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GlobalTelecom Hdg (GLTD)

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Wednesday 06 August, 2014

GlobalTelecom Hdg

2nd Quarter Results

RNS Number : 3334O
Global Telecom Holding S.A.E
06 August 2014
 



 
 
 

              Click on, or paste the following link into your web browser, to view the associated PDF document.

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2Q14 Highlights1 

·     Total customers2 grew 6% YoY to exceed 91 million, mainly driven by strong additions in Bangladesh.

·     Revenue stood at USD 863 million, negatively impacted by slowdown in Algeria and Pakistan, partially offset by a strong recovery in Bangladesh.

·     EBITDA amounted to USD 389 million. Strong group EBITDA margin of 45.1%. EBITDA margins for the major subsidiaries were: Djezzy 54.5%, Mobilink 38.9%, and banglalink 38.2%.

·     GTH generated USD 74 million of operating cash flow4 in 2Q14.

·     Net Debt5 stood at USD 2.6 billion, reflecting an increase of 12% when compared to 4Q13; Net Debt/EBITDA6 increased to 1.6x as at June 30, 2014.



 

Cairo/London (August 6, 2014), Global Telecom Holding S.A.E. ('GTH', or 'the Group') (EGX: GLTD.CA, GTHE EY. LSE:GTLD LI, GLTD:TQ), a leading provider of mobile telecommunications in Africa, Asia and North America, announces its consolidated financial and operating results for the second quarter ending June 30, 2014.

 

 

 

Table 1: Group Key Indicators

 

Thousands

2Q14

2Q13

Change

Organic Growth

1H14

1H13

Change

Total customers2

91,084

85,886

6%


91,084

85,885

6%

Revenue (USD)

863,330

903,756

(4%)

(5%)

1,693,982

1,753,000

(3%)

EBITDA (USD)

388,991

438,066

(11%)

(11%)

784,253

851,379

(8%)

EBITDA margin

45.1%

48.5%

(3.4pp)


46.3%

48.6%

(2.3pp)

Net income (USD)

(173,073)

(22,726)

n.m.


(130,256)

(226,334)

n.m.

EPS (USD per GDR)

(0.16)

(0.02)

n.m.


(0.12)

(0.22)

n.m.

Capex (USD)

315,411

68,976

357%


458,185

109,938

317%



1. Performance Review 

 

1-1 Customers 

 

Table 2: Customer base

Subsidiary/thousands

2Q14

2Q13

Change

Djezzy, Algeria1

17,502

16,828

4%

Mobilink, Pakistan

38,768

37,122

4%

banglalink, Bangladesh

29,751

27,076

10%

Sub-Saharan Africa

4,322

4,239

2%

Subtotal

90,343

85,266

6%

Operations accounted for under the equity method

2Q14

2Q13

Change

WIND Mobile, Canada

741

620

20%

Total

91,084

85,886

6%

 

Total customers grew 6% YoY to exceed 91 million by the end of 2Q14, driven by steady growth in Algeria and Pakistan, as well as strong additions in Bangladesh and Canada.

 

In Algeria, Djezzy grew its mobile customer base 4% YoY to 17.5 million. Djezzy expects to stabilize its market-leading position in 2H14, now that it has launched 3G services.

 

In Pakistan, Mobilink's mobile customer base increased 4% YoY to 38.8 million, supported by the introduction of an attractive tariff plan for new customers and a competitive reactivation campaign.

 

In Bangladesh, banglalink's customer base grew 10% YoY to 29.8 million, driven by revised start-up offers with an attractive tariff upon recharge, including data, voice and SMS, in addition to various campaigns such as bonus on recharge offers and bundle gifting service.

 

In Sub-Saharan Africa, customers increased by 2% YoY, driven by strong additions to Burundi's customer base, where the number of customers grew 15% YoY. In Canada, customers of WIND Mobile increased by 20%, as WIND Mobile continued to deliver on its "value plus" strategy by adding both postpaid and prepaid subscribers while carefully managing economics for voice and mobile broadband customers, maintaining its position as the fourth largest wireless carrier in the Canadian market.

  

 

1-2 Revenue

 

Table 3: Revenue in US dollars

Subsidiary/thousands

2Q14

2Q13

Change

1H14

1H13

Change

Mobile







Djezzy, Algeria

437,117

464,157

(6%)

866,277

897,908

(3%)

Mobilink, Pakistan

261,377

289,460

(10%)

507,174

567,236

(11%)

banglalink, Bangladesh

141,062

128,929

9%

274,723

246,670

11%

Telecel Globe, Africa

23,756

20,958

13%

45,673

39,589

15%

Total Mobile

863,312

903,504

(4%)

1,693,847

1,751,403

(3%)

Telecom Services






Ring

18

253

n.m.

135

1,598

n.m.

Total Consolidated Revenue

863,330

903,756

(4%)

1,693,982

1,753,000

(3%)

 

Table 4: Revenue in local currency

Subsidiary/billions

2Q14

2Q13

Change

1H14

1H13

Change

Mobile







Djezzy, Algeria (DZD)

34.5

36.7

(6%)

68.0

70.8

(4%)

Mobilink, Pakistan (PKR)

26.3

28.6

(8%)

52.3

55.8

(6%)

banglalink, Bangladesh(BDT)

10.9

10.1

8%

21.3

19.4

10%


Group revenue amounted to USD 863 million for 2Q14, which decreased 5% YoY organically.  

 

In Algeria, revenue decreased 6% YoY in local currency, as a result of lower interconnect revenue and the impact of competitors launching 3G in January 2014 ahead of Djezzy's 3G launch in July 2014.

 

In Pakistan, revenue decreased 8% YoY in local currency, negatively impacted by intensive competition from attractive bundles on the back of competitors' increased network capacity as well as unfavourable macro-economic situation.

 

In Bangladesh, revenue increased 8% YoY in local currency, driven by higher voice, interconnection and VAS revenue, mostly due to the 10% YoY growth in customers to 29.8 million.

 

Telecel Globe's revenue increased by 13% YoY, supported by strong growth in Burundi's customer base, which marked an increase 15% YoY to 1.57 million customers.  

1-3 ARPU

 

Table 5: Blended average revenue per user (USD)

Subsidiary

2Q14

2Q13

Change

Djezzy, Algeria1

8.3

9.2

(10%)

Mobilink, Pakistan

2.1

2.5

(16%)

banglalink, Bangladesh

1.6

1.6

(3%)


Table 6: Blended average revenue per user in local currency

      Subsidiary

2Q14

2Q13

Change

Djezzy, Algeria (DZD)1

648

727

(11%)

Mobilink, Pakistan (PKR)

214

249

(14%)

banglalink, Bangladesh (BDT)

121

126

(4%)


In Algeria, Djezzy's ARPU decreased 11% YoY in local currency, as a result of launch of 3G services by other operators in January 2014.

 

In Pakistan, Mobilink's ARPU decreased 14% YoY in local currency, negatively impacted by decreased Average Price per Minute ("APPM") due to aggressive on-net offerings from competition and the implementation of the additional withholding taxes.

 

In Bangladesh, banglalink's ARPU decreased 4% YoY in local currency, due to lower APPM YoY driven by aggressive price competition, and a change in the mix of on-net/off-net call traffic. Furthermore, ARPU decreased as a result of the acquisition of lower ARPU segment customers.


 

1-4 EBITDA1

Table 7: EBITDA in US dollars

Subsidiary/thousands

2Q14

2Q13 

Change

1H14

1H13

Change

Mobile







Djezzy, Algeria

238,775

279,181

(14%)

485,239

535,789

(9%)

Mobilink, Pakistan

109,371

121,572

(10%)

208,694

238,864

(13%)

Banglalink, Bangladesh

53,879

47,459

14%

103,219

96,641

7%

Telecel Globe, Africa

7,209

4,118

75%

16,083

10,145

59%

Total Mobile

409,234

452,330

(10%)

813,235

881,439

(8%)

Ring

(1,366)

(1,375)

n.m.

(2,386)

(2,647)

n.m.

GTH and Other2

(18,876)

(12,889)

n.m.

(26,595)

(27,413)

n.m.

Total Consolidated

388,991

438,066

(11%)

784,253

851,379

(8%)

 

Table 8: EBITDA in local currency

Subsidiary/billions

2Q14

2Q13 

Change

1H14

1H13

Change

Mobile







Djezzy, Algeria (DZD)

18.8

22.1

(15%)

38.0

42.2

(10%)

Mobilink, Pakistan (PKR)

 10.2

 12.2

(16%)

 20.5

 23.7

(14%)

banglalink, Bangladesh (BDT)

4.2

3.7

12%

8.0

7.6

6%


Group EBITDA decreased organically 11% YoY. In Algeria, EBITDA decreased 15% YoY in local currency, negatively impacted by lower revenue, higher network cost, related to 3G rollout.

 

In Pakistan, EBITDA decreased 16% YoY in local currency; negatively impacted by lower revenue, higher customer associated cost and higher tax absorption.

 

In Bangladesh, EBITDA increased 12% YoY in local currency, mainly due to higher revenue and cost.

 

Consolidated EBITDA margin of mobile revenue for 2Q14 was an industry leading margin of 47.4%.

 

  

 

1-5 Net Income

Net loss attributable to Equity Holders of the Parent amounted to USD 177 million, which was negatively impacted by financial expenses of USD 151 million, foreign exchange losses of USD 109 million and impairment of assets held for sale by USD 22 million. EPS for the three months ended June 30, 2014 amounted to USD (0.16)/GDR.

 

1-6 CAPEX1

Table 9: CAPEX in US dollars

Subsidiary/thousands

2Q14

2Q13

Change

1H14

1H13

Change

Djezzy, Algeria

162,092

17,420

830%

 222,454

36,530

509%

Mobilink, Pakistan

109,603

38,664

 183%

164,547

47,992

 243%

Banglalink, Bangladesh

42,786

12,513

 242%

69,439

24,616

 182%

Telecel Globe

929

379

145%

 1,745

800

118%

Total

315,411

68,976

357%

 458,185

109,938

317%

Total CAPEX/Revenue

36.5%

7.6%

28.9pp

27.0%

6.3%

20.7pp


Total CAPEX for the quarter increased 357% YoY to USD 315 million. In Algeria, CAPEX increased 830% YoY mainly due to the investments in the high-speed 3G network. In Pakistan, CAPEX increased 183% YoY due to the network modernization project and 3G rollout. The network modernization project is delayed due to congestions in some of the already modernized areas due to a higher than forecasted traffic and is expected to be completed in 1Q15, to prioritize additional capacity deployment. In Bangladesh, CAPEX increased 242% YoY driven by the 3G rollout investments.

 

1-7 Cash and Debt

Net debt increased 12% for the second quarter of 2014 to reach USD 2.6 billion in comparison to USD 2.3 billion as at December 31, 2013, leading to an increase in Net Debt/EBITDA2 to 1.6x as of June 30, 2014.

 

 

2.  GTH Operations 

 

The Group operates in seven countries with favourable dynamics in Africa, Asia and North America. It is worth highlighting that GTH serves a population of 466 million people.

 

 

2-1 Djezzy, Algeria

 

Table 10: Djezzy key indicators

 Financial data

2Q14

2Q13

Change


Operational data 

2Q14

2Q13

Change

Revenue (USD 000)

437,117

464,157

(6%)


Customers (000)3

17,502

16,828

4%

Revenue (DZD bn)

34.5

36.7

(6%)


Market Share1&3

49.4%

52.5%

(3.1pp)

EBITDA (USD 000)

238,775

279,181

(14%)


ARPU (USD)2&3

8.3

9.2

(10%)

EBITDA (DZD bn)

18.8

22.1

(15%)


ARPU (DZD)2&3

648

727

(11%)

EBITDA Margin

54.5%

60.1%

(5.6pp)


MOU2&3

202

278

(27%)

Capex (USD 000)

162,092

17,420

830%


Churn2&3

6.1%

6.9%

(0.8pp)

 

Orascom Telecom Algérie SpA ("OTA" or "the company") operates a mobile network in Algeria and provides a range of prepaid and postpaid products encompassing voice, data and multimedia, using the corporate brand "Orascom Telecom Algerie" and the dual commercial brand of "Djezzy" and "Allo". OTA is focusing on maintaining value through key strategic pillars. These strategic pillars are oriented towards value segmentation, distribution control, operational excellence, new revenue streams and assets monetization, control of regulatory risks, and finally retaining key staff members as well as introducing new talent development programs.

 

During 2Q14, OTA launched several promotions targeting key customers' segment. Djezzy launched attractive 2G promotions including Ramadan B2C promotion launch (Djezzy Carte, Allo, Djezzy Control and Djezzy Classic), Machine to Machine (M2M) solution, Liberty SMS offer (100 SMS for DZD 50 subscription per bundle), roaming promotion special during the World Cup, Omra Ramadan promotion, special VAS animation Ramadan and World Cup (RBT and Scoop).

 

On July 5, 2014, Djezzy launched 3G services in seven provinces including the largest four provinces in terms of population. On July 7, 2014, the telecom regulator ("ARPT") issued a regulation allowing for one number (mono-numbering) for 2G and 3G, which is more convenient for customers; based on this Djezzy's 2G customers can use their SIM cards with their old number for 3G after signing a new contract. In July 2014, Djezzy launched a number of commercial offers including Millennium 3G (a hybrid voice and data product), data dongle promotions, as well as B2B and B2C offers.

 

OTA's customer market share decreased to 49.4%, negatively impacted by strong competition following 3G launch by peers in January 2014. Djezzy expects to stabilize its market-leading position in 2H14 now that it has launched 3G successfully.

 

OTA's revenue decreased 6% YoY in local currency; as a result of lower interconnect revenue and the impact of competitors launching 3G in January 2014 ahead of the Company's 3G launch. Djezzy grew its mobile customer base 4% YoY to 17.5 million. EBITDA decreased 15% YoY in local currency, negatively impacted by higher network, related to the 3G rollout. CAPEX surged YoY mainly due to the investments in the high-speed 3G network.

 

  

 

2-2 Mobilink, Pakistan

 

Table 11: Mobilink key indicators

 Financial data

2Q14

2Q13

Change


Operational data 

2Q14

2Q13

Change

Revenue (USD 000)

261,377

289,460

(10%)


Customers (000)

38,768

37,122

4%

Revenue (PKR bn)

26.3

28.6

(8%)


Market Share1

27.6%

29.4%

(1.8pp)

EBITDA (USD 000)

109,371

121,572

(10%)


ARPU (USD)2

2.1

2.5

(16%)

EBITDA (PKR bn)

10.2

12.2

(16%)


ARPU (PKR)2

214

249

(14%)

EBITDA Margin

38.9%

42.8%

(3.9pp)


MOU2

230

233

(1%)

Capex (USD 000)

109,603

38,664

183%


Churn2

6.4%

5.3%

1.1pp

 

Pakistan Mobile Company Limited ("PMCL") operates under the brand "Mobilink" and has established itself as a market leader amongst Pakistan's Mobile network operators, providing prepaid and postpaid voice and data services to individuals and corporate clients across Pakistan. Mobilink is focused on retaining and strengthening its market share to achieve revenue growth, whilst continuing to reduce operational costs.

 

On July 18, 2014, Mobilink launched 3G services in eleven Pakistani cities. The operator had begun offering 3G services on a free trial basis promptly after receiving its license in May 2014. 3G services are live for prepaid customers, while post-paid customers are still running the free trial. To maintain its market leadership, Mobilink retained its focus on subscriber engagement. An attractive dormant revival campaign was launched offering upfront and recurring incentive; which led to improved reactivations. To further improve customer experience, a new Above The Line ("ATL") thematic was launched. The campaign was supported by voice and hybrid bundles at competitive prices. Launch of pull based free usage summary notification, free end-of-call notification service for new subscribers and conversion of multiple value added services to non-recursive charging cycle were some of the steps taken to support complete charging transparency for users.

 

Mobilink's revenue decreased 8% YoY in local currency, affected by strong competition from attractive bundles on the back of increased network capacity by competitors as well as unfavourable macro-economic situation. Mobilink's mobile customer base increased 4% YoY to 38.8 million, supported by the introduction of an attractive tariff plan for new customers and a competitive reactivation campaign. MFS witnessed strong growth driven by multiple initiatives including continuation of sales channel engagement promotions, introduction of dedicated MFS agents and launch of an ("ATL") consumer promotion. EBITDA decreased 16% YoY, negatively impacted by higher customer associated cost and higher tax absorption. CAPEX increased 183% YoY due to the network modernization project and the 3G rollout. The network modernization project is delayed due to congestions in some of the already modernized areas due to a higher than forecasted traffic and is expected to be completed in 1Q15, to prioritize additional capacity deployment.

 

  

2-3 banglalink, Bangladesh

 

Table 12: banglalink key indicators

 Financial data

2Q14

2Q13

Change


Operational data 

2Q14

2Q13

Change

Revenue (USD 000)

141,062

128,929

9%


Customers (000)

29,751

20,076

10%

Revenue (BDT bn)

10.9

10.1

8%


Market Share1

25.5%

25.7%

(0.2pp)

EBITDA (USD 000)

53,879

47,459

14%


ARPU (USD)2

1.6

1.6

(3%)

EBITDA (BDT bn)

4.2

3.7

12%


ARPU (BDT)2

121

126

(4%)

EBITDA Margin

38.2%

37.2%

(1.0pp)


MOU2

201

198

(2%)

Capex (USD 000)

42,786

12,513

242%


Churn2

5.2%

3.9%

1.3pp

 

Banglalink Digital Communications Limited ("BDCL") provides its services under two brand names: "banglalink" and "Icon". BDCL's marketing strategy is oriented towards targeting different consumer segments with tailored products and services to cater for the needs of these segments.

 

On the regulatory front, the prices of new and reactivation SIMs were revised in June 2014. New SIM prices were increased from BDT 180 to BDT 200 and the replacement SIM tax is being passed on to customers. The governmental budget includes a SIM tax of BDT 300 for new customers (unchanged) and it introduced a SIM tax for replacement SIM of BDT 100. Operators requested the withdrawal of the 10% customs duty along with the proposed 15% VAT on mobile handset imports, which effectively represents 31.5% of taxes on imported mobile devices. On June 28, 2014, the government imposed 1% surcharge on the price of imported and locally manufactured mobile devices.

 

banglalink continued to focus on improving its 2G network coverage, expanding its 3G footprint with more than 2,100 3G sites in 62 districts out of 64 and delivering the best value for its customers. To attract new customers and increase usage, start-up offers were revised with an attractive tariff upon recharge, which includes unconditional data, voice and SMS, which helps to create loyalty and usage behaviour of customers. Various campaigns such as bonus on recharge offers were introduced to drive revenue. banglalink introduced bundle gifting service, enabling customers to gift bundle products to others such as friends and family.

 

During 2Q14, banglalink continued to focus on the mobile data market by offering different 3G offers to attract more customers and increase usage in the current growing and competitive 3G data market. The offers include new attractive 3G data packages, 3G handsets with bundle and a gratification campaign on the occasion of the FIFA World Cup 2014.

 

banglalink's revenue increased 8% YoY in local currency, was driven by higher voice, interconnection and VAS revenue, mostly due growth in customers base which increased 10% YoY to 29.8 million, driven by revised start-up offers with an attractive tariff upon recharge, including data, voice and SMS, in addition to various campaigns such as bonus on recharge offers and bundle gifting service. EBITDA increased 12% YoY, mainly due to higher revenue and cost savings. CAPEX increased 242% YoY driven by the 3G rollout investments.

 

On July 17, 2014, Moody's Investors Service assigned a definitive B1 corporate family rating to Banglalink Digital Communications Limited and a B1 senior unsecured rating to its USD 300 million, five-year senior notes due in 2019. The ratings outlook is stable.

 

  

3. Financial Statements (IFRS)

Income Statement  

USD thousands

2Q14

2Q13

Change

1H14

1H13

Change

Revenue

863,330

903,756

(4%)

1,693,982

1,753,000

(3%)

Other Income

9,964

279


18,245

3,370


Total Expense

(484,304)

(465,969)


(927,975)

(904,991)


EBITDA1

438,066

(11%)

784,253

851,379

(8%)

Depreciation and Amortization

(161,674)

(166,760)


(348,443)

(343,763)


Impairment of Non-Current Assets

(1,982)

(215)


(1,776)

(1,135)


Gain (Loss) on Disposal of Non-Current Assets

(137)

(1,645)


755

(998)


Impairment of Assets Held for Sale2

(22,429)

1,781


(22,429)

(56,177)


Operating Income

202,768

271,227

25%

412,359

449,306

(8%)

Financial Expense

(150,699)

(125,712)


(281,620)

(247,667)


Financial Income

11,765

13,487


15,220

20,844


Foreign Exchange Gain (Loss)

(108,886)

(85,736)


(89,625)

(259,121)


Share of Loss from Associates

-

(29,487)


-

(65,052)


Profit Before Tax

(45,052)

43,779

n.m.

56,334

(101,690)

n.m.

Income Tax

(128,021)

(66,506)


(186,590)

(124,645)


Profit from Continuing Operations

(173,073)

(22,726)

n.m.

(130,256)

(226,334)

n.m.








Profit for the Period

(173,073)

(22,726)

n.m.

(130,256)

(226,334)

n.m.

Attributable to:







Equity Holders of the Parent3

(177,512)

(28,103)

n.m.

(139,429)

(236,377)

n.m.

Earnings Per Share (USD/GDR)

(0.16)

(0.02)

n.m.

(0.12)

(0.22)

n.m.

Minority Interest

4,438

5,377


9,174

10,043


Net Income

(22,726)

n.m.

(130,256)

(226,334)

n.m.

 

 

  

Balance Sheet

 

USD thousands 

30 June
2014

31 December
20131 

Assets



Property and Equipment (net)

2,244,686

2,043,998

Intangible Assets

1,671,534

1,425,596

Other Non-Current Assets

91,802

88,190

Total Non-Current Assets

4,008,022

3,557,784

Cash and Cash Equivalents

2,844,103

2,838,448

Trade Receivables

226,940

225,641

Assets Held for Sale

164,259

170,380

Other Current Assets

582,903

646,539

Total Current Assets

3,818,205

3,881,008

Total Assets

7,826,227

7,438,792

Equity Attributable to Equity Holders of the Company

(1,145,246)

(1,114,848)

Minority Share

46,998

38,344

Total Equity

(1,098,248)

(1,076,504)

Liabilities



Long Term Debt

635,749

150,904

Other Non-Current Liabilities

490,364

392,461

Total Non-Current Liabilities

1,126,113

543,365

Short Term Debt

4,824,453

5,033,197

Trade Payables

941,787

814,668

Other Current Liabilities

2,032,122

2,124,066

Total Current Liabilities

7,798,362

7,971,931

Total Liabilities

8,924,475

8,515,296

Total Liabilities and Shareholder's Equity

7,826,227

7,438,792

Net Debt2

2,616,099

2,345,653

 

 Cash Flow Statement

 

USD thousands 

30 June

2014

30 June     2013

Cash Flows from Operating Activities



Profit (Loss) for the Period

(130,256)

(226,334)

Depreciation, Amortization and Impairment of Non-Current Assets

350,219

344,898

Income Tax Expense

186,590

124,645

Net Financial Charges

356,025

485,944

Share of Loss (Profit) of Associates

-

65,052

Impairment of Financial Assets

22,429

56,177

Other

10,002

(51,584)

Changes in Assets Carried as Working Capital

(230,822)

(85,884)

Changes in Other Liabilities Carried as Working Capital

27,028

30,607

Income Tax Paid

(186,532)

(187,491)

Interest Expense Paid

(39,332)

(60,371)

Net Cash Generated by Operating Activities

365,351

495,659




Cash Flows from Investing Activities



Cash Outflow for Investments in Property and Equipment, Intangible Assets, and Financial Assets and Consolidated Subsidiaries

(664,078)

(159,472)

Proceeds from Disposal of Property and Equipment, Subsidiaries and Financial Assets

7,525

59,335

Dividends and Interest Received

6,751

4,328

Net Cash Used in Investing Activities

(649,802)

(95,809)




Cash Flows from Financing Activities



Proceeds from loans, banks' facilities and bonds

1,500,560

461,054

Payments for loans, banks' facilities and bonds

(1,185,125)

(478,459)

Net Payments from financial liabilities

(3,714)

(1,067)

Net Change in Cash Collateral

351

-

Net Cash generated by Financing Activities

312,072

(18,472)




Net Increase in Cash and Cash Equivalents

27,621

381,378

Cash included in Assets Held for Sale

2,034

(17,368)

Effect of Exchange Rate Changes on Cash and Cash Equivalents

(23,936)

(34,820)

Cash and Cash Equivalents at the Beginning of the Period

2,838,432

2,025,773

Cash and Cash Equivalents at the End of the Period

2,844,151

2,354,963


4. Appendix

 

Foreign Exchange rates applied to the Financial Statements

 





Change3

Change3

Currency

June 2013

March 2014

June 2014

June 2014 vs

June 2014 vs





June 2013

Mar 2014

Egyptian Pound/USD






Income Statement1

6.8166

6.9613

7.0177

3%

2%

Balance Sheet2

7.0161

6.9701

7.1519

2%

3%

Algerian Dinar/USD






Income Statement1

78.8997

78.0133

78.4834

(1%)

1%

Balance Sheet2

80.2018

78.5396

79.2508

(1%)

1%

Pakistan Rupee/USD






Income Statement1

98.1946

103.5477

100.8990

3%

(3%)

Balance Sheet2

99.6000

98.1850

98.7235

(1%)

1%

Bangladeshi Taka/USD





Income Statement1

78.4623

77.6683

77.6181

(1%)

-

Balance Sheet2

77.7550

77.6000

77.6000

-

-

Canadian Dollar/USD






Income Statement1

1.0156

1.1028

1.0965

8%

(1%)

Balance Sheet2

1.0519

1.1050

1.0671

1%

(3%)

 

Ownership structure and consolidation methods

 

Subsidiary

Ownership
June 30

Consolidation Method
June 30


2013

2014

2013

2014

Mobile Operations





International Wireless Communications Pakistan Limited

100.00%

100.00%

Full Consolidation

Full Consolidation

Orascom Telecom Algerie SPA1

96.81%

96.81%

Full Consolidation

Full Consolidation

Telecel Centrafrique SA

100.00%

100.00%

Full Consolidation

Full Consolidation

Telecel Globe Limited

100.00%

100.00%

Full Consolidation

Full Consolidation

Telecom Ventures Limited2

100.00%

100.00%

Full Consolidation

Full Consolidation

Non-Mobile Operations





Ring Distribution SAE 

99.00%

99.00%

Full Consolidation

Full Consolidation

Telecom CS Limited

100.00%

100.00%

Full Consolidation

Full Consolidation

Telecom ESOP Limited

100.00%

100.00%

Full Consolidation

Full Consolidation

Moga Holding Limited

100.00%

100.00%

Full Consolidation

Full Consolidation

Oratel International Inc. Limited

100.00%

100.00%

Full Consolidation

Full Consolidation

Consortium Algerien de Telecommunications SPA3

50.00%

50.00%

Proportionate Consolidation

Equity Consolidation

Global Telecom Holding

100.00%

100.00%

Full Consolidation

Full Consolidation

Financial Powers Plan Limited

100.00%

100.00%

Full Consolidation

Full Consolidation

Iraq Holding Limited4

100.00%

100.00%

Full Consolidation

Full Consolidation

Global Telecom Finance SCA

100.00%

100.00%

Full Consolidation

Full Consolidation

Telecom Holding Canada (Malta) Limited5

100.00%

100.00%

Full Consolidation

Full Consolidation

International Telecommunications Consortium Limited

50.00%

50.00%

Proportionate Consolidation

Equity Consolidation

Sawyer Limited

100.00%

100.00%

Full Consolidation

Full Consolidation

Global Telecom Oscar SA 

100.00%

100.00%

Full Consolidation

Full Consolidation

Telecom Management Group Limited 

100.00%

100.00%

Full Consolidation

Full Consolidation

Global Telecom One S.à.r.l

100.00%

100.00%

Full Consolidation

Full Consolidation

Waseela Microfinance Bank Limited

100.00%

100.00%

Full Consolidation

Full Consolidation

Cortex for Services & Consultations SAE

100.00%

100.00%

Full Consolidation

Full Consolidation


 

Glossary of Terms

 

Average Revenue per User ("ARPU"): Average monthly recurrent revenue per customer (excluding visitors roaming revenue and connection fee). This includes airtime revenue (national and international), as well as, monthly subscription fee, SMS, GPRS & data revenue. Quarterly ARPU is calculated as an average of the last three months. 

 

Capital Expenditure ("CAPEX"): Tangible and Intangible fixed assets additions during the reporting period, includes work in progress, network, IT, and other tangible and intangible fixed assets additions but excludes license fees.

 

Churn: Disconnection rate. This is calculated as the number of disconnections during a month divided by the average by the average customer base for that month.

 

Churn Rule: A customer is considered churned (removed from the customer base) if he exceeds the 90 days from the end of the validity period without recharging. It is worth noting that the validity period is a function of the scratch denomination. In cases where scratch cards have open validity, the customer is considered churned in case he has not made a single billable event in the last 90 days (i.e. outgoing or incoming call or sms, wap session). Open cards validity is applied for OTA, Mobilink and banglalink so far. 

 

Minutes of Usage ("MOU"): Average airtime minutes per customer per month.  This includes billable national and international outgoing traffic originated by customers (on-net, to land line & to other operators). Also, this includes incoming traffic to customers from landline or other operators.

 

GTH's Market Share Calculation Method: The market share is calculated through the data warehouse of GTH's subsidiaries. The number of SIM cards of competitors that appeared in the call detail record of each of GTH's subsidiaries is collected. This reflects the number of customers of the competition. However, GTH deducts the number of SIM cards that did not appear in the call detail records for the last 90 days to account for churn. The same is applied to GTH subsidiaries. This method is used to calculate the market shares of Djezzy. In Pakistan and Bangladesh, market share as announced by the Regulators is based on disclosed information by the other operators which may use different customer recognition policy.

 

Organic Growth for Revenue and EBITDA: Are non-IFRS financial measures that reflect changes in Revenue and EBITDA excluding foreign currency movements and other factors, such as business under liquidation, disposals, mergers and acquisitions. We believe readers of this earnings release should consider these measures as it is more indicative of the Group's ongoing performance. Management uses these measures to evaluate the Group's operational results and trends.

 

Contact Information

Investor Relations

Mamdouh Abdel Wahab

Head of Investor Relations

Email:                [email protected]

Tel:     +202 2461 5120

Fax:     +202 2461 5055

Website: www.gtelecom.com

 


Disclaimer

This presentation contains statements that could be construed as forward looking. These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different business lines and the global business, market share, financial results and other aspects of the activity and situation relating to the company. Such forward looking statements are no guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward looking statements as a result of various factors. You are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of this presentation, which is not intended to reflect Global Telecom Holding's business or acquisition strategy or the occurrence of unanticipated events.


 


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