Vodafone Qatar Qsc · QSE:VFQS
Vodafone Qatar Qsc — Vodafone Qatar P.Q.S.C. — H1 FY2024 Earnings Presentation
24 slides from Vodafone Qatar Qsc's earnings presentation, Jul 24, 2024
Slide 1: Vodafone Qatar Investor Presentation: Financial Performance H1 2024
Vodafone Qatar P.Q.S.C. Investor Presentation Financial Performance: Half year ended 30 June 2024
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 Financial Continued Gains on Network Infrastructure Focus on Enterprise Results in H1 FY24 Market Share Expansion Solutions • FY24 H1 Revenue QR 1,585m • 30.5% Revenue Market Share • 5G Experience • Stronger Service Revenue Mix +2.2% Y/Y in FY24 Q1 TTM 87% of outdoor sites are 5G
Slide 5: Market Performance: Our profitability growth outperforms the Market
Market Performance ⋮ Our profitability growth outperforms the Market Indexed Cumulative EBITDA Growth 142.9% 133.5% • We have achieved +142.9% EBITDA growth since FY17 Q1 104.5% on a TTM basis. • In the same period overall Market EBITDA has increased by 4.2%. +138.7pp 57.0% • This is corresponding t
Slide 6: Market Performance: Industry is suffering pricing deflation
Market Performance ⋮ Industry is suffering pricing deflation Telecom CPI has declined the most since 2018 among sectors tracked by Qatar PSA Consumer Price Index by Major Groups of Commodities and Services, May-2024 Index Using Base Year 2018 = 100 108 91 94 95 98 105 106 110 111 113 119 132 246 Hou
Slide 7: Infrastructure Update: Radio Access Network Expansion
Infrastructure Update ⋮ Radio Access Network Expansion Radio Access Network Coverage Map Sites Expansion >2x 2,403 2,478 2,208 1,637 1,511 1,343 1,167 2018 2019 2020 2021 2022 2023 Jun-24 • Majority of sites network wide are upgraded with 5G 2nd carrier increasing capacity and capability to the end
Slide 8: Financial Performance
Financial Performance Masroor Anjum Chief Financial Officer
Slide 9: FY24 H1 Key Highlights
FY24 H1 ⋮ Key Highlights Revenue growth Focus on cost Continuing Robust underlying continues efficiency profitability growth in cash growth flows • Growth momentum • Despite growth in service • EBITDA QR 672m, 5.9% • 42.5% underlying increase continues with service revenue, expenses decline higher Y
Slide 10: FY24 H1 Year on Year: Persistent Topline and Profitability Growth
FY24 H1 Year on Year ⋮ Persistent Topline and Profitability Growth Revenue Expenses EBITDA Net Profit +2.2% -0.3% +5.9% +12.8% • Total revenue grew QR 34m (+2.2%) 1,551 1,585 916 913 672 293 driven by growth across mobility, fixed 171 2.8% 634 and wholesale 176 260 • Expenses declined due to cost 53
Slide 11: Service Revenue: Continuous growth across all segments
Service Revenue ⋮ Continuous growth across all segments Postpaid Prepaid Managed services, wholesale & Fixed Total service revenue +0.2% +7.6% +2.8% +1.2% 653 654 288 289 494 1,414 640 1,375 269 266 459 262 564 1,230 532 1,078 1,000 301 245 179 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20
Slide 12: Margin Trends: Enhancing cost efficiency and profitability margins
Margin Trends ⋮ Enhancing cost efficiency and profitability margins Reported Margin Underlying margin* +1.1 ppts OPEX EBITDA +1.3ppts Net Profit Intensity Margin Margin 46.4% 18.5% 45.2% 17.4% 45.1% 28.7% 16.4% 43.8% +1.05ppts 42.4% 13.0% 39.4% 41.3% 40.8% 40.2% 24.9% 24.2% 24.1% 23.9% 8.4% 36.7% FY
Slide 13: FY24 Q2 Year on Year: Growth momentum continues
FY24 Q2 Year on Year ⋮ Growth momentum continues Revenue Expenses EBITDA Net Profit +0.5% -3.5% +6.4% +13.1% • Service revenue grew 3.2% YoY driven by 775 779 461 334 143 growth across all segments – prepaid, 445 87 69 3.2% 314 postpaid, wholesale and fixed 126 • Lower equipment revenue YoY is drive
Slide 14: Capital Expenditure: Investments driving profitable growth
Capital Expenditure ⋮ Investments driving profitable growth Capital expenditure (CAPEX) Return on capital employed (ROCE*) +7.1 ppts +0.7 ppts 18.7% 21.5% 16.1% 17.7% 11.3% 6.2% 660 10.7% 9.8% 550 411 408 444 358 6.7% 307 270 98 4.2% 216 192 104 138 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24
Slide 15: FY24 H1 Year on Year: Driving robust cash flows
FY24 H1 Year on Year ⋮ Driving robust cash flows Operating Cash flow* Net Debt Net Debt to EBITDA ** -28.6% -0.15x 342 336 +42.5% 631 0.49x •1 Underlying operating cash flow increased 106 42.5% reflecting strong collections and 450 working capital optimization initiatives 0.34x 423 •2 Despite higher
Slide 16: FY24 H1 Statutory results summary
FY24 H1 Year on Year ⋮ Statutory results summary 30 Jun 24 30 Jun 23 YoY QR millions (unless otherwise stated) • Total revenue grew QR 34m (+2.2%) driven Consumer revenue 819 797 21 by growth across mobility, fixed and Enterprise, equipment and other revenues 766 753 13 wholesale Total revenue 1,585
Slide 17: Key Financial Performance Indicators
Key Financial Performance Indicators Service Revenue Total Revenue EBITDA Net Profit 340 1,700 320 1,450 700 293 1,414 1,650 672 300 1,585 1,375 1,600 CAGR 1,400 CAGR CAGR 1,551 +14.6% 280 260 +9.0% +10.3% 650 634 CAGR 1,550 260 +37.9% 1,350 1,500 600 590 240 1,300 1,450 1,436 216 220 1,250 1,230 1,
Slide 18: FY24 Guidance
FY24 Guidance FY23 FY24 Financial KPIs Results Guidance Total revenue QR 3,111m + YoY % EBITDA Margin 41.3% + 0.5 to 1 ppts Earnings Per Share (EPS) 0.128 +8% - 12% CAPEX intensity 17.7% 12% - 14% FY24 H1 Financial Performance 24 July 2024 18
Slide 19: Q&A
Q&A
Slide 20: For more information visit our website
For more information visit our website: www.vodafone.qa/en/investor-relations Or email us: InvestorRelationsQatar@vodafone.qa
Slide 21: Consolidated Statement of Income
Consolidated Statement of Income Six months ended QR m (unless otherwise stated) 30 Jun 24 30 Jun 23 YoY Consumer revenue 819 797 21 Enterprise, equipment and other revenues 766 753 13 Total revenue 1,585 1,551 34 Interconnection and other direct expenses (517) (523) 6 • Total revenue grew QR 34m (+
Slide 22: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position QR m (unless otherwise stated) 30 Jun 24 31 Dec 23 Var Assets Property, plant and equipment 1,854 1,934 (81) Intangible assets 3,953 4,037 (84) • Property, plant & equipment and intangible assets decreased by Right-of-use assets 393 429 (36) QR 165m due t
Slide 23: Mobility ARPU
Mobility ARPU Postpaid Prepaid Total Mobility +1.8% +3.0% +1.4% 189.9 190.7 191.3 193.3 28.9 28.8 72.2 72.1 73.2 187.8 28.0 28.2 70.3 71.5 26.7 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 H1 Financial Performance ARPU i
Slide 24: Mobility Subscribers
Mobility Subscribers Postpaid Prepaid Total Mobility -2.2% -0.7% -1.1% 570 566 567 569 1,582 2,149 2,114 1,529 1,531 1,545 1,517 2,099 2,097 2,075 557 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 H1 Financial Performance
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