Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q2 2022 Earnings Presentation
25 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, Jul 22, 2022
Slide 1: Q2 2022 Results
Q2 2022 Results Emirates Integrated Telecommunications Company PJSC 22 July 2022 Emirates Integrated Telecommunications Company PJSC
Slide 2: Disclaimer
Disclaimer This document has been prepared by Emirates Integrated Telecommunications Company PJSC (the “Company”) solely for presentation purposes. The information contained in this document has not been independently verified and no representation or warranty, expressed or implied, is made as to, a
Slide 3: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 3 Emirates Integrated Telecommunications Company PJSC
Slide 4: Q2 2022 highlights: Recovery is gaining pace
Q2 2022 highlights Recovery is gaining pace Macro update Company update • First “normalized” quarter post COVID and Expo 2020 • Mobile customer base continues its growth trajectory – Postpaid customer base at an all-time high • Confirmation of population recovery – UAE is cementing its status as a g
Slide 5: Financial review Highlights
Financial review Highlights Revenues EBITDA Net profit (AED million) (AED million) (AED million) +9.9% +12.1% +26.2% 3,137 1,267 303 2,855 1,130 240 Q2’21 Q2’22 Q2’21 Q2’22 Q2’21 Q2’22 Capex OpFCF (AED million) (AED million) -14.1% +47.7% 650 709 558 480 Q2’21 Q2’22 Q2’21 Q2’22 5 Emirates Integrated
Slide 6: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 6 Emirates Integrated Telecommunications Company PJSC
Slide 7: Operating review: Mobile services customer base
Operating review Mobile services: customer base +13.0% +13.0% -1.0% Mobile customer base(*) (000s) 7,253 7,489 7,418 6,565 6,451 • Postpaid segment (+24 k net adds) – Sustained customer acquisitions base with good demand from corporate and consumer Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 – Handset financing p
Slide 8: Operating review: Fixed services customer base +69.5%
Operating review Fixed services: customer base +69.5% Fixed customer base(*) (000s) • Our Broadband strategy continues to deliver +69.5% – Net-adds (+35,000) remain solid +7.9% – Market share gains across all service categories • Unabated demand for our consumer broadband services – Continued expans
Slide 9: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 9 Emirates Integrated Telecommunications Company PJSC
Slide 10: Revenues
Financial review Revenues +9.9% • Mobile services +0.3% – Growth driven by solid commercial offering, on-going population rebuild • Fixed services – Delivering on our strategy with innovative products and network expansion 3,070 3,128 3,137 2,855 2,874 – Solid commercial performance • Other revenues
Slide 11: Mobile service revenues: Confirmation of recovery trend
Financial review Confirmation of recovery trend of Q4’21 • Q3’21 was an inflection point – 3 consecutive quarters of growth +8.6% +0.3% • Several commercial initiatives were launched to support this growth – Launched new tiered unlimited Power Plans Mobile service (AED million) Revenues 1,390 1,402
Slide 12: Sustained growth in fixed revenues
Financial review Sustained growth in fixed revenues +22.8% +6.8% • Consumer segment was the main growth driver – Fibre network expansion… – … attractive and innovative offering… – … are contributing to sustained net-adds (+35,000) (AED million) Fixed service Revenues 815 763 731 687 • Demand for Ent
Slide 13: Other revenues
Financial review Other revenues +0.3% -3.9% • Equipment revenues continued its growth path – 5G handsets continue to sell at same pace • Wholesale revenues stabilised Other Revenues (AED million) • Roaming activity is increasing 917 911 873 876 839 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 13 Emirates Integrate
Slide 14: EBITDA
Financial review EBITDA +12.1% 1,269 1,267 • Growth in service revenues contributed to increase in profit 1,242 – Margin improvement +80bp 1,130 1,100 • Cost control also contributed to EBITDA improvement (AED million) • Underlying EBITDA continues its growth trajectory which started in Q4’21 EBITDA
Slide 15: Net profit: improvement through higher EBITDA
Financial review Net profit: improvement through higher EBITDA +26.2% • 26% increase in net profit due to 12% growth in EBITDA 321 311 303 283 • Depreciation charges 107 240 70 – increase due to previous capex spend (AED million) Net profit • Increase in Federal royalty expense – Growth in regulated
Slide 16: Capex and operating free cash flow
Financial review Capex and operating free cash flow 1,014 (AED million) 650 Capex • Lower Capex (vs Q1’21) due to start of normalization 558 33.0% – 2021 spend was high as a result of the peak of 5G 374 22.8% 305 deployment 13.0% 17.8% 9.7% – Capital intensity is starting to normalize (13.8% in H1’2
Slide 17: Strong balance sheet and high liquidity
Financial review Strong balance sheet and high liquidity (AED million) Gross debt 2,460 Cash & Term deposits 4,580 2,016 1,224 3,569 995 1,011 1,011 200 200 200 200 200 Cash & Term Undrawn facility Total liquidity Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 deposits • Reduction of the cash position as a result of
Slide 18: Outlook
Outlook 2022 • Macro – Oil prices are supportive of UAE’s fiscal position but there are building up inflationary pressure in the country – Macro data points to acceleration of recovery – Social and economic reforms will cement the UAE’s position as a global hub • Our ambition investment programme co
Slide 19: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 19 Emirates Integrated Telecommunications Company PJSC
Slide 20: Appendix: Operating KPI
Appendix Operating KPI 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Mobile customers ('000s), of which 7,440 6,418 6,594 6,658 6,784 6,565 6,451 7,253 7,489 7,418 Postpaid 1,363 1,262 1,265 1,271 1,313 1,285 1,298 1,337 1,371 1,395 Prepaid 6,077 5,156 5,330 5,386 5
Slide 21: Appendix: P&L
Appendix P&L 2021 2022 2021 2022 AED million Q2 Q2 change 6M 6M change Revenues 2,855 3,137 9.9% 5,738.1 6,265.0 9.2% Direct costs -1,059 -1,110 4.8% -2,137.1 -2,242.8 4.9% Indirect costs -666 -760 14.1% -1,351.2 -1,486.7 10.0% Non operating expense 0 0 -58.3% 0.2 0.2 13.4% EBITDA 1,130 1,267 12.1%
Slide 22: Appendix: Cash flow statement
Appendix Cash flow statement 2021 2022 2021 2022 2021 2022 2021 2022 AED million Q2 Q2 6M 6M Q2 Q2 6M 6M Net profit 240 303 497 614 Purchase of property, plant and equipment -507 -583 -1,103 -1,086 Adjustments for non cash items Purchase of intangible assets -1 -31 -40 -73 Finance costs 3 2 8 8 Proc
Slide 23: Appendix: Cash flow statement
Appendix Cash flow statement 2021 2022 2021 2022 AED million Q1 Q1 Q1 Q1 Net profit 257 311 Purchase of property, plant and equipment -596 -503 Adjustments for non-cash items Purchase of intangible assets -39 -42 Finance costs 4 6 Proceeds from disposals of property, plant and equipment 0 0 Finance
Slide 24: Appendix: Balance sheet
Appendix Balance sheet As at As at As at As at AED million 31-Dec-21 30-Jun-22 AED million 31-Dec-21 30-Jun-21 Property, plant and equipment 9,068 9,095 Share capital 4,533 4,533 Right-of-use assets 1,650 1,537 Share premium 232 232 Intangible assets 446 433 Retained earnings 1,748 1,802 Goodwill 41
Slide 25: Thank you.
Thank you. Emirates Integrated Telecommunications Company PJSC
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