Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q3 2022 Earnings Presentation
24 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, Nov 1, 2022
Slide 1: Q3 2022 Results
Q3 2022 Results Emirates Integrated Telecommunications Company PJSC 1 November 2022 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 2022 highlights: Return to growth
Q3 2022 highlights Return to growth Macro update Company update • Comforting macro data puts the UAE in a privileged position • Product launch – PMI ahead of pre-pandemic levels – 5G Home Wireless (du, Virgin Mobile) – The IMF upgraded 2022 GDP growth forecasts for the – 5G handsets: iPhone 14, Sams
Slide 5: Financial highlights
Highlights Financials Revenues EBITDA Net profit (AED million) (AED million) (AED million) +10.5% +18.5% +12.7% 3,175 1,303 319 2,874 1,100 283 Q3’21 Q3’22 Q3’21 Q3’22 Q3’21 Q3’22 Capex OpFCF (AED million) (AED million) +93.5% -20.2% 724 726 579 374 Q3’21 Q3’22 Q3’21 Q3’22 5 Emirates Integrated Tele
Slide 6: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 6 Emirates Integrated Telecommunications Company PJSC
Slide 7: Mobile services: customer base
Operating review Mobile services: customer base +14.7% +14.7% Mobile customer base(*) (000s) 7,253 7,489 7,418 7,402 6,451 • Postpaid segment (+32k net-adds) – Sustained demand from corporate and consumer segments Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 – Handset financing plans continue to be an efficient ac
Slide 8: Fixed services: half a million broadband customers
Operating review Fixed services: half a million broadband customers Fixed customer base(*) (000s) • Our Broadband strategy continues to deliver: +53.8% – Solid net-adds (+37k) – Market share gains across all service categories • Demand for our consumer broadband services driven by 510 473 439 – Cont
Slide 9: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 9 Emirates Integrated Telecommunications Company PJSC
Slide 10: Revenues
Financial review Revenues +10.5% • Mobile services – Growth driven by solid commercial offering • Fixed services – Delivering on our strategy with innovative products and network expansion 3,175 – Solid commercial performance 2,874 3,070 3,128 3,137 • Other revenues – Robust demand for ICT services
Slide 11: Mobile services: firmly on growth trajectory
Financial review Mobile services: firmly on growth trajectory +10.7% • Four consecutive quarters of revenue growth – Postpaid segment is the main driver Mobile service (AED million) – Growth in voice revenues driven by customer base and traffic Revenues 1,390 1,402 1,406 1,443 1,304 Q3’21 Q4’21 Q1’2
Slide 12: Sustained growth in fixed revenues: +22%
Financial review Sustained growth in fixed revenues: +22% +22.2% • Consumer segment continues to drive growth – Fibre network expansion… – … attractive and innovative offering… – … are contributing to sustained net-adds (+37,000) • Demand for Enterprise services remain very healthy (AED million) Fix
Slide 13: Other revenues
Financial review Other revenues 0.0% • Wholesale revenues stabilised – International hubbing revenues deliberately reduced • Equipment revenues continued its growth path Other Revenues (AED million) – Supply chain issues continue to affect the availability of highly desirable handsets 917 911 876 83
Slide 14: EBITDA: margin at a 2-year high
Financial review EBITDA: margin at a 2-year high +18.5% 1,269 1,267 1,303 1,242 1,100 • Service revenues (+14.8%) increased by AED 301 million – Mobile service revenues +10.7% – Fixed service revenues +22.2% (AED million) EBITDA 40.5% 40.6% 40.4% 41.0% 38.3% • Gross profit increased by AED 282 milli
Slide 15: Net profit: improvement through higher EBITDA
Financial review Net profit: improvement through higher EBITDA +12.7% 321 319 311 303 • On a comparable basis, net profit increased 50% (+12.6% on 283 adjusted basis) due to EBITDA growth 107 70 (AED million) • Depreciation & amortization charges Net profit – Higher depreciation due to Q4’21 capex s
Slide 16: Capex and operating free cash flow
Financial review Capex and operating free cash flow +93.5% 1,014 (AED million) 724 Capex • Capex ramping up due to phasing 558 33.0% – Capital intensity is starting to normalize (16.8% in 9M’22 374 22.8% 305 17.8% vs 18.5% in 9M’21) 13.0% 9.7% Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 -20.2% Operating free cash
Slide 17: Strong balance sheet and high liquidity
Financial review Strong balance sheet and high liquidity (AED million) Gross debt Cash & Term deposits 2,460 4,679 2,016 1,224 3,769 1,011 910 910 200 200 200 200 0 Cash & Term Undrawn facility Total liquidity Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 deposits • Repayment of AED 200 million of debt • Strong liq
Slide 18: Outlook
Outlook 2022 • Infrastructure – 5G: shift the focus from network coverage to densification – Fiber: continue deploying fiber network • Mobile services – Unlimited Power Plans: retain and attract high-value customers – World Cup in Qatar: potential boom for tourism in the UAE • Fixed services – Monet
Slide 19: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 19 Emirates Integrated Telecommunications Company PJSC
Slide 20: Operating KPI
Appendix Operating KPI 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 Q1 Q2 Q3 Q4 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 7,253 7,489 7,418 7,402 Postpaid 1,363 1,262 1,265 1,271 1,313 1,285 1,298 1,337 1,371 1,395 1,427 Prepaid 6,077
Slide 21: P&L
Appendix P&L 2021 2022 2021 2022 AED million Q3 Q3 change 9M 9M change Revenues 2,874 3,175 10.5% 8,612 9,440 9.6% Direct costs -1,085 -1,103 1.7% -3,222 -3,346 3.9% Indirect costs -689 -769 11.5% -2,040 -2,255 10.5% Other income 0 0 -8.2% 0 0 1.0% EBITDA 1,100 1,303 18.5% 3,350 3,839 14.6% margin 3
Slide 22: Cash flow statement
Appendix Cash flow statement 2021 2022 2021 2022 2021 2022 2021 2022 AED million Q3 Q3 9M 9M Q3 Q3 9M 9M Net profit 283 319 780 933 Purchase of property, plant and equipment -392 -643 -1,494 -1,730 Adjustments for non cash items Purchase of intangible assets -14 -109 -55 -182 Finance costs 6 7 14 14
Slide 23: Balance sheet
Appendix Balance sheet As at As at As at As at AED million 31-Dec-21 30-Sep-22 AED million 31-Dec-21 30-Sep-22 Property, plant and equipment 9,068 9,342 Share capital 4,533 4,533 Right-of-use assets 1,650 1,481 Share premium 232 232 Intangible assets 446 477 Retained earnings 1,748 1,591 Goodwill 41
Slide 24: Thank you.
Thank you. Emirates Integrated Telecommunications Company PJSC
Emirates Integrated Telecommunications Company PJSC — Q3 2022 Earnings Presentation on 6ix