Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q2 2020 Earnings Presentation
15 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, 2020
Slide 1: Q2 2020 Results
Q2 2020 Results Emirates Integrated Telecommunications Company PJSC 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: Severe Covid-19 impact
Severe Covid-19 impact COVID-19: • Covid-19 has impacted life and business across UAE in Q2 2020, various restrictions related to people and business activities were in place during the large part of the quarter. • Despite its relative resilience, the Telecom sector was severely impacted due to the
Slide 4: Preparing the gradual recovery, interim dividend confirmed
Preparing the gradual recovery, interim dividend confirmed General Business • Management of the gradual ramp-up of the activity • Continuation of the deployment of the 5G network • New Ramadan offers for families to stay connected with loved ones • Launched e-Shop to support SME customers in their d
Slide 5: Pressure on the mobile base and growth of the fixed base
Pressure on the mobile base and growth of the fixed base In ‘000 Mobile Subscriber -1,649 -1,649 (-20.4%) Base(1) (-20.4%) -1,022 (-13.7%) 8,066 7,736 7,634 7,440 8,066 6,418 6,418 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 YTD 2019 YTD 2020 Fixed Subscriber +14 +14 Base(2) (+6.8%) (+6.8%) +2 (+1.0%) 2
Slide 6: Stable mobile ARPU
Stable mobile ARPU In AED +4 0 (-0.6%) (+4.5%) -3 (-3.2%) 82 85 88 84 80 83 82 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 YTD 2019 YTD 2020 • Slight decline in ARPU QoQ mainly driven by the decline in prepaid revenues. • Compared to last year, ARPU is almost flat largely driven by the change in mix of
Slide 7: Impact of the Covid-19 reflected fully on Q2 revenues
Impact of the Covid-19 reflected fully on Q2 revenues AED Millions -521 -673 (-16.3%) (-10.6%) -320 (-10.7%) 3,189 3,067 3,192 2,988 6,329 2,668 5,656 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 YTD 2019 YTD 2020 • Total revenue decline compared to last year and last quarter is mainly influenced by the
Slide 8: Growth in fixed revenues and pressure on the other segments
Growth in fixed revenues and pressure on the other segments AED Millions -543 Mobile -389 (-16.2%) Revenues (-23.0%) -198 (-13.2%) 1,694 1,605 1,580 3,351 1,503 2,808 1,305 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 YTD 2019 YTD 2020 +28 (+4.6%) +58 Fixed (+4.8%) Revenues +4 (+0.6%) 617 623 642 641 645
Slide 9: EBITDA erosion despite cost efficiency measures
EBITDA erosion despite cost efficiency measures AED Millions -420 (-28.5%) 2,892 1,473 1,460 1,332 2,319 1,266 -573m 1,054 45.7% -19.8% 46.2% 45.7% -212 41.0% 43.4% 42.4% (-16.8%) 39.5% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 YTD 2019 YTD 2020 EBITDA Margin • EBITDA mainly impacted mainly by the dec
Slide 10: Pressure on the bottom-line
Pressure on the bottom-line AED Millions -249 913 (-53.6%) 464 436 381 355 570 -343 (-37.5%) 215 -140 14.5% (-39.4%) 14.4% 12.4% 13.7% 11.9% 10.1% 8.1% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 YTD 2019 YTD 2020 Net profit Margin • Decline in mobile revenue led to decline in EBITDA and consequently th
Slide 11: Deployment plans maintained and focus on cash flow
Deployment plans maintained and focus on cash flow AED Millions Capex 709 819 14.5% 509 22.2% 467 332 310 286 7.4% 10.8% 10.4% 19.1% 9.0% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 YTD 2019 YTD 2020 Capex(% of Revenue) FCF* -360m +164 1,137 -369 826 464 -729 -1,357 -1,193 YTD 2019 YTD 2020 Q2 2019 Q3 2
Slide 12: The way forwards: gradual recovery with several uncertainties
The way forwards: gradual recovery with several uncertainties • The evolution of the macro-environment will drive the speed of the ramp-up and the “new normal” levels • Business evolution: • Consumer business may have reached a bottom is Q2 but there is still the risk of population shrinkage • Enter
Slide 13: Appendices
Appendices Emirates Integrated Telecommunications Company PJSC
Slide 14: Key Performance Indicators
Key Performance Indicators Second Quarter Analysis First Half Analysis AED Millions Q2 2019 Q2 2020 % Change H1 2019 H1 2020 % Change Revenues 3,189 2,668 (16.3%) 6,329 5,656 (10.6%) Fixed revenues 617 645 4.6% 1,228 1,287 4.8% Mobile revenues 1,694 1,305 (23.0%) 3,351 2,808 (16.2%) Other revenues 8
Slide 15: Thank you.
Thank you. Emirates Integrated Telecommunications Company PJSC
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