Omantel Performance 2011-Q4 Final
description
Transcript of Omantel Performance 2011-Q4 Final
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Slide 1
Omantel Group Performance 2011
January December 2011 Presentation to Investor Community
Conference Call
15th February 2012 at 2 PM (Oman Time)
This presentation is prepared solely for the purpose of Conference call with Investor community. This
presentation or its contents should not be distributed without the permission of Omantels concerned authorities
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Slide 2
About us
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Slide 3 Slide 3
History: from incumbent to integrated service provider
2011
Legal merger of Omantel and Oman
Mobile
LTE Trial
2009
3G Launch
2008
Operational integration of
Omantel & Oman
Mobile
Acquisition of WorldCall
1980
Establishment of GTO (General
Telecom
Organization)
2004
Establishment of Oman Mobile
1996
Launch of mobile
services
(2G)
1999
Establishment of Omantel
2005
Omantel becomes
public (30%)
+2800 employees
~91% Omanization
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Slide 4 Slide 4
Worldcall Telecom
Omantel today
3 business units and 4 supporting units to provide integrated and customer centric solutions
Consumer
BU
Fixed & Mobile
services to
residential
market
Corporate
BU
Fixed, Mobile &
ICT services to
professional
market
Wholesale
BU
National and
international
carrier activities
Integrated
Network &
Technology
Network and IT
services
Finance
Finance, Legal,
Procurement
and General
Services
BDU
Supports
organization
with regulatory,
marketing,
strategy and
M&A activities
HR
Groups all
employee
related function
Subsidiaries
Telecom operator (Pakistan)
57 %
Omania E-Commerce E-Solutions and E-Procurement (Tejari)
49 %
Infoline LLC 3rd party call centre services and BPO
45 %
Oman Fibre Optic Co Manufacturing of optical fiber and cables
41 %
Oman Data Park Tier-3 Data Centre
60 %
Associates
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Slide 5 Slide 5
Key Leadership Team
Amer bin Awadh al-Rawas,
CEO
Haitham Al Kharusi
VP Consumer
Lars O Gustafsson
VP Business Development
Samy Ahmed Al Ghassany
VP Integrated Technology
Rao K. Chagarlamudi
Advisor to CEO
Ghalib Saif Al Hosni
VP HR
Talal Said Al Mamari
VP Finance
Todd Dick
VP Corporate Business Unit
Sohail Qadir
VP Wholesale
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Slide 6
Key achievements
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Slide 7
First to trial LTE-TDD services in Middle East
Voted as Best Telecom Brand in Oman 2011
Completion of successful transformation program and merger
Best Investor Relations award from Middle East Investor Relations
Society in 2009 & 2010
ISO Certification for key services.
Best Performance listed company in MSM
2011: Key Achievements
84 96 102 113
241 227 234 256
87 89 81 83
0
75
150
225
300
375
450
525
2008 2009 2010 2011
Revenue in RO Mn
Fixed Line Mobile Wholesale
411 412 417
453
47% 53%
Nawras
OM
2008
2011
Mobile Market Share Fastest growing mobile operator for the
second consecutive year.
First operator in Oman to reach over 2 million
pre-paid mobile subscribers.
Reversed the mobile market share declining
trend both subscriber / revenue share.
Reversed the mobile number portability
declining trend more Port in since Oct 2010.
Reverse the declining trend in Wholesale
Revenues.
Continued double digit growth in Corporate
Revenues
+ 11% +9% +3%
2,277
259
2,019
276
251
52
- 500 1,000 1,500 2,000 2,500
Mobile All
PostPaid (Mada)
Pre-Paid (Hayyak)
Mobile Broadband
Fixed
Fixed Broadband
Subscribers ('000s)
41% 59
%
YoY Growth
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Slide 8 Slide 8
Omantel Domestic Network Coverage
Fixed line household penetration
coverage of 86 % and Fixed
Broadband household coverage of
65%
Fixed coverage
Population coverage of 3G
network stood at 63%
3G coverage: ~ 60%
Population coverage of 2G
network stood at ~97%
2G coverage: > 95 %
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Slide 9 Slide 9
Brand evolution
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Slide 10
Value Propositions
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Slide 11 Slide 11
Consumer:
Something for everyone
Fixed telephony
Mobile Post-Paid
Mobile Broadband
Home Broadband
1234 One number for
Customer Care
60
outlets
200+ Indirect Channels
Bla
ckberr
y
Android SMS Bundles
+2,000,000 Mobile prepaid subscribers
Ha
yyak L
ibert
y
Mob
ile P
re-P
aid
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Slide 12 Slide 12
Corporate:
trusted, reliable and credible solution provider
Mobile & Fixed Voice Mobile Broadband Mobile CPN Toll Free Numbers Blackberry
Communication
Services
IP MPLS, ADSL Digital & Internet
Leased Lines, IPLC
WiFi VSAT ISDN
Core & Access
Hosting (Web, Email) Co-Location Data Storage & DRC Unified Communication Hosted Contact Centre
Solutions &
Applications
Corporate value propositions in 3 key domains:
Segmented market focus with 40 year history of delivering tailored solutions to
By a professional Sales team consisting of Sector, Key and Dedicated Account
Managers
Oil & Gas
Services
Finance
Industry
Government
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Slide 13 Slide 13
Wholesale:
national & international carrier hub
Submarine Cable
Landings FLAG, Falcon MENA GBI TWA SMW3 EIG
Telehouse Co-Location &
Hosting
Server Management Hosted Data Centers Disaster Recovery Global Interlink Peering Data Backup Hosted NOCs
Terrestrial Cables UAE Saudi Arabia Yemen
National Interconnect and Access Services
Mobile Reseller Services Co-Location National Roaming International Voice Leased Lines
National
538 Mobile roaming partners
50+ International partners Co-Location, Cross
Connect & Transit, IPLC &
MPLS
International
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Slide 14 Slide 14
Group Performance
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Slide 15 Slide 15
Group Performance Highlights
Group Revenue increased by 8.6% to RO 452.6 Mn.
Domestic Revenues 8.3% (contributed by Fixed 4.5%,
Mobile 9.4%, Wholesale
9.4%).
Worldcall Revenue increased by 6.4%.
13% growth in Corporate revenues.
Net Profit of RO 112.9 Mn.
Maintained Healthy EBITDA of 53% (46% including
Royalty)
Domestic EBITDA 55%. (Including Royalty 48%)
Net profit margin of 25% and increase of 2.3% over last
year.
Group customer base grown by 6%. (from 3.530 Mn
compared to 3.329 Mn - incl
WTL).
Continued robust Mobile Subscriber acquisition Total Market Growth 4.4%, Oman
Mobile achieved growth of
13.2%. 162% of the total
market net additions (Q42011 Vs Q42010).
Growth in both post & pre paid mobile subscriber base (7.8%
and 6.6% respectively) and
mobile broadband by 51.4%.
Impressive Growth Strong & growing
subscriber base Healthy margin
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Slide 16 Slide 16
Group Performance Highlights
Oman Mobile network subscriber base YoY grown to
2.819 Mn (58.6% Market
share) from 2.491 Mn.
60.8% revenue share* (absolute increase of 1.95%
compared to Dec10).
Fixed line market share is 97% (as of Dec11).
Fixed Line Revenue share 85% *
Debt Ratio is 28%.
Group total assets at RO 709.6 Mn.
Net worth of RO 494 Mn.
Net Asset per share is RO 0.658
Dividend Yield 7.6% (based on closing price of December
2011).
Market Capitalization at RO 0.982 Bn (Dec11).
Price Earning Ratio {P/E 8.80}.
EV / EBITDA 4.12.
Price to Book Value 1.99
Market Leadership Impressive market
fundamentals Strong balance sheet
*Note: Revenue market share is based on estimate, as actual figures are not yet
available.
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Slide 17 Slide 17
Group Performance Highlights
Omantel supported the Information Technology Authority (ITA) for its National PC Initiative with the objective to increase the ownership and usage of personal computers amongst certain segments (e.g.
social welfare, students and teachers) of the Omani population. Omantel has provided free internet
service upto one year as part of this initiative. Phase II has stated in Sep2011.
During last Ramadhan, Omantel organized its third Ramadhan Charity Campaign reflecting the values of (Give, Share & Care). Around 5000 families in all regions have benefitted from the main activities of
the campaign.
Strong Corporate brand image, Corporate Social Responsibility, Achievements
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Slide 18
Group Performance
Analysis
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Slide 19 Slide 19
In RO Mn
Three Months ended 31 Dec 2011 Year Ended 31 Dec 2011
2011 2010 Change% 2011 2010 Change%
Revenue 119.5 100.8 18% 452.6 416.6 8.6%
EBITDA 63.4 56.3 12% 238.4 226.5 5.3%
EBITDA% 53% 56% 53% 54%
Net Profit 30.1 27.3 10% 112.8 110.3 2.3%
Net Profit % 25% 27% 25% 26%
Group Customer Base (In Mn) 3.530 3.329 6.0%
Note: EBITDA adjusted to exclude Royalty Expenses. Including Royalty, the
comparative EBITDA will be 46% (Yr 2011) and 48% (Yr 2010)
Performance Highlights
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Slide 20 Slide 20
322.0 347.9
64.7
70.8
0
100
200
300
400
2010 2011
Wholesale
Retail
Revenue
416.6
452.6
100
200
300
400
500
2010 2011
2010
2011
Consolidated with Worldcall Group Revenue in RO Mn
Group Revenue continued its growth and achieved overall growth of 8.6%,
while domestic operation achieved a growth of 8.3%
386.7 418.7
Domestic Operation Domestic Revenue in RO Mn
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Slide 21 Slide 21
Net Profit and EBITDA Group Net Profit and EBITDA continue to be healthy
Consolidated with Worldcall Group Net Profit in RO Mn
Domestic Operation Domestic Net Profit in RO Mn
110.3 112.9
0
20
40
60
80
100
120
2010 2011
2010
2011115.6 111.5
0
20
40
60
80
100
120
140
2010 2011
2010
2011
198 209 227 238
0
70
140
210
280
2010 2011
Incl Royatly
Excl Royalty 195 201 223 230
0
70
140
210
280
2010 2011
Incl Royalty
Excl.Royalty
48%
54%
46%
53%
50% 48%
55% 58%
EBITDA RO Mn & % EBITDA RO Mn & %
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Slide 22 Slide 22
Group Revenue Quarterly Analysis
Group Revenue in RO Mn Revenue by Segment RO Mn
110.6 107.7
97.4 100.8
111.5 111.8 109.9 119.5
0.0
20.0
40.0
60.0
80.0
100.0
120.0
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
28.1 24.3 24.2 25.0 27.0 30.0 27.3 28.6
57.6 60.6 55.9 60.2 59.5
64.3 65.6 66.7
25.0 22.7 17.3
15.6 25.0
17.4 16.9 24.2
0.0
20.0
40.0
60.0
80.0
100.0
120.0
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
Fixed Mobile Wholesale
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Slide 23 Slide 23
OPEX - CAPEX Consolidated OPEX and Capex movement by quarter
Total Opex (incl Depreciation) by Qtr RO Mn & Opex Ratio- % to Revenue
Capex Additions
(Cumulative) RO Mn
10.9
28.0
43.5
75.8
21.4
44.2
65.6
105.0
5.0
20.0
35.0
50.0
65.0
80.0
95.0
110.0
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
75 75 74 73 83 81 80 86
68% 69% 76%
73% 74% 73% 73% 72%
-6%
9%
24%
39%
54%
69%
84%
5
15
25
35
45
55
65
75
85
Q1'10Q2'10Q3'10Q4'10Q1'11Q2'11Q3'11Q4'11
Increase in Opex is mainly due to increase in
employee costs, and depreciation expenses
Capex to Revenue ratio is at 23% which is higher
by 3% than Q32011.
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Slide 24 Slide 24
Net profit after Tax NPAT Actual Variance Including Worldcall (Dec'11 Vs Dec'10) OR 2.5 Mn
+ 110.3
+ 4.0 + 25.9
+ 6.1 + 1.9 (3.3)
(8.4)
(11.0) (12.1)
(2.5) (6.7) + 8.5 + 112.9
20
40
60
80
100
120
140
160
Variances (
OR
M)
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Slide 25 Slide 25
Cash Flow Net Cash from operating activities at 43% of Gross Revenue.
Cash Flow (Cumulative) RO Mn Assets, Liability & Net worth RO Mn
Note:
1) Operating cash flow before working capital is RO
214.1 Mn which is 47% of revenue.
2) Cash & Cash equivalent exclude Fixed deposit with
banks amounting to RO 83 Mn and RO 10 Mn+ held
for trading.
9
78
138
201
8
76
135
194
14
28
31
23
27
23
21
27
-
30
60
90
120
150
180
210
240
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
Net Op. cash flow Cash & Cash Equiv
680 645 662
686 670 617
657 710
-284 -220 -215 -211 -245
-163 -177 -201
396 425 447 475 425
453 480 508
-350
-200
-50
100
250
400
550
700
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
Total Assets Total Liability Networth
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Slide 26
Growth & Market Share
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Slide 27 Slide 27
Mobile Market Share Oman Mobile continue to be the leading mobile operator Subscriber market share including mobile resellers (58.6%) and Revenue market share (60.8% Estimate)
Mobile Subscriber Market Share Dec2011 Mobile Revenue Share Dec 11
Oman Mobile,
2,277,481 , 48%
Nawras, 1,933,061 ,
40%
MR (NW), 56,329 , 1%
MR (OM), 542,377 ,
11%
Oman Mobile 61%
Nawras 39%
1) Total Mobile market grew by 4.4% as compared to Q410. Oman Mobile (incl Mobile Resellers) achieved a growth rate of 13.2%, net addition is around 328.2 K, which is around 162% of total net
additions.
2) Compared to Q4 2010, Oman Mobile gained 4.5% subscriber share and 1.95% revenue share (in
absolute terms)
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Slide 28 Slide 28
Fixed Market Share Fixed line market share - Subscriber market share (97%) and Revenue market
share (86% Estimate)
Fixed Market Share Dec2011 Fixed Revenue Share Dec 11
Omantel, 278,773 ,
97%
Nawras, 8,550 , 3%
Omantel 86%
Nawras 14%
Total Subscribers Reported 287,323. Omantel including ISDN /WLL subscribers 278,773.
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Slide 29 Slide 29
Mobile subscriber base Quarter to Quarter Oman Mobile Subscriber Base
Oman Mobile Subscribers In 000s
With Mobile Resellers In 000s
213 228 232 240 241 247 251 259
1,762 1,849 1,892 1,893 1,827 1,899 1,957 2,019
1,975 2,077 2,124 2,133 2,068 2,146
2,208 2,277
0
500
1,000
1,500
2,000
2,500
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
Post-paid Pre-paid Total
1,975 2,077 2,124 2,133 2,068 2,146 2,208 2,277
288 331 365 358 381 424
479 542 2,263 2,408
2,489 2,492 2,449 2,570 2,687 2,820
50
650
1,250
1,850
2,450
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
OM MR Total
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Slide 30 Slide 30
Subscriber base Fixed Line shows marginal increase in Q4 2011. Combined Broadband Subscribers
recorded a growth of 44%
Fixed Line Subscribers In 000s Fixed & Mobile Broadband In 000s
Note:
1) Fixed line include pre-paid and payphone.
2) As per TRA reporting, total fixed lines are 278,773
based on ISDN equivalent telephone lines
258 257 252 252 242 243 247
251
100
130
160
190
220
250
280
Q1'10Q2'10Q3'10Q4'10Q1'11Q2'11Q3'11Q4'11
42 44 45 45 47 48 49 52
101 120 148
182 213 226
243 276
0
50
100
150
200
250
300
Q1'10Q2'10Q3'10Q4'10Q1'11Q2'11Q3'11Q4'11
Fixed Line Mobile
Note:
1) Mobile Broadband subscribers including Pay As You
Go (PAYG) is estimated at 897 K as of Dec11.
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Slide 31 Slide 31
ARPU ARPU / Month for major products / services
Mobile services Fixed line services
Note:
1) Fixed line include post & pre-paid including
payphone.
2) Internet include Broadband and all internet services
(dialup post &prepaid, dedicated)
28.6 27.9 28.7
27.1
10.0 8.2 7.3 7.4
12.6 10.6 9.8 9.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2008 2009 2010 2011
Mobile Post Mobile Pre Mobile Blended
15.2 14.5 14.2 13.6
17.0
23.3
28.6
36.8
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2008 2009 2010 2011
Fixed Line Internet
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Slide 32 Slide 32
Worldcall Performance Year to date comparison (2011 vs. 2010)
YTD revenues for 2011 posted RO 2.19 mn (6%) {7.2% in PKR}
higher than YTD revenues for
2010.
EBITDA 2011 posted a growth of 2.5 times over 2010. EBITDA
margin soared from 10% in 2010
to 24% in 2011;.
The YTD bottom line posted a net profitability of RO 1.3 mn as
against loss of RO 5.3 mn in
2010.
The Company exhibited a significant operational turnaround as its losses turned
around into profits during the last quarter.
Income Statement
Amounts in RO mln
Actual
2011 2010 Variance
Revenue 36.14 33.95 6%
Operating Expenses (27.41) (30.45) -10%
EBITDA 8.73 3.50 150%
Depreciation and amortization (6.34) (6.96) -9%
Operating Profits/(Loss) 2.38 (3.46) -169%
Finance Cost (2.39) (3.68) -35%
Other income/(loss) 0.47 0.23 106%
Profit/(Loss) Before Taxation 0.46 (6.92) -107%
Taxation 0.86 1.66 48%
Net Profit/(Loss) After Tax 1.32 (5.26) -125%
Key Ratios YTD 2011
2011 2010
Net margin 4% -15%
Operating margin 7% -10%
EBITDA margin 24% 10%
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Slide 33 Slide 33
Dr. Amer Al Rawas, CEO
Mr. Talal Said Al Mamari, VP Finance
Mr. P.G. Menon, GM Strategic Finance
Omantel
Finance Division (Investor Relations)
P.O Box 789, Ruwi, Postal Code 112, Sultanate of Oman
Website: www.omantel.om, Email: [email protected]
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