Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — FY2013 Earnings Presentation
26 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, February 2014
Slide 1: FY 2013 Results
FY 2013 Results Emirates Integrated Telecommunications Company PJSC February 2014
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 Full Year Results 4 Market Information 8 Financial Summary 10 Strategy and Outlook 23 3
Slide 4: 2013 Year In Review
2013 Year In Review Seventh year of strong performance across all areas of the business Investing in the future of our business • Positive growth trend for Revenue • Free Cash Flow was extremely positive in 2013, ending the • Achieved 9.7% like for like revenue growth in 2013, up to AED year with AE
Slide 5: Full Year Financial Highlights
Full Year Financial Highlights Total Revenue EBITDA Net Profit before Free Cash Flow Mobile Customers (AED M) (AED M) Royalty (AED M) (AED M) 90 Day Active Subs (000s) +9.7% +7.3% +6.7% +33.2% +12.2% 10,799 4,292 3,014 2,329 7,244 1,748 6,457 3,999 2,823 9,842 FY 2012 FY 2013 FY 2012 FY 2013 FY 2012
Slide 6: Q4 Financial Highlights
Q4 Financial Highlights Total Revenue EBITDA Net Profit before Free Cash Flow Post-paid Customers (AED M) Royalty (AED M) Quarterly (AED M) (000s) (AED M) +8.3% -8.1% -16.0% +110.6% +30.3% 2,869 1,176 852 1,098 669 1,081 716 513 2,649 521 Q4 2012 Q4 2013 Q4 2012 Q4 2013 Q4 2012 Q4 2013 Q4 2012 Q4 20
Slide 7: Contents
Contents Slide Highlights of the Full Year and Q4 Results 4 Market Information 8 Financial Summary 10 Strategy and Outlook 23 7
Slide 8: Market Overview UAE
Market Overview Market share consolidation – increasing emphasis on growing revenue share UAE Mobile Subscribers - Market share quarterly evolution UAE Telecom Market - Revenue share quarterly evolution 80.0% 60.0% 52.8% 70.0% 50.0% 47.2% 60.0% 70.7% 40.0% 50.0% 30.0% 40.0% 30.0% 20.0% 20.0% 29.3%*
Slide 9: Contents
Contents Slide Highlights of the Full Year and Q4 Results 4 Market Information 8 Financial Summary 10 Strategy and Outlook 23 9
Slide 10: Total Revenues
Total Revenues Mobile business continues to drive revenues Like for Like Revenue Breakdown Quarter Change* Quarterly Revenue (AED M) (AED M) +8.3% 2,869 2,869 2,649 103 68 18 -4 36 2,649 2,626 2,660 2,643 46.8% 30.6% 8.1% -1.9% 16.3% Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Full Year Revenue (AED M)
Slide 11: Revenue Drivers - Mobile
Revenue Drivers - Mobile Increased mobile revenues due to International voice and data, mobile ARPU maintained despite increased competition in mobile market Quarterly Mobile Revenues (AED M) Year on Year Mobile Revenues (AED M) +9.6% +4.9% 2,195 8,365 2,092 2,066 7,632 2,057 2,047 6,541 5,058 3,536
Slide 12: Revenue Drivers - Mobile
Revenue Drivers - Mobile Data revenues continue to grow, reflecting the global trend in data consumption Quarterly Mobile Data Revenues (AED M) 700 648 35.0% Smartphone offerings and increasing demand for data 616 573 contributed to growth 600 30.0% 521 527 29.5% 500 27.0% 29.1% 25.0% • Mobile data
Slide 13: Revenue Drivers – Mobile
Revenue Drivers – Mobile High-value postpaid segment backs growth Contribution to growth in mobile revenues Quarterly Minutes of Use by Customer Segment (excluding inbound roaming and handset revenue) 627 605 605 569 593 Prepaid 36.8% 242 223 224 221 221 Postpaid 63.2% Q4 2012 Q1 2013 Q2 2013 Q3 201
Slide 14: Revenue Drivers – Fixed
Revenue Drivers – Fixed Steady growth in fixed revenues Quarterly Fixed Revenue (AED M) Fixed line subscription Yearly Fixed Line Subscribers (‘000) +17.3% 599 458 561 439 531 416 477 391 399 357 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Full Year Fixed Revenue
Slide 15: Revenue Drivers – Broadcast & Wholesale
Revenue Drivers – Broadcast & Wholesale Quarterly Broadcast Revenues* (AED M) Quarterly Wholesale Revenues** (AED M) -9.6% +14.5% 45.2 45.6 46.4 43.5 133 141 39.3 123 126 111 78 83 89 99 72 45 43 44 39 41 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 National Wholes
Slide 16: Gross Margin
Gross Margin Sustained positive trend in gross margin Quarterly Gross Margin (AED M) Yearly Gross Margin (AED M) 1,950 +5.4% 80.0% 8,000 1,919 7,247 6,897 74.0% 7,000 1,900 5,901 72.0% 75.0% 6,000 70.1% 1,850 69.1% 70.0% 1,821 5,000 4,600 68.1% 67.1% 68.0% 1,794 4,000 1,800 1,782 70.0% 3,507 67.5% 6
Slide 17: Gross Margin
Gross Margin Quarterly Mobile Gross Margin (AED M) Quarterly Fixed Gross Margin (AED M) +0.6% +16.9% 1,467 1,475 380 365 367 100.0% 1,500 72.0% 1,402 1,406 360 95.0% 1,400 1,371 70.0% 70.1% 335 68.0% 340 90.0% 1,300 314 83.3% 68.2% 68.0% 320 85.0% 67.2% 66.0% 306 80.7% 80.1% 67.0% 1,200 300 76.8% 80
Slide 18: Overheads
Overheads Investment in manpower and networks, maintaining efficiencies while driving for improved performance Quarterly Overheads (AED M) Overheads as a % of Revenue Q4 ‘12 Q3 ‘13 Q4 ‘13 Manpower 12.1% 12.0% 14.2% 900 839 40.0% Telecom license & related fees 2.5% 2.5% 2.4% 800 698 700 718 Sales & m
Slide 19: Profitability
Profitability Sustained yearly growth in profitability with positive EBITDA and Net Profit performance Quarterly EBITDA (AED M) Quarterly Net Profit before Royalty* (AED M) -8.1% -16.0% 1,200 1,176 46.0% 900 852 40.0% 752 778 768 1,150 44.0% 800 716 35.0% 44.4% 1,094 1,100 1,081 42.0% 700 1,053 1,06
Slide 20: Royalty Overview
Royalty Overview Quarterly Royalties (AED M) Royalty Calculation FY 2012 333 326 327 304 293 Total Revenue 9,842 284 271 270 270 264 219 Regulated Revenue 7,327 194 190 193 146 % Regulated Revenue 74.5% 5% of Regulated Revenue 366 Adjusted Net Profit before Royalty 2,457 17.5% of Net Profit before R
Slide 21: Capital Investments
Capital Investments Substantial investments to provide enhanced networks to users Quarterly CapEx Additions (AED M) Yearly CapEx Additions (AED M) 2,500 2,427 50.00% 686 622 45.00% 2,000 47.1% 1,720 40.00% 1,563 1,500 35.00% 1,244 1,291 368 323 30.00% 1,000 25.00% 18.3% 188 17.5% 15.1% 20.00% 500 14
Slide 22: Cash & Debt Overview
Cash & Debt Overview Quarterly Free Cash Flow (AED M) Year on Year Free Cash Flow (AED M) 4,000 1,500 1,098 3,000 2,329 787 1,748 1,000 2,000 1,377 549 521 1,000 36 500 973 1,587 2,923 3,018 3,797 875 1,006 1,041 1,523 0 0 226 (1,742) (1,551) (1,546) (1,270) (1,468) (353) (457) (332) (254) (425) (1,
Slide 23: Contents
Contents Slide Highlights of the Full Year and Q4 Results 4 Market Information 8 Financial Summary 10 Strategy and Outlook 23 23
Slide 24: Strategy and Outlook
Strategy and Outlook Efficiency and value creation: Positioning the company for success in a continually evolving telecommunications market • Focus on profitable growth and increased value share • Increase focus on mobile data and bundled offerings supported by continued emphasis on data network inv
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