Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q2 2012 Earnings Presentation
23 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, July 2012
Slide 1: Q2 2012 Results
Q2 2012 Results Emirates Integrated Telecommunications Company PJSC July 2012
Slide 2: Disclaimer
Disclaimer • Emirates Integrated Telecommunications Company PJSC (hereafter ”du”) is a telecommunication services provider in the UAE. • du cautions investors that certain statements contained within this document state management’s intentions, hopes, beliefs, expectations or predictions of the futu
Slide 3: Contents
Contents Slide Highlights of the Second Quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 21 3
Slide 4: Q2 Financial Highlights
Q2 Financial Highlights Total Revenue EBITDA Net Profit before Free Cash Flow Mobile Customers (AEDm) (AEDm) Royalty Quarterly Net additions (000s) (AEDm) (AEDm) +12.9% +36.6% +57.1% Nearly Total now double 5.7 million 941 414 2,452 651 414 196 689 171 2,172 414 220 2,172 Q2 '11 Q2 '12 Q2 '11 Q2 '12
Slide 5: 6 Months Financial Highlights
6 Months Financial Highlights Total Revenue (YTD) EBITDA (YTD) Net Profit before Free Cash Flow Mobile Customers (AEDm) (AEDm) Royalty (YTD) (AEDm) Additions (Cumulative) (AEDm) (000s) Nearly three +16.4% +42.4% +59.4% fold increase +16.7% 4,899 1,866 1,317 720 517 1,310 826 443 4,210 252 443 6 mths
Slide 6: Contents
Contents Slide Highlights of the Second Quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 21 6
Slide 7: Market overview UAE
Market overview Strengthened market position – focus on gaining revenue share UAE Mobile Subscribers - Market share quarterly evolution UAE Telecom Market - Revenue share quarterly evolution 90% 70% 80% 60% 53.5% 70% 71.2% 50% 60% Etisalat 46.5% 40% 50% du 40% 30% 20% Etisalat 30% 28.8%* 20% du 10%
Slide 8: Contents
Contents Slide Highlights of the Second Quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 21 8
Slide 9: Revenues
Revenues Mobile business remains core driver of growth Quarterly Revenue (AEDm) Revenue Revenue Year on Year Change (AEDm) Year over year change 42 2,452 +12.9% 232 -2 7 2,172 2,172 2,233 2,411 2,447 2,452 Q2 Q3 Q4 Q1 Q2 Q2 2011 Tel (Mobile) Tel (Fixed) Wholesale Broadcasting Q2 2012 2011 2012 Year
Slide 10: Revenue Drivers - Mobile
Q1 data revenue was boosted by AED 29 million of expired Revenue Drivers - Mobile promotional credits from a data promotion initiated in Q4. The adjusted data percentage of mobile revenue would be 14.2% Quarterly RevenueMobile Revenues (AEDm) - mobile Year to Date Mobile Revenues (AEDm) -1.3% +17.8%
Slide 11: Revenue Drivers – Mobile
Revenue Drivers – Mobile Post-paid customer base continues to grow in importance Contribution to YoY growth in mobile revenues (excluding inbound roaming and handset revenue) Minutes of use by customer segment Revenue - mobile 750 647 655 635 Prepaid 572 575 34% 550 350 275 284 285 270 271 Postpaid
Slide 12: Revenue Drivers – Fixed
Revenue Drivers – Fixed Fixed line business remains strong Quarterly Fixed Revenue (AEDm) Fixed line subscription Quarterly Fixed Line Subscribers (‘000) +11.4% 368 380 391 409 410 494 514 531 545 547 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2011 2012 2011 2012 Year to Date Fixed Revenue (AEDm) Fixed Line brea
Slide 13: Revenue Drivers
• Broadcast revenues in Q1 12 were affected by to two customers closing operations in the UAE. Revenue Drivers • Q2 12 broadcast revenues benefitted from a one-off customer penalty of AED 5 million that was charged Wholesale & Broadcasting businesses remain steady Revenue Quarterly - Wholesale Broad
Slide 14: Gross Margin
Gross Margin Gross margin for the quarter affected by handset subsidies Quarterly Gross Margin (AEDm) Year to Date Gross Margin (AEDm) -1.1% +15.3 % 7,000 90.0% 1,800 80.0% 1,600 6,000 85.0% 75.0% 1,400 69.2% 80.0% 68.9% 68.29% 5,000 66.9% 70.0% 75.0% 1,200 65.8% 4,000 66.0% 68.8% 1,000 65.0% 66.6%
Slide 15: Gross Margin
Gross Margin By Segment (Quarterly) Mobile Gross Margin (AEDm) before handset subsidy Fixed Gross Margin (AEDm) +13.8% 1,600 +18.1% 80.0% 350 100.0% 1,400 300 76.8% 90.0% 1,200 73.2% 72.3% * 75.0% 78.4% 71.9% 250 75.0% 75.0% 80.0% 70.6% 71.6% 1,000 70.2% 68.4% 72.8% 200 70.0% 800 70.0% 600 150 60.0%
Slide 16: Overheads
Overheads Ongoing efficiency improvements reducing overheads as percentage of revenue Overheads Quarterly Overheads (AEDm) 900 40.0% Overheads as a percentage of revenue Q2 '11 Q2 '12 800 35.2% Manpower 15.4% 13.3% 700 33.7% Telecommunications license & related fees 2.5% 2.6% 35.0% 600 31.9% 31.4% S
Slide 17: Profitability
Profitability Strong performance in both EBITDA and Net profit before Royalty Quarterly EBITDA (AEDm) Quarterly Net Profit before Royalty (AEDm) +1.8% +57.1% -2.3% 1000 +36.6% 50.0% 700 50.0% 600 800 45.0% 40.0% 500 37.79% 38.39% 27.2% 26.6% 600 40.0% 400 21.9% 30.0% 20.6% 400 33.97% 35.18% 35.0% 30
Slide 18: Capital Investments
Capital Investments CAPEX spend in line with guidance Quarterly Capex additions (AEDm) Yearly Capex additions (AEDm) 3,000 70.0% 59.2% 2,500 60.0% 45.5% 50.0% 2,000 40.0% 1,500 30.0% 1,000 17.6% 14.6% 20.0% 213 270 330 335 444 500 10.0% 2,338 2,427 1,244 1,291 690 779 Q2 Q3 Q4 Q1 Q2 - 0.0% 2011 2012
Slide 19: Cash & Debt overview
• Huawei bridge loan of AED 418.5 million was repaid in full during H1 2012 with Cash & Debt overview • AED 204 million repaid in Q2 2012 Q2 free cash flow includes a royalty payment of AED 260 million. Remaining AED 455 million will be paid in Q3 and Q4 2012 Quarterly Free cash flow (AEDm) Year to
Slide 20: Contents
Contents Slide Highlights of the Second Quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 21 20
Slide 21: Strategy & Outlook
Strategy & Outlook Growth through efficiency • Focus on profitable growth and increase of value share • Push mobile post-paid penetration within the high-end customer segment • Increased focus on mobile data and bundled offerings • Deliver superior segmented customer experience • Continued emphasis
Slide 22: dll Lay Listig
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