Complete 2007 ER results English

Transcription

Zain Enterprise Information Portal
Team
Version 1.0
Earnings Release
2007
Zain 2007 Earnings Release
Financial & Operational Highlights
As of 31 December 2007, Zain’s customer base exceeded 42.3 million active
customers* across the Middle East and Africa, representing a 57% increase
compared to 2006.
For the full year of 2007, Zain posted Consolidated Revenues exceeding USD
5.9 billion (KD 1.677 billion), an increase of 32% compared to the previous
year.
During the same period, Zain recorded an EBITDA of more than USD 2.5
billion (KD 725 million), a 25% increase compared to 2006.
EBITDA Margin stood at 43% in 2007 compared to 46% in 2006.
The Group recorded a Net Income of USD 1.1 billion (KD 320 million) for the
same period, an 11% increase compared to 2006.
Zain’s EPS stood at 0.61 cents (0.172 fils) by the end of 2007, an 11 % increase
compared to the previous year.
* All customer numbers in this earnings release represent active customers who have made a
chargeable event within the previous 90 days period. The customers number include the 3.112 million
customers from the acquisition of mobile operator Iraqna in Iraq.
Page 2 of 27
Customers
Table 1: Zain Group Customer Breakdown & Market Positioning
As of December
31, 2007
Ownership
(%)
2007
Active
Customers
(000s)
2007
Active
Customers
(000s)
2006
Growth
(%)
Prepaid
(%)
2007
Market
Positioning
56.25%
448
233
92%
81.9%
2
MIDDLE EAST
Bahrain
Iraq
Jordan
7,287
1
3,198
128%
99.2%
2
1
96.52%
1,858
1,961
(5%)
86.1%
1
100%
MC 3
100%
1,576
630
3,883
1,461
560
2,754
8%
13%
41%
72.3%
77.8%
98.3%
1
1
-
15,682
10,167
54%
93.4%
-
Burkina Faso
100%
918
518
77%
99.9%
1
Chad
100%
595
348
71%
99.8%
1
Congo Brazzaville
90%
1,014
683
48%
99.8%
1
98.5%
2,273
1,833
24%
99.7%
1
Gabon
90%
666
514
30%
99.4%
1
Kenya
80%
2,104
1,939
9%
98%
2
Madagascar
100%
574
331
73%
97%
2
Malawi
100%
654
357
83%
99.2%
1
Niger
80%
666
397
68%
99.9%
1
Nigeria
65%
11,098
6,396
74%
99.5%
2
Sierra Leone
100%
349
243
44%
99.5%
1
Tanzania
60%
2,507
1,517
65%
99.7%
2
Uganda
100%
1,435
470
205%
99.7%
2
Zambia
88.88%
1,966
1,325
48%
99.6%
1
Africa Total
-
26,819
16,871
59%
99.4%
-
Zain Group
Total
-
42,501
27,038
57%
97.2%
-
Kuwait
Lebanon
Sudan
Middle East Total
AFRICA
DRC
1- The customer number for Iraq includes the 3.1 million customers following the acquisition of Iraqna.
2- Iraq prepaid percentage reflects MTC-Atheer’s & Iraqna customers.
3- MC = Management Contract
Page 3 of 27
Zain Group Customers
Bahrain - 1%
Others -13%
Iraq - 17%
Jordan - 4%
Zambia - 5%
Kuwait - 4%
Lebanon - 1%
Tanzania - 6%
Sudan - 9%
Congo B - 2%
Nigeria - 26%
D.R.C. - 5%
Gabon - 2%
Kenya - 5%
As of December 31, 2007, Zain operated on 2 continents and served over 42 million active
customers. This represents an increase of 57% compared to December 31, 2006. The
Company offers its services in 20 countries with a total population of over 500 million under
license across Africa and the Middle East. The Company will start operations in the Kingdom
of Saudi Arabia by Q3-2008. In December, 2007 the group also acquired 75% of Westel
Ghana, Ghana’s second national operator. The Group intends to launch services in Ghana
no later than Q3-2008. Following this acquisition, the group will have a presence in 22
countries, to become the 4th largest mobile operator in the world in terms of geographic
footprint.
The Company’s customer increase was driven primarily by its high growth African operations
including Nigeria, Uganda and Tanzania. In the Middle East, the operations in Iraq, Bahrain
and Sudan showed solid growth. Of the 20 countries in which Zain operates 13 subsidiaries
are the leading operators whereas 6 other Zain operations are the solid number 2 in their
respective markets. This reflects Zain’s strategy to be the leading mobile operator in the
markets it serves. As of December 31, 2007, Zain’s African operations, through its subsidiary
Celtel International – represented 64% of the Company’s customer base while Middle East
operations: Iraq, Bahrain, Sudan, Lebanon, Kuwait and Jordan represented the remaining
customers.
Page 4 of 27
In percentage growth terms, Zain’s operation in Uganda – Celtel Uganda – was the fastest
growing operator of the group, registering a 205% increase in customers. The second
largest growth was registered in Malawi (83%), Burkina Faso (77%) and Nigeria (74%). In
the Middle East, Zain in Iraq (formerly both MTC-Atheer and Iraqna) registered an
impressive 128% increase in customers following the acquisition of Iraqna; Bahrain
registered a 92% increase followed by Sudan with 41%.
In total customer numbers, Celtel Nigeria represents 26% of Zain Group’s customer base,
followed by Iraq (17%), Sudan (9%), Tanzania (6%) and Kenya (5%) as of December 31,
2007.
All in all, Zain’s African operations registered a 59% increase in customers in 2007, while the
Middle Eastern operations registered a 53% increase over the same period.
The Zain Groups’ 20 operations are mainly made up of prepaid customers, representing
90% of the total customer base. Of the customer base in MEA operations, over 93% are
prepaid and the group’s African operations almost entirely (99%) consist of prepaid
customers. This phenomenon clearly reflects the effects of the cash based economies of
Africa and some Middle Eastern countries such as Iraq. Prepaid customers significantly
reduce the credit and collection risks for Zain’s operations.
Page 5 of 27
Key Operational Events of the Period
December 1, 2007
Zain announces the acquisition of Iraqna, one of Iraq’s major mobile operators;
combined operations of Iraqna and MTC-Atheer serves 7 million customers in
Iraq under the Zain brand.
22 November, 2007
Zain’s African operations under the Celtel and Zain brands announce the
extension of the ‘One Network’ service, the world’s first borderless mobile network
in Africa to an additional six countries to include Burkina Faso, Chad, Malawi,
Niger, Nigeria and Sudan, a total of 12 countries.
29 September, 2007
Zain in Bahrain launches another telecommunications first with the launch
Zain@home, the world’s first nationwide WIMAX network.
8 September, 2007
The MTC Group with a presence in the Middle East and Africa, announces the rebranding to Zain, to become the Group’s corporate master and customer facing
brand.
7 July, 2007
Zain (formerly MTC) Consortium is awarded the third mobile license in the
Kingdom of Saudi Arabia by the Communications and Information Technology
Commission (CITC).
Page 6 of 27
Financial Results
Zain recorded Consolidated Revenues of USD 5.9 billion (KD 1.677 billion) as of December
31, 2007, an increase of 32% compared to 2006. Consolidated EBITDA increased by 25% to
USD 2.5 billion (KD 725 million) resulting in an EBITDA margin of 43%. The company’s Net
Income reached USD 1.1 billion (KD 0.32 billion), an 11% increase compared to 2006.
Earnings per share (EPS) increased by 11% from USD 0.55 in 2006 to USD 0.61 in 2007.
Zain’s performance was driven by organic growth in almost every operation and acquisitions
made during the year. The growth is part of Zain’s strategy to become a global operator in
2011 serving at least 110 million customers and achieving an EBITDA of USD 6 billion.
Zain’s strong financial performance was supported primarily by its more mature Middle
Eastern operations. In addition, a 54% increase in revenues was recorded from the group’s
African operations which exceeded USD 3 billion for the first time in 2007.
Table 2: Financial Highlights
Consolidated Results
2007
2006
Annual Growth
Currency
USD
KD
USD
KD
Revenues (millions)
5,912
1,677
4,466
1,297
32%
EBITDA (millions)
2,557
725
2,044
594
25%
EBITDA Margin (%)
43
46
-
Net Profit (millions)
1,130
320
1,015
295
11%
EPS
0.61
0.172
0.55
0.159
11%
Zain Group Revenues
Nigeria - 20%
Kenya - 3%
Gabon - 4%
Tanzania - 5%
Zambia - 4%
Others - 9%
Bahrain - 3%
D.R.C. - 5%
Congo B - 4%
Sudan - 13%
Jordan - 8%
Kuwait - 21%
Lebanon - 1%
Page 7 of 27
Table 3: Income Statement Summary
2007
2006
Annual Growth
USD m
KD m
USD m
KD m
Revenues
5,912
1,677
4,466
1,297
32%
Cost of Sales
1,275
362
946
275
35%
Gross Profit
4,637
1,316
3,520
1,023
32%
Operating, General and
Administrative Expenses
2,213
628
1,568
455
41%
EBITDA
2,557
725
2,044
594
25%
EBITDA Margin
43%
46%
-
Interest Income
92.7
26.3
62.8
18.3
47%
Gain from Currency
Evaluation
46.3
13.1
11.7
3.4
296%
Net Profit
1,130
320
1,015
295
11%
Table 4: Balance Sheet - Summary
2007
2006
USD m
KD m
USD m
KD m
Current Assets
2,021
553
2,390
692
Non-Current Assets
13,952
3,814
9,664
2,799
Total Assets
15,973
4,367
12,054
3,491
Current Liabilities
3,756
1,027
3,603
1,043
Non-Current Liabilities
5,822
1,592
3,271
947
Shareholders’ Equity
5,786
1,582
4,676
1,354
609
166
504
145
15,973
4,367
12,054
3,491
Minority Interest
Total Liabilities and Equity
Page 8 of 27
Table 5: Cash Flows - Summary
2007
2006
USD m
KD m
USD m
KD m
Net Cash from Operating Activities
2,459
672
2,760
802
Net Cash from Investing Activities
(3,761)
(1,056)
(3,414)
(992)
Net Cash from Financing Activities
674
183
1,244
360
Net Increase in Cash and Equivalents
(628)
(200)
590
170
Cash and Cash Equivalents at end of Year
956
261
1,638
474
One of the main drivers of growth in 2007 was a continued focus on investing in expanding
network coverage and improving the quality of service. These investments are critical to
support customer growth in the African operations where the Group experiences its fastest
growth but also where the network infrastructure still requires significant investment. In
Nigeria alone, the Group invested more than USD 570 million in 2007. Consolidated
revenues were distributed more or less evenly between the Middle East and Africa. In the
former, Kuwait was the main contributor (21%) whereas of the African operations, Nigeria’s
contribution of 20% underscores the importance of this operation to the Group’s results.
Although revenues from Iraq operation were not consolidated in the Group’s results,
revenues increased by 60% to USD 561 million compared to 2006. In line with the Group’s
aim to return superior returns to its shareholders and on the back of the Group’s strong
growth, earnings per share increased to USD 0.61 in 2007, up from USD 0.55 in 2006.
Key Financial Events of the Period
December 2, 2007 – ZAIN set to increase company’s capital by 75%
ZAIN’s Board of Directors recommends an increase of the company’s capital by 75%
drawing from its existing shareholder base.
October 22, 2007 – ZAIN’s worldwide footprint now stands at 22 countries
Celtel International, ZAIN’s African subsidiary, agrees to acquire 75% of Western
Telesystems Ltd (Westel) from the government of Ghana for US$ 120 million. The Group
intends to launch services in Q2-2008.
December 1, 2007 – ZAIN in Iraq serving more than 7 million customers
ZAIN concludes a binding agreement for the purchase of 100% of the share capital of
Iraqna Company, a subsidiary of Orascom Telecom Holding, for US$ 1.2 billion.
Page 9 of 27
2007 Stock Performance
Table 6: Stock Summary
Stock Summary
USD
KD
Closing Price (31/12/2007)
13.97
3.820
Paid-Up Capital (millions)
692.75
189.398
Share Par Value
0.36
0.100
EPS
0.61
0.172
Market Capitalization (Billions)
26.49
7.241
Year-on-Year Stock Price Growth
24%
P/E multiples
19x
Page 10 of 27
Zain’s Presence in the Middle East and Africa
Lebanon
Jordan
Iraq
Chad
Kuwait
Bahrain
Niger
Burkina Faso
Sirerra Leone
K.S.A.*
Ghana **
Sudan
Nigeria
Kenya
Gabon
Uganda
Congo
Madagascar
Democratic
Republic
of Congo
Zambia
Tanzania
Malawi
* Kingdom of Saudi Arabia: Commercial services to be launched by Q3 2008.
** Ghana: Commercial services to be launched no later than Q3 2008.
Page 11 of 27
Country Insights
Kuwait
Market Overview
2007
2006
Population (000s)
3,400
3,200
GDP/Capita (USD; PPP)
34,200
33,601.5
Mobile Penetration
106%
103%
Number of Peers
1
1
Market Positioning
1
1
Ownership
100%
100%
Customers (000s)
1,576
1,461
Postpaid
437
382
Prepaid
1,139
1,079
Market Share
57%
59%
70
65
ARPU ($)
Zain in Kuwait had a total of 1.576
million active customers by year end
2007, representing an 8% increase in
active customers compared to 2006.
The operation’s customers accounted
for 4% of Zain total customer base.
Zain in Kuwait’s 2007 revenues
reached a record USD 1,266.8 million,
an increase of 16% compared to 2006.
The operation’s revenues accounted
for 21% of Zain’s total – the largest
single source of revenues. EBITDA
increased by 27% compared to 2006.
Zain in Kuwait had a high ARPU of $70
in 2007.
2007
2006
Annual
Growth
1,266.8
1,093.7
16%
EBITDA (USD m)
684.5
539.9
27%
EBITDA Margin
54%
49%
-
CAPEX (USD m)
132
92
43%
592.3
447.5
32%
Financial Performance
Revenues (USD m)
Net Income (USD m)
Zain in Kuwait, the group’s first
operation, was established in 1983.
Currently there is only one peer in
Kuwait - Qtel (Wataniya) - however, a
third mobile operator is expected to
enter the highly penetrated market no
later than Q3-2008.
In September 2007, MTC rebranded
its Kuwaiti operation to Zain. Surveys
show that the new brand is perceived
as fresh and dynamic underscoring the
operation’s customer loyalty and
success in Kuwait. The smooth brand
transition was reflected in an excellent
performance for the fourth quarter of
Zain in Kuwait with a record Net
Income.
Financials (USD m)
1,093.7
539.9 447.5
2006
1,226.8
684.5 592.3
Market Share
Revenues
EBITDA
Net Income
Wataniya
43%
Zain
57%
2007
Page 12 of 27
Sudan
Market Overview
2007
2006
Population (000s)
38,500
37,700
2,930
2,580
Mobile Penetration
18%
11%
Number of Peers
3
2
Market Positioning
1
1
Ownership
100%
100%
Customers (000s)
3,883
2,754
Postpaid
65
65
Prepaid
3,818
2,689
Market Share
49%
59%
20
25
ARPU ($)
Zain in Sudan had over 3.8 million
active customers by year end 2007,
representing a 41% compared to last
year. The operation’s customers
accounted for 9% of Zain total customer
base in the Middle East and Africa
regions.
Zain in Sudan 2007 revenues reached
USD 792.5 million, an increase of 10%
compared to 2006. The operation’s
revenues accounted for 13% of Zain
total consolidated revenues. EBITDA
decreased by 22% compared to 2006.
Net Income in 2007 decreased by 27%
compared to 2006.
2007
2006*
Annual
Growth
Revenues (USD m)
792.5
717.8
10%
EBITDA (USD m)
325.2
415.2
(22%)
EBITDA Margin
41%
58%
-
CAPEX (USD m)
101
172
(41%)
263.2
362.5
(27%)
Net Income (USD m)
Mobitel, Sudan’s first mobile operator
was successfully re-branded to Zain in
September 2007. The response to the
brand by the public, media and
authorities has exceeded all set
expectations.
Despite an overheated market in
Khartoum caused by continuous
promotions and discounted pricing by
the competition, Zain Sudan still
commands a 49% market share. Zain
Sudan is focusing its efforts on
customer loyalty, retention programs
and rural coverage. Zain now covers
around 300 cities and towns, well
ahead of the competition. Population
coverage has increased from 35% in
Q1-2006 to over 65% today, with a
target to reach 80% by Q1-2008.
Financials (USD m)
Market Share
Sudani
24%
792.5
717.8
415.2 362.5
2006
325.2 263.2
Revenues
EBITDA
Net Income
2007
Zain
49%
Canar
2%
MTN
25%
* Sudan 2006 numbers reflect full year figures for comparative purposes only.
Page 13 of 27
Jordan
Market Overview
2007
2006
Population (000s)
5,900
5,600
5,900
5,620
Mobile Penetration
83%
69%
Number of Peers
3
3
Market Positioning
1
1
96.52%
96.52%
1,858
1,961
Postpaid
258
221
Prepaid
1,600
1,740
Market Share
43%
53%
19
17
Ownership
Customers (000s)
ARPU ($)
Zain in Jordan operation had over 1.8
2007, representing a decrease of 5% in
active customers compared to 2006. The
operation’s customers accounted for 4%
of Zain total customer base.
Zain in Jordan’s 2007 revenues reached
USD 477 million, a decrease of 2%
compared to 2006 and accounted for 8%
of Zain’s total consolidated revenues.
EBITDA decreased by 13% compared to
2006. Net Income in 2007 reached USD
119.2 million, a decrease of 12%
compared to last year. Zain in Jordan had
an ARPU of $19 in 2007.
2007
2006
Annual
Growth
Revenues (USD m)
477
485.4
(2%)
EBITDA (USD m)
220.6
253.7
(13%)
EBITDA Margin
46%
52%
-
23
62
(63%)
119.2
135.1
(12%)
CAPEX (USD m)
Net Income (USD m)
Zain in Jordan is the Group’s first regional
operation, and its current stake was
acquired in January 2003 for USD 418.9
million. Currently there are three other
mobile operators in Jordan. It is one of the
most liberalized telecom markets in the
Middle Eastern region.
Despite competitive pressure from other
operators, Zain in Jordan has maintained
its no.1 market position despite a loss in
market share. As the Jordanian market for
mobile telecommunications becomes
mature, Zain in Jordan has shifted its
focus from customer acquisition to
customer retention. The new brand was
well received and got significant attention
from customers and media despite the
simultaneous re-branding of one of its
competitors (Orange).
Financials (USD m)
485.4
477.0
253.7
2006
Express
20%
Revenues
EBITDA
Net Income
220.6
135.1
Market Share
119.2
Umniah
3%
Zain
43%
Orange
33%
2007
Page 14 of 27
Nigeria
Market Overview
2007
2006
Population (000s)
146,200
144,000
1,310
1,230
Mobile Penetration
30%
22%
Number of Peers
3
3
Market Positioning
2
3
65%
65%
11,098
6,396
Postpaid
56
32
Prepaid
11,042
6,364
29%
23%
12
14
Ownership
Customers (000s)
Market Share
ARPU ($)
Celtel Nigeria’s operation had over 11
2007, accounting for 26% of Zain total
customer base.
Celtel Nigeria’s 2007 revenues reached
USD 1,171.9 million, an increase of
20% compared to last year. The
operation’s revenues accounted for
20% of Zain’s total revenues. EBITDA
reached USD 393.5 million in 2007. Net
Income in 2007 reached USD 83.2
million, a decrease of 37% compared to
2006. Celtel Nigeria had an ARPU of
$12 in 2007.
2007
2006*
Annual
Growth
1,171.9
972.9
20%
EBITDA (USD m)
393.5
373.3
5%
EBITDA Margin
34%
38%
-
CAPEX (USD m)
575
548
5%
Net Income (USD m)
83.2
131.5
(37)%
Revenues (USD m)
In May 2006, Zain acquired a 65%
majority stake in the Nigerian mobile
operator V-mobile for USD 1.005 billion.
Nigeria is Africa’s most populous nation
and has become Zain’s main driver for
growth throughout its 20 operations.
Nigeria will soon overtake South Africa
as the continent’s largest telecoms
market.
Despite increased competition in the
mobile market in Nigeria, Celtel Nigeria
managed to capture the no. 2 position
ahead of its competitor Globacom. This
was achieved by significantly increasing
its number of Points of Sale, managing
churn and increasing coverage through
a disciplined CAPEX program.
Additionally, the introduction of new
services such as the new Mobile
Access Code (0708) and prepaid
roaming services supported strong
customer growth.
Market Share
Financials (USD m)
MTN
42%
1,171.9
972.9
393.5
373.3
131.5
2006
83.2
Others
4%
Revenues
EBITDA
Net Income
2007
* Nigeria 2006 numbers reflect full year figures for comparative purposes only.
Celtel
29%
Globacom
25%
Page 15 of 27
Congo Brazzaville
Market Overview
2007
2006
Population (000s)
3,800
3,700
1,290
1,260
Mobile Penetration
34%
26%
Number of Peers
1
1
Market Positioning
1
1
Ownership
90%
90%
Customers (000s)
1,014
683
Postpaid
2
1
Prepaid
1,012
682
Market Share
76%
71%
20
24
ARPU ($)
Celtel Congo Brazzaville operation had
a total of 1.014 million active customers
by year end 2007, representing a 48%
increase compared to 2006. The
operation’s customers accounted for
2% of Zain total customer base.
Celtel Congo Brazzaville’s 2007
revenues reached USD 211.3 million,
an increase of 47% compared to 2006.
The operation’s revenues accounted for
increased by 61% compared to 2006
and reached USD 91.2 million. Net
million, an increase of 58.5% compared
to last year. Congo Brazzaville had an
ARPU of $20 in 2007.
2007
2006
Annual
Growth
Revenues (USD m)
211.3
143.5
47%
EBITDA (USD m)
91.2
56.6
61%
EBITDA Margin
43%
39%
-
57
36
58%
66.1
41.7
58.5%
CAPEX (USD m)
Net Income (USD m)
Celtel Congo Brazzaville was launched
in December 1999 and is the premier
operator in the country with a 76%
market share. There is one competitor
operating in the country.
Celtel Congo Brazzaville performed
very strongly in 2007 underpinned by
solid customer growth and an increased
market share due to successful
promotions and loyalty programs.
Throughout 2007, the operation
spearheaded several initiatives to
increase usage to offset ARPU decline.
Increased network roll-out enabled the
operation in Congo Brazaville to
increase coverage to 83% of the
population.
Financials (USD m)
211.3
143.5
56.6 41.7
2006
91.2
66.1
Market Share
Revenues
EBITDA
Net Income
Celtel
76%
Libertis
24%
2007
Page 16 of 27
Zambia
Market Overview
2007
2006
Population (000s)
11,900
11,700
1,320
1,240
Mobile Penetration
19%
14%
Number of Peers
2
2
Market Positioning
1
1
88.88%
88.88%
1,966
1,325
Postpaid
8
5
Prepaid
1,958
1,320
Market Share
79%
79%
12
16
Ownership
Customers (000s)
ARPU ($)
Celtel Zambia was launched in 1998
and continues to be one of the star
performers of the Group. Despite two
competitors in Zambia, Celtel is the
market leader with a 79%
market
share.
Celtel Zambia operation had over 1.9
2007, representing a 48% increase
customers accounted for 5% of Zain
total customer base.
2007
2006
Annual
Growth
Revenues (USD m)
252.1
190.2
32.5%
EBITDA (USD m)
123.4
84.6
46%
EBITDA Margin
49%
44%
-
CAPEX (USD m)
97
105
(8%)
Net Income (USD m)
58
31.3
85%
Celtel Zambia’s 2007 revenues reached
USD 252.1 million, an increase of
32.5% compared to the same period in
2006. The operation’s revenues
accounted for 4% of Zain’s total
revenues. EBITDA increased by 46%
compared to 2006 and reached USD
123.4 million. Net Income in 2007
reached USD 58 million, an increase of
85% compared to the previous year.
Celtel Zambia had an ARPU of $12 in
2007.
Celtel Zambia excellent performance
was driven by strong customer growth
and brand loyalty resulting in a
significantly higher EBITDA and net
income, making Celtel Zambia the
Group’s second best performer.
Financials (USD m)
252.1
190.2
123.4
84.6
58.0
31.3
2006
Market Share
Revenues
EBITDA
Net Income
Zamtel
11%
Celtel
79%
MTN
10%
2007
Page 17 of 27
Gabon
Market Overview
2007
2006
Population (000s)
1,300
1,300
8,910
8,460
Mobile Penetration
81%
55%
Number of Peers
2
2
Market Positioning
1
1
Ownership
90%
84%
Customers (000s)
666
514
Postpaid
4
4
Prepaid
662
510
Market Share
63%
67%
33
31
ARPU ($)
Celtel Gabon was launched in June
2000 and is the undisputed leader in
this prosperous African nation, holding
a 63% market share. There are
currently two competitors operating in
Gabon.
Celtel Gabon operation had a total of
666,000 active customers by year end
Celtel Gabon’s 2007 revenues reached
revenues accounted for 4% of Zain’s
total revenues. EBITDA increased by
26% compared to 2006 and reached
USD 111.8 million. Net Income in 2007
reached USD 52.8 million, an increase
of 11% compared to the previous year.
Gabon had an ARPU of $33 in 2007.
2007
2006
Annual
Growth
Revenues (USD m)
233.1
164.6
42%
EBITDA (USD m)
111.8
88.7
26%
EBITDA Margin
48%
54%
-
CAPEX (USD m)
111
42
164%
Net Income (USD m)
52.8
47.6
11%
Celtel Gabon continues to dominate the
market in terms of market share despite
the increased competition following the
privatization of Gabon Telecom.
Population coverage stood at 80% in
2007, an increase of 4% compared to
the previous year. Additionally, new
services were rolled out such as One
Network and GPRS.
Financials (USD m)
233.1
164.6
88.7
2006
111.8
52.8
47.6
Market Share
Revenues
EBITDA
Net Income
Telecel
10%
Celtel
63%
Libertis
27%
2007
Page 18 of 27
Tanzania
Market Overview
2007
2006
Population (000s)
39,700
39,000
1,390
1,290
Mobile Penetration
21%
15%
Number of Peers
3
3
Market Positioning
2
2
Ownership
60%
60%
Customers (000s)
2,507
1,517
Postpaid
8
6
Prepaid
2,499
1,511
Market Share
39%
33%
11
12
ARPU ($)
Celtel Tanzania was launched in
November 2001. Zain currently owns
60% of the company, while the
remaining stake is held by the
Tanzanian Government. With a 39%
market share, the operation is the
second largest in a country boasting 4
mobile companies.
Celtel Tanzania operation had over 2.5
Celtel Tanzania’s 2007 revenues
reached USD 265 million, an increase
of 56% compared to 2006. The
operation’s revenues accounted for 5%
of Zain’s total revenues. EBITDA
increased by 55% compared to 2006
and reached USD 97.3 million. Net
million, an increase of 96% compared
to last year. Celtel Tanzania had an
2007
2006
Annual
Growth
Revenues (USD m)
265
169.6
56%
EBITDA (USD m)
97.3
62.9
55%
EBITDA Margin
37%
37%
-
CAPEX (USD m)
135
80
69%
Net Income (USD m)
52.1
26.6
96%
Financials (USD m)
Celtel Tanzania strong performance is
underpinned by the overall improved
economic situation of the country.
A d d i t i o n a l l y, C e l t e l Ta n z a n i a ’ s
continued effort to increase its
population coverage throughout 2007
resulted in a strong growth of our
customer base revenues and EBITDA.
Market Share
265.0
169.6
62.9
2006
97.3
26.6
52.1
Revenues
EBITDA
Net Income
Celtel
39%
Mobitel
15%
Zantel
5%
2007
Vodacom
41%
Page 19 of 27
Iraq
Market Overview
2007
2006
Population (000s)
28,900
28,500
3,050
3,010
Mobile Penetration
34%
37%
Number of Peers
2
2
Market Positioning
1
1
30%
30%
7,287 1
3,198
Postpaid
55
36
Prepaid
7,232
3,162
Market Share
70%
36%
13
14
Ownership
Customers (000s)
ARPU ($)
Financial Performance*
(MTC-Atheer only)
Revenues (USD m)
2007
2006
MTC-Atheer had a total of 7.2871
Annual
Growth
561
350.8
60%
EBITDA (USD m)
177.6
104.1
71%
EBITDA Margin
32%
30%
-
CAPEX (USD m)
198
240
(17.5%)
Net Income (USD m)
46.6
18.7
149%
561.0
104.1
Revenues
EBITDA
Net Income
2006
177.6
MTC-Atheer’s 2007 revenues reached
USD 561 million, an increase of 60%
revenues are not consolidated with
Zain’s total revenues. Additionally,
EBITDA increased by 71% compared to
2006. Net Income reached in 2007
compared to 2006. MTC-Atheer had an
MTC-Atheer’s leading position in the
Iraqi market has been further
strengthened by the acquisition of
Iraqna, one of Iraq’s three mobile
operators. The operation’s strong
performance was the result of
significant increase in revenues and
EBITDA of 60% and 71% respectively.
Market Share
Financials (USD m)
350.8
The 2-year license granted in
December 2003 initially covered the
Southern region of Iraq only.MTCAtheer expanded its coverage to the
whole country. In August 2007, Zain
Group acquired a nation-wide, 15 -year
license for USD 1.2 billion.
AsiaCell
30%
46.6
18.7
2007
Zain
70%
1. Total customer number and market share for Iraq include 3.1 million customers following the acquisition
of Iraqna.
Page 20 of 27
Bahrain
Market Overview
2007
2006
Population (000s)
800
700
28,730
26,970
Mobile Penetration
144%
122%
Number of Peers
1
1
Market Positioning
2
2
56.25%
60%
Customers (000s)
448
233
Postpaid
81
46
Prepaid
367
187
Market Share
44%
30%
42
31
Ownership
ARPU ($)
Zain in Bahrain operation had a total of
2007, representing a 92% increase in
active customers compared to 2006. The
operation’s customers accounted for 1% of
Zain total active customer base.
Zain in Bahrain 2007 revenues reached
revenues accounted for 3% of Zain’s total
consolidated revenues. EBITDA increased
by 34% compared to 2006 and reached
USD 47.7 million. Net Income reached in
2007 USD 29.3 million, an increase of 52%
compared to 2006. Zain in Bahrain had an
2007
2006
Annual
Growth
Revenues (USD m)
151.1
111.5
36%
EBITDA (USD m)
47.7
35.7
34%
EBITDA Margin
32%
32%
-
34
11
209%
29.3
19.3
52%
CAPEX (USD m)
Net Income (USD m)
Zain in Bahrain, launched its commercial
services in December 2003. Currently
there is only one competitor in Bahrain Batelco. Bahrain has the highest mobile
penetration in the region and is leading the
way in offering triple play and Wi-Max
services.
The launch of the Zain brand in Bahrain
had a very positive impact on the
operation’s results underscored by
impressive customer growth and a 14%
increase in market share. Zain in Bahrain
hosted the re-branding launch for the
Group as well as being the flagship
operation underpinning the strength of the
new Zain brand.
Financials (USD m)
151.1
Revenues
EBITDA
Net Income
111.5
35.7
2006
19.3
47.7
Market Share
29.3
Zain
44%
Batelco
56%
2007
Page 21 of 27
Democratic Republic of Congo
Market Overview
2007
2006
Population (000s)
59,300
58,500
143
130
Mobile Penetration
10%
7%
Number of Peers
4
4
Market Positioning
1
1
Ownership
98.5%
98.5%
Customers (000s)
2,273
1,833
Postpaid
7
2
Prepaid
2,266
1,831
Market Share
41%
49%
12
14
ARPU ($)
Celtel DRC was launched in December
2000 and its current market share is
41%. There are four other competitors
operating in the highly competitive
market.
Celtel DRC operation had over 2.2
Celtel DRC’s 2007 revenues reached
total revenues. EBITDA decreased by
2% compared to 2006 and reached
USD 89.4 million. Net Income in 2007
of 7% compared to last year. Celtel
DRC had an ARPU of $12 in 2007.
2007
2006
Annual
Growth
Revenues (USD m)
296.7
253.2
17%
EBITDA (USD m)
89.4
91
(2%)
EBITDA Margin
30%
36%
-
CAPEX (USD m)
130
106
23%
Net Income (USD m)
25.9
24.1
7%
Although, Celtel DRC’s market share is
under pressure as a result of increased
competition, the operation has
performed well during 2007 with an
increase in customers, revenues and
net income. An aggressive roll-out plan
brought the number of towns and cities
under coverage to 271 ahead of Celtel
DRC’s major competitor Vodacom.
Also, new services were launched in
2007 such as One Network, per second
billing and GPRS/edge.
Financials (USD m)
Market Share
Supercell
7%
Starcel
7%
296.7
253.2
91.0
89.4
25.9
24.1
2006
Revenues
EBITDA
Net Income
2007
Celtel
41%
Vodacom
45%
Page 22 of 27
In June 2004, MTC won a 4-year
management contract to operate one of
Lebanon’s two GSM operations.
Rebranded as MTC-Touch, MTC has
developed the Lebanese operation to
full potential in hope that it will be
added to the Group’s portfolio as soon
as the government undertakes the
process of privatization.
Lebanon
Market Overview
2007
2006
Population (000s)
4,100
4,050
7,850
7,930
Mobile Penetration
30%
28%
Number of Peers
1
1
Market Positioning
-
-
Ownership
MC
MC
Customers (000s)
630
560
Postpaid
140
132
Prepaid
490
428
Market Share
50%
50%
-
-
ARPU ($)
MTC Lebanon’s operation had a total of
customers accounted for some 1% of
Zain total customer base in the Middle
East and Africa regions.
2007
2006
Annual
Growth
Revenues (USD m)
60.9
58.1
5%
EBITDA (USD m)
10.7
9.9
8%
EBITDA Margin
18%
17%
-
-
0.142
-
9.5
8.7
9%
CAPEX (USD m)
Net Income (USD m)
MTC-Touch Lebanon’s 2007 revenues
of 5% compared to 2006 accounting for
increased by 8% compared to 2006 and
reached USD 10.7 million. Net Income
reached in 2007 USD 9.5 million, an
increase of 9% compared to 2006.
All the disclosed revenues are those
from the management contract and not
the total revenues of the operation
which are collected by the Government
of Lebanon.
Financials (USD m)
60.9
58.1
9.9
2006
8.7
Revenues
EBITDA
Net Income
10.7
9.5
2007
Page 23 of 27
Kenya
Market Overview
2007
2006
Population (000s)
37,500
36,500
1,550
1,461
Mobile Penetration
34%
21%
Number of Peers
1
1
Market Positioning
2
2
Ownership
80%
60%
Customers (000s)
2,104
1,939
Postpaid
42
37
Prepaid
2,062
1,902
Market Share
33%
28%
7
7
ARPU ($)
Celtel Kenya operation had over 2
2007, representing an 8% increase
Celtel Kenya’s 2007 revenues reached
total revenues. EBITDA decreased by
38% to reach USD 31.9 million
compared to 2006. Net Income in 2007
was USD (21.7) million, a decrease of
94% compared to last year. Celtel
Kenya also had an ARPU of $7 in 2007.
2007
2006
Annual
Growth
Revenues (USD m)
194.3
174.3
11%
EBITDA (USD m)
31.9
51.1
(38%)
EBITDA Margin
16%
29%
-
63
38
66%
(21.7)
(11.2)
(94%)
CAPEX (USD m)
Net Income (USD m)
Celtel Kenya was acquired in May 2004
Kenya is considered a highly
competitive and aggressive market with
relatively low ARPUs.
In line with Celtel Kenya’s ambition to
build a mobile network with the
country’s highest population coverage,
population coverage increased to 86%
in 2007 and on target to meet its 95%
goal in 2008. Celtel Kenya did not
perform well in 2007 as a result of
intense competition from Safaricom.
The so-called clubbing effect of on-net
calls on Safaricom’s network as the
country’s dominant operator has put
pressure on Celtel’s profitability.
Financials (USD m)
Market Share
Telcom Kenya
1%
194.3
174.3
51.1
31.9
-11.2
2006
Revenues
EBITDA
Net Income
2007
Celtel
33%
Safaricom
66%
-21.7
Page 24 of 27
Celtel International (Others)
Market Overview
2007
2006
Population (000s)
105,930
102,790
Lowest GDP/Capita
$843
(Malawi)
$818 (Malawi)
Highest GDP/Capita
$2,100
(Chad)
$2,140 (Chad)
Customers (000s)
5,191
2,664
Postpaid
31
24
Prepaid
5,160
2,640
Highest Market Share
74% (Niger)
65% (Chad)
Lowest Market Share
32%
(Uganda)
20% (Uganda)
ARPU ($)
12.3
14
2007
2006
Annual
Growth
Revenues (USD m)
539.6
350.1
54%
EBITDA (USD m)
190.8
125.9
51.5%
EBITDA Margin
35%
36%
-
CAPEX (USD m)
278
172
62%
Net Income (USD m)
57.2
42.5
35%
Zain Group Total Customers
Celtel remaining operations are
grouped as others and they comprise:
• Burkina Faso
• Chad
• Madagascar
• Malawi
• Niger
• Sierra Leone
• Uganda
All operations grouped as “Others”
contributed to Zain’s Net Income and
EBITDA.
In line with customer growth in Zain’s
other operations in Africa, Burkina
Faso, Chad, Madagascar, Malawi,
N i g e r, S i e r r a L e o n e a n d C h a d
experienced significant growth. Uganda
deserves special mention where
customer numbers increased from
470,000 to over 1.4 million. As a result,
Celtel Uganda was selected for the
Group’s Operation of the Year Award for
an outstanding achievement in 2007.
With increased coverage in every
market, the operations in the “Others”
group are an integral part of Zain’s panAfrican coverage and service offering to
more than 5 million customers in these
countries.
Zain Group Others Customers
Uganda
28%
Sierra Leone
7%
Zain Group
87%
Others
13%
Niger
13%
Burkina Faso
18%
Malawi
12%
Chad
Madagascar
11%
11%
Page 25 of 27
Table 7: Celtel International Market Shares and Peers
Operations
Active
Customers Market Share Market Share Number of
(000s)
2007
2006
Operators
2007
Operators’ Brand Names
Burkina Faso
918
57%
57%
2
Telemob (Onatel), Telecel;
Chad
595
60%
67%
1
Millicom;
Madagascar
574
32%
41%
2
Orange, Telma;
Malawi
654
68%
61%
1
TNM;
Niger
666
74%
74%
2
Sahelcom, Telecel;
Sierra Leone
349
45%
56%
3
Millicom; Comium; Africell;
1,435
32%
20%
2
MTN, UTL;
Uganda
Table 8: Celtel International Financial Breakdown (2007)
Revenues (USD
m)
Revenues
Growth
2007-2006
EBITDA
(USD m)
Net Profit (USD
m)
ARPU
(USD)
Burkina Faso
100.5
64%
46.2
21.1
12
Chad
91.5
40%
34.1
6.2
17.1
Madagascar
49.3
39%
11.5
3.7
9.2
Malawi
71.1
68%
31.7
11.4
10.9
Niger
92.5
51%
45.6
31.4
15.1
Sierra Leone
43.3
(3%)
7.1
(4.1)
12.9
Uganda
91.4
130%
14.6
(12.3)
9.1
Total
539.6
54%
190.8
57.4
-
Operations
Page 26 of 27
For further information visit www.zain.com:
Or Contact our Investor Relations Team:
Martin de Koning:
+31 6 558 22409;
[email protected]
Mohammad Abdal
+965 464 4965;
[email protected]
Eline Hilal
+973 360 35022
[email protected]
1KD = 0.2775 USD
Page 27 of 27

Complete 2007 ER results English

Transcription

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