Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q1 2011 Earnings Presentation
21 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, April 2011
Slide 1: First Quarter 2011 Results
First Quarter 2011 Results Emirates Integrated Telecommunications Company PJSC April 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 6 Financial Summary 10 Strategy & Outlook 19 3
Slide 4: Q1 Financial Highlights
Q1 Financial Highlights Customer acquisition sustained - 272,000 mobile customers added Total Revenue EBITDA Net Profit before royalty Mobile Customer (AEDm) (AEDm) (AEDm) Net Additions (Millions) +4% +29% +69% 262,000 272,000 2,038 +112% 412 1,580 621 366 194 Q1 10 Q1 11 Q1 10 Q1 11 Q1 10 Q1 11 Q1
Slide 5: Contents
Contents Slide Highlights for the full year & quarter 4 Market Information 6 Financial Summary 10 Strategy & Outlook 19 5
Slide 6: Market overview UAE
Market overview Strengthened market position UAE Mobile Subscribers Market share evolution (Source: TRA figures as per February ’11. 80% March ‘11 based on internal du estimates) 70% • Fair competition in a two-player market 60% 58.4% 50% • Characterised by high penetration rate and attractive ARPU
Slide 7: Contents
Contents Slide Highlights for the full year & quarter 4 Market Information 6 Financial Summary 10 Strategy & Outlook 19 7
Slide 8: Revenues
Revenues Sustained revenues driven by mobile Revenue Quarterly Revenue (AEDm) Revenue Year on Year Change (AEDm) Year over year change +29% +27% +35% 72 0 2038 409 -23 1,580 1,530 1,580 1,703 1,745 2,046 2,038 Q4 Q1 Q2 Q3 Q4 Q1 Q1 2010 Tel (Mobile) Tel (Fixed) Wholesale Broadcasting Q1 2011 2009 201
Slide 9: Revenue Drivers - Mobile
Revenue Drivers - Mobile Data revenues sustained Quarterly- Mobile Revenue mobileRevenues (AEDm) Yearly Mobile Revenues (AEDm) +35% Q1 11 is 2 days shorter than Q4 10. Equates to AED 35 million = 2.2% growth 1,110 1,167 1,260 1,309 1,576 1,576 703 2,628 3,727 5,312 1,576 Q4 Q1 Q2 Q3 Q4 Q1 FY 07 FY 0
Slide 10: Revenue Drivers – Fixed
Revenue Drivers – Fixed Total fixed lines increased 27% year on year closing with 581,500 lines; 20,700 27% growth in fixed line subscriber base lines added during the quarter Quarterly Fixed Revenue (AEDm) Fixed lineLine Fixed subscription Subscribers (‘000) 700 +27% +27% 600 500 400 300 200 256 26
Slide 11: Revenue Drivers - Wholesale & Broadcasting
Revenue Drivers Decrease partially due Wholesale & Broadcasting to reduced market Revenue - Wholesale share in the quarter; Quarterly Broadcast Revenues (AEDm) Quarterly Wholesale Revenues (AEDm) benefit/effect of new agreements expected Q2 to address this 123 108 113 102 103 85 40.6 40.2 39.8 37.8
Slide 12: Gross Margin
Gross Margin Solid year-on-year margin growth Quarterly Gross Margin (AEDm) Year to Date Gross Margin (AEDm) +26% 5,000 75.0% 4,500 1400 75.00% 4,000 70.0% 65.70% 1200 3,500 65.03% 70.00% 64.60% 1000 3,000 63.57% 65.0% 65.93% 66.17% 800 64.87% 64.51% 64.60% 2,500 63.83% 65.00% 2,000 60.0% 600 1,500
Slide 13: Gross Margin By Segment
Q4 10: adjustment of AED 68m between Q4 10: adjustment of AED Gross Margin Fixed and Mobile interconnect cost increasing the YTD mobile GM% to 64.4%. Excluding handset sales, gross margin Fixed Gross Margin (AEDm) 68m between Fixed and Mobile interconnect cost lowering the YTD fixed GM% By Segment i
Slide 14: Overheads
Overheads 900 basis point decrease in overheads as a percentage of revenue Overheads Overheads (AEDm) 720 41% 43% 40% 45% Overheads as a percentage of revenue 700 35% 34% 40% Q1 10 Q1 11 680 31% 35% 660 30% 19.5% 16.0% Manpower 640 25% 2.8% 2.6% 620 20% Telecommunications licence & related fees 600
Slide 15: Profitability
Profitability Robust financial health - 112% increase in net profit before royalty EBITDA (AEDm) Net Profit before royalty (AEDm) 800 70% +69% 65% 500 50% 700 450 45% 60% 600 55% 400 40% 50% 350 35% 500 45% 300 30% 400 33% 30% 40% 21% 20% 30% 250 19% 25% 27% 35% 16% 300 23% 200 14% 20% 24% 30% 12% 2
Slide 16: Capital Investments & Cash Flow
Capital Investments & Cash Flow 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 960 369 341 161 375 477 1,635 2,338 2,427 1,246 477 Q4 Q1 Q2 Q3 Q4 Q1 FY 07 FY 08 FY 09 FY 10 Q1 11 2009 2010 201
Slide 17: Cash & Debt overview
Cash & Debt overview Maintained free cash flow positive status Free cash flow (AEDm) Debt maturity profile 2,000 4,000 New facility for 3,500 partial refinancing 1,500 of loan is in process 1,584 1,000 3,000 of being finalized 500 973 32 2,500 33 520 508 Millions (AED) 0 2,000 (528) 3,510 (2,102) (1
Slide 18: Contents
Contents Slide Highlights for the full year & quarter 4 Market Information 6 Financial Summary 10 Strategy & Outlook 19 18
Slide 19: Strategy & Outlook
Strategy & Outlook Growth through efficiency • Increase penetration of high-value consumer and enterprise accounts • Focus on profitable growth and increase of value share • Excel in customer experience and increase brand engagement • Revenue diversification through mobile data and broadband • Conti
Slide 20: add life to life
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