Vodafone Qatar Qsc · QSE:VFQS
Vodafone Qatar Qsc — Vodafone Qatar P.Q.S.C. — FY2023 Earnings Presentation
28 slides from Vodafone Qatar Qsc's earnings presentation, Jan 25, 2024
Slide 1: Vodafone Qatar P.Q.S.C. Investor Presentation
Vodafone Qatar P.Q.S.C. Investor Presentation Year ended 31 December 2023 C3 Confidential
Slide 2: Disclaimer
Disclaimer • The following presentation is made only to, and is directed only at, persons to whom such a presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. • This presentation may
Slide 3: Performance Highlights
Performance Highlights Hamad Al-Thani Chief Executive Officer
Slide 4: Key Messages
Key Messages Successful results Gaining market share Expanding our world- Delivering Value to with a stronger mix in challenging class network Shareholders and conditions Society • FY23 Total Revenue is • Revenue Market Share reached • Radio Access Network • Proposed Dividend QR3,111mn 29.2% in FY23
Slide 5: Shareholder Value: Strong track record of dividend pay-out
Shareholder Value ⋮ Strong track record of dividend pay-out EPS & DPS Trend (in QAR) 0.128 0.119 * 0.110 0.100 • Continued growth in EPS 0.077 • 10% increase in dividend YoY (QR 465m), subject to approval in upcoming AGA. 0.050 0.050 0.060 0.044 0.034 * Proposed dividend FY19 FY20 FY21 FY22 FY23 Ear
Slide 6: Diversification: Agenda is on Track
Diversification ⋮ Agenda is on Track Revenue Contribution of Non-core % of Service Revenue Fixed: Continued roll-out and business growth. 7% 25% 29% ICT/Managed services: On track with large projects under delivery and continued capability development, and GTM IoT & Big Data: Continued capability, c
Slide 7: Market Performance: VQ is Driving Market Revenue Growth
Market Performance ⋮ VQ is Driving Market Revenue Growth Total Market Revenue (in QRmn) Market Share +1.7% YoY Total Revenue Mobility Subscriber Market Share Market Share Q3 FY23 TTM Q3 FY23 10,732 10,910 2,956 +QR 232m 3,188 YoY +1.7pts YoY +2.4pts 29.2% 44.6% Q3 FY22 TTM Q3 FY23 TTM • Total market
Slide 8: Growing Our Radio Network: >2,400 Radio Network Sites
Growing Our Radio Network ⋮ >2,400 Radio Network Sites Across the Country Mobile Network Coverage Radio Access Network Sites Evolution >2x 2,403 2,208 1,637 1,511 1,343 1,167 2018 2019 2020 2021 2022 2023 Exceptional Vodafone 5G coverage in Doha • More than doubled the radio network sites since 2018
Slide 9: Market Repair: Initiatives around ARPU climb-back
Market Repair ⋮ Initiatives around ARPU climb-back are showing early results Our message to you 2 quarters back… ARPU repair is showing early green-shoots Market Performance ⋮ Disciplined value protective growth despite challenger status Q1-23 Indexed to 100 101.3 100.6 Indexed Mobility ARPU Indexed
Slide 10: Connecting for a Better Future: Sustainability
Sustainability ⋮ Continued expansion of focus Our Sustainability Framework Improving Metrics in All Pillars Customer Effort Score ➢ Digital innovation for all -19% Digital ➢ Advanced customer experience 2.1 1.8 1.7 ➢ Data protection and cyber security Enrichment ➢ World class infrastructure investme
Slide 11: Financial Performance
Financial Performance Masroor Anjum Chief Financial Officer
Slide 12: Key Highlights
Key Highlights Strong revenue Cost Continued growth Highest cash flow growth efficiency in profitability and lowest net debt • Total revenue increased • Despite substantial • EBITDA QR 1,286m, 4.2% • Highest operating cash 1.5% (U/L +6.1%) driven network expansion and increase YoY (U/L +7%) flow of
Slide 13: FY23 Year on Year: Strong underlying performance across all financial KPIs
FY23 Year on Year ⋮ Strong underlying performance across all financial KPIs Revenue Expenses EBITDA Net Profit • Total revenue [excl. World cup] grew 3,066 3,111 +6.1% 1,832 1,825 +5.5% +7.0% +13.8% QR 179m (+6.1%) led by underlying 1,286 540 134 103 1,234 502 service revenue growth (+8.9%), 31 28 p
Slide 14: FY23 Year on Year: Persistent Topline and Profitability Growth
FY23 Year on Year ⋮ Persistent Topline and Profitability Growth Revenue Expenses EBITDA Net Profit +1.5% -0.4% +4.2% +7.5% • Total revenue grew QR 45m (+1.5%) led 3,066 3,111 1,832 1,825 1,286 540 by service revenue growth (+5.5%) 1,234 349 5.5% 502 partially offset by lower projects revenue 449 and
Slide 15: Service Revenue (excl. World Cup): Revenue growth in a declining market
Service Revenue (excl. World Cup) ⋮ Revenue growth in a declining market Postpaid Prepaid Managed services, Wholesale & Fixed Total service revenue -0.2% +45% +8.9% 1,298 1,296 656 -11.5% 946 2,762 2,536 588 563 550 520 2,230 1,148 2,021 650 1,949 1,067 533 1,021 391 272 FY19 FY20 FY21 FY22 FY23 FY1
Slide 16: Mobility ARPU
Mobility ARPU* Postpaid Prepaid Total Mobility +1.6% +2.6% 194.6 33.4 77.2 190.8 189.9 187.8 190.7 +8.6% 73.5 72.2 72.1 70.3 29.5 28.9 28.0 26.7 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Financial Performance * ARPU i
Slide 17: Margin Trends: Improving efficiency and margins
Margin Trends ⋮ Improving efficiency and margins Reported EBITDA Margin Underlying Margin* OPEX EBITDA Net Profit +1 ppts Intensity Margin Margin 45.2% 17.4% 45.1% 43.8% 16.4% 28.8% 28.7% +1.1 ppts 13.0% 39.4% 41.3% 40.8% 40.2% 35.6% 24.9% 36.7% 8.4% 24.2% 24.1% 6.8% 33.4% FY19 FY20 FY21 FY22 FY23 F
Slide 18: Capital Expenditure: Investments driving profitable growth
Capital Expenditure ⋮ Investments driving profitable growth Capital expenditure (CAPEX) Return on capital employed (ROCE*) +7.4 ppts +0.9 ppts 30.0% 18.7% 21.5% 10.7% 16.1% 17.7% 9.8% 660 637 550 6.7% 411 408 4.2% 3.3% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 CAPEX CAPEX Intensity FY23 Fina
Slide 19: FY23 Cash Position: Generating strong cash flows
FY23 Cash Position ⋮ Generating strong cash flows Operating Cash flow* Net Debt Net Debt to EBITDA FY 23 Cash movement Operating cash flow QR 697m -QR233m -0.20x +159% 1,367 (482) 533 0.43x 697 (132) (56) (331) 300 0.23x 269 (4) (420) 187 130 FY22 Free Cash CAPEX Lease Inudstry Financing MyBook Divi
Slide 20: Financial Performance v/s FY23 Guidance
Financial Performance v/s FY23 Guidance FY22 FY23 FY23 Financial KPIs Results Guidance Actuals Total revenue QR 3,066m + YoY % QR 3,111m + 1.5 % EBITDA Margin 40.2% + 1 – 1.5 ppts 41.3% + 1.1ppts CAPEX intensity 21.5% 17% to 18% 17.7% Within FY23 Financial Performance 25 January 2024 20
Slide 21: FY23 Year on Year: Statutory results summary
FY23 Year on Year ⋮ Statutory results summary 31 Dec 23 31 Dec 22 YoY QR millions (unless otherwise stated) •1 Total revenue grew QR 45m (+1.5%) led by service revenue growth (+5.5%) partially Consumer revenue 1,595 1,649 (54) offset by lower projects revenue and one-off Enterprise, equipment and ot
Slide 22: Key Financial Performance Indicators
Key Financial Performance Indicators Total Revenue Expenses EBITDA Net profit CAGR CAGR +10% 3,066 3,111 +7% 1,832 1,825 1,286 349 CAGR 1,234 540 449 +16% 502 2,526 CAGR 1,495 +39% 296 1,416 1,392 764 748 1,031 2,200 2,125 179 176 611 611 632 327 808 2,762 709 2,617 2,230 185 1,949 2,021 1,068 1,077
Slide 23: Q&A
Q&A
Slide 24: For more information visit our website
For more information visit our website: www.vodafone.qa/en/investor-relations Or email us: InvestorRelationsQatar@vodafone.qa
Slide 25: Consolidated Statement of Income
Consolidated Statement of Income Year ended 31 December QR m (unless otherwise stated) 2023 2022 YoY Consumer revenue 1,595 1,649 (54) Enterprise, equipment and other revenues 1,516 1,417 99 • Total revenue grew QR 45m (1.5%) led by service Total revenue 3,111 3,066 45 revenue growth (+5.5%) partial
Slide 26: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position QR m (unless otherwise stated) 31 Dec 23 31 Dec 22 Var Assets Property, plant and equipment 1,934 1,885 50 Intangible assets 4,037 4,050 (12) • Property, plant & equipment and intangible assets increased by Right-of-use assets 429 430 (1) QR 38m due to CA
Slide 27: Mobility Subscribers
Mobility Subscribers * Postpaid Prepaid Total Mobility +3.3% +2.5% 573 1,582 2,149 +0.2% 1,537 2,106 2,094 2,099 2,097 570 1,522 1,529 1,531 569 567 566 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Financial Performance
Slide 28: FY23 Q4 Year on Year
FY23 Q4 Year on Year Revenue Expenses EBITDA Net Profit -8.7% -10.8% -5.5% -11.9% 890 535 355 168 336 813 477 135 -5.8% 148 102 315 288 755 711 -13.9% 220 190 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 Service revenue Equipment OPEX Direct costs FY23 Financial Performance All am
Vodafone Qatar P.Q.S.C. — FY2023 Earnings Presentation on 6ix