Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q2 2014 Earnings Presentation
25 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, July 2014
Slide 1: Q2 2014 Results
Q2 2014 Results Emirates Integrated Telecommunications Company PJSC July 2014
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 Q2 Results 4 Market Information 8 Financial Summary 10 Strategy and Outlook 22 3
Slide 4: Q2 Financial Highlights
Q2 Financial Highlights Total Revenue EBITDA Net Profit before Free Cash Flow Mobile 90-day active (AED M) Royalty (AED M) (AED M) subscribers (AED M) (000s) +13.7% +17.9% +22.0% -215.3% +7.6% 3,024 7,161 2,660 6,654 1,290 949 (106) 1,094 778 (333) Q2 2013 Q2 2014 Q2 2013 Q2 2014 Q2 2013 Q2 2014 Q2
Slide 5: 6 months Financial Highlights
6 months Financial Highlights Total Revenue EBITDA Net Profit before Free Cash Flow Mobile 90-day active (AED M) Royalty (AED M) (AED M) subscribers (AED M) (000s) +13.1% +15.2% +18.6% -63.8% +7.6% 5,979 7,161 5,287 2,473 1,814 2,147 6,654 1,530 444 161 6 mo 2013 6 mo 2014 6 mo 2013 6 mo 2014 6 mo 2
Slide 6: Progressive Dividend Payment
Progressive Dividend Payment Proposed dividend payment* AED per share Q2 2013 Q2 2014 Special Dividend (one-off payment) 0.10 - Interim Dividend 0.12 0.12 Total 0.22 0.12 Sustained focus on creating shareholder value • Proposed return of AED 549 million to shareholders, subject to OGM approval • Du
Slide 7: Contents
Contents Slide Highlights of Q2 Results 4 Market Information 8 Financial Summary 10 Strategy and Outlook 22 7
Slide 8: Market Overview UAE
Market Overview Market share consolidation – increasing emphasis on growing revenue share UAE Mobile Subscribers - Market share quarterly evolution* UAE Telecom Market - Revenue share quarterly evolution 60.0% 80.0% 70.0% 70.3% 55.0% 54.6% 60.0% 50.0% 50.0% 40.0% 45.0% 45.4% 30.0% 29.7% 20.0% 40.0%
Slide 9: Contents
Contents Slide Highlights of Q2 Results 4 Market Information 8 Financial Summary 10 Strategy and Outlook 22 9
Slide 10: Total Revenues
Total Revenues Mobile and Fixed revenues contributing to growth in revenue Quarterly Revenue (AED M) Like for Like Revenue Breakdown Quarter Change (AED M) +13.7% 3,024 3,024 2,660 125 45 -6 3 2,955 197 2,869 54.1% 34.4% 12.3% -1.6% 0.8% 2,660 2,643 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Yearly Rev
Slide 11: Revenue Drivers - Mobile
Revenue Drivers - Mobile Consistent growth in mobile despite deactivated subscribers due to , My Number My Identity Quarterly Mobile Revenues (AED M) Yearly Mobile Revenues (AED M) +9.5% 8,365 7,632 +8.9% 6,541 2,195 2,228 2,263 2,066 2,047 5,058 4,491 4,123 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 F
Slide 12: Revenue Drivers – Mobile
Revenue Drivers – Mobile Post-paid continues to be a focus for growth Postpaid contribution to growth Y on Y to mobile revenues (excluding inbound roaming and handset revenue) Quarterly Minutes of Use by Customer Segment 68.8% 605 611 625 569 593 46.5% 224 221 221 207 207 Q2 2013 Q2 2014 Q2 2013 Q3
Slide 13: Revenue Drivers – Fixed
Revenue Drivers – Fixed Strong growth in overall fixed business Quarterly Fixed Revenue (AED M) Fixed line subscription Quarterly Fixed Line Subscribers (‘000) +30.1% 619 541 613 511 439 458 416 599 588 578 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Yearly Fixed
Slide 14: Revenue Drivers – Broadcast & Wholesale
Revenue Drivers – Broadcast & Wholesale Strong growth in wholesale driven by international hubbing Quarterly Wholesale Revenues (AED M) Quarterly Broadcast Revenues (AED M) +33.7% -12.5% 46 46 173 177 41 39 40 133 141 111 120 136 89 99 72 44 39 41 58 37 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q2 201
Slide 15: Gross Margin
Gross Margin Steady gross margin performance Quarterly Gross Margin (AED M) and Gross Margin % Yearly Gross Margin (AED M) and Gross Margin % +12.2% +10.8% 8,000 7,247 75.0% 2,200 80.0% 69.1% 67.5% 6,897 67.1% 2,012 7,000 65.7% 70.0% 75.0% 2,000 1,919 1,915 5,901 70.1% 65.0% 70.0% 6,000 67.1% 1,794
Slide 16: Gross Margin – Breakdown by Segment
Gross Margin – Breakdown by Segment Strong growth in mobile, fixed and wholesale business Quarterly Mobile Gross Margin (AED M) Quarterly Fixed Gross Margin (AED M) +7.2% +28.6% 1,600 1,578 75.0% 500 100.0% 72.7% 1,556 411 431 1,550 73.0% 400 365 367 95.0% 71.3% 1,506 335 90.0% 1,500 1,472 71.0% 300
Slide 17: Overheads
Overheads Continuing improvement in operational efficiencies Quarterly Overheads (AED M) Overheads as a % of Revenue 6 mo 2013 6 mo 2014 Manpower 12.3% 11.4% 850 839 40.0% Teleco license & related fees 2.5% 2.6% 800 Sales & marketing 2.3% 2.2% 35.0% 750 732 722 Bad debts 0.3% 0.5% 718 700 30.0% 700
Slide 18: Profitability
Profitability Solid performance with significant growth of 22% on Net Profit before Royalty Quarterly EBITDA (AED M) Quarterly Net Profit before Royalty (AED M) +17.9% +22.0% 1,000 949 35.0% 1,400 1,290 50.0% 865 1,183 778 768 1,200 1,094 1,064 1,081 45.0% 800 716 30.0% 1,000 31.4% 42.7% 40.0% 29.2%
Slide 19: Net Profit after Royalty
Net Profit after Royalty Impact of royalty regime between 2013 and 2014 normalised for comparison purposes Quarterly Net Profit after Royalty (AED M) Quarterly Royalty Compared (AED M)* +24.9% 450 55.0% 43.3% 42.3% 400 37.6% 401 45.0% 350 34.9% 35.1% 375 506 498 447 300 35.0% 548 490 250 439 271 270
Slide 20: Capital Investments
Capital Investments Quarterly CapEx Additions (AED M) Year to Date CapEx Additions (AED M) -10.5% 2,000 18.3% -41.3% 20.0% 1,720 15.1% 1,564 686 1,500 17.5% 13.1% 15.0% 1,291 1,244 14.5% 1,000 10.0% 323 690 6.8% 289 188 500 405 5.0% 116 0 0.0% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 FY 2010 FY 2011
Slide 21: Cash & Debt Overview
Cash & Debt Overview Royalty and TRA payments made in Q2 2014 Quarterly Free Cash Flow (AED M) Year to Date Free Cash Flow (AED M) 2,000 1,098 1,200 5,000 2,329 2,500 1,000 4,000 1,500 787 800 1,748 2,000 484 3,000 1,000 600 1,523 1,377 1,500 400 2,000 500 (106) 1,041 887 200 1,000 226 (69) 1,587 2,
Slide 22: Contents
Contents Slide Highlights of Q2 Results 4 Market Information 8 Financial Summary 10 Strategy and Outlook 22 22
Slide 23: Strategy and Outlook
Strategy and Outlook Efficiency and value creation: Positioning the company for success in a continually evolving telecommunications market • Focus on profitable growth and increased value share • Increase focus on mobile data and bundled offerings supported by continued emphasis on data network inv
Slide 24: dll Lay Listig
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