Emirates Telecom. Group Company (etisalat Group) Pjsc · ADX:EAND
Emirates Telecom. Group Company (etisalat Group) Pjsc — e& (Emirates Telecommunications Group Company PJSC) — Q2 2023 Earnings Presentation
23 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's earnings presentation, Aug 2, 2023
Slide 1: Q2 2023 Results Presentation
Q2 2023 Results Presentation 2 August 2023 A Global Technology Group
Slide 2: Disclaimer
Disclaimer Emirates Telecommunications Group Company PJSC (“e&” or the “Company”) and its subsidiaries have prepared this presentation (“Presentation”) in good faith, however, no warranty or representation, express or implied is made as to the adequacy, correctness, completeness or accuracy of any n
Slide 3: Group Key Highlights
Group CEO Hatem Dowidar Group Key Highlights
Slide 4: Q2 2023 Snapshot
Group Q2 2023 Snapshot Exemplifying financial … coupled with solid … and a key focus on resilience… operational growth… sustainability Revenue Subs AED 13.6 billion 165 million +12% Y-o-Y Growth in Constant e& successfully completes ‘Women +3% Y-o-Y increase with growth in Leadership’ programme in C
Slide 5: Q2 2023 Key Developments
Q2 2023 Key Developments % % % % Investment of 50.03% Investment of 65% Investment of 63.3% Investment of 50% + 1 share $400 million Majority Stake $10 million Majority Stake $24 million Majority Stake €2,150 million Majority Stake Our investment will Enhancing digital Beehive is the first Acquisiti
Slide 6: e& to expand into Central and Eastern Europe through majority stake investment in PPF Telecom
e& to expand into Central and Eastern Europe through majority stake investment in PPF Telecom (4 Countries) Investment Rationale Transaction Details +10 Million subscribers across 4 high growth Consistent with e&’s strategic ambition Acquisition of a 50% +1 share economic stake in markets with leadi
Slide 7: PPF Telecom enjoys strong competitive position across its various segments in CEE
PPF Telecom enjoys strong competitive position across its various segments in CEE with attractive 3 players structure(1) Slovakia Hungary €325m €128m (39%) €546m €186m (34%) Revenue 22A EBITDAaL 22A (Margin) Revenue 22A EBITDAaL 22A (Margin) €93m (29%) 25% Mobile(2) €232m (42%) 29% mobile(2) Capex(5
Slide 8: etisalat by e& UAE Strategic Digital Developments to Accelerate Growth
etisalat by e& UAE Strategic Digital Developments to Accelerate Growth Smiles Go Chat Messenger Business Solutions AI powered solution for businesses to accelerate their digital presence Launched Utap, a holistic, omni- channel business automation and Lifestyle companion super app that has payment m
Slide 9: Group Financial Highlights
Group CFO Karim Bennis Group Financial Highlights
Slide 10: Q2 2023 Key Financial Highlights
Q2 2023 Key Financial Highlights Delivering profitable growth Profit & Loss: Revenue witnessed robust y-o- Group Revenue Group EBITDA Net Profit y growth in reported currency, spearheaded by an outstanding AED 13.6 billion AED 6.6 billion AED 2.5 billion quarter in the UAE market. ↑ 5% Y-o-Y ↓ 1% Y-
Slide 11: Group Revenue
Group Revenue Organic and reported revenue growth Key Highlights Revenue (AED m) & YoY Growth (%) Sources of Revenue Variance (AED m) • Continued strong +12.0% 136 454 13,614 performance in UAE 13,614 444 attributed to ongoing 12,996 13,002 commercial momentum and solid economic -332 12,996 -84 envi
Slide 12: Group EBITDA
Group EBITDA EBITDA margin impacted by currency and changes in the revenue mix Key Highlights EBITDA (AED m) & Margin (%) Sources of EBITDA Variance (AED m) • EBITDA in constant +3.8% 76 currency increased YoY 6,644 122 6,568 by 3.8% attributable to 6,183 the strong revenue 6,644 51% 25 growth 6,568
Slide 13: Group CAPEX
Group CAPEX Focus on networks investment and modernisation Key Highlights CAPEX (AED m) & Intensity Ratio (%) Sources of CAPEX Variance (AED m) • Maintaining disciplined 279 capital spend and capex 1,943 1,830 intensity ratio 136 1,943 1,830 -197 60 • Capital spend in the 1,096 UAE focused on -165 e
Slide 14: Group Financial Position
Group Financial Position Strong balance sheet supporting growth agenda Key Highlights Cash & Cash Equivalents (AED m) Total Debt (AED m) • Slight decline in cash balance YoY attributed 46,935 47,217 31,454 to changes in working 39,679 capital 25,197 24,021 • Debt increase to finance growth opportuni
Slide 15: Group Debt Profile
Group Debt Profile Diversified long-term debt profile Key Highlights Borrowings by Operations (AED m) Borrowings by Currency (%) • Total debt of AED 47.2 36,997 billion USD Euro 12% 19% Others • 78% of debt is at Group 8% level, mostly in bank MAD borrowings 6% PKR 5% • 62% of debt is in USD/AED 5,7
Slide 16: Group Dividends
Group Dividends Maintaining consistent dividends to shareholders Key Highlights Interim Dividends (AED bn) Interim Dividend Payout Ratio (%) • e&’s Board approved 3.48 3.48 3.48 73.31 71.50 73.87 interim DPS of 40 fils for H1 2023 • To be distributed to the shareholders registered in the shareholder
Slide 17: etisalat by e& UAE
etisalat by e& UAE Consistent execution driving profitable growth Key Highlights Revenue (AED m) & YoY Growth (%) EBITDA (AED m) & EBITDA Margin (%) • Revenue growth YoY 7,963 8,151 4,201 7,707 4,079 4,072 driven by strong commercial momentum and acceleration of 53% 51% 52% digital products 6% • EBI
Slide 18: UAE Breakdown & Key KPIs
UAE Breakdown & Key KPIs Strong operational performance & subscriber gains Mobile Revenue(1) (AED m) & YoY Growth (%) Fixed Revenue(2) (AED m) & YoY Growth (%) Other Revenue(3) (AED m) & YoY Growth (%) 2,901 2,859 2,424 2,866 2,825 2,238 2,814 2,774 2,118 14% 7% 2% 2% 3% 0% 1% 3% 3% Q2’22 Q1’23 Q2’2
Slide 19: Maroc Telecom Group
Maroc Telecom Group Returned to steady growth in revenue and EBITDA Key Highlights Subscribers (m) Revenue (AED m) & YoY Growth (%) • Stable subscriber base +6% 75 75 75 3,094 3,070 3,230 • Strong revenue growth in Moov Africa operations in addition to improvement in 4% performance in Morocoo • EBIT
Slide 20: etisalat by e& Egypt
etisalat by e& Egypt Strong revenue growth in local currency Key Highlights Subscribers (m) Revenue (AED m) & YoY Growth (%) • Strong YoY subscriber 31 32 1,225 29 +21% growth 894 • Double-digit revenue 820 growth in local currency 0% attributed to data and voice services -27% • EBITDA in local -37%
Slide 21: PTCL Group
PTCL Group Solid revenue and EBITDA growth in local currency despite macro challenges Key Highlights Subscribers (m) Revenue (AED m) & YoY Growth (%) • Increase in FTTH and 700 +30% mobile subscriber base 26 27 27 607 616 • Double-digit revenue growth in local currency attributed to mobile, fixed an
Slide 22: FY 2023 Guidance
FY 2023 Guidance Positive outlook for 2023 despite currency impact in H1 FY 2023 Guidance 6M 2023 Actual Revenue Growth Y-o-Y Low to mid single digit In Constant Currency +9.3% (%) growth EBITDA Margin (%) ~ 49.0% 48% EPS (1) (AED) 1.13 – 1.15 0.54 Capex / Revenue (%) 15% - 17% 11.4% (1) EPS guidanc
Slide 23: we are
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e& (Emirates Telecommunications Group Company PJSC) — Q2 2023 Earnings Presentation on 6ix