Kuwait Telecommunications Co. · KSE:STC
Kuwait Telecommunications — Kuwait Telecommunications Company K.S.C.P (VIVA) — H1 2019 Earnings Presentation
18 slides from Kuwait Telecommunications's earnings presentation, 2019
Slide 1: Investors Presentation 6M-2019
Investors Presentation Kuwait Telecommunications Company K.S.C.P 6M-2019 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 2008 2008 2008 2014 Feb Jun Sep Dec Dec VIVA Stock was listed on Boursa Kuwait Commercial Launch of VIVA Operations in Kuwait Public placement of VIVA shares which was 2.4x oversubscribed. distributed among c. 1 million Kuwaiti shareholders The incorporation contract and
Slide 4: Key Milestones
Key Milestones 2008 2010 2012 2014 2016 2018 Launches Partnership with Real Best Network Development Award at Expand retail VIVA launches Elite Best Telecom Company by commercially Madrid. 5G MENA network and launch Program for loyal, VIP Arabian Business. joint promotions and high value
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 Kuwaiti Governmental Saudi Telecom 52% 24% Public Shareholders 24% Entities 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
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 7.4 8 7.1 7.1 6.41 5.9 6 5.2 4.5 4 2 2.2 2.4 2.5 2.4 2.2 2.2 2.1 0.8 1.1 1.6 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jun-19 Telecom Sector Revenues in Kuwait (KWD Mn) Total
Slide 10: Market Share vs. peer group
Market Share vs. peer group Subscriber Market Share – June-2019 Revenue Market Share – H1 2019 VIVA 28% Ooredoo VIVA Ooredoo 27.3% 33.3% 34% Zain Zain 38% 39.4% EBITDA Market Share – H1 2019 Net Profit Market Share – H1 2019 Ooredoo VIVA 11% VIVA Ooredoo 27% 28% 26% Zain Zain 47% 61% 10 Investor Rel
Slide 11: Financial Results
Financial Results VIVA’s revenue reached KD 139.6 mn during Key Figures & Ratios H1-2018 H1-2019 Change the six months ended 30 June 2019 as Subscribers (Mn) 2.4 2.1 -12.7% compared to KD 149.1 mn recorded during the six months ended 30 June 2018. Revenue (KD Mn) 149.1 139.6 -6.4% EBITDA 33.3 38.0 +
Slide 12: Financial Highlights
Financial Highlights Revenue (KD Million) EBITDA (KD Million) EBITDA (KWD Million) EBITDA Margin (%) 400 150.0 50% 47% 47% 47% 45% 277 279 288 288 300 40% 239 100.0 35% 112.6 30% 200 27% 27% 149 25% 25% 140 131.0 131.9 22% 20% 50.0 100 15% 71.1 77.8 10% 33.3 38.0 5% 0 0.0 0% 2014 2015 2016 2017 2018
Slide 13: Financial Highlights
Financial Highlights Total Assets (KD Million) Total Debt / Equity (KD Million) Total Debt (KWD Million) Debt to Equity Ratio (x) 400 380 90 86 8.00 6.9 350 305 80 72 66 300 263 267 273 70 6.00 250 214 60 47 179 50 200 4.00 40 150 1.7 30 20 100 20 0.8 0 2.00 0.4 9 0.1 50 10 0.0 0.1 0 0 - 2013 2014 2
Slide 14: Stock Performance
Stock Performance Closing Price (KD) 0.800 PE (X) 8.6 Paid up Capital (KD Million) 49.9 PB (X) 2.08 Market Cap (KD Million) 400 Dividend Yield (%) 5.0% Data as of 30 June 2019 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 (2016 – June 2019) Income Statement (2016 – 6M 2019) 15 Investor Relations
Slide 16: Balance Sheet (2016 – June 2019)
Balance Sheet (2016 – June 2019) (restated) Balance Sheet 2016 *2017 *2018 June 2019 KD Mn KD Mn KD Mn KD Mn ASSETS 145 Property and equipment 137.7 145.0 150.5 181.7 Intangible assets 47.5 - - 0.5 Other non-current assets - - - - Goodwill - - - 26.4 Non-current assets 185.2 145.0 150.5 208.7 Invent
Slide 17: Income Statement (2016–6M 2019)
Income Statement (2016–6M 2019) (Restated) Income Statement 2016 *2017 *2018 6M -2018 6M -2019 KD Mn KD Mn KD Mn KD Mn KD Mn Revenue 279.1 287.7 287.9 149.1 139.6 Operating expenses (80.9) (145.5) (139.3) (76.1) (69.7) Staff costs (18.0) (20.4) (21.7) (11.0) (11.8) Expected credit losses on trade &
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
Kuwait Telecommunications Company K.S.C.P (VIVA) — H1 2019 Earnings Presentation on 6ix