Vodafone Qatar Qsc · QSE:VFQS
Vodafone Qatar Qsc — Vodafone Qatar P.Q.S.C. — H1 2023 Earnings Presentation
27 slides from Vodafone Qatar Qsc's earnings presentation, Jul 27, 2023
Slide 1: Financial Performance: Half year ended 30 June 2023
Vodafone Qatar P.Q.S.C. Financial Performance: Half year ended 30 June 2023
Slide 2: Disclaimer
Disclaimer • The following presentation is made only to, and is directed only at, persons to whom such a presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. • This presentation may
Slide 3: Performance Highlights
Performance Highlights Hamad Al-Thani Chief Executive Officer
Slide 4: Key Messages
Key Messages Strong First-Half Sustained Customer Partnerships to Drive Critical Focus Financial Experience Focus Digital Adoption Areas Performance • H1 FY23 Total Revenue • Launched instant mobile sim • Google Cloud Partnership • Growing our Fibre Network QR1,551mn (+8.0% Y/Y) activation The partn
Slide 5: Market Performance: VQ Continues to Gain Market Share
Market Performance ⋮ VQ Continues to Gain Market Share Total Market Revenue (in QRmn) Market Share +8.7% YoY Total Revenue Mobility Revenue 11,132 Market Share Market Share +888 Q1 FY23 TTM Q1 FY23 TTM 10,244 + 440 3,111 2,671 YoY +1.9pts YoY +1.9pts 27.9% 34.2% Q1 FY22 TTM Q1 FY23 TTM • Total marke
Slide 6: Market Performance: Sequential Outperformance in Q1 FY23
Market Performance ⋮ Sequential Outperformance in Q1 FY23 Indexed Cumulative Revenue Growth (2017-2023 Q1 TTM) 53.4% 55.7% • Vodafone has realized 55.7% revenue growth while the overall Market revenue has increased by 13.7% since 2017 26.4% • +42.0pp outperformance adjusted for overall Market +42.0p
Slide 7: Market Performance: Disciplined value protective growth despite challenger status
Market Performance ⋮ Disciplined value protective growth despite challenger status Indexed Mobility ARPU Indexed Prepaid ARPU Q2-21 Indexed to 100 Q2-21 Indexed to 100 88.2 79.9 +3.8pts +9.6pts 84.4 70.3 38.0% 38.9% 39.5% 34.0% 34.2% 36.0% 36.9% 32.8% 33.4% 33.7% 34.4% 35.1% 31.9% 32.0% 31.8% 32.2%
Slide 8: Market Performance: Communication Sector CPI has declined
Market Performance ⋮ Communication Sector CPI has declined Consumer Price Index by Major Groups of Commodities and Services, June-2023 150Index Using Base Year 2018 = 100 140 130 120 110 100 90 80 70 60 106 89 92 97 100 107 107 108 109 111 115 117 246 50 Household Communication Clothing and Housing,
Slide 9: Growing Our Fixed Network: Fibre Speeds start from 1 Gbps
Growing Our Fixed Network ⋮ Fibre Speeds start from 1 Gbps The First Telecom Provider in The Middle East to Offer “Gigabit Only” Speeds for Home Fibre • Fibre Internet Speeds for Home Connectivity, starting from 1 Gbps up until 25 Gbps. • Leveraging XG-PON technology to provide ‘Gigabit only’ speeds
Slide 10: Growing Our Mobile Network: 2,250 Radio Network Sites Across the Country
Growing Our Mobile Network ⋮ 2,250 Radio Network Sites Across the Country Radio Access Network Evolution Radio Network Coverage +1,083 sites 2,208 2,250 1,511 1,637 1,343 1,167 2018 2019 2020 2021 2022 Jun-23 • +93% new radio network sites since 2018. • 85% of the outdoor network sites are now 5G en
Slide 11: Financial Performance
Financial Performance Masroor Anjum Chief Financial Officer
Slide 12: Key Highlights
Key Highlights Strong revenue Cost Continued Robust growth efficiency growth in subscriber base profitability • Growth momentum • OPEX increase YoY • EBITDA QR 634m, 7.5% • Mobility subscribers grew continues with total remained lower than increase YoY 4.1% YoY revenue growing by 8%, revenue growth,
Slide 13: FY23 H1 Year on Year: Strong performance across all financial KPIs
FY23 H1 Year on Year ⋮ Strong performance across all financial KPIs Revenue Expenses EBITDA Net Profit +8.0% +8.4% +7.5% +20.1% 1,551 916 OPEX +7% 634 260 • Total revenue grew QR 115m (8%) led by 1,436 846 590 service revenue growth (+11.8%) partially 176 11.8% 206 216 offset by lower projects reven
Slide 14: Service Revenue: Service revenue growth continues
Service Revenue ⋮ Service revenue growth continues Postpaid Prepaid Managed services, Fixed & Others Total service revenue +11.8% +52.6% +2.1% 1,375 640 653 351 459 -9.3% 1,230 564 532 288 289 1,078 488 269 262 967 1,000 301 245 179 128 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY19 H1 FY20 H1 FY21 H1
Slide 15: Margin Trends: Improving efficiency and margins
Margin Trends ⋮ Improving efficiency and margins Reported Margin Underlying margin* OPEX EBITDA Net Profit +0.4 ppts Intensity Margin -0.4 ppts Margin 45.2% 16.8% 44.8% 16.4% 43.8% 28.8% 28.7% +0.7 ppts 13.0% 39.4% 40.8% 40.9% 40.2% 35.6% 24.9% 36.7% 8.4% 24.5% 24.2% 6.8% 33.4% FY19 FY20 FY21 FY22 F
Slide 16: Capital Expenditure: Investments driving profitable growth
Capital Expenditure ⋮ Investments driving profitable growth Capital expenditure (CAPEX) Return on capital employed (ROCE*) 30.0% +6.8 ppts +0.3 ppts 18.7% 21.5% 16.1% 10.1% 12.4% 9.8% 660 637 6.7% 411 408 444 454 307 270 4.2% 192 3.3% 183 216 104 138 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 Jun
Slide 17: FY23 H1 Cash Position: Generating strong cash flows
FY23 H1 Cash Position ⋮ Generating strong cash flows Operating Cash flow* Net Debt Net Debt to EBITDA** +2.6% +99% -0.04x 614 631 0.53x • Cash flow generation doubled reflecting 342 0.49x strong collections and working capital optimisation initiatives • Despite higher dividend pay out in FY23, net d
Slide 18: FY23 Q2 Year on Year: Another quarter of continued growth
FY23 Q2 Year on Year ⋮ Another quarter of continued growth Revenue Expenses EBITDA Net Profit +9.9% +10.8% +8.6% +16.1% OPEX +4% • Total revenue grew QR 70m (9.9%) led by 775 461 314 126 service revenue growth (+11.2%) 705 87 11.2% 416 289 109 87 193 • Expenses higher primarily due to growth in 185
Slide 19: FY23 H1 Year on Year: Statutory results summary
FY23 H1 Year on Year ⋮ Statutory results summary 30 Jun 23 30 Jun 22 • Total revenue grew QR 115m primarily driven by enterprise and equipment Consumer revenue 787 797 (10) revenue Enterprise, equipment and other revenues 764 639 125 Total revenue 1,551 1,436 115 • Higher direct costs resulting from
Slide 20: FY23 Guidance
FY23 Guidance
Slide 21: FY23 Guidance
FY23 Guidance FY22 FY23 Financial KPIs Results Expectation Total revenue QR 3,066m + YoY % EBITDA Margin 40.2% + 1 – 1.5 ppts CAPEX intensity 21.5% 17% to 18% • The Management expects continuing top line growth in FY23 • Higher revenue along with cost optimisation initiatives will enable growth in p
Slide 22: Q&A
Q&A
Slide 23: For more information visit our website
For more information visit our website: www.vodafone.qa/en/investor-relations Or email us: InvestorRelationsQatar@vodafone.com
Slide 24: Consolidated Statement of Income
Consolidated Statement of Income Six months ended QR m (unless otherwise stated) 30 Jun 23 30 Jun 22 YoY Consumer revenue 787 797 (10) Enterprise, equipment and other revenues 764 639 125 • Total revenue grew QR 115m primarily driven by Total revenue 1,551 1,436 115 enterprise and handset revenue In
Slide 25: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position QR m (unless otherwise stated) 30 Jun 23 31 Dec 22 Var Assets Property, plant and equipment 1,779 1,885 (106) Intangible assets 4,088 4,050 39 • Property, plant & equipment and intangible assets decreased by QR 68m due to depreciation and amortisation of
Slide 26: Mobility Subscribers
Mobility Subscribers Postpaid Prepaid Total Mobility +2.4% +4.8% +4.1% 570 1,529 2,099 557 1,459 2,015 1,307 1,763 481 1,232 1,714 456 457 1,193 1,650 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY23 H1 Financial Performance
Slide 27: Mobility ARPU
Mobility ARPU Postpaid Prepaid Total Mobility -2.6% 197.1 44.6 82.1 -5.9% 195.5 80.4 80.2 189.3 188.9 190.3 77.4 38.9 72.8 36.9 -13.4% 33.2 28.7 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY23 H1 Financial Performance ARPU
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