Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q1 2023 Earnings Presentation
23 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, May 3, 2023
Slide 1: Q1 2023 results
Q1 2023 results Emirates Integrated Telecommunications Company PJSC 3 May 2023 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 2023 highlights: Sustainable and profitable growth
Q1 2023 highlights Sustainable and profitable growth Macro update Company update • Comforting macro data puts the UAE in a privileged position • Products – Robust PMI reading in March despite a slower start to – Continuing popularity of the Unlimited and Non-stop the year data Power Plan and Flexi P
Slide 5: Financial review: Highlights
Financial review Highlights Revenues EBITDA Net profit (AED million) (AED million) (AED million) +10.0% +7.7% +19.1% 3,441 1,269 1,366 370 3,128 311 Q1’22 Q1’23 Q1’22 Q1’23 Q1’22 Q1’23 Capex OpFCF (AED million) (AED million) +33.9% -0.6% 408 964 958 304 Q1’22 Q1’23 Q1’22 Q1’23 5 Emirates Integrated
Slide 6: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 6 Emirates Integrated Telecommunications Company PJSC
Slide 7: 9.4% growth of mobile customer base
Operating review 9.4% growth of mobile customer base +9.4% +3.8% Mobile customer base(*) (000s) • Growth in mobile subscriber base 7,895 8,194 – Attractive product range 7,489 7,418 7,402 – Robust visitor activity in Dubai • Postpaid segment (+11.4% yoy / +3.3% qoq) Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 – C
Slide 8: 26.4% growth in fixed customer base
Operating review 26.4% growth in fixed customer base • Consistent subscriber base growth – Improved product and services for consumer and Fixed customer base(*) (000s) enterprise segments including the addition of Disney+ – Expansion of our fibre network footprint by 13,000 +26.4% homes passed +3.3%
Slide 9: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 9 Emirates Integrated Telecommunications Company PJSC
Slide 10: Revenues
Financial review Revenues +10.0% 3,441 3,315 • Service revenues: +9.5% yoy / +0.6% qoq +3.8% 3,128 3,137 3,175 – 8th consecutive quarter of growth – Mobile revenues driven by growth in the Postpaid 2,427 2,412 segment 2,216 2,260 2,335 – Home Wireless performing exceptionally • Other revenues +11.2%
Slide 11: Service revenues
Financial review Service revenues +6.3% +15.0% -0.3% +2.2% (AED million) Revenues 1,406 1,443 1,496 1,491 1,402 891 916 936 814 854 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Mobile services revenues grew 6.3% yoy Fixed services revenues grew 15.0% yoy • Strong performance of postpa
Slide 12: Other revenues
Financial review Other revenues +11.2% Growth driven by equipment revenues and ICT +12.3% • Equipment revenues (+32.3% yoy) – Supply chain constraints have eased (AED million) Revenues 1,014 – Unabated demand for 5G handsets 912 877 840 903 • Sustained growth in ICT services – Healthy demand for dat
Slide 13: Consistent improvement of EBITDA
Financial review Consistent improvement of EBITDA +7.7% 1,366 EBITDA grew by 7.7% 1,269 1,267 1,303 1,305 +4.7% • Increase in gross profit driven by – higher service revenues (AED million) 40.6% 40.4% 41.0% – change in revenue mix is improving gross margin of core service 39.4% 39.7% revenues • Indi
Slide 14: Double-digit growth in Net profit
Financial review Double-digit growth in Net profit +19.1% • 19% increase net profit due to 7.7% growth in EBITDA 370 319 • Finance income increased from AED 8.6 million to AED 20.3 311 303 +29.4% 286 million (AED million) – higher interest rate environment – improved cash management Offset by • High
Slide 15: Capex and operating free cash flow
Financial review Capex and operating free cash flow • Capex moderating: Capex (AED million) – 5G covers 94% of population and 60% of the country 724 – Continuous fibre deployment 632 558 – Continued transformation of IT and network infrastructure 408 304 22.8% 17.8% 19.1% 9.7% 11.8% Q1’22 Q2’22 Q3’2
Slide 16: Unleveraged balance sheet and strong liquidity position
Financial review Unleveraged balance sheet and strong liquidity position (AED million) 2,460 Gross debt Cash & Term deposits 5,694 1,926 1,546 3,769 1,011 941 1,926 200 200 0 0 0 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Cash & Term Undrawn facility Total liquidity deposits • Strong balance sheet and healthy ca
Slide 17: Outlook
Outlook 2023 • We will continue to offer innovative products and develop new revenue streams – Differentiate through segmented and innovative offerings – Cater for the digital lifestyle needs of our customers – Enable advanced non-core solutions for our customers • Move to digital-first and offer an
Slide 18: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 18 Emirates Integrated Telecommunications Company PJSC
Slide 19: Operating KPI
Appendix Operating KPI 2022 2022 2022 2022 2022 2023 Q1 Q2 Q3 Q4 Full-year Q1 Mobile customers ('000s), of which 7,489 7,418 7,402 7,895 7,895 8,194 Postpaid 1,371 1,395 1,427 1,480 1,480 1,528 Prepaid 6,118 6,022 5,975 6,415 6,415 6,666 Net-adds ('000s), of which 237 -72 -16 494 643 299 Postpaid 34
Slide 20: P&L
Appendix P&L 2022 2023 AED million Q1 Q1 change Revenues 3,128.1 3,440.7 10.0% Direct costs -1,132.4 -1,289.5 13.9% Indirect costs -726.9 -785.2 8.0% Other income 0.2 0.0 -72.5% EBITDA 1,268.9 1,366.0 7.7% margin 40.6% 39.7% -0.9% Depreciation, amortization -423.4 -419.1 -1.0% Goodwill impairment 0.
Slide 21: Cash flow statement
Appendix Cash flow statement 2022 2023 AED million Q1 Q1 2022 2023 Net profit 311 370 Q1 Q1 Adjustments for non-cash items Purchase of property, plant and equipment -503 -489 Finance costs 6 4 Purchase of intangible assets -42 -68 Finance income -9 -20 Impairment of investments 0 0 Interest received
Slide 22: Balance sheet
Appendix Balance sheet As at As at AED million 31-Dec-22 31-Mar-23 As at As at Property, plant and equipment 9,426 9,407 AED million 31-Dec-22 31-Mar-23 Right-of-use assets 1,416 1,377 Share capital 4,533 4,533 Intangible assets 549 557 Share premium 232 232 Goodwill 413 413 Retained earnings 1,878
Slide 23: Thank you.
Thank you. Emirates Integrated Telecommunications Company PJSC
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