Emirates Telecom. Group Company (etisalat Group) Pjsc · ADX:EAND
Emirates Telecom. Group Company (etisalat Group) Pjsc — Emirates Telecommunications Group Company PJSC (e&) — Q2 2024 Earnings Presentation
28 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's earnings presentation, Aug 1, 2024
Slide 1: Q2 2024 Results Presentation
Q2 2024 Results Presentation 1 August 2024
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 Key Highlights Hatem Dowidar, e& Group CEO Restricted
Slide 4: Executive Summary Q2 2024 Overview
Executive Summary Q2 2024 Overview Demonstrated solid performance in Q2 across all verticals as we remain on track to meet our full-year guidance Achieved robust growth in revenue, EBITDA, and operating free cash flow (OpFCF) within the telco verticals Made significant progress on PPF and Telenor tr
Slide 5: Key Highlights Q2 2024
Key Highlights Q2 2024 Another quarter of growth & resilience Maintained robust growth …doubling down on core with …supported by solid financial trajectory… resilience… position & cash generation Revenue Telco Revenue Operating Free Cashflow AED 14.1 billion AED 13.2 billion AED 4.8 billion +6% Y-o-
Slide 6: GlassHouse Acquisition
GlassHouse Acquisition Strengthens existing e& enterprise capabilities and expands geographic footprint GlassHouse at a Glance Strategic Rationale Leading provider of managed cloud, data backup, business continuity, and SAP infrastructure services Reinforce existing capabilities in private cloud and
Slide 7: Group Financial Highlights
Group Financial Highlights Karim Bennis, e& Group CFO Restricted
Slide 8: Financial performance and resilient cash generation
... maintaining resilient cash generation e& reported solid financial performance…. and a sound balance sheet AED 14.1 billion AED 4.8 billion Revenue Operating Free Cashflow 4% y-o-y and +6% in constant currency 3% y-o-y with a stable margin of 34% AED 6.6 billion 41.5 fils EBITDA Interim Dividends
Slide 9: Group Revenue
Group Revenue Sustaining topline growth across all verticals Key Highlights Revenue (AED mn) & YoY Growth (%) Sources of Revenue Variance (AED mn) +6% 438mn • Robust revenue growth attributed to both telco and digital verticals 224 13,614 14,214 14,092 14,092 42 • e& UAE sustained growth 361 62 -211
Slide 10: Group EBITDA
Group EBITDA Strong margins supported by telco operations Key Highlights EBITDA (AED mn) & Margin (%) Sources of EBITDA Variance (AED mn) +2% 151mn • e& group EBITDA margin 18 174 reached 47%, (up 2 6,568 6,376 6,573 percentage points q-o-q) while -32 slightly declined y-o-y due to changes in revenu
Slide 11: Group CAPEX
Group CAPEX Balanced long-term investment while maintaining superior networks Key Highlights CAPEX (AED mn) & Intensity Ratio (%) Sources of CAPEX Variance (AED mn) 1,943 1,943 • Lower capital spend y-o-y 1,787 1,653 68 4 mainly attributed to e& UAE operation -23 3% -2% 3% 1,787 • Capital spend in e
Slide 12: Group Financial Position
Group Financial Position Healthy liquidity position and stable outlook Key Highlights Cash & Cash Equivalents (AED mn) Total Debt (AED mn) • Maintaining a healthy cash balance y-o-y attributed to 31,640 47,217 48,068 47,721 high cash flow generation 24,021 23,861 • Cash balance consistent with last
Slide 13: Group Debt Profile
Group Debt Profile Diversified sources of debt Key Highlights Borrowings by Operations (AED mn) Borrowings by Currency (%) 38,634 Others PKR • Total debt of AED 47.7 bn 8% 6% MAD 5% • 81% of debt is at Group Euro level, 3% mostly in bank 18% -2% 3% borrowings AED • 64% of debt is in USD/AED 5,076 63
Slide 14: Group Dividends
Group Dividends Progressive dividends policy DPS (fils) Interim Dividends (AED bn) 40.0 40.0 41.5 3.5 3.5 3.6 3% -2% 3% H1 2022 H1 2023 H1 2024 H1 2022 H1 2023 H1 2024 Payout Ratio (%) Dividends Yield (1) (%) 71.5% 73.9% 5.1% 65.7% 3.8% 2.9% H1 2022 H1 2023 H1 2024 H1 2022 H1 2023 H1 2024 1) The dat
Slide 15: Performance by Vertical
Performance by Vertical Restricted
Slide 16: UAE Economy
UAE Economy Strong operating environment fueling growth in Telecom sector UAE government vision is strongly The UAE's population is expected to driven by digital and AI tech e.g., AI grow at ~1% p.a. over 2024-2027 Strategy 2031 The UAE has been ranked #1 globally Tourism set to continue to grow - w
Slide 17: UAE at a glance
UAE at a glance e& UAE continues to drive core telco growth via differentiated, premium positioning in Consumer and Business underpinned by Network and CX excellence Strong Commercial Execution… …Accommodated by Profound Capabilities… …Delivering Outstanding Performance… Consumer Customer Experience
Slide 18: e& UAE
e& UAE Consistent and sustainable execution Key Highlights Subscribers (mn) Revenue (AED mn) & YoY Growth (%) • Growing customer base, by 14.6 8,211 8,213 13.9 14.5 7,852 connecting new 656K customers 7% 6% • Sustained 3% solid topline -2% 3% 5% growth driven by robust commercial execution leading t
Slide 19: UAE Breakdown & Key KPIs
UAE Breakdown & Key KPIs Elevating revenues across the board supported by strong operational KPIs Mobile Revenue(1) (AED mn) & YoY Growth (%) Fixed Revenue(2) (AED mn) & YoY Growth (%) Other Revenue(3) (AED mn) & YoY Growth (%) 2,943 3,003 2,825 2,870 2,906 2,398 2,304 2,865 2,161 20% 5% 5% 15% 3% 3
Slide 20: e& international
e& international Solid organic performance Key Highlights Subscribers (mn) Revenue (AED mn) & YoY Growth (%) 9% • International subs climbed 6% y-o-y, reaching 161mn 158.1 160.5 4,889 5,018 4,951 151.1 mainly on growing base of Egypt and Moov Africa • In constant 3% currency, -2% 3% 8% revenues incr
Slide 21: Maroc Telecom Group
Maroc Telecom Group Operational scale preserves the momentum despite of regulatory and competition headwinds Key Highlights Subscribers (mn) Revenue (AED mn) & YoY Growth (%) -2% • Year on year growth in 78.4 3,230 74.6 77.1 3,159 3,206 subscriber base attributed to Moov Africa • Revenue 3% growth i
Slide 22: e& Egypt
e& Egypt Outstanding growth in operations was muted by currency translation Key Highlights Subscribers (mn) Revenue (AED mn) & YoY Growth (%) +43% • Higher customer base y-o-y 34.8 35.8 1,035 (+13%) attributed to strong 31.6 894 826 commercial momentum 26% • Robust3%revenue growth in-2% 3% local cur
Slide 23: PTCL Group
PTCL Group Enhanced profitability backed by higher revenues Key Highlights Subscribers (mn) Revenue (AED mn) & YoY Growth (%) +16% • Subscribes increase YoY 26.9 27.7 28.0 733 616 650 was driven by mobile customers (+5%) and FTTH (+85%) 19% 3% -2% 7% • Strong revenue growth attributed to higher dema
Slide 24: e& enterprise
e& enterprise Focused on executing growth strategy while on track to deliver double-digit revenue growth e& enterprise Highlights Revenue (AED mn) & YoY Growth (%) EBITDA (AED mn) & EBITDA Margin (%) +7% 95 • Revenue growth impacted by 641 projects delayed to H2. Full 599 year outlook remains on tra
Slide 25: e& life
e& life Strong topline growth across verticals e& life Highlights Revenue (AED mn) & YoY Growth (%) EBITDA (AED mn) & EBITDA Margin (%) +78% 510 • e& life delivered strong -3% revenue 3% growth in Q2’2024 -2% 3% -10 attributable to Careem Technologies (+78% y-o-y) • Traction was strong across all e&
Slide 26: e& life Key Highlights Q2'24
e& life Key Highlights | Q2’24 3.7x 589K+ + 136% Total GTV in Q2’24 versus Q2’23 1 TOTAL GTV CARDS ISSUED Q2’24 vs Q2’23 as of Q2’24 GTV per USER grew by +65% in 3x 1.15M+ Q2’24 compared to Q2’23 REMITTANCE REGISTERED GTV USERS CAREEM + reached 40% of MAU base Q2’24 vs Q2’23 as of Q2’24 in Q2’24 fro
Slide 27: FY 2024 Guidance
FY 2024 Guidance: Overall H1 performance is broadly in line with full year guidance H1 2024 Actual FY 2024 Guidance Revenue Growth Y-o-Y In Constant Currency (%) +7% Mid-Single Digit Telecom EBITDA Margin (%) 50% ~49% CAPEX Intensity Ratio (%) 13% ~16% Revenue Growth Y-o-Y In Constant Currency (%) +
Slide 28: Restricted
Restricted
Emirates Telecommunications Group Company PJSC (e&) — Q2 2024 Earnings Presentation on 6ix