Global Telecom Hldg Sae CAPEX dropped on 37.7% in 2015 and Revenue dropped on 13.3%
17 Feb 2016 • About Global Telecom Hldg Sae (
$GLTD) • By InTwits
Global Telecom Hldg Sae reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Global Telecom Hldg Sae is a company in decline: 2015 revenue growth was -13.3%, 5 years revenue CAGR was -4.1%
- EBITDA Margin is quite volatile: 43.9% in 2015, 42.8% in 2014, 12.1% in 2013, 50.8% in 2012, 49.2% in 2011
- Global Telecom Hldg Sae has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.9%. At the same time it's a lot of higher than industry average of 12.6%.
- CAPEX is quite volatile: 758 in 2015, 1,218 in 2014, 545 in 2013, 312 in 2012, 452 in 2011
- The company has highly profitable business model: ROIC is at 14.7%
- It operates with high leverage: Net Debt/EBITDA is 1.6x while industry average is 0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Global Telecom Hldg Sae ($GLTD) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,636 | 3,627 | 3,462 | 3,338 | 2,894 | -13.3% |
| Gross Profit | 2,033 | 2,088 | 2,842 | 2,784 | 2,367 | -15.0% |
| SG&A | | | 2,422 | 1,354 | 1,093 | -19.3% |
| EBITDA | 1,789 | 1,841 | 420 | 1,429 | 1,269 | -11.2% |
| Net Income | 670 | -232 | -2,844 | -465 | -141 | -69.7% |
Balance Sheet
|
|---|
| Cash | 1,013 | 2,027 | 2,839 | 2,854 | 508 | -82.2% |
| Short Term Debt | 542 | 681 | 5,033 | 288 | 414 | 43.5% |
| Long Term Debt | 3,477 | 4,063 | 140 | 5,435 | 2,077 | -61.8% |
Cash flow
|
|---|
| Capex | 452 | 312 | 545 | 1,218 | 758 | -37.7% |
Ratios
|
|---|
| Revenue growth | 2.0% | -0.2% | -4.6% | -3.6% | -13.3% | |
| EBITDA growth | 6.7% | 2.9% | -77.2% | 240.0% | -11.2% | |
| Gross Margin | 55.9% | 57.6% | 82.1% | 83.4% | 81.8% | -1.6% |
| EBITDA Margin | 49.2% | 50.8% | 12.1% | 42.8% | 43.9% | 1.0% |
| Net Income Margin | 18.4% | -6.4% | -82.2% | -13.9% | -4.9% | 9.1% |
| SG&A, % of revenue | | | 70.0% | 40.6% | 37.8% | -2.8% |
| CAPEX, % of revenue | 12.4% | 8.6% | 15.7% | 36.5% | 26.2% | -10.3% |
| ROIC | 15.4% | 17.8% | -6.9% | 17.4% | 14.7% | -2.7% |
| ROE | 34.0% | -13.4% | | | | 0.0% |
| Net Debt/EBITDA | 1.7x | 1.5x | 5.6x | 2.0x | 1.6x | -0.4x |
Revenue and profitability
The company's Revenue dropped on 13.3% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.0 pp from 42.8% to 43.9% in 2015.
Gross Margin decreased slightly on 1.6 pp from 83.4% to 81.8% in 2015. SG&A as a % of Revenue decreased on 2.8 pp from 40.6% to 37.8% in 2015.
Net Income marign increased on 9.1 pp from -13.9% to -4.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
Global Telecom Hldg Sae's CAPEX/Revenue was 26.2% in 2015. CAPEX/Revenue surged on 17.6 pp from 8.6% in 2012 to 26.2% in 2015. Average CAPEX/Revenue for the last three years was 26.1%.Battling declining revenue the company invested a large share of EBITDA (59.8%) to CAPEX but that didn't help at least in this year.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 2.0x. Net Debt / EBITDA dropped on 0.4x from 2.0x to 1.6x in 2015. Debt dropped on 56.5% in 2015 while cash dropped on 82.2% in 2015.
Appendix 1: Peers in Mobile Telecommunications
Below we provide Global Telecom Hldg Sae benchmarking against other companies in Mobile Telecommunications industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Monitise ($MONI) | | 136.2% | 101.7% | 30.6% | -5.7% |
| Zamano ($ZMNO) | -5.0% | 28.0% | -16.5% | 23.9% | |
| Sistema Jsfc ($SSAA) | 19.1% | 9.7% | -44.6% | 8.7% | |
| Megafon OJSC ($MFON) | 12.6% | 12.3% | 9.1% | 5.9% | |
| Sk Telecom ($SKMD) | | 1.3% | 2.9% | 3.4% | -0.2% |
| |
|---|
| Median (6 companies) | 12.6% | 11.0% | 3.0% | 7.3% | -5.7% |
|---|
| Global Telecom Hldg Sae ($GLTD) | | -0.2% | -4.6% | -3.6% | -13.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sk Telecom ($SKMD) | 94.0% | 92.0% | 92.2% | 90.2% | 88.6% |
| Megafon OJSC ($MFON) | 75.7% | 75.4% | 74.6% | 73.1% | |
| Monitise ($MONI) | 61.5% | 66.4% | 75.8% | 64.9% | 51.8% |
| Kcell JSC ($KCEL) | 60.9% | 58.1% | 57.6% | 55.1% | 46.6% |
| Sistema Jsfc ($SSAA) | 59.6% | 59.5% | 54.4% | 50.4% | |
| |
|---|
| Median (6 companies) | 61.2% | 62.9% | 66.1% | 60.0% | 51.8% |
|---|
| Global Telecom Hldg Sae ($GLTD) | 55.9% | 57.6% | 82.1% | 83.4% | 81.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kcell JSC ($KCEL) | 59.2% | 55.3% | 55.8% | 55.5% | 45.8% |
| Megafon OJSC ($MFON) | 41.6% | 42.4% | 44.2% | 43.5% | |
| Sk Telecom ($SKMD) | 29.7% | 26.9% | 29.2% | 27.5% | 27.4% |
| Sistema Jsfc ($SSAA) | 21.5% | 20.1% | 33.3% | 23.9% | |
| Zamano ($ZMNO) | 2.4% | 13.1% | 15.9% | 13.4% | |
| |
|---|
| Median (6 companies) | 25.6% | 23.5% | 31.3% | 25.7% | 40.0% |
|---|
| Global Telecom Hldg Sae ($GLTD) | 49.2% | 50.8% | 12.1% | 42.8% | 43.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Megafon OJSC ($MFON) | 30.2% | 17.1% | 14.5% | 18.5% | |
| Sk Telecom ($SKMD) | 18.6% | 21.0% | 17.3% | 17.5% | 14.5% |
| Sistema Jsfc ($SSAA) | 11.2% | 11.3% | 13.3% | 14.2% | |
| Kcell JSC ($KCEL) | 13.7% | 12.8% | 9.2% | 9.6% | 9.5% |
| Monitise ($MONI) | 15.0% | 8.7% | 7.0% | 5.1% | 4.6% |
| |
|---|
| Median (6 companies) | 14.4% | 12.0% | 11.2% | 11.9% | 9.5% |
|---|
| Global Telecom Hldg Sae ($GLTD) | 12.4% | 8.6% | 15.7% | 36.5% | 26.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kcell JSC ($KCEL) | 69.2% | 63.7% | 66.0% | 62.9% | 40.2% |
| Zamano ($ZMNO) | -4.4% | 31.4% | 30.9% | 25.5% | |
| Megafon OJSC ($MFON) | 17.4% | 21.0% | 27.7% | 23.7% | |
| Sk Telecom ($SKMD) | 11.9% | 8.9% | 9.8% | 8.3% | 7.3% |
| Sistema Jsfc ($SSAA) | 12.1% | 11.7% | 12.1% | 8.3% | |
| |
|---|
| Median (6 companies) | 12.0% | 16.3% | 19.9% | 16.0% | 7.3% |
|---|
| Global Telecom Hldg Sae ($GLTD) | 15.4% | 17.8% | -6.9% | 17.4% | 14.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sistema Jsfc ($SSAA) | 2.1x | 2.0x | 1.5x | 2.7x | |
| Megafon OJSC ($MFON) | 0.4x | 1.2x | 1.1x | 1.4x | |
| Sk Telecom ($SKMD) | 0.9x | 1.4x | 1.1x | 1.3x | 1.5x |
| Kcell JSC ($KCEL) | -0.0x | 0.5x | 0.1x | 0.1x | 0.2x |
| Zamano ($ZMNO) | 12.4x | -0.1x | -0.8x | -1.7x | |
| |
|---|
| Median (5 companies) | 0.9x | 1.2x | 1.1x | 1.3x | 0.2x |
|---|
| Global Telecom Hldg Sae ($GLTD) | 1.7x | 1.5x | 5.6x | 2.0x | 1.6x |
