Jazeera Airways Co. (KSC) · KSE:JAZEERA
Jazeera Airways Co. (KSC) — Jazeera Airways — Q2 2019 Earnings Presentation
27 slides from Jazeera Airways Co. (KSC)'s earnings presentation, Aug 6, 2019
Slide 1: 2Q19 Earnings Conference Call
2Q19 Earnings Conference Call August 6, 2019
Slide 2: Starting Shortly…
2Q19 Earnings Conference Call Starting August 6, 2019 Shortly…
Slide 3: Agenda
Agenda The Group Today Headline Results Operational Highlights Outlook for Rest of 2019 Financial Review Q&A
Slide 4: The Group Today
The Group Today • A leading low-cost carrier in the Middle East • Strong cost management • Serving six destinations in Egypt, six in the Indian Subcontinent, and a total of 29 airports • Ten aircraft, four more in 2019 • Solid progress in T5 operations • Increased revenues from ancillary sources
Slide 5: Headline Results
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Slide 6: 2Q19 Operational Highlights
2Q19 Operational Highlights Passengers Load Factor Utilization Yield +12.0% +3.9% +2.2% +11.5% 2Q19: 549.1 k 2Q19: 77.6% 2Q19: 14.8 hrs 2Q19: KWD45.6 2Q18: 490.4 k 2Q18: 73.7% 2Q18: 14.5 hrs 2Q18: KWD40.9
Slide 7: 2Q19 Financial Highlights
2Q19 Financial Highlights Operating Revenue Operating Profit Net Profit KWD26.0 mn KWD4.8 mn KWD4.8 mn Variance: 29.5% Variance: 169.8% Variance: 171.2% 2Q18: KWD20.1 mn 2Q18: KWD1.8 mn 2Q18: KWD1.8 mn
Slide 8: 2Q19 Commercial Highlights
2Q19 Commercial Highlights eCommerce Sales Ancillary Revenue +10.3% Vs. 2Q18 +18.5% Vs. 2Q18
Slide 9: 1H19 Operational Highlights
1H19 Operational Highlights Passengers Load Factor Utilization Yield +20.6% +2.6% +5.9% +10.0% 1H19: 1.1 mn 1H19: 76.6% 1H19: 13.7 hrs 1H19: KWD42.1 1H18: 894.2 k 1H18: 74.7% 1H18: 12.9 hrs 1H18: KWD38.3
Slide 10: 1H19 Financial Highlights
1H19 Financial Highlights Operating Revenue Operating Profit Net Profit KWD47.3 mn KWD6.6 mn KWD6.2 mn Variance: 37.4% Variance: 391.6% Variance: 335.1% 1H18: KWD34.5 mn 1H18: KWD1.3 mn 1H18: KWD1.4 mn
Slide 11: 1H19 Commercial Highlights
1H19 Commercial Highlights eCommerce Sales Ancillary Revenue +13.2% Vs. 1H18 +25.5% Vs. 1H18
Slide 12: Operational Highlights
Operational Highlights
Slide 13: 2Q19 Milestones
2Q19 Milestones • Flights to Istanbul moved to new Istanbul International Airport • Launched routes to Bodrum and Sabiha International Airport in Istanbul • Launched the first on-board convenience store with Trolley • Operated special return flight to Baku for passengers to watch the final of UEFA E
Slide 14: Network Market Shares
Network Market Shares 89% 12% 62% 28% 44% 4% 41% 50% Destinations 33% launched In 28% 21% 12% 31% 10% 23% 10% Pre- Q2 2018 2018 2019 45% 20% ** 26% 42% Tbilisi Bodrum 27% Lahore Sabiha, Istanbul 18% Medinah 70% Ahmedabad 25% 87% Kochi Mumbai New Delhi * Beirut is operated on a seasonal basis ** Medi
Slide 15: Where Passengers Fly
Where Passengers Fly Passengers Geographic Passengers Geographic Distribution 2Q18 Distribution 2Q19 Egypt Egypt 32.6% 28.0% Indian Subcontinent 11.5% Indian Subcontinent Others 18.9% 3.7% Others Levant 2.7% 6.2% Levant East 10.4% Europe 5.4% GCC East 38.2% Europe 4.7% GCC 37.9%
Slide 16: 2Q19 Terminal Revenue
2Q19 Terminal Revenue Net Profit: KWD240 k EBITDA: KWD729 k 549.1 k 274.5 k passengers departing flew from passenger T5
Slide 17: Outlook for Rest of 2019
Outlook for Rest of 2019
Slide 18: 2019 Expansions
2019 Expansions New Aircraft Facilities Destinations Additions Expansion Bodrum Three new A320neo Continued expansion of Istanbul Sabiha One wet lease A320ceo services at Terminal 5 London One dry lease A320ceo Kathmandu Dhaka A320neo operational benefits: Karachi • Significant fuel savings up to 18
Slide 19: Financial Review
.ayjul Jazeera. Financial
Slide 20: Key Parameters 2Q19
Key Parameters 2Q19 Operating Parameters 2Q18 2Q19 CHANGE In addition to the favorable variances due to an increase Average Aircraft 8.3 9.3 12.0% in number of passengers, the Destination Cities 26 27 3.9% following are other favorable variances: Revenue Drivers 2Q18 2Q19 CHANGE • Yield increase imp
Slide 21: Financial Position
Financial Position 2Q18 2Q19 CHANGE YIELD BY QUARTER (KWD) Operating Revenue 20,106,501 26,037,856 29.5% Operating Expenses 18,310,905 21,192,876 15.7% Operating Profit 1,795,596 4,844,980 169.8% Net Profit 1,750,340 4,746,896 171.2% 2Q18 2Q19 CHANGE PASSENGERS BY QUARTER (000) Cash 13,176,166 12,71
Slide 22: Fuel Prices
Fuel Prices 84.9 79.6 80.0 65.0 84.9 BRENT Swap Vs. 52.6 71.6 79.6 67.0 80.0 67.0 SINGJET Swap 65.0 54.8 BRENT Swap 71.6 (USD/BBL) 45.1 52.6 67.0 67.0 SINGJET Swap 54.8 45.1 25.2% FY16 FY17 FY18 1Q19 2Q19 21.8% FY16 FY17 FY18 1Q19 2Q19 17.2% 15.1% Fuel as Percent 25.2% of Revenue 21.8% 17.2% 15.1% 2
Slide 23: Balance Sheet Analysis 2Q19
Balance Sheet Analysis 2Q19 Current assets (cash and bank) have increased by ~KWD6.3 mn since December 2018 mainly driven by: • Operating cash profits from airline and T5 generated ~KWD8.0 mn • Working capital changes amounting to ~KWD10.5 mn • Dividend payment of KWD7 mn • Purchase of PPE amounting
Slide 24: Q&A
Q&A
Slide 25: Key Contacts
Key Contacts For more information please contact Krishnan Balakrishnan VP Finance krishnan.balakrishnan@jazeeraairways.com Mostafa El-Maghraby Head of Investor Relations investorrelations@jazeeraairways.com Jazeera Airways KSC is listed on the Kuwait Stock Exchange Bloomberg: Jazeera KK Reuters: JAZ
Slide 26: Disclaimer
Disclaimer The content and information of this document is only intended to provide users with financial and operational information about Jazeera Airways. No warrant or representation is made by Jazeera Airways for the contents of this document and in no way is the material provided in it intended
Slide 27: Thank You
.ayjul Jazeera.