Financial Results Presentation. Q4 and Year ended 31 December 2012

Transcription

1 Financial Results Presentation Q4 and Year ended 31 December January 2013

2 Forward looking Statement important note The following presentation contains forward looking statements by the Management of Bahrain Telecommunications Company (Batelco), relating to financial trends for future periods, compared to the results for previous periods (the statements). The statements: contain expressions of future expectations or opinions (including but not limited to the financial conditions, results of operations and businesses, and related plans and objectives of Batelco), which are based upon Batelco s current views and best estimation having regard to current information, prevailing uncertainties in the market place and an ever changing regulatory environment and other factors, many of which are outside Batelco s control; are based upon information and assumptions known to date and are subject to various known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the statements as originally made; include projected performance targets of Batelco; and should not be construed as a representation, forecast or projection as to future performance of Batelco as the actual performance of Batelco may vary significantly from such targets and consequently you should rely upon your own enquiries, evaluation, and analysis in relation to the statements. Where reference is made in the presentation to BD it means Bahraini Dinars and USD or $ means US dollars unless otherwise indicated. Any discrepancies between individual amounts and totals are due to rounding. 2

3 Year Ended 31 December Key Highlights YTD Dec 2012 Gross Revenues of BD 305M YTD Dec 2012 EBITDA of BD 102M. Normalized EBITDA 1 at ~BD 123M with 40% margins YTD Dec 2012 Net Profits of BD 60M Healthy Cash and bank balances of BD 95M despite significant one-off capital investments in Q Low Debt balance of BD 18M. Net Debt/EBITDA at -0.8x International operations contribute 41% of revenues and 39% of EBITDA in line with previously communicated diversification strategy of the Group Group subscribers at ~7.8M. Higher QoQ and YoY (excl. STel subscribers) Total cash dividends of 25 Fils per share amounting to BD 36M approved by Board and recommended for shareholders approval. Interim dividend of 15 fils per share amounting to BD 21.6M was declared and paid in Q In addition, 10% Bonus share also approved for shareholders approval 3G launched in Jordan with ~123k subscriber additions by end of Normalised for restructuring expenses, M&A costs, one-off revenue adjustments and incremental 3G and electricity costs 3

4 1. Q4 and Year Ended 31 December 2012 Results Review 4

5 Q Resilient Performance Despite competitive pressures across MENA markets, Net Profit of BD17.8M was reported for Q with a healthy EBITDA margin of 37%. Margins higher QoQ 1 Certain costs have been reclassified from Non-staff Opex to Outpayments and COS 2. YTD 2012 staff costs include one-off restructuring charge. 116 staff released during the year under redundancy program Totals and Percentages may vary due to rounding 5

6 Revenues diversified by segment & geographies Gross Revenues by Geography (after inter-segment eliminations) BD M Var Profit * BDM Var Bahrain (% of total) % % 12% Bahrain (Note 1) % Jordan % % 4% Jordan(Note 2) % Other Countries % % 6% Other Countries(Note 3) % Total % Total % Note 1: Profitability impacted by intense competition in mobile market, higher restructuring costs and one-offs. Note 2: Profitability impacted by higher electricity costs and aggressive 3G roll out costs Note 3: Higher QNet Profitability in addition to STel re-classification to held -for- sale in Q *Total Profit refers to Profit before Non-Controlling Interest Totals and Percentages may vary due to rounding 6

7 Revenues Product Profile Gross Revenues by Product As % of Total Revenues Mobile revenues contribution lower due to steep decline in Bahrain revenues Other revenues higher due to higher handset and equipment sales in Bahrain 1 1 Higher handset/devices costs also led to the margin erosions across the Group 7

8 CAPEX AND LIQUIDITY PROFILE Capex/Revenue Ratio (~23%) reflects investments in 3G License & Building acquisition in Jordan. Excluding these one-off items, normalized Capex/Revenue ratio would be 13% 1 One off capital expenditures (3G License and Building acquisition) excluded for calculation of normalized free cash flow 2 Simple FCF = EBITDA Capex payments 3 Borrowings to finance Atheeb Rights Issue and Umniah general purpose financing Totals and Percentages may vary due to rounding 8

9 2. Operational Review 9

10 Group Subscriber Summary Q Q % change Q % change Mobile Subscribers 1 (K subs) Subsidiaries Batelco Bahrain (5) Umniah 2,382 2,377-2,306 3 Sub-Total 3,084 3, ,045 1 Associates Sabafon 4,112 3, , STel ,549 (100) Sub-Total 4,112 3, ,643 (38) Grand Total (Mobile Subscribers) 7,196 6, ,688 (26) Total Broadband Subscribers Total Fixed Subscribers (5) Overall, Group subscribers at ~7.8M. Higher QoQ and YoY (excl. STel subscribers) 1 Based on subscriber definitions followed by each OpCo in respective country 2 In Bahrain and Jordan, Mobile subscribers include voice, data and dongles subscribers 10

11 3. Key Initiatives 11

12 2013 Key Initiatives 1. CWC M&I Acquisition Focus on timely completion of CWC Monaco & Islands transaction Raise ~USD 650M financing ( bond) with favorable pricing Ensure timely and smooth integration and buildup of synergies within enlarged group 2. Bahrain Batelco Focus on retention of High Value Customers GEAR including data customers growth Cost leadership program (BD 20M savings Post 2014) 3. Jordan Umniah Post 3G launch customer retention and acquisition Support Opex reduction initiatives in Jordan to off-set impact of increased electricity costs and tighter market conditions 4. Saudi Atheeb Continue to support company transformation into B2B provider 5. Yemen Sabafon Support the company to achieve profitability growth and regain market share 6. M&A Pursue further growth via acquisition of established operators 12

13 4. Appendices 13

14 Consolidated Statement of Financial Position as at 31 December

15 Consolidated Income Statement for the year ended 31 December

16 Consolidated Statement of Cash Flows for the year ended 31 December

17 More information Batelco Investor Relations Principal Analyst, Investor Relations Telephone Fax Batelco Media Relation Telephone Group General Manager Fax Media Relations