Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q1 2012 Earnings Presentation
22 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, May 2012
Slide 1: Q1 2012 Results
Q1 2012 Results Emirates Integrated Telecommunications Company PJSC May 2012
Slide 2: Disclaimer
Disclaimer • Emirates Integrated Telecommunications Company PJSC (hereafter ”du”) is a telecommunication services provider in the UAE. • du cautions investors that certain statements contained within this document state management’s intentions, hopes, beliefs, expectations or predictions of the futu
Slide 3: Contents
Contents Slide Highlights of the First Quarter 4 Market Information 6 Financial Summary 8 Strategy & Outlook 20 3
Slide 4: Q1 Financial Highlights
Q1 Financial Highlights Strong performance across all key metrics Total Revenue EBITDA Net Profit before Free Cash Flow Mobile Customers* (AEDm) (AEDm) (AEDm) Royalty (AEDm) Net additions (000s) Nearly +20.1% +49.0% +61.8% 10x +17.9% 2,447 2,038 321 925 272 666 306 621 412 32 Q1 '11 Q1 '12 Q1 '11 Q1
Slide 5: Contents
Contents Slide Highlights for the First Quarter 4 Market Information 6 Financial Summary 8 Strategy & Outlook 20 5
Slide 6: Market overview UAE
Market overview Strengthened market position – focus on gaining revenue share UAE Mobile Subscribers - Market share quarterly evolution UAE Telecom Market - Revenue share quarterly evolution 70% 90% 80% 60% 53.3% 70% 71.3% 50% 46.7% 60% Etisalat 40% 50% du 30% 40% 20% Etisalat 30% 28.7%* 20% du 10%
Slide 7: Contents
Contents Slide Highlights for the First Quarter 4 Market Information 6 Financial Summary 8 Strategy & Outlook 20 7
Slide 8: Revenues
Revenues Mobile business remains core driver of growth Revenue Quarterly Revenue (AEDm) Revenue Quarter Change (AEDm) Year over year change +20.1% 2,447 +1.5% 344 72 2,038 -6 -1 2,038 2,172 2,233 2,411 2,447 Q1 Q2 Q3 Q4 Q1 Q1 2011 Tel (Mobile) Tel (Fixed) Wholesale Broadcasting Q1 2012 2011 2012 Yea
Slide 9: Revenue Drivers - Mobile
Revenue Drivers - Mobile Q1 data growth was assisted by AED 29 million of expired promotional credits from a data promotion initiated in Q4 and ending in Q1. The adjusted data percentage of mobile revenue would be 14.2% Significant increase in data as a proportion of mobile revenues Quarterly Revenu
Slide 10: Revenue Drivers – Mobile
Revenue Drivers – Mobile Growing strength in post-paid customer base Contribution to YoY growth in mobile revenues (excluding inbound roaming and handset revenue) Minutes of use by customer segment Revenue - mobile 750 647 655 554 572 575 550 Postpaid Prepaid 350 49% 51% 246 254 262 258 240 150 Q1 2
Slide 11: Revenue Drivers – Fixed
Revenue Drivers – Fixed Solid performance in fixed line business Quarterly Fixed Revenue (AEDm) Fixed line Yearsubscription to Date Fixed Line Subscribers (‘000) +21.2% 600 500 400 300 200 337 368 380 391 409 100 Q1 Q2 Q3 Q4 Q1 262 357 477 531 480 545 0 2011 2012 FY '08 FY '09 FY '10 FY '11 Q1 '11 Q
Slide 12: Revenue Drivers
Wholesale revenues impacted by change in share of mobile market – Revenue Drivers more people now using du’s own service and therefore traffic from competition in the form of wholesale continues to reduce Wholesale & Broadcasting businesses remain steady Revenue Quarterly - Wholesale Broadcast Reven
Slide 13: Gross Margin
Gross Margin Healthy growth in gross margin for the quarter Quarterly Gross Margin (AEDm) Year to Date Gross Margin (AEDm) 7,000 90.0% +28.6% 85.0% +1.9% 6,000 80.0% 1,800 80.0% 5,000 1,600 75.0% 75.0% 69.2% 1,400 68.9% 69.2% 4,000 66.0% 66.6% 70.0% 1,200 66.9% 70.0% 65.0% 64.6% 65.8% 1,000 64.6% 65
Slide 14: Gross Margin
Gross Margin By Segment (Quarterly) Mobile Gross Margin (AEDm) before handset subsidy Fixed Gross Margin (AEDm) 1,600 90.0% +20.7% +31.2% 350 100.0% 1,400 85.0% 300 76.8% 90.0% 1,200 80.0% 71.6% 73.4% 250 74.2% 75.0% 73.9% 80.0% 1,000 68.9% 70.6% 68.4% * 75.0% 70.2% 800 70.0% 200 70.0% 600 65.0% 150
Slide 15: Overheads
Overheads Control maintained Overheads Quarterly Overheads (AEDm) Overheads as a percentage of revenue Q1 '11 Q1 '12 900 40.0% 800 35.2% Manpower 16% 15% 700 34.0% 33.7% Telecommunications license & related fees 3% 3% 31.4% 35.0% 600 31.9% Sales & Marketing expenses 3% 3% 500 30.0% Bad debts 1% 1% 4
Slide 16: Profitability
Net profit before royalty in Q4 2011 and Q1 2012 included one-off items that positively impacted the growth between Q4 2011 and Profitability Q1 2012 Strong performance in both EBITDA and Net profit before Royalty Quarterly EBITDA (AEDm) Quarterly Net Profit before Royalty (AEDm) +9.0% 1000 70.0% +6
Slide 17: Capital Investments
Capital Investments Maintained spend Quarterly Capex additions (AEDm) Year to Date Capex additions (AEDm) Capex Additions % of revenue 3,000 70.0% 59.2% 2,500 60.0% 45.5% 50.0% 2,000 40.0% 477 213 270 330 335 1,500 30.0% 17.6% Q1 Q2 Q3 Q4 Q1 1,000 14.6% 20.0% 2011 2012 500 10.0% 2,338 2,427 1,244 1,
Slide 18: Cash & Debt overview
Cash & Debt overview Strong free cash flow in 2011 Quarterly Free cash flow (AEDm) Year to Date Free cash flow (AEDm) Net Cash Operations Net Cash Investments FCF Net Cash Operations Net Cash Investments FCF 1,200 3,500 1,000 800 617 2,500 509 2,923 600 306 1,500 400 220 982 1,377 306 824 1,587 32 2
Slide 19: Contents
Contents Slide Highlights for the First Quarter 4 Market Information 6 Financial Summary 8 Strategy & Outlook 20 19
Slide 20: Strategy & Outlook
Strategy & Outlook Growth through efficiency • Focus on profitable growth and increase of value share • Deliver superior segmented customer experience • Increased focus on mobile data and bundled offerings • Introducing nation-wide competition in fixed-line services • Continued emphasis on operation
Slide 21: add life to life
dll Lay Listig add life to life
Slide 22: Slide 22
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