Emirates Telecommunications Corporation Etisalat

Transcription

1 Emirates Telecommunications Corporation Etisalat Analyst Day 1Q 211 April 211 April 21 1

2 Notice to Recipients Emirates Telecommunications Corporation Etisalat and its subsidiaries ( Etisalat or the Company ) confirms that, to the best of its knowledge and belief (having made all reasonable enquiries), the factual information contained in this presentation is at its date true and accurate in all material respects, has been prepared with all reasonable care and that the opinions expressed herein were, at the time they were given, honestly held. Unless otherwise stated the source of all information provided in this Presentation is the Company and its subsidiaries. Where this Presentation contains summaries of documents, those summaries should not be relied upon and the actual documentation must be referred to for its full effect. The contents of this presentation, which may include non-public price sensitive information, are and must remain confidential. This Presentation may not be reproduced or used in whole or in part for any other purpose, nor should it be disclosed to any other party. April 211 2

3 Agenda Q 211 Result Group Overview Etisalat UAE 1Q 211 Result International Operations 1Q 211 Result Key Takeaways April 211 3

4 1. 1Q 211 Result April 211 4

5 1Q 211 Result Consolidated revenue amounted to AED 8,4m, a 2% increase over the prior corresponding period International revenue amounted to AED1,867m, a 15% increase over the prior corresponding period Profit after royalty amounted to AED 1,817m a decrease of 9% over the prior corresponding period Continued investments with capital expenditure of AED 1,113m representing 14% of revenue Consolidated subscribers increased 19% to 45m from 38m in the prior corresponding period April 211 5

6 2. Group Overview April 211 6

7 Group Financial Performance AED m 1Q 211 1Q 21 Change Revenue 8,4 7,871 +2% EBITDA 4,13 4,378-6% EBITDA Margin 51% 56% -5pp Net Profit 1,817 1,994-9% Net Profit Margin 23% 25% -2pp Capital Expenditure 1,114 1,54-28% CAPEX Intensity 14% 2% -6% EPS (AED) % April 211 7

8 Group Subscriber Waterfall by Operation Over 7.5m subscriber adds internationally +7,531 () 38,113 3, , , Q 21 UAE Misr AT Zantel Afghan Canar India Sri Lanka 1Q 211 April 211 * Subscribers include Mobile, Fixed, and Internet segments 8

9 Group Revenue Waterfall by Operation International growth offset decline in UAE market AED m , ,4 1Q 21 UAE Misr AT Zantel Afghan Canar India Sri Lanka 1Q 211 April 211 9

10 Group Revenue Waterfall by Segment Revenue growth in internet and data AED m ,871 8,4 1,3 1, ,241 4,2 1Q 21 Mobile Fixed Internet Data Interconnect Other 1Q 211 Intercon nect 1% Data 13% Internet 9% Fixed 8% Other 6% Mobile 54% Mobile Fixed Internet Data Interconnect Other Previous Positive Negative Intercon Other nect 8% 9% % of total revenue Data 14% Internet 11% Fixed 8% Mobile 5% April 211 * Other revenues mainly consist of Etisalat Services, e-vision, Inbound roaming, site-sharing, and miscellaneous 1

11 5, 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 Group EBITDA Waterfall by Operation Group EBITDA decrease of 6% mainly due to drop in UAE operations AED m +34 4, , Q 21 UAE Misr AT Zantel Afghan Canar India Sri Lanka 1Q 211 April

12 5, 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 Group EBITDA Waterfall by Revenue/Cost Decrease mainly due to higher OPEX costs AED m 4,378 4, ,13 4,13 1Q 21 Revenue Staff Interconnect Regulatory OPEX 1Q 211 April 211 * Other OPEX costs mainly include network, marketing costs, G&A, and provision for doubtful debt 12

13 Maintained Strong Financial Profile Remain well funded with sufficient liquidity to repay debt and finance capital spend and medium-scale investment activity AED m Mar-11 Dec-1 Cash & equivalents 12,823 1,277 Total Assets 77,886 75,67 Total Borrowings 6,428 6,4 Current 1,869 1,195 Non current 4,559 5,25 Net Debt (Cash) (6,395) (3,877) Debt / EBITDA (LTM) Net Debt / EBITDA (LTM) Etisalat maintained a healthy liquidity position with cash reserves covering approximately 2x its total debts Cash and equivalents amounted to AED 12,823m an increase of 25% over the prior corresponding period Total assets amounted to AED 77,866m an increase of 3% over the prior corresponding period as a result of AED 1.1b in capex spend Etisalat Misr successfully re-financed its loan facility April

14 3.Etisalat UAE April

15 7, 6, 5, 4, 3, 2, 1, 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % % 9% 8% 7% 6% 5% 4% 3% 2% 1% % Financial Performance of Etisalat UAE Revenue & EBITDA (AEDm) ARPU (AED) 6,229 6,89 4,34 65% -2% -8% 3,692 61% % -22% 137 UAE Developments Based on regulatory guidelines, mobile number portability (MNP) is expected to be implemented in the second half of 211 Revenue EBITDA EBITDA % Subscribers (m) Mobile Fixed Capital expenditure and intensity ratio Rollout of Fibre-To-The- Home (FTTH) across the UAE continues. Etisalat maintains its goal of covering the UAE with its FTTH network by % 9% Mobile Fixed Internet Capex (AEDm) Capex Intensity April

16 Etisalat UAE Revenue Waterfall Mobile remains the key revenue contributor in the UAE AED m 6, , , ,166 2,69 1Q 21 Mobile Fixed Internet Data Interconnect Others 1Q 211 Intercon nect 7% Data 16% Internet 11% Fixed 1% Others 5% Mobile 51% Mobile Fixed Internet Data Interconnect Others Previous Positive Negative Intercon Others nect 7% 7% % of total revenue Data 18% Internet 14% Fixed 1% Mobile 44% April 211 * Other revenues mainly consist of Etisalat Services, e-vision, Inbound roaming, site-sharing, and miscellaneous 16

17 4.International Operations April

18 International Portfolio Subsidiary Associate Etisalat EMTS Nigeria Stake: 4% Acquired in 28 Zantel * Stake: 65% Tanzania Canar * Stake: 89% Sudan Etisalat Misr Stake: 66% Established in 26 Etisalat Afghanistan Stake: 1% Established in 26 PT XL Axiata Tbk Stake 13% Acquired in 27 Indonesia Etisalat Sri Lanka Stake: 1% Acquired in 29 Thuraya Stake: 28% Acquired in 1997 Mobily Stake: 27% Established in 25 KSA PTCL Stake: 23% Acquired in 26 Pakistan Etisalat DB Stake: 45% India Atlantique Telecom * Stake: 1% Etisalat Benin Stake: 1% Acquired in 28 Burkina Faso Ivory Coast CAR Gabon Niger Togo April 211 * Acquisition/stake increase occurred over various stages 18

19 2, 1,8 1,6 1,4 1,2 1, Int l Operational Performance International Revenue Breakdown International Revenue & EBITDA (AED m) Zantel Sri Lanka 3% 6% Canar 5% 1, % 1,867 Afghanistan 11% Misr 53% % 22% 2% AT 22% Revenue EBITDA International operations contributed 23% to the group s top line, driven by the strong performance of Etisalat Misr and Atlantique Telecom (AT) In 1Q 211, Misr and AT accounted for 75% of Etisalat s net revenue International revenues and EBITDA grew by 15% and 11% respectively April

20 1,2 1, , 2, 15, 1, 5, 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % % 9% 8% 7% 6% 5% 4% 3% 2% 1% % Financial performance of Etisalat Misr Revenue & EBITDA (AED mn) % ARPU (AED) 19-12% 17 Update on Egypt Conditions & Impact % % 37% Political unrest has resulted in network suspensions Revenue EBITDA EBITDA % A delay in network deployment has resulted in decreased capital spend Subscribers* () Capital expenditure and intensity ratio 47 Despite the unrest, Etisalat Misr revenue increased 7% in 1Q ,72 +24% 2,718 51% % Capex (AEDm) Capex Intensity (%) April 211 * As per Etisalat Group definition 2

21 , 6, 5, 4, 3, 2, 1, 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 9% 8% 7% 6% 5% 4% 3% 2% 1% % Financial performance of Atlantique Telecom Revenue & EBITDA (AED mn) ARPU (AED) % -4% % 17% 18% % Revenue EBITDA EBITDA % Subscribers* () Capital expenditure and intensity ratio 5, % 6, % 12% Capex (AEDm) Capex Intensity (%) April 211 * As per Etisalat Group definition 21

22 ,6 1,4 1,2 1, % 8% 6% 4% 2% % -2% -4% -6% -8% % 9% 8% 7% 6% 5% 4% 3% 2% 1% % Financial performance of Zantel Revenue & EBITDA (AED mn) ARPU (AED) % +8% % -45% (24) +83% (4) Revenue EBITDA EBITDA % Subscribers* () Capital expenditure and intensity ratio 1,423-9% 1, % 23% Capex (AEDm) Capex Intensity (%) April 211 * As per Etisalat Group definition 22

23 % 75% 55% 35% 15% % 45% 4% 35% 3% 25% 2% 15% 1% 5% % Financial performance of Canar Revenue & EBITDA (AED mn) ARPU (AED) % +54% % 4% 5% -5% Revenue EBITDA EBITDA % Subscribers* () Capital expenditure and intensity ratio % % 3% Capex (AEDm) Capex Intensity (%) April 211 * As per Etisalat Group definition 23

24 , 2,5 2, 1,5 1, 5 25% 2% 15% 1% 5% % % 9% 8% 7% 6% 5% 4% 3% 2% 1% % Financial performance of Etisalat Afghan Revenue & EBITDA (AED mn) +66% 21 ARPU (AED) 28-7% % 42 1% 21% Revenue EBITDA EBITDA % Subscribers* () Capital expenditure and intensity ratio +59% 2, ,646 65% 19 9% Capex (AEDm) Capex Intensity (%) April 211 * As per Etisalat Group definition 24

25 , 3,5 3, 2,5 2, 1,5 1, 5 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % % 9% 8% 7% 6% 5% 4% 3% 2% 1% % Financial performance of Etisalat Sri Lanka Revenue & EBITDA (AED mn) ARPU (AED) +46% % % +167% 24 22% Revenue EBITDA EBITDA % Subscribers* () Capital expenditure and intensity ratio 2, % 3, % 21% Capex (AEDm) Capex Intensity (%) April 211 * As per Etisalat Group definition 25

26 5. Key Takeaways April

27 Key Takeaways Maintained revenue growth due to Etisalat s diversified geographic and product portfolio Despite competitive pressure, Etisalat UAE posted high operating margins after royalties Etisalat UAE is witnessing rebalancing of its product portfolio with mobile to Internet & data revenue substitution Continue to address cost optimization in the UAE operation International operations to lead growth Maintained a robust financial position with flexibility to potentially finance future acquisitions April

28 Q&A April