Overview Quarterly Royalty (AEDm) Quarterly Net Profit after Royalty (AEDm) 994 333 326 327 304 304 284 284 244 609 202 198 201 465 453 453 468 468 474 474 333 326 327 Q1 2012 Q2 2012 Q3 2012 Q42012 Q1 2013 Q2 2013 Net Profit after Old Royalty Regime Net Profit after New Royalty Regime (142)
Slide 16: Gross Margin
Gross Margin Gross margin increase year on year Quarterly Gross Margin (AEDm) Year to Date Gross Margin (AEDm) +7.13% 1,850 1,821 * 74.00% 1,794 YTD Gross Margin (AEDm) 1,800 70.52% 72.00% 6,897 69.85% 68.73% 1,752 7,000 5,901 75.00% 70.00% 70.96% 1,750 67.42% 4,600 69.11% 70.08% 1,709 66.69% 68.00%
Slide 17: Gross Margin By Segment
Gross Margin By Segment (Quarterly) Quarterly Mobile Gross Margin before Handset Subsidy (AEDm) Quarterly Fixed Gross Margin (AEDm) +4.29% 340 335 100.00% +8.93% 335 74.75% 74.71% 1,486 330 95.00% 1,500 1,472 75.00% 1,454 325 321 322 90.00% 1,450 74.00% 320 314 72.74% 315 85.00% 1,400 1,386 73.00% 7
Slide 18: Overheads
Overheads Maintained cost control Overheads Quarterly Overheads (AEDm) Overheads as a % of Revenue Q2 2012 Q2 2013 Manpower 13.78% 12.54% -4.51% 800 40.00% Teleco license & related fees 2.69% 2.36% 752 750 733 Sales & marketing 3.12% 2.08% 35.00% 30.88% 30.73% 698 700 700 Bad debts 1.02% 0.05% 645 3
Slide 19: Profitability
Profitability Increased performance in both EBITDA and Net Profit before Royalty Quarterly EBITDA (AEDm) Quarterly Net Profit before Royalty (AEDm) +16.19% 1,400 60.00% +19.48% 1,200 1,176 1,000 40.00% 1,053 1,093 55.00% 852 941 957 752 778 1,000 800 50.00% 651 654 35.00% 32.18% 800 44.38% 45.00% 60
Slide 20: Capital Investments
Capital Investments Continued investment in operations Quarterly CapEx Additions (AEDm) Year to Date CapEx Additions (AEDm) 3,000 47.15% 50.00% 622 2,427 45.00% 2,500 40.00% 444 2,000 1,720 35.00% 368 318 323 1,500 1,244 1,291 30.00% 25.00% 1,000 18.26% 779 690 17.48% 16.42% 20.00% 15.11% 500 13.06%
Slide 21: Cash & Debt overview
Cash & Debt overview AED 838 million payment in royalty charges Quarterly Free Cash Flow (AEDm) Year to Date Free Cashflow (AEDm) 1,200 507 521 544 600 4,000 1,748 2,000 1,000 414 500 1,377 3,000 1,500 800 400 600 2,000 720 1,000 300 400 402 200 1,000 36 500 200 190 1,324 721 819 875 1,001 973 1,587
Slide 22: Contents
Contents Slide Highlights of the Second Quarter 4 Market Information 8 Financial Summary 10 Strategy & Outlook 23 22
Slide 23: 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 • Maximise return on investments and cash flow generation for our shareholders • Continue a progressive d
Slide 24: dll Lay Listig
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