Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q3 2023 Earnings Presentation
23 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, Oct 31, 2023
Slide 1: Q3 2023 Financial Results
Q3 2023 Financial Results Emirates Integrated Telecommunications Company PJSC 31 October 2023 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: Q3 2023 highlights
Q3 2023 highlights Macro update Company update • The UAE economy is continuing to expand, benefitting • Products from population growth, strong domestic activity and non-hydrocarbon GDP growth – Successful launch of the iPhone 15 with a significant number of pre-orders – Improvement in business cond
Slide 5: Highlights
Financial review Highlights Revenues EBITDA Net profit (AED million) (AED million) (AED million) +3.7% +13.8% +57.7% 3,175 3,291 1,483 504 1,303 319 Q3’22 Q3’23 Q3’22 Q3’23 Q3’22 Q3’23 Capex OpFCF (AED million) (AED million) -9.7% +65.1% 724 956 527 579 Q3’22 Q3’23 Q3’22 Q3’23 5 Emirates Integrated
Slide 6: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 6 Emirates Integrated Telecommunications Company PJSC
Slide 7: Mobile customer base growth
Operating review 9.4% growth of mobile customer base +9.4% Mobile customer base(*) (000s) • Robust growth in mobile subscriber base 7,895 8,194 8,012 8,098 – Population growth continues to boost demand 7,402 – Executing on our strategy of innovative and attractive product offerings – Higher volume o
Slide 8: 12.4% growth in fixed customer base
Operating review 12.4% growth in fixed customer base • Our fixed subscriber base continues its double digit growth Fixed customer base(*) (000s) – Reflecting broadband strategy built around offering various means of access – Steady growth in Home wireless +12.4% 554 559 573 536 510 Q3’22 Q4’22 Q1’23
Slide 9: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 9 Emirates Integrated Telecommunications Company PJSC
Slide 10: Revenues
Financial review Revenues +3.7% 3,441 3,315 3,347 3,291 • Service revenues: +5.5% yoy 3,175 1,014 885 – 11th consecutive quarter of service revenue growth 903 827 840 – Primarily driven by the mobile postpaid segment – Revenues from the fixed segment growing at a stable pace 2,335 2,412 2,427 2,461
Slide 11: Service revenues
Financial review Service revenues 5.7% 5.3% (AED million) 1,496 1,513 1,525 Revenues 1,443 1,491 948 891 917 936 939 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Mobile services revenues grew 5.7% year-over-year Fixed services revenues grew 5.3% year-over-year • Sustained strong perfo
Slide 12: Other revenues
Financial review Other revenues -1.5% Other revenues recorded a small decline • Lower revenues from handset sales and hubbing • Partially offset by: (AED million) Revenues 1,014 – Higher interconnect revenues due to increase in mobile base 840 903 885 827 – ICT from the continuing demand for securit
Slide 13: Vigorous growth in EBITDA, with elevated margins
Financial review Vigorous growth in EBITDA, with elevated margins +13.8% Significant growth of the EBITDA and EBITDA margin: 1,520 1,483 1,366 1,303 1,305 • Focus on profitable revenue growth and upgrade of the revenue mix resulting in improvement of gross margin (AED million) 45.4% 45.1% 41.0% 39.4
Slide 14: Outstanding growth in Net profit
Financial review Outstanding growth in Net profit • Net profit soared 57.7% year-over-year and 26.8% quarter-over- +57.7% quarter driven by 504 87 (AED million) – Double digit growth in EBITDA 370 397 319 – Higher finance income 286 – One-off reversals of AED 87m 417 • Without the one-off, Net profi
Slide 15: Capex and operating free cash flow
Financial review Capex and operating free cash flow Capex (AED million) • Normalization of Capex, following the highs of 2022 724 632 – Capex spend focused on 504 527 408 – 5G deployment to enhance indoor coverage 22.8% – IT and infrastructure transformation 19.1% 15.1% 16.0% 11.8% – Expansion of th
Slide 16: Ample liquidity and strong balance sheet
Financial review Ample liquidity and strong balance sheet Cash & Term deposits (AED million) 1,926 1,546 4,848 1,079 941 3,769 1,079 383 Cash & Term Undrawn facility Total liquidity Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 deposits • Highly cash generative coupled with unlevered balance sheet – Provides flexib
Slide 17: 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 18: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 18 Emirates Integrated Telecommunications Company PJSC
Slide 19: Operating KPI
Appendix Operating KPI 2022 2022 2022 2022 2023 2023 2023 Q2 Q3 Q4 Full-year Q1 Q2 Q3 Mobile customers ('000s), of which 7,418 7,402 7,895 7,895 8,194 8,012 8,098 Postpaid 1,395 1,427 1,480 1,480 1,528 1,541 1,573 Prepaid 6,022 5,975 6,415 6,415 6,666 6,471 6,525 Net-adds ('000s), of which -72 -16 4
Slide 20: P&L
Appendix P&L 2022 2023 AED million Q3 Q3 Change Revenues 3,175 3,291 3.7% Direct costs ‐1,103 ‐1,065 ‐3.5% Indirect costs ‐769 ‐744 ‐3.3% Other income 0 1 230.4% EBITDA 1,303 1,483 13.8% Margin 41.0% 45.1% 9.8% Depreciation, amortization ‐433 ‐457 5.6% Goodwill impairment 0 0 N/M Depreciation of rig
Slide 21: Cash flow statement
Appendix Cash flow statement 2022 2023 AED million Q3 Q3 Net profit 319 504 Adjustments for non-cash items 609 625 Change in working capital 553 770 Cash generated from operations 1,481 1,899 Royalty paid (net) 0 0 Payment of employees' end of service benefits -11 -10 Net cash generated from operati
Slide 22: Balance sheet
Appendix Balance sheet As at As at As at As at AED million 31-Dec-22 30-Sep-23 AED million 31-Dec-22 30-Sep-23 Property, plant and equipment 9,426 9,504 Share capital 4,533 4,533 Right-of-use assets 1,416 1,643 Share premium 232 232 Intangible assets 549 598 Retained earnings 1,878 1,845 Goodwill 41
Slide 23: Thank you.
Thank you. Emirates Integrated Telecommunications Company PJSC
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