Vodafone Qatar Qsc · QSE:VFQS
Vodafone Qatar Qsc — Vodafone Qatar P.Q.S.C. — 9M ended 31 December 2017 Earnings Presentation
23 slides from Vodafone Qatar Qsc's earnings presentation, Feb 27, 2018
Slide 1: Vodafone Qatar P.Q.S.C. Financial results: Nine months ended 31 December 2017
Vodafone Qatar P.Q.S.C. Financial results: Nine months ended 31 December 2017 27 February 2018 C3 – Vodafone Confidential
Slide 2: Disclaimer
Disclaimer • The following presentation is made only to, and is directed only at, persons to whom such a presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. • This presentation con
Slide 3: Strategic review
Ian Gray Strategic review Chief Executive Officer
Slide 4: Key Highlights
Key Highlights Strong Recovery from Focus on Network Growth in Postpaid Network Outage coverage, capacity & customers expansion Service Revenue & ARPU Strong growth in postpaid 76% of total data traffic on 4G - to pre-outage levels subs driven by FLEX plans #1 in AMAP region GSMA Premier Operator Ra
Slide 5: Strategic initiatives
Strategic initiatives INVEST & GROW FIXED Selective investment in fixed and equip the business to DIGITAL & accelerate growth INNOVATIVE CY 2018 SOLUTIONS CUSTOMER A leading digital customer EXPERIENCE experience and innovative EXCELLENCE products and services (IoT, Content) NPS improvement CY 2018
Slide 6: Financial review
Brett Goschen Financial review Chief Financial Officer
Slide 7: Significant items impacting Quarter results
Significant items impacting Quarter results Strong recovery from network outage 1 Postpaid subs growth and Enterprise momentum continues ARPU back to pre-outage levels Settlement with network vendors as compensation for the network outage 2 QR 25m recognised as other income during the period O
Slide 8: Quarterly Financial performance (Year on Year)
Quarterly Financial performance (Year on Year) CY17 Q4 v CY16 Q4 Total revenue (QR m) Expenses (QR m) EBITDA (QR m) Net debt (QR m) -1% -2% -20% +1.3% 541 536 373 365 771 169 171 620 183 173 189 192 CY16 Q4 CY17 Q4 CY16 Q4 CY17 Q4 CY16 Q4 CY17 Q4 CY16 Q4 CY17 Q4 Direct costs OPEX • Total Revenue 1%
Slide 9: Service Revenue (QR m)
Service Revenue (QR m) CY17 Q4 v CY17 Q3 Postpaid Revenue Prepaid Revenue Total Service Revenue +30.3% +13.9% 200 294 491 481 484 472 269 +4.5% 178 262 161 415 155 153 227 217 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 Serv
Slide 10: Total Revenue & ARPU
Total Revenue & ARPU CY17 Q4 v CY17 Q3 Total Revenue (QR m) ARPU (QR) +24.8% +15.4% 541 536 106 105 517 516 102 101 91 429 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 Total 21.1% 20.2% 20.5% 19.1% 21.7% RMS • Total revenue 24.8% higher, adjusting for one-off reven
Slide 11: EBITDA & Underlying EBITDA margin
EBITDA & Underlying EBITDA margin CY17 Q4 v CY17 Q3 EBITDA (QR m) EBITDA margin % +75% 169 171 31.9% 131 139 31.2% 98 27.4% 26.9% 26.7% 26.3% 25.0% 26.9% 25.3% 22.8% CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 Reported EBITDA margin Underlying EBITDA margin • On a
Slide 12: CAPEX (QR m)
CAPEX (QR m) CY17 Q4 v CY17 Q3 Total CAPEX Quarterly CAPEX Mix CAPEX ARO Provision 149% Customer Capacity run and 151 Equipment & others maintenance 140 3 47 Capabilities & IT Transformation 38 35 68 56 103 21 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 CAPEX 12.5% 19.9% 4.1% 13.1% 26.1% Intensity 65 Co
Slide 13: Free Cash Flow (QR m)
Free Cash Flow (QR m) CY17 Q4 v CY17 Q3 Free Cash Flow Nine months ended 31 Dec 2017 Free Cash Flow bridge 157m 407 23 218 6 96 80 -87% 54 17 157 7 (6) EBITDA iPhone Other working Capex Wakala FCF 8&X stock capital financing CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 costs & others • Free Cash Flow dec
Slide 14: Nine Months: Financial performance (Year on Year)
Nine Months: Financial performance (Year on Year) CY17 v CY16 Total revenue (QR m) Expenses (QR m) EBITDA (QR m) Net debt (QR m) -3.9% -5.5% -20% +0.4% 1,541 1,136 771 1,481 1,074 406 407 620 574 533 561 541 Dec-16 Dec-17 Dec-16 Dec-17 Dec-16 Dec-17 Dec-16 Dec-17 Direct costs OPEX • Total Revenue 3.
Slide 15: Key New Developments
Key New Developments
Slide 16: Company Changes that Re-Set it for the Future
Company Changes that Re-Set it for the Future • Extension of Licence • Capital Reduction • Credit Facility has been agreed to support Acceleration in Fixed & 5G • Extension of Vodafone Group Plc co-operation agreement • Qatar Foundation entered into a conditional Share Purchase Agreement with Vodafo
Slide 17: Questions ?
Questions ?
Slide 18: Appendix
Appendix
Slide 19: Mobile Customers ('000s)
Mobile Customers (‘000s) CY17 Q4 v CY17 Q3 Postpaid Prepaid Total Mobile Customers +8.7% +0.1% -2.2% 319 1,216 1,229 1,178 1,472 1,501 1,464 285 293 1,096 1,389 1,390 272 1,071 256 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4
Slide 20: Net Loss & Distributable Profit (QR m)
Net Loss & Distributable Profit (QR m) CY17 Q4 v CY17 Q3 Net loss Distributable profits 70% 1,585% 69 72 -31 -29 44 -57 26 -74 4 -96 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 • Quarterly Distributable Profit highest in 3 years led by EBITDA flow through 20
Slide 21: Financing Position
Financing Position CY17 Q4 v CY17 Q3 Net Debt (QR m) Net Debt to EBITDA Ratio* 771 777 -1% 1.66 680 1.45 -1% 626 620 1.18 1.17 1.15 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 CY16 Q4 CY17 Q1 CY17 Q2 CY17 Q3 CY17 Q4 • Lowest Net Debt in Company history • Four month EBITDA to Net Debt improved by 1% due
Slide 22: Financial Summary
Financial Summary For Nine Months ended 31 December 2017 QR m 9m to 9m to YoY (unless otherwise stated) Dec-17 Dec-16 Growth (%) • Customer Base lower, largely impacted by network outage and reduction in market sim duality Mobile Customers (000) 1,390 1,473 (5.6%) • Total Revenue and Service Revenue
Slide 23: Thank you !
Thank you ! For more information visit our website: www.vodafone.qa/en/investor-relations Or email us: InvestorRelationsQatar@vodafone.com 23
Vodafone Qatar P.Q.S.C. — 9M ended 31 December 2017 Earnings Presentation on 6ix