Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Kuwait Telecommunications Company K.S.C.P (VIVA) — H1 2018 Earnings Presentation
18 slides from Kuwait Telecommunications's earnings presentation, 2018
Slide 1: Investors Presentation H1 2018
Investors Presentation Kuwait Telecommunications Company K.S.C.P H1 - 2018 1 Investor Relations
Slide 2: Table of content
Table of content VIVA’s History in Brief 3 Key Milestones 4 Vision and Values 5 Shareholders' Structure 6 Population & Penetration 7 Competitive Strengths 8 Market Share 9 Financial Results 11 Financial Highlights 13 Stock Performance 14 Appendix – Balance Sheet & Income Statement 15 2 Investor Rela
Slide 3: VIVA's History in Brief
VIVA’s History in Brief 2007 Jun 2008 Sep 2008 Dec 2008 Dec 2014 Jun 2015 VIVA’s Stock under KSE15 Index VIVA Stock was listed on Kuwait Stock Exchange Commercial Launch of VIVA Operations in Kuwait Public placement of VIVA shares which was 2.4x oversubscribed. distributed among c. 1 million Kuwaiti
Slide 4: Key Milestones
Key Milestones 2008 2010 2012 2014 2016 2018 Partnership with Real Launches commercially VIVA launches Elite Program for Expand retail Madrid. Best Telecom Company by loyal, VIP and high value network and launch Arabian Business. VIVA abolishes incoming customers. joint promotions List
Slide 5: Vision and Values
Vision and Values Our vision is to provide unique services and products that satisfy the aspirations of our clients and accommodate their needs, which in turn will earn us their trust. This is through presenting our customers with numerous telecommunications opportunities with the goal of boosting o
Slide 6: Shareholders' Structure
Shareholders' Structure Saudi Telecom 52% Kuwaiti Government 24% Public Shareholders 24% STC, the leading regional telecom The Kuwaiti government holds 24% Public Share holders consists of operator, won the bid for third mobile of VIVA through different companies, portfolios, funds and license
Slide 7: Population & Penetration
Population & Penetration Kuwait population since 2010 is growing at the same level of 2.8% yearly and the growth is forecasted by IMF at 2.8% over the next 5 years compared to almost 1% for the global population growth. This growth coupled with rising income levels will propel growth in consumer spe
Slide 8: Competitive Strengths
Competitive Strengths STC (the largest telecom company in the region) will continue to be a major shareholder and VIVA will continue to benefit from being a member of the STC group. Through this relationship, VIVA has access to technical support, industry best practice for provision of telecom servi
Slide 9: Market Share
Market Share Total Subscriber Base in Kuwait (Mn) 10 Total Subscirbers in kuwait (Mn) VIVA Subscribers (Mn) 7.6 7.7 7.7 7.5 7.2 6.41 5.9 5.2 5 4.5 0.8 1.1 1.6 2.2 2.4 2.5 2.4 2.3 2.3 0 2010 2011 2012 2013 2014 2015 2016 2017 Jun-18 Telecom Sector Revenues in Kuwait (KWD Mn) Total Telecom Revenue in
Slide 10: Market Share vs. peer group
Market Share vs. peer group Subscriber Market Share – Jun 2018 Revenue Market Share – H1 2018 VIVA 31% VIVA Ooredoo Ooredoo 33% 32% 28% Zain Zain 37% 39% EBITDA Market Share – H1 2018 Net Profit Market Share – H1 2018 Ooredoo* 5% VIVA Ooredoo 32% 21% VIVA 36% Zain 59% Zain 47% 10 Investor Relations
Slide 11: Financial Results
Financial Results In H1 2018, the company has applied H1-2017 (Restated) Key Figures & Ratios H1-2018 Change IFRS 15 ‘Revenue from Contracts with Customers “and IFRS 9 “Financial Subscribers (Mn) 2.24 2.35 5.1% Instruments” which are effective from Revenue (KD Mn) 138.6 149.1 7.6% 1st January 2018
Slide 12: Financial Highlights
Financial Highlights Revenue (KD Million) EBITDA (KD Million) 400 EBITDA (KWD Million) EBITDA Margin (%) 150.0 288 50% 300 277 279 47% 47% 47% 45% 239 40% 100.0 112.6 35% 200 149 30% 139 25% 25% 23% 25% 131.0 131.9 50.0 20% 100 15% 71.1 10% 32.3 37.0 5% 0 0.0 0% 2014 2015 2016 2017 H1- 2017 H1-2018
Slide 13: Financial Highlights
Financial Highlights Total Assets (KD Million) Total Debt / Equity (KD Million) Total Debt (KWD Million) 300 263 267 273 275 100 6.9 8.00 86 7.00 250 214 80 72 66 6.00 200 179 60 5.00 47 150 4.00 40 1.7 3.00 100 20 0.8 2.00 50 0.4 9 0.1 0 1.00 0 0 0.0 - 2013 2014 2015 2016 2017 Jun-2018 2013 2014 20
Slide 14: Stock Performance
Stock Performance Closing Price (KD) 0.701 PE (X) 7.7 Paid up Capital (KD Million) 49.9 PB (X) 2.11 Market Cap (KD Million) 350 Dividend Yield (%) 4.1% Data as of 28 June 2018 Rebased Index Since VIVA’s Listing Date 14 Dec 2014 – Stock Performance vs. KSE and Telecom weighted Indices VIVA's Stock Pr
Slide 15: Appendix
Appendix Balance Sheet (2014 – June 2018) Income Statement (2014 – H1 2018) 15 Investor Relations
Slide 16: Balance Sheet (2014 – June 2018)
Balance Sheet (2014 – June 2018) 2014 2015 2016 *2017 (restated) *June 2018 Balance Sheet KD Mn KD Mn KD Mn KD Mn ASSETS Property and equipment 113.1 125.4 137.7 145.0 143.6 Intangible assets 36.3 50.6 47.5 - - Other non-current assets 0.7 - - - - Non-current assets 150.1 175.9 185.2 145.0 143.6 Inv
Slide 17: Income Statement (2014–H1 2018)
Income Statement (2014–H1 2018) *2017 *H1-2017 Income Statement 2014 2015 2016 (Restated) (Restated) *H1-2018 KD Mn KD Mn KD Mn KD Mn KD Mn KD Mn Revenue 239.0 276.9 279.1 287.7 138.6 149.1 Operating expenses (126.3) (145.8) (147.0) (216.4) (106.3) (112) Depreciation and amortization (67.6) (82.2) (
Slide 18: Thank you
Thank you Investor Relations Department: E-mail: Investor.relations@viva.com.kw Tel : +965 5000 1911 www.viva.com.kw 18 Investor Relations
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