Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — FY2023 Earnings Presentation
24 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, Feb 14, 2024
Slide 1: Full-year and Q4 2023 results
Full-year and Q4 2023 results Emirates Integrated Telecommunications Company PJSC 14 February 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: 2023 highlights: Sustainable and profitable growth
2023 highlights Sustainable and profitable growth Macro update Company update • Positive macro economic environment puts the UAE in a • Commercial highlights privileged position – Power Plan continuation – Population growth – Esaad card and National day promotions – High tourism activity – Successfu
Slide 5: 2023 highlights: Financial performance
2023 highlights Financial performance Revenues EBITDA Net profit (AED million) (AED million) (AED million) +7.3% +9.6% +38.5% 3,558 1,430 396 3,315 1,305 286 Q4’22 Q4’23 Q4’22 Q4’23 Q4’22 Q4’23 Revenues EBITDA Net profit (AED million) (AED million) (AED million) +6.9% +12.8% +36.8% 5,800 5,143 12,75
Slide 6: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 6 Emirates Integrated Telecommunications Company PJSC
Slide 7: Operating review: growth of mobile customer base
Operating review +8.3% growth of mobile customer base +8.3% +5.6% Mobile customer base(*) (000s) • Significant growth of the mobile subscriber base year-over- year (8.3%) and quarter-over-quarter (5.6%) driven by seasonality and commercial momentum 7,895 8,194 8,012 8,098 8,554 • Postpaid customer b
Slide 8: Operating review: growth in fixed customer base
Operating review +12.6% growth in fixed customer base Fixed customer base(*) (000s) • Consistent subscriber base growth throughout the year +12.6% solidifying prior year gains +5.4% • Unique content offering • Introduction of Business starter 5G/Office Wireless for SME • Continued traction of home w
Slide 9: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 9 Emirates Integrated Telecommunications Company PJSC
Slide 10: Strong revenue growth in Q4 and full-year
Financial review Strong revenue growth in Q4 and full-year +7.3% +6.9% +8.1% 3,441 3,347 3,558 13,636 3,315 3,291 12,754 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 2022 2023 • Quarterly revenues grew by 7.3% year-on-year and 8.1% qoq as a result of both higher “service revenues” and “other revenues” • Full-year
Slide 11: Mobile revenues are growing sequentially and annually
Financial review Mobile revenues are growing sequentially and annually +5.4% +3.3% +6.2% (AED million) (AED million) Revenues Revenues 1,496 1,491 1,513 1,525 1,576 6,105 5,748 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 2022 2023 Quarterly Mobile revenues grew 5.4% year-on-year Mobile revenues grew 6.2% on a ful
Slide 12: Sustained growth in fixed revenues
Financial review Sustained growth in fixed revenues +4.0% +8.6% +1.5% (AED million) (AED million) Revenues Revenues 916 935 948 939 953 3,774 3,475 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 2022 2023 Fixed service revenues grew 8.6% on a full-year basis Quarterly Fixed services revenues grew 4.0% year-on-year •
Slide 13: Strong rebound in Other revenues
Financial review Strong rebound in “Other revenues” +14.0% +6.4% +24.5% (AED million) (AED million) Revenues Revenues 1,015 1,029 3,757 903 885 3,532 827 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 2022 2023 Other revenues grew 6.4% on full-year basis Other revenues jumped by 14% year-on-year in Q4’23 • Growing r
Slide 14: Double digit growth in annual EBITDA and sizeable margin improvement
Financial review Double digit growth in annual EBITDA and sizeable margin improvement +9.6% +12.8% 1,520 1,483 5,800 1,430 1,366 1,305 5,143 (AED million) (AED million) 45.4% 45.1% 39.4% 39.7% 40.2% 42.5% 40.3% Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 2022 2023 • Annual EBITDA grew by 12.8% • Quarterly EBITDA
Slide 15: Stellar growth in net profit
Financial review Stellar growth in net profit +36.8% +38.5% (AED million) (AED million) 1,668 504 397 396 1,220 370 286 2022 2023 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 • Quarterly net profit grew at 38.5% driven by EBITDA growth • Full-year net profit increased by 36.8% • Q3 net profit was positively impact
Slide 16: Capex normalisation and growth in operating free cash flow
Financial review Continuation of Capex normalisation and remarkable growth in operating free cash flow • Capex Stable Capex (AED million) and Capital intensity -1.0% 759 2,220 2,198 – Focus on enhancing indoor 5G coverage: 5G 633 covers 98.5% of 504 527 population 408 – IT and infrastructure transfo
Slide 17: Robust balance sheet and strong liquidity position
Financial review Robust balance sheet and strong liquidity position (AED million) 1,926 1,937 Cash & Term deposits 1,546 5,706 1,079 3,769 1,937 383 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Cash & Term Undrawn facility Total liquidity deposits • Strong balance sheet and healthy cash generated from our operatio
Slide 18: Outlook: 2024 priorities and guidance
Outlook 2024 priorities and guidance 2024 key priorities • Generate profitable growth in the core (fixed and mobile connectivity) and non-core (ICT and others) • Continue managing efficiently the business to improve margins • Push further the digitalization through reinforcing our digital-first appr
Slide 19: Agenda
Agenda • Highlights • Operating review • Financial review • Appendix 19 Emirates Integrated Telecommunications Company PJSC
Slide 20: Operating KPI
Appendix Operating KPI 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 Q1 Q2 Q3 Q4 Full-year Q1 Q2 Q3 Q4 Full-year Mobile customers ('000s), of which 7,489 7,418 7,402 7,895 7,895 8,194 8,011 8,097 8,554 8,554 Postpaid 1,371 1,395 1,427 1,480 1,480 1,528 1,541 1,573 1,636 1,636 Prepaid 6,118 6,022
Slide 21: P&L
Appendix P&L 2022 2023 2022 2023 AED million Q4 Q4 Full-year Full-year Revenues 3,315 3,558 12,754 13,636 Direct costs -1,189 -1,265 -4,535 -4,671 Indirect costs -823 -863 -3,078 -3,167 Other income 1 0 2 1 EBITDA 1,305 1,430 5,143 5,800 Margin 39.4% 40.2% 40.3% 42.5% Depreciation, amortization -477
Slide 22: Cash flow statement
Appendix Cash flow statement 2022 2023 2022 2023 AED million Q4 Q4 FY FY Net profit 286 396 1,220 1,668 Adjustments for non-cash items 653 602 2,403 2,534 Change in working capital 400 907 1,453 1,943 Cash generated from operations 1,340 1,905 5,076 6,144 Royalty paid (net) - - (1,413) (1,688) Payme
Slide 23: Balance sheet
Appendix Balance sheet As at As at As at As at AED million 31-Dec-22 31-Dec-23 AED million 31-Dec-22 31-Dec-23 Property, plant and equipment 9,426 9,723 Share capital 4,533 4,533 Right-of-use assets 1,416 1,597 Share premium 232 232 Intangible assets 549 698 Retained earnings 1,878 2,227 Goodwill 41
Slide 24: Thank you.
Thank you. Emirates Integrated Telecommunications Company PJSC
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