Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — FY2022 Earnings Presentation
24 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, Feb 14, 2023
Slide 1: Full-year and Q4 2022 results
Full-year and Q4 2022 results Emirates Integrated Telecommunications Company PJSC 14 February 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: 2022 highlights: Sustainable and profitable growth
2022 highlights Sustainable and profitable growth Macro update Company update • Comforting macro data puts the UAE in a privileged position • Product launch – Population growth – PowerPlan: Unlimited and Non-stop data – 5G Home Wireless (du, Virgin Mobile) – High tourism activity – Contained inflati
Slide 5: Highlights
Financial review Highlights Revenues EBITDA Net profit (AED million) (AED million) (AED million) +8.0% +5.0% -10.7% 3,315 1,242 1,305 321 3,070 286 Q4’21 Q4’22 Q4’21 Q4’22 Q4’21 Q4’22 Revenues EBITDA Net profit (AED million) (AED million) (AED million) +9.2% +12.0% +10.8% 12,754 5,143 1,220 11,682 4
Slide 6: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 6 Emirates Integrated Telecommunications Company PJSC
Slide 7: Operating review: growth of mobile customer base
Operating review +8.9% growth of mobile customer base +8.9% +6.7% Mobile customer base(*) (000s) • Significant growth of the mobile subscriber base year-over- 7,489 7,895 year (8.9%) and quarter-over-quarter (6.7%) reflecting the 7,253 7,418 7,402 growth of the population and the high tourism activi
Slide 8: Operating review: growth in fixed customer base
Operating review +37.3% growth in fixed customer base • Consistent subscriber base growth throughout the year Fixed customer base(*) (000s) – We have improved product and services for consumer and enterprise segments +37.3% – We have gained market share across all service categories +5.2% – We expan
Slide 9: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 9 Emirates Integrated Telecommunications Company PJSC
Slide 10: Satisfying revenue growth in Q4 and full-year
Financial review Satisfying revenue growth in Q4 and full-year +8.0% +9.2% +4.4% 3,128 3,137 3,175 3,315 12,754 3,070 11,682 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 2021 2022 • Quarterly revenues have grown by 8% yoy and 4.4% qoq • Full-year revenues have grown by 9.2% driven by as a result of double digit gr
Slide 11: Mobile revenues are growing and approaching pre-pandemic levels
Financial review Mobile revenues are growing and approaching pre-pandemic levels +7.6% +3.6% +8.4% (AED million) (AED million) Revenues Revenues 1,406 1,443 1,496 5,748 1,390 1,402 5,301 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 2021 2022 • Growth driven by postpaid revenues which have surged • Postpaid revenue
Slide 12: Sustained growth in fixed revenues
Financial review Sustained growth in fixed revenues +20.2% +22.4% +2.8% (AED million) (AED million) Revenues Revenues 891 916 3,475 814 854 762 2,839 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 2021 2022 Quarterly Fixed services revenues grew 20% yoy Fixed service revenues grew 22% on a full-year basis • Stellar
Slide 13: Stable Other revenues
Financial review Stable “Other revenues” -1.6% -0.3% +7.5% (AED million) (AED million) Revenues Revenues 918 912 877 903 3,542 3,532 840 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 2021 2022 Other revenues softened by 2% in Q4’22 Other revenues flat on full-year basis • Equipment revenues impacted by supply chain
Slide 14: Double digit growth in EBITDA and margin improvement
Financial review Double digit growth in EBITDA and margin improvement +12.0% +5.0% 5,143 1,269 1,267 1,303 1,305 1,242 4,592 +17.6% 103 +11.4% 217 (AED million) (AED million) 40.5% 40.6% 40.4% 41.0% 39.3% 40.3% 39.4% 1,139 4,375 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 2021 2022 • Growth in service revenues an
Slide 15: Strong growth in net profit
Financial review Strong growth in net profit +10.8% -10.7% 1,220 321 311 319 1,101 303 286 178 +34.4% 107 (AED million) +34.3% (AED million) 923 213 Significant one-offs Net profit adjusted 2021 2022 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 • Quarterly net profit grew at 34.3% on a comparable basis • Full-year
Slide 16: Start of Capex normalization and strong growth in operating free cash flow
Financial review Start of Capex normalization and strong growth in operating free cash flow Capex (AED million) -14.9% 1,016 2,608 • Capex moderating: 2,218 – 5G covers 94% of 724 population 632 558 – Continuous fibre 33.1% deployment 22.8% 304 17.8% 19.1% 22.3% 17.4% – Continued transformation 9.7%
Slide 17: Unleveraged balance sheet and strong liquidity position
Financial review Unleveraged balance sheet and strong liquidity position (AED million) 2,460 Gross debt Cash & Term deposits 2,016 5,315 1,546 3,769 1,011 941 1,546 200 200 200 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Cash & Term Undrawn facility Total liquidity deposits • Strong balance sheet and healthy cash
Slide 18: Outlook
Outlook 2023 • We will continue to offer innovative products and develop new revenue streams – Differentiate through segmented and innovative offerings – Cater for the digital lifestyle needs of our customers – Enable advanced non-core solutions for our customers • Move to digital-first and offer an
Slide 19: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 19 Emirates Integrated Telecommunications Company PJSC
Slide 20: Operating KPI
Appendix Operating KPI 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 Q1 Q2 Q3 Q4 Full-year Q1 Q2 Q3 Q4 Full-year Mobile customers ('000s), of which 6,784 6,565 6,451 7,253 7,253 7,489 7,418 7,402 7,895 7,895 Postpaid 1,313 1,285 1,298 1,337 1,337 1,371 1,395 1,427 1,480 1,480 Prepaid 5,471 5,280
Slide 21: P&L
Appendix P&L 2021 2022 2021 2022 AED million Q4 Q4 Full-year Full-year Revenues 3,070 3,315 11,682 12,754 Direct costs -1,186 -1,189 -4,408 -4,535 Indirect costs -772 -823 -2,812 -3,078 Other income 130 1 131 2 EBITDA 1,242 1,305 4,592 5,143 margin 40.5% 39.4% 39.3% 40.3% Depreciation, amortization
Slide 22: Cash flow statement
Appendix Cash flow statement 2021 2022 2021 2022 AED million Q4 Q4 Full-year Full-year 2021 2022 2021 2022 Net profit 321 286 1,101 1,220 Q4 Q4 Full-year Full-year Purchase of property, plant and equipment -375 -559 -1,869 -2,288 Adjustments for non cash items Finance costs 9 1 24 15 Purchase of int
Slide 23: Balance sheet
Appendix Balance sheet As at As at As at As at AED million 31-Dec-21 31-Dec-22 AED million 31-Dec-21 31-Dec-22 Property, plant and equipment 9,068 9,426 Share capital 4,533 4,533 Right-of-use assets 1,650 1,416 Share premium 232 232 Intangible assets 446 549 Retained earnings 1,748 1,878 Goodwill 41
Slide 24: Thank you.
Thank you. Emirates Integrated Telecommunications Company PJSC
Emirates Integrated Telecommunications Company PJSC — FY2022 Earnings Presentation on 6ix