Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q3 2021 Earnings Presentation
22 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, Oct 19, 2021
Slide 1: Q3 2021 results
Q3 2021 results Emirates Integrated Telecommunications Company PJSC 19 October 2021 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: Q3'21 highlights: The UAE is returning to normal
Q3’21 highlights The UAE is returning to normal Macro • Oil price supporting revision of growth forecasts • PMI readings have recovered from the lows of 2020 • Anecdotal evidence of consumer confidence picking-up Resumption of domestic and international mobility • Generalization of in-school learnin
Slide 5: Q3'21 highlights: Company
Q3’21 highlights Company • Board of Directors – Resignation of Mr. Mohamed al Hussaini as Chairman following his appointment as Minister of State for Financial Affairs – Appointment of Mr. Malek al Malek as Chairman – Appointment of Mr. Abdulla Beloul as Director • Product enhancements – Refreshed P
Slide 6: Q3'21 highlights: Financial
Q3’21 highlights Financial AED 2,874 m • First quarter of growth in mobile revenues after 3 consecutive quarters Revenues • B2B and B2C continue to drive fixed services’ strong performance +6.9% yoy • Continued demand for 5G handsets and gradual recovery of wholesale AED 1,100 m • Cost optimisation
Slide 7: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 7 Emirates Integrated Telecommunications Company PJSC
Slide 8: Operating review: Mobile services: customer base -2.2%
Operating review Mobile services: customer base -2.2% Mobile customer base(*) (000s) -2.2% 6,658 6,784 6,594 6,565 6,451 • Postpaid customer base is recovering 1,265 1,271 1,313 1,285 1,298 – Improved digital customer experience – Gross-adds are normalizing • Prepaid customer base 5,330 5,386 5,471
Slide 9: Operating review: Fixed services: net-adds accelerating
Operating review Fixed services: net-adds accelerating Fixed customer base(*) (000s) +52 +31 • Simplicity of our consumer offer is driving: +13 – Acceleration of net-adds +7 – Continuous increase in market share 331 279 236 248 228 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 (*) Fixed customer base are unique con
Slide 10: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 10 Emirates Integrated Telecommunications Company PJSC
Slide 11: Financial review: Highlights
Financial review Highlights +6.9% -4.9% -477bp -7.1% Revenues EBITDA EBITDA Net profit (adjusted(*)) (AED million) (AED million) margin (AED million) 2,874 1,157 1,100 43.0% 305 2,688 38.3% 283 Q3’20 Q3’21 Q3’20 Q3’21 Q3’20 Q3’21 Q3’20 Q3’21 (*) Net profit (adjusted) excludes gains from the sale of
Slide 12: Revenues +6.9%
Financial review Revenues +6.9% +6.9% • Sustained demand for fixed services and significant increase (AED million) in the customer base 2,688 2,740 2,883 2,855 2,874 • Mobile services – Postpaid segment edging towards recovery Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 – Prepaid still under pressure but improvin
Slide 13: Mobile revenues are recovering
Financial review -2.2% Mobile revenues are recovering Customers* 6,784 (‘000s) 6,594 6,658 6,565 6,451 • Customers – Postpaid recovery driven by improved digital customer experience Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 – Prepaid impacted by disconnections +1.2% • ARPU – Improvement is driven by Postpaid vo
Slide 14: Sustained growth in fixed revenues +14.7%
Financial review Sustained growth in fixed revenues +14.7% +45.1% Customers 331 279 • Solid contribution from Consumer and Enterprise (‘000s) 228 236 248 segments – Consumer: acceleration of net-adds – Corporates: demand for services is returning Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 +14.7% (AED million) Re
Slide 15: Other revenues +16.6%
Financial review Other revenues +16.6% +16.6% • Doubling of equipment revenues – Unabated demand for 5G handsets (AED million) • Wholesale revenues Revenues 908 873 839 779 – Traffic continues its recovery 720 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 15 Emirates Integrated Telecommunications Company PJSC
Slide 16: EBITDA decreased 4.9% to AED 1,100 million
Financial review EBITDA decreased 4.9% to AED 1,100 million -4.9% 1,157 1,120 1,130 1,100 1,031 Direct costs increased AED 202 million (+22.0%) to AED 1,085 million • Product costs +69% to AED 261 million (AED million) 43.0% 37.6% 38.8% 39.6% 38.3% – Higher handset sales • Interconnect +13% to AED 7
Slide 17: Net profit (adjusted) -7.1%
Financial review Net profit (adjusted)1 -7.1% • Lower EBITDA • Higher depreciation & amortisation charges due to ambitious 519 capital investment programme (AED million) -7.1% 305 283 257 240 48 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Gain on disposal of Khazna Data Center 1 Net profit (adjusted) excludes gai
Slide 18: Operating Free Cash Flow: Cash generation -27.3%
Financial review Cash generation -27.3% 649 568 541 511 372 (AED million) • Lower capex spend due to phasing of Capex expenditure 22.7% 19.0% 19.7% 19.7% – 5G coverage: 90% of population 12.9% – Inaugurated 2 additional data centres Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 +12.8% Operating Free Cash Flow • Ope
Slide 19: Outlook Q4'2021 and beyond
Outlook Q4’ 2021 and beyond • Return to normality – Gradual release of social distancing measures encourages return to office and in-school learning – UAE positioning itself as a leading tourist destination (Expo 2020) • Macro – Economic liberalization cements the UAE’s position as a global hub – Bu
Slide 20: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 20 Emirates Integrated Telecommunications Company PJSC
Slide 21: Appendix: Operating KPI
Appendix Operating KPI 2020 2020 2020 2020 2021 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Mobile customers ('000s), of which 7,440 6,418 6,594 6,658 6,784 6,565 6,451 Postpaid 1,363 1,262 1,265 1,271 1,313 1,285 1,298 Prepaid 6,077 5,156 5,330 5,386 5,471 5,280 5,153 Net-adds ('000s), of which -194 -1,022 177
Slide 22: Thank you.
Thank you. Emirates Integrated Telecommunications Company PJSC
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