Emirates Integrated Telecommunications Company Pjsc · DFM:DU
Emirates Integrated Telecommunications Company Pjsc — Q3 2010 Earnings Presentation
20 slides from Emirates Integrated Telecommunications Company Pjsc's earnings presentation, November 2010
Slide 1: Q3 2010 Results
Q3 2010 Results Emirates Integrated Telecommunications Company PJSC November 2010
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 for the quarter 4 Market Information 6 Financial Summary 8 Strategy & Outlook 18 3
Slide 4: Q3 2010 Highlights
Q3 2010 Highlights Sustained strong revenue growth EBITDA Net profit Total Revenue EBITDA Net Profit before royalty Mobile Subscriber (AEDm) (AEDm) (AEDm) Additions (Millions) +31% +76% Two fold 1745 523 326 233 1333 297 160 157 Q3 09 Q3 10 Q3 09 Q3 10 Q3 09 Q3 10 Q3 09 Q3 10 Record revenues Margins
Slide 5: First 9 months 2010 Highlights
First 9 months 2010 Highlights Sustained growth EBITDA Net profit Total Revenue EBITDA Net Profit before royalty Mobile Subscribers (AEDm) (AEDm) (AEDm) Cumulative (Milllions) +32% +92% Two fold +30% 5,028 1,343 795 3,809 4,081 698 3,139 319 9 Mths 09 9 Mths 10 9 Mths 09 9 Mths 10 9 Mths 09 9 Mths 1
Slide 6: Contents
Contents Slide Highlights for the quarter 4 Market Information 6 Financial Summary 8 Strategy & Outlook 18 6
Slide 7: Market overview
Market overview Continued change in subscriber make-up UAE Mobile Subscribers Market share evolution • Fair competition in a two-player market 90% (Source: TRA, Etisalat) 80% 79% • Characterised by high penetration rate 70% 63% and attractive ARPU levels 60% 50% • Regulatory development 40% 37% Etis
Slide 8: Contents
Contents Slide Highlights for the quarter 4 Market Information 6 Financial Summary 8 Strategy & Outlook 18 8
Slide 9: Revenues
Revenues Revenues driven by strong mobile subscriber acquisitions Revenue Quarterly Revenue (AEDm) Revenue Year on Year Change (AEDm) +2.5% Year over year change +23% +4% +31% 1745 +39% 1,703 54 2 1745 1,530 1,580 368 1,333 -12.6 1333 Q3 Q4 Q1 Q2 Q3 2009 2010 Yearly Revenue (AEDm) Q2 2010 Revenue sp
Slide 10: Revenue Drivers - Mobile
Revenue Drivers - Mobile Strong subscriber additions and record mobile revenues in Q3 2010 Quarterly-Mobile Mobile subscribers Revenue mobileRevenues (AEDm) Mobile Subscribers - active 90 days (‘000) Active 90 days ('000) +4% +4% 1,260 1309 3,921 4,081 1,167 3,739 1,110 3,477 941 3,139 +30% +39% Q3
Slide 11: Revenue Drivers – Fixed
Revenue Drivers – Fixed Positive growth trend continues in fixed business Total fixed lines increased 44% year Quarterly Net Fixed Revenue (AEDm) Fixed lineLine Fixed subscription Subscribers on year closing with 515,400 lines; 15,500 lines added during the quarter 314 500 515 266 457 239 249 233 40
Slide 12: Revenue Drivers: Wholesale & Broadcasting
Revenue Drivers Wholesale & Broadcasting Revenue - Wholesale Quarterly Broadcast Revenues (AEDm) Quarterly Wholesale Revenues (AEDm) 123 115 113 41 40 40 108 38 102 36 +6% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2009 2010 2009 2010 Yearly Wholesale Revenues (AEDm) Yearly Broadcast Revenues (AEDm) Wholesale re
Slide 13: Gross Margin
Gross Margin 31% increase over first nine months compared to 2009 Quarterly Gross Margin (AEDm) Yearly Gross Margin (AEDm) 1200 1127 1126 70% 4,000 75% 1042 3,507 +31% 993 3,294 1000 876 3,500 68% 70% 3,000 2,511 2,515 800 66% 2,500 600 65% 64% 2,000 400 1,500 60% 200 62% 1,000 55% 0 60% 500 Q3 Q4 Q
Slide 14: Overheads
Overheads Overheads Overheads (AEDm) 700 676 673 70% Overheads as a percentage of revenue 650 60% 627 Q3 09 Q310 579 603 50% 600 Payroll & Employee related expenses 12% 11% 40% Consulting, contracting & outsourcing 5% 7% 550 30% costs Telecommunications licence & related 3% 3% 500 20% fees Q3 Q4 Q1
Slide 15: Profitability
Profitability Two fold increase in net profit before royalty Overheads EBITDA (AEDm) Net Profit before royalty (AEDm) +32% +15% 600 40% Two fold 523 362 500 +76% 400 30% 454 35% 366 275 25% 400 300 297 366 30% 194 300 209 20% 25% 200 200 157 15% 20% 100 10% 100 0 15% 0 5% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2
Slide 16: Capital Investments & Cash Flow
Capital Investments & Cash Flow Continued investment in du’s network and infrastructure to support growth Capex additions (AEDm) AED 871 million spent on enhancing coverage and 3,000 quality in first 9 months 960 2,338 2,427 2,500 2,000 1,635 424 1,467 369 341 1,500 161.0 871 1,000 500 Q3 Q4 Q1 Q2 Q
Slide 17: Cash & Debt overview
Cash & Debt overview Healthy debt to equity ratio maintained Cash flow (AEDm) Debt maturity profile 600 506 3,510 435 400 312 310 247 177 200 2,097 0 Millions (AED) (164) (200) (310) (378) 13 (379) (400) (458) (63) 365 (67) 126 (693) (23) (600) (383) 2011 2012 2013 and beyond (800) (1,000) Long term
Slide 18: Contents
Contents Slide Highlights for the quarter 4 Market Information 6 Financial Summary 8 Strategy & Outlook 18 18
Slide 19: Strategy & Outlook
Strategy & Outlook Remains focused on infrastructure build-out and product innovation • Continue investing in the mobile infrastructure, whilst rationalizing investments in fixed • Continue to acquire subscribers through strong marketing initiatives • Value-based competition through service and qual
Slide 20: Q&A
Q&A Mr Osman Sultan Mr Mark Shuttleworth Chief Executive Officer Chief Financial Officer 20
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