The Egyptian Company for Mobile Services (Mobinil)` Q2 and H Results

Transcription

1 The Egyptian Company for Mobile Services (Mobinil)` Q2 and H Results

2 Disclaimer This presentation contains forward-looking statements about Mobinil. Such statements are not actual facts and include expressions about management s opinions on the results of its strategies and management s expectations about new and existing programs, opportunities, technology and market conditions. Although Mobinil believes its expectations are based on reasonable assumptions, these forward looking statements are subject to numerous risks and uncertainties. These statements should not be regarded as a representation that anticipated events will occur or that expected objectives will be achieved. Important factors that could cause actual results or performance to differ materially from the results anticipated in the forwardlooking statements include, among other things, the success of the announced plans and the Mobinil s other strategic, financial and operating initiatives, changes in economic, business and competitive market, risks and uncertainties attendant upon international operations, technological trends, exchange rate fluctuations and market regulatory factors. The forward-looking statements in this presentation speak only as of the date hereof and Mobinil does not undertake to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. This presentation does not constitute an offer or invitation to purchase any shares or other securities in the company and neither it nor any part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. Any decision to purchase shares or other securities in the Company is the sole responsibility of the investors who shall be responsible for his own due diligence. The Egyptian Company for Mobile Services (Mobinil) Q2-H Results Investors Presentation July 27th, 2011 Page 2

3 Q Major Events General General instability of the macro environment reflected through several protests and social movements. Security situation slightly improving as compared to Q1: curfew fully released on May 15 th. Tourism industry is still suffering: slowdown of the tourism activity without any short term sign of recovery. Sector/Competition Penetration of Mobile Broadband, Mobile Internet and VAS services is growing. Intensity of competition on voice continues being directed towards bundled free minutes and abundance. NTRA is still negotiating with the operators and the ISPs on the compensation of the service interruption on Jan 28 th and the related consequences. Mobinil Commercial activities resumed during the second quarter after the slow mode during the peak of the post revolution turmoil. However, the business is not yet back to normal. Refocus on quality of acquisitions and value share through adequate offers and customer segmentation. Approval received on mobile money which could be a good opportunity for growth even if it remains subject to normalization of the security situation. The Egyptian Company for Mobile Services (Mobinil) Q2-H Results Investors Presentation July 27th, 2011 Page 3

4 Mobinil Q New Offers The Egyptian Company for Mobile Services (Mobinil) Q2-H Results Investors Presentation July 27th, 2011 Page 4

5 Q Major Commercial Launches New postpaid buckets were launched increasing options available for customers. New concept of happy Friday offers was introduced, where a different proposition was available for the base every Friday (free SMS, MMS, call tone etc.). Ghanily product, targeting the youth segment, provides free number and exclusive music downloads. Data focused promotions through the Jeep Cherokee competition and a special offer for Star customers. Miscellaneous segmented reactivation, acquisition and loyalty campaigns. The Egyptian Company for Mobile Services (Mobinil) Q2-H Results Investors Presentation July 27th, 2011 Page 5

6 June May April Happy Friday: Free Call Tone Exclusive Mobile Broadband offer for Star Customers Loyalty Program Revamp Happy Friday: Free SMS Happy Friday: 500 LE Discount on Blackberry Devices Star customers will enjoy a free USB modem and Data line upon subscribing to one of the postpaid internet buckets available A superior loyalty program offering a unique customer experience Double your Credit with Free Minutes & SMS 100% Payback on Alcatel & Nokia Handsets for Business Buy a Mobinil Business Line and Win Free Points! Mobinil Star Exclusive Offer at Cairo ICT 2011 Happy Friday: 50% Discount on USB Modem Customers enjoy 100% payback (monthly)upon purchasing Alcatel OT 203, Alcatel OT 305, Nokia C2-01 or Nokia C3 bundled with a free postpaid business line Postpaid and Call & Control customers will win free points upon buying a new Mobinil Business line Customers can enjoy up to 2000 minutes/month for a period of four months upon buying a new Star line and subscribing to LINKDSL 30 new Jeep Cherokees Internet Competition The New Star Postpaid Tariff Plans Ghanily Tariff Plan Reuse your ALO line & Enjoy an Hour & Half for Free 750 SMS Promo For each EGP 1: customers spending online, will increase their chances to enter a draw on one of 30 Jeep Cherokees The new Star tariff plans are designed with a segmented approach which caters to the various needs of Personal Postpaid customers The first cobranded tariff in Egypt that offers customers monthly free song downloads, and one Mobinil preferred number to call daily for free ALO customers who have not used their lines for a month or more and are considered at risk of churn, will get free minutes upon re-using their line Mobinil is offering customers unlimited daily SMS to all Mobinil numbers for EGP 3 The Egyptian Company for Mobile Services (Mobinil) Q Results Investors Presentation July 27th, 2011 Page 6

7 Summary of Financials Growth (Million EGP) Q Q H H Q2 H1 Q Q2oQ1 Revenue Mobinil 2,511 2,530 4,854 5, % -4.4% 2, % LDN % 7.6% % Aggregated 2,622 2,623 5,054 5, % -3.9% 2, % EBITDA Mobinil 945 1,097 1,801 2, % -14.8% % Margin% 37.6% 43.3% 37.1% 41.7% -5.7 PTS -4.6 PTS 36.6% 1 PTS LDN 8 (3) (3) (0.5) % -451% (10) 173.8% Margin% 6.9% -3.5% -1.4% -0.3% 10.4 PTS -1.1 PTS -11.7% 18.6% Aggregated 953 1,094 1,798 2, % -15% % Margin% 36.3% 41.7% 35.6% 40.2% -5.7 PTS -4.7 PTS 34.8% 1.5 PTS Capex Mobinil % -28.0% % LDN % -11.3% 9 0% Aggregated % -27.5% % FCF Consolidated (89) % % % The Egyptian Company for Mobile Services (Mobinil) Q2-H Results Investors Presentation July 27th, 2011 Page 7

8 Mobile Trends Subscribers trend Q Q (K unit) Net Adds trend Q Q (K unit) 28,401 30,225 30,358 30,541 2,254 1,824 26, Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 ARPU trend Q Q (EGP) Selective acquisitions toward high quality subscribers and value. ARPU growth is mainly driven by first signs of recovery and better acquisition strategy Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 The Egyptian Company for Mobile Services (Mobinil) Q2-H Results Investors Presentation July 27th, 2011 Page 8

9 Mobile Trends Revenue trend Q Q (MEGP) 1,200 EBITDA % trend Q Q (MEGP) 49.0% 1, % % 45.0% 2,530 2,707 2,667 2,343 2, % 40.7% 36.6% 37.6% 43.0% 41.0% 39.0% 37.0% Q2 10 Q3 10 Q4 10 Q1 11 Q ,097 1,086 1, Q2 10 Q3 10 Q4 10 Q1 11 Q % Net Profit trend Q Q (MEGP) Revenues is almost back to the same level of 2010 thanks to better ARPU, growth of data/vas services and slight increase of the base but still affected by tourism impact on roaming and corporate segment EBITDA pick-up (absolute and margin) thanks to better performance of the top line and efficient cost management Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 (Old tax regime) (98) Q2 11 (New tax regime) The improvement of Net profit which remains affected by D&A (2G/3G swap), FX and higher interest expenses (volume effect from last year) was fully absorbed by a one-off resulting from the change of tax regime. The Egyptian Company for Mobile Services (Mobinil) Q2-H Results Investors Presentation July 27th, 2011 Page 9

10 Internet Trends DSL Subs trend Q Q (K unit) Total Revenue trend Q Q MEGP Q Q Q Q Q DSL ARPU trend Q Q (EGP) Q Q Q Q Q LDN overall performance shows a positive trend compared to both previous quarter and year. Subs growth reflect the same positive trend since Q Revenue shows a recovery after the service cutoff and 50% compensation paid in Q1. Q Q Q Q Q The Egyptian Company for Mobile Services (Mobinil) Q2-H Results Investors Presentation July 27th, 2011 Page 10

11 Outlook The general instability continues to prevent from providing a base for reliable and accurate guidance. The improvement of Q2 is expected to continue but external events may impact such evolution in Q3. The company will continue optimizing its cost structure to contain any likely margin erosion. Confirm CAPEX guidance given at the end of Q1: CAPEX are expected to be in line with 2010 level in order to maintain the network quality. The Egyptian Company for Mobile Services (Mobinil) Q2-H Results Investors Presentation July 27th, 2011 Page 11