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Econet Wireless Zimbabwe analyst briefing in respect of the half year ended 31 August 2011, held on 3 October 2011

Econet Wireless Zimbabwe analyst briefing in respect of the half year ended 31 August 2011, held on 3 October 2011

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Econet HY2011 analyst presentation Econet HY2011 analyst presentation Presentation Transcript

  • Econet Wireless Zimbabwe Limited Results For the Half year ended 31 August 2011ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Presentation Outline  Strategic & Operational Overview ! Douglas Mboweni ! Chief Executive Officer  Financial Performance Overview ! Kris Chirairo ! Finance Director  Strategic Issues & Outlook ! Douglas Mboweni ! Chief Executive Officer ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • STRATEGIC & OPERATIONAL OVERVIEW D.Mboweni, Chief Executive Officer ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Solid Group Performance 5,6 M $290,9 M $131,2M $74.0 M 44 cents ! 25% 24% 14% 15% 16% 4,5 M 235,5M 114,9 M 64,3 M 38 cents SUBSCRIBERS REVENUE EBITDA NET EPS INCOME ANALYST BRIEFING 3 OCTOBER 2011 4 !Monday, October 3, 11
  • Subscriber Evolution Subscribers (Millions) 5.5 5.6 4.1 -25% 37% Feb-11 Apr-11 Aug-1125% reduction in subs in March due to disconnection of unregistered subscribers in compliance with regulatorydirective ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Strong Market Leadership Mobile$Market$Share:2011$ Telecel! ! NetOne! Econet! ! 16%$ 14%$ 70%$ Source: Postal & Telecommunications Regulatory Authority of Zimbabwe & Econet estimates ANALYST BRIEFING 3 OCTOBER 2011 6 !Monday, October 3, 11
  • Rapid Growth in Market Penetration (%) Source: International Telecommunications Union, August 2011 ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Rapid Growth in Market Penetration Source: International Telecommunications Union, August 2011 ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Competitive tariff in the region Vadacom - SA 0.33 Vodacom-Lesotho 0.28 Vodacom - Tanzania 0.27 Airtel -Zambia 0.22 MTN -Swaziland 0.21 Econet -Zimbabwe 0.20 Mascom -Bostwana 0.19 MTN-SA 0.37 Source: Econet tariff in USD, comparson based on published results Prepaid(peak(tariff( ANALYST BRIEFING 3 OCTOBER 2011 9 !Monday, October 3, 11
  • ARPU Evolution ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Healthy ARPU Levels Source: ARPU in USD based on MTN Annual Report 2010 ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Continued investment in infrastructure Lusaka Chirundu MOZAMBIQUE ZAMBIA Makuti Tete 290km Karoi Nyamapanda Bindura Shamva Mutoko Chinhoyi 175km Murewa 240km NAMIBIA Harare Kasane Chitungwiza Victoria Falls Chegutu Beatrice Marondera 360km MOZAMBIQUE Hwange Kadoma Rusape Gwayi 440km 440km KweKwe Chivu Kenmore Mutare Chimoio Gweru Nyamandlovu BOTSWANA Floradale 297km Bulawayo Nsiza Birchenough 100km Zvishavane Masvingo Bridge Plumtree 300km In operation LIVE Ngundu Checheche Gwanda Civils completed 288km Triangle Civil works in progress Rutenga Awaiting regulatory approvals Later phases Makado Alko Siding Francistown Beit Bridge SOUTH AFRICA ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Widest voice & data network coverage ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Rapid Market growth for data Broadband penetration (% of population) 32% 22% 19% 11% 11% 32% Source: www. worldstats.com & Econet Estimates ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Innovative products and services Providing life cover via Ecolife Econet Broadband subscribers now stand at 1.5 million. ! eTXT subscribers now stand at 590,000.  ! Allows you to send or receive chat messages and ! emails using any basic handset without internet ! connection ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Innovative value added services... This is a free Buddie service which allows customers to stay in touch with friends & family on Call Home SIM in South Africa This is a dynamic service which allows customers to leave their messages in the voice mail box when they are out of reach ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Innovative value added services Technology as a bridge to financial inclusion ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Corporate Social Responsibility 18Monday, October 3, 11
  • Corporate social investment ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • FINANCIAL OVERVIEW K. Chirairo, Finance Director ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Summarized Group income statement Aug-11 Aug-10 Variance USD thousands (%) Revenue 290,858 235,486 24% EBITDA 131,245 114,928 14% % of Revenue 45% 49% -4% Depreciation & Ammortisation (21,176) (22,516) 6% Operating Profit 110,069 92,412 19% Other income 2,240 - 0% Share of profit (loss) of asso. 1,983 - 0% Net Financing Costs (11,657) (2,303) -406% Profit Before Taxation 102,635 90,109 14% Taxation (28,636) (25,839) -11% Profit After Tax 73,999 64,270 15% ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Group Income Statement ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Profitability Benchmarks GP Margin EBITDA Margin 78% 74% 45% 45% 80% 50% 41% 54% 33% 60% 38% 40% 25% 20% 13% 0% 0% MTN Vodacom EWZL MTN Vodacom Safaricom EWZL PBT Margin PAT Margin 35% 25% 40% 30% 30% 30% 22% 22% 23% 19% 16% 14% 20% 15% 10% 8% 0% MTN Vodacom Safaricom EWZL 0%Source: Various reports MTN Vodacom Safaricom EWZLhttp://www.mtn.com/Investors/Financials/Pages/interimresults.aspx; http://www.vodacom.com/inv_fin_interims.php; http://www.safaricom.co.ke/index.php ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Revenue Contribution ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Summarised Group Balance Sheet Aug-11 Aug-10 VarianceUSD thousands (%)AssetsProperty, Plant & Equipment 451,169 364,497 24%Intangible Assets 5,839 1,439 306%Other Non-Current Assets 31,952 29,771 7%Current Assets 178,182 80,106 122%Total Assets 667,142 475,813 40%Equity and liabilitiesTotal Equity 331,749 198,823 67%Interest Bearing Liabilities 226,537 153,106 -48%Other Liabilities 108,857 123,884 12%Total equity and liabilities 667,142 475,813 40% ANALYST BRIEFING 3 OCTOBER 2011 25 !Monday, October 3, 11
  • Group Balance Sheet Debt Equity Ratio (%) Total Assets 475.8 667.1 USD Millions 700 94% 68% 100% 600 80% 500 400 60% 26% 40% 300 40% 200 20% 100 0 0% Aug-10 Aug-11 Aug-10 Aug-11 26 ANALYST BRIEFING 3 OCTOBER 2011 !Monday, October 3, 11
  • Network investment Capex USD. Millions 468.8 270.0 160.1 38.7 FYE2010 FYE2011 AUG -2011 Cummulative ANALYST BRIEFING 3 OCTOBER 2011 27 !Monday, October 3, 11
  • Group Balance Sheet ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • EcoCash | Teaser Campaign STRATEGIC ISSUES & OUTLOOKMonday, October 3, 11
  • Strategic issues & Outlook • Revenue streams • Cost Management • Network Optimisation ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Econet’s Commitment What we will do for you..... Relevant & innovative Leading Edge Enhance Customer services Technology Experience Enhancing stakeholder competitiveness and reducing cost of doing business ANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11
  • Econet Wireless Zimbabwe Limited Thank YouANALYST BRIEFING 3 OCTOBER 2011Monday, October 3, 11