Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q2 2011 Earnings Presentation
23 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, August 2011
Slide 1: Second Quarter 2011 Results
Second Quarter 2011 Results Emirates Integrated Telecommunications Company PJSC August 2011
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 for quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 20 3
Slide 4: Q2 Financial Highlights
Q2 Financial Highlights Revenue up 28% to AED 2.17 billion Total Revenue EBITDA Net Profit before Mobile Customer Free Cash Flow (AEDm) (AEDm) royalty (AEDm) Net Additions (000s) (AEDm) +28% +52% +51% -6% 75% 414 182 171 220 2,172 689 1,703 275 126 454 Q2 10 Q2 11 Q2 10 Q2 11 Q2 10 Q2 11 Q2 10 Q2 11
Slide 5: 6 Months Financial Highlights
6 Months Financial Highlights Net profit up 76% YTD Total Revenue (YTD) EBITDA (YTD) Net Profit before Mobile Customer Free Cash Flow (AEDm) (AEDm) royalty (YTD) (AEDm) Additions (Cumulative) (AEDm) (000s) +28% +60% +76% Flat 145% 4,210 826 444 443 3,283 1,310 252 820 469 103 6 mths 10 6 mths 11 6 m
Slide 6: Contents
Contents Slide Highlights for the full year & quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 20 6
Slide 7: UAE Market overview
UAE Market overview Strengthened market position UAE Mobile Subscribers - Market share evolution • Fair competition in a two-player market 80% 70% • Characterised by high penetration rate and 60% attractive ARPU levels 56.4% 50% 43.6% • Regulatory development 40% 30% • Mobile number portability Etis
Slide 8: Contents
Contents Slide Highlights for the full year & quarter 4 Market Information 7 Financial Summary 9 Strategy & Outlook 20 8
Slide 9: Revenues
Revenues Sustained revenues driven by mobile Revenue Quarterly Revenue (AEDm) Revenue Year on Year Change (AEDm) Year over year change +28% 404 78 2,172 (12) (1) 1,703 1,703 1,745 2,046 2,038 2,172 Q2 Q3 Q4 Q1 Q2 Q2 2010 Tel (Mobile) Tel (Fixed) Wholesale Broadcasting Q2 2011 2010 2011 Year to Date
Slide 10: Revenue Drivers - Mobile
Revenue Drivers - Mobile Data revenues sustained Quarterly RevenueMobile Revenues (AEDm) - mobile Year To Date Mobile Revenues (AEDm) +32% +33% 1,260 1,309 1,576 1,576 1,664 703 2,628 3,727 5,312 2,427 3,240 Q2 Q3 Q4 Q1 Q2 FY 07 FY 08 FY 09 FY 10 6mths 10 6 mths 11 2010 2011 Mobile Subscribers Mobil
Slide 11: Revenue Drivers – Mobile
Revenue Drivers – Mobile Growing contribution from post-paid customers Contribution Revenue to growth in mobile revenues - mobile Minutes of use by customer segment (excluding inbound roaming and handset revenue) Other non- 700 recurring 551 554 572 600 523 revenues, 4% 480 500 AED 4.5 m Post-paid 4
Slide 12: Revenue Drivers – Fixed
Revenue Drivers – Fixed Total fixed lines increased 25% year on year closing with 623,600 lines; 42,100 25% growth in fixed line subscriber base lines added during the quarter Quarterly Fixed Revenue (AEDm) Fixed lineLine Fixed subscription Subscribers (‘000) +27% +25% 700 600 500 400 300 200 100 50
Slide 13: Revenue Drivers
Revenue Drivers Wholesale & Broadcasting New agreements signed, countering Revenue - Wholesale Quarterly Broadcast Revenues (AEDm) Quarterly Wholesale Revenues (AEDm) Q1 anomaly 113 102 103 85 102 40 38 40 40 39 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2010 2011 2010 2011 Year to Date Wholesale Revenues (AEDm)
Slide 14: Gross Margin
Gross Margin Solid year-on-year margin growth Quarterly Gross Margin (AEDm) Year to Date Gross Margin (AEDm) 1,600 +29% 70.00% 5,000 65.70% 65.03% 66.06% 65.77% 68.00% 1,400 4,500 66.00% 68.00% 63.57% 1,200 66.87% 4,000 3,500 * 64.79% 64.00% 1,000 62.00% 66.00% 3,000 +28% 64.51% 64.60% 60.00% 800 66
Slide 15: Gross Margin By Segment
Gross Margin By Segment Mobile Gross Margin (AEDm) before handset subsidy Fixed Gross Margin (AEDm) 1,400 70.00% 70.58% 80.00% 300 84.49% 76.80% 100.00% 68.22% 68.86% 81.26% 1,200 63.55% 74.24% 90.00% 70.00% 250 80.00% 1,000 60.00% 59.22% 70.00% 200 800 * 64.40% 50.00% 60.00% 600 150 50.00% 400 40.0
Slide 16: Overheads
Overheads 430 basis point decrease in overheads year on year as a percentage of revenue Overheads Overheads (AEDm) 1000 Overheads as a percentage of revenue 70% 800 60% Q2 10 Q2 11 40% 50% 35% 35% 600 31% 34% Manpower 16.9% 15.4% 40% 400 30% Telecommunications license & related fees 2.7% 2.5% 20% 20
Slide 17: Profitability
Profitability Robust financial health - 51% increase in net profit before royalty EBITDA (AEDm) Net Profit before royalty (AEDm) 800 +52% 70.00% +51% 65.00% 500 50.00% 700 60.00% 600 55.00% 400 40.00% 500 50.00% 45.00% 300 30.00% 400 29.96% 32.99% 30.45% *29.82% 40.00% 35.00% 200 16.14% 18.70% 21.06
Slide 18: Capital Investments
Capital Investments Capex remains focused on network build-out of fixed line and mobile Capex additions (AEDm) AED 1.2 billion spent on enhancing coverage and quality in 2010 341 161 375 477 213 1,635 2,338 2,427 1,246 710 690 Q2 Q3 Q4 Q1 Q2 FY 07 FY 08 FY 09 FY 10 6 mths 10 6 mths 11 2010 2011 FY c
Slide 19: Cash & Debt overview
Cash & Debt overview AED 3 billion syndicated loan repaid in full during the second quarter Maintained free cash flow positive status New club loan facility put in place Free cash flow (AEDm) Debt maturity profile part of which used in repayment of syndicated loan 2,000 3,000 1,500 1,584 2,500 1,000
Slide 20: Contents
Contents Slide Highlights for the full year & quarter 4 Market Information 6 Financial Summary 10 Strategy & Outlook 19 20
Slide 21: Strategy & Outlook
Strategy & Outlook Growth through efficiency • Focus on profitable growth and increase of value share • Introducing nation-wide competition in fixed-line telecommunications services • Excel in customer experience and increase brand engagement • Revenue diversification through mobile data and broadba
Slide 22: Stal Lay Latig
ov Stal Lay Latig add life to life
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