Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q2 2023 Earnings Presentation
23 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, Jul 26, 2023
Slide 1: Q2 2023 results
Q2 2023 results Emirates Integrated Telecommunications Company PJSC 26 July 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: Q2 2023 highlights
Q2 2023 highlights Macro update Company update • UAE economy continues to post strong growth • Products – A solid reading of the PMI in June, the highest reading in – Home wireless entertainment: 12 months of free four years driven by strong domestic demand. steaming on Disney+ or Amazon prime or OS
Slide 5: Financial review: Highlights
Financial review Highlights Revenues EBITDA Net profit (AED million) (AED million) (AED million) +6.7% +20.0% +31.2% 3,347 1,520 397 3,137 1,267 303 Q2’22 Q2’23 Q2’22 Q2’23 Q2’22 Q2’23 Capex OpFCF (AED million) (AED million) +43.3% -9.7% 558 1,016 504 709 Q2’22 Q2’23 Q2’22 Q2’23 5 Emirates Integrate
Slide 6: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 6 Emirates Integrated Telecommunications Company PJSC
Slide 7: 8% growth of mobile customer base
Operating review 8% growth of mobile customer base +8.0% Mobile customer base(*) (000s) • Continued growth of the mobile subscriber base 7,895 8,194 8,012 7,418 7,402 – Innovative and attractive product offerings – Population growth continues to boost demand • Postpaid segment (+10.5%) Q2’22 Q3’22 Q
Slide 8: 18.3% growth in fixed customer base
Operating review 18.3% growth in fixed customer base • Consistent subscriber base growth Fixed customer base(*) (000s) – Strong demand for consumer broadband services, with the expansion of our fibre network footprint by 14,000 +18.3% homes passed – Home Wireless continues its steady growth 554 559
Slide 9: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 9 Emirates Integrated Telecommunications Company PJSC
Slide 10: Revenues
Financial review Revenues +6.7% 3,441 3,315 3,347 • Service revenues: +8.9% yoy 3,137 3,175 – 10th consecutive quarter of service revenue growth – Postpaid segment driving the growth in mobile revenues 2,427 2,412 2,461 2,261 2,335 – Fixed revenues growing at a stable pace, supported by robust Home
Slide 11: Service revenues
Financial review Service revenues +7.6% +10.9% +1.5% +1.3% (AED million) 1,496 1,491 1,513 Revenues 1,406 1,443 936 948 891 917 855 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Mobile services revenues grew 7.6% yoy Fixed services revenues grew 10.9% yoy • Continued robust performance
Slide 12: Other revenues
Financial review Other revenues +1.1% Other revenues were flat • Growth in revenues from ICT services – Healthy demand for security, datacentre and cloud services (AED million) Revenues 1,014 903 • Higher revenues in roaming revenues 876 840 885 – Increase in number of visitors • Offset by – Revenue
Slide 13: Strong growth in EBITDA, backed with improving margins
Financial review Strong growth in EBITDA, backed with improving margins +20.0% Significant growth of the EBITDA and EBITDA margin yoy and qoq: 1,520 1,366 +11.3% 1,267 1,303 1,305 • Growth of revenues and improvement of the revenue mix toward products with higher profitability is leading to improvem
Slide 14: Impressive growth in Net profit
Financial review Impressive growth in Net profit • Net profit increased 31.2% yoy and 7.2% qoq driven by double +31.2% digit growth in EBITDA partially offset by certain post EBITDA 370 397 +7.2% items (AED million) 319 303 286 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 14 Emirates Integrated Telecommunications
Slide 15: Capex and operating free cash flow
Financial review Capex and operating free cash flow Capex (AED million) • Normalization of Capex 724 632 – Continuation of 5G deployment and network modernisation 558 504 408 – Fibre deployment to support fixed revenue growth 22.8% – IT and infrastructure transformation 17.8% 19.1% 15.1% 11.8% Q2’22
Slide 16: Ample liquidity and strong balance sheet
Financial review Ample liquidity and strong balance sheet (AED million) 1,926 Gross debt Cash & Term deposits 1,546 4,152 1,011 941 3,769 383 383 200 0 0 0 Cash & Term Undrawn facility Total liquidity Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 deposits • Healthy cash flow generation combined with strong balance
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 2023 Q1 Q2 Q3 Q4 Full-year Q1 Q2 Mobile customers ('000s), of which 7,489 7,418 7,402 7,895 7,895 8,194 8,012 Postpaid 1,371 1,395 1,427 1,480 1,480 1,528 1,541 Prepaid 6,118 6,022 5,975 6,415 6,415 6,666 6,471 Net-adds ('000s), of which 237 -72 -
Slide 20: P&L
Appendix P&L 2022 2023 AED million Q2 Q2 Change Revenues 3,136.9 3,346.6 6.7% Direct costs -1,110.4 -1,051.5 -5.3% Indirect costs -759.8 -775.3 2.0% Other income 0.0 0.5 992.2% EBITDA 1,266.8 1,520.3 20.0% Margin 40.4% 45.4% 5.0% Depreciation, amortization -427.6 -436.9 2.2% Goodwill impairment 0.0
Slide 21: Cash flow statement
Appendix Cash flow statement 2022 2023 AED million Q2 Q2 Net profit 303 397 Adjustments for non-cash items 571 711 Change in working capital 329 202 Cash generated from operations 1,203 1,310 Royalty paid (net) -1,413 -1,688 Payment of employees' end of service benefits -16 -5 Net cash generated fro
Slide 22: Balance sheet
Appendix Balance sheet As at As at As at As at AED million 31-Dec-22 30-Jun-23 AED million 31-Dec-22 30-Jun-23 Property, plant and equipment 9,426 9,445 Share capital 4,533 4,533 Right-of-use assets 1,416 1,693 Share premium 232 232 Intangible assets 549 586 Retained earnings 1,878 1,980 Goodwill 41
Slide 23: Thank you.
Thank you. Emirates Integrated Telecommunications Company PJSC
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