Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q2 2021 Earnings Presentation
21 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, Jul 27, 2021
Slide 1: Q2 2021 results
Q2 2021 results Emirates Integrated Telecommunications Company PJSC 27 July 2021 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: Highlights: Back to growth
Highlights Back to growth +7.0% • Stabilization in mobile revenues Revenues • Fixed revenue solid performance from B2B and B2C yoy • Sustained handset sales and gradual recovery of wholesale +7.3% EBITDA • Permanent efforts on cost optimization yoy • Normalization of counterparty risk in connection
Slide 5: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 5 Emirates Integrated Telecommunications Company PJSC
Slide 6: Operating review: Mobile customer base +2.3%
Operating review Mobile customer base +2.3% Mobile customer base(*) (000s) +2.3% 6,658 6,784 6,594 6,565 6,418 • Postpaid customer base is recovering: 1,313 1,265 1,271 1,285 1,262 – Demand for 5G handsets increasing – Unlimited PowerPlan tariffs remain attractive • Prepaid impacted by disconnection
Slide 7: Operating review: Fixed customers: net-adds accelerating
Operating review Fixed customers: net-adds accelerating Fixed customer base(*) (000s) +31 +13 +7 +2 • Regular and continuous quarterly growth in fixed customer base with an acceleration driven by innovative products and services: – Social distancing measures require a reliable internet connection 27
Slide 8: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 8 Emirates Integrated Telecommunications Company PJSC
Slide 9: Highlights: major financial aggregates returning to growth
Financial review Highlights: major financial aggregates returning to growth +7% +7.3% +10bp +11.4% Revenues EBITDA EBITDA Net profit (AED million) (AED million) margin (AED million) 2,855 1,130 39.5% 39.6% 240 2,668 1,054 215 Q2’20 Q2’21 Q2’20 Q2’21 Q2’20 Q2’21 Q2’20 Q2’21 9 Emirates Integrated Tele
Slide 10: Revenues +7%
Financial review Revenues +7% +7% • Mobile revenues are gradually stabilising 2,668 2,688 2,740 2,883 2,855 – 1st quarter without significant year-on-year decline • Robust handset sales – Popularity of financing bundled with a postpaid plan Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 – Penetration of 5G handsets
Slide 11: Mobile customers, ARPU and revenues
Financial review +2.3% Mobile revenues are gradually stabilising Customers* 6,784 (‘000s) 6,418 6,594 6,658 6,565 • Customers – Postpaid recovery driven by Unlimited Power Plans Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 – Prepaid impacted by delayed disconnections +7.1% • ARPU – Voice traffic surged ahead of pr
Slide 12: Fixed revenues +6.5%
Financial review Fixed revenues +6.5% +23.2% Customers 279 236 248 • Solid contribution from Consumer and Enterprise 226 228 (‘000s) segments – Consumer: attractive tariff plans – Enterprise: technology spend is returning Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 • Acceleration of the quarterly growth rate of t
Slide 13: Other revenues +21.5%
Financial review Other revenues +21.5% +21.5% • Handset sales stimulated by – Strong demand for 5G handsets – Financing plan (AED million) Revenues 908 873 779 • Wholesale revenues 718 720 – Recovery driven by voice traffic Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 13 Emirates Integrated Telecommunications Comp
Slide 14: EBITDA increased 7.3% to AED 1,130 million
Financial review EBITDA increased 7.3% to AED 1,130 million +7.3% 1,157 1,120 1,130 1,054 1,031 • Direct costs increased AED 174 million (+19.7%) to AED 1,059 million • Product costs +61% to AED 259 million 39.5% 43.0% 38.8% 39.6% 37.6% – Higher handset sales • Interconnect +10% to AED 702 million –
Slide 15: Net profit +11.4%
Financial review Net profit +11.4% +11.4% • Higher EBITDA 824 – Operating cost reduction initiatives 215 257 240 48 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 • Depreciation & amortisation – Higher charges due to capital investment – AED 18 million impairment charge -14 -18 76 -9 -4 -2 -5 • Net finance costs – L
Slide 16: Cash generation +27.5%
Financial review Cash generation +27.5% 649 568 541 509 511 (AED million) • Capex increased AED 140 million Capex – Network modernisation 19.1% 19.0% 19.7% 19.7% 22.7% – Capacity expansion – Fiber backbone Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 – 5G deployment • Operating free cash flow -11.7% – Strong cash
Slide 17: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 17 Emirates Integrated Telecommunications Company PJSC
Slide 18: Appendix: P&L
Appendix P&L 2020 2021 2020 2021 AEDm Q2 Q2 change Revenues 2,668.4 2,854.8 7.0% AEDm Q2 Q2 change Interconnect costs -637.3 -702.0 10.1% Direct costs -885.0 -1,059.2 19.7% Product costs -161.1 -259.5 61.1% Indirect costs -730.2 -665.7 -8.8% Commissions -86.6 -97.8 13.0% Other operating income 0.3 0
Slide 19: Appendix: Balance sheet
Appendix Balance sheet As at As at As at As at AED million 31-Dec-20 30-Jun-21 AED million 31-Dec-20 30-Jun-21 Property, plant and equipment 8,063 8,557 Share capital 4,533 4,533 Right-of-use assets 1,851 1,703 Share premium 232 232 Intangible assets 487 429 Retained earnings 1,896 1,663 Goodwill 41
Slide 20: Appendix: Operating KPI
Appendix Operating KPI 2020 2020 2020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Mobile customers ('000s), of which 7,440 6,418 6,594 6,658 6,784 6,565 Postpaid 1,363 1,262 1,265 1,271 1,313 1,285 Prepaid 6,077 5,156 5,330 5,386 5,471 5,280 Net-adds ('000s), of which -194 -1,022 177 63 126 -219 Postpaid 9 -10
Slide 21: Thank you.
Thank you. Emirates Integrated Telecommunications Company PJSC
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