Global Telecom Hldg Sae reports 28.8% CAPEX decline while 2.1% Revenue growth
27 Feb 2017 • About Global Telecom Hldg Sae (
$GLTD) • By InTwits
Global Telecom Hldg Sae reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 40.3% in FY2016, 43.9% in FY2015, 42.8% in FY2014, 12.1% in FY2013, 50.8% in FY2012
- Global Telecom Hldg Sae has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.1%. At the same time it's a lot of higher than industry average of 12.4%.
- CAPEX is quite volatile: 540 in FY2016, 758 in FY2015, 1,218 in FY2014, 545 in FY2013, 312 in FY2012
- The company has highly profitable business model: ROIC is at 18.3%
- It operates with high leverage: Net Debt/EBITDA is 1.7x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Global Telecom Hldg Sae ($GLTD) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,627 | 3,462 | 3,338 | 2,894 | 2,956 | 2.1% |
| Gross Profit | 2,088 | 2,842 | 2,784 | 2,367 | 1,220 | -48.5% |
| SG&A | | 2,422 | 1,354 | 1,093 | | -100.0% |
| EBITDA | 1,841 | 420 | 1,429 | 1,269 | 1,190 | -6.2% |
| Net Income | -232 | -2,844 | -465 | -141 | 61 | -143.3% |
Balance Sheet
|
|---|
| Cash | 2,027 | 2,839 | 2,854 | 508 | 606 | 19.3% |
| Short Term Debt | 681 | 5,033 | 288 | 414 | 283 | -31.6% |
| Long Term Debt | 4,063 | 140 | 5,435 | 2,077 | 2,319 | 11.7% |
Cash flow
|
|---|
| Capex | 312 | 545 | 1,218 | 758 | 540 | -28.8% |
Ratios
|
|---|
| Revenue growth | -0.2% | -4.6% | -3.6% | -13.3% | 2.1% | |
| EBITDA growth | 2.9% | -77.2% | 240.0% | -11.2% | -6.2% | |
| Gross Margin | 57.6% | 82.1% | 83.4% | 81.8% | 41.3% | -40.5% |
| EBITDA Margin | 50.8% | 12.1% | 42.8% | 43.9% | 40.3% | -3.6% |
| Net Income Margin | -6.4% | -82.2% | -13.9% | -4.9% | 2.1% | 6.9% |
| SG&A, % of revenue | | 70.0% | 40.6% | 37.8% | | -37.8% |
| CAPEX, % of revenue | 8.6% | 15.7% | 36.5% | 26.2% | 18.3% | -7.9% |
| ROIC | 17.8% | -6.9% | 17.4% | 14.7% | 18.3% | 3.6% |
| ROE | -13.4% | | | | 16.3% | 16.3% |
| Net Debt/EBITDA | 1.5x | 5.6x | 2.0x | 1.6x | 1.7x | 0.1x |
Revenue and profitability
The company's Revenue increased on 2.1% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.1 pp from 4.1% to 7.2% in 2016.
Gross Margin dropped on 40.5 pp from 81.8% to 41.3% in FY2016.
Net Income marign increased on 6.9 pp from -4.9% to 2.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Global Telecom Hldg Sae had CAPEX/Revenue of 18.3%. CAPEX/Revenue increased on 2.5 pp from 15.7% in FY2013 to 18.3% in FY2016. It's average CAPEX/Revenue for the last three years was 27.0%.
Return on investment
The company operates at good ROIC (18.31%) and ROE (16.31%). ROIC increased on 3.6 pp from 14.7% to 18.3% in FY2016.
Leverage (Debt)
Debt level is 1.7x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA surged on 0.1x from 1.6x to 1.7x in FY2016. Debt increased on 4.5% in FY2016 while cash surged on 19.3% in FY2016.
Valuation
The company's trades at EV/EBITDA 1.7x and P/E 0.3x while industy averages are 15.6x and 19.1x. Global Telecom Hldg Sae's EV/(EBITDA-CAPEX) is 3.1x with the industry average at 19.0x.
Appendix 1: Peers in Mobile Telecommunications
Below you can find Global Telecom Hldg Sae benchmarking vs. other companies in Mobile Telecommunications industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zamano ($ZMNO) | 28.0% | -16.5% | 23.9% | 22.3% | |
| Sistema Jsfc ($SSAA) | 9.7% | -44.6% | 8.7% | 10.6% | |
| Sk Telecom ($SKMD) | | 2.9% | 3.4% | -0.2% | -0.3% |
| Megafon OJSC ($MFON) | 12.3% | 9.1% | 5.9% | -0.4% | |
| Monitise ($MONI) | | 101.7% | 30.6% | -5.7% | -24.7% |
| |
|---|
| Median (7 companies) | 12.3% | 3.1% | 5.9% | -0.4% | -18.7% |
|---|
| Global Telecom Hldg Sae ($GLTD) | | -4.6% | -3.6% | -13.3% | 2.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sk Telecom ($SKMD) | 92.0% | 92.2% | 90.2% | 88.6% | 89.2% |
| Megafon OJSC ($MFON) | 75.4% | 74.6% | 73.1% | 73.1% | |
| Monitise ($MONI) | 66.4% | 75.8% | 64.9% | 51.8% | 57.5% |
| Sistema Jsfc ($SSAA) | 59.5% | 54.4% | 50.4% | 46.7% | |
| Kcell JSC ($KCEL) | 58.1% | 57.6% | 55.1% | 46.6% | 37.5% |
| |
|---|
| Median (7 companies) | 59.5% | 57.6% | 55.1% | 46.7% | 47.5% |
|---|
| Global Telecom Hldg Sae ($GLTD) | 57.6% | 82.1% | 83.4% | 81.8% | 41.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kcell JSC ($KCEL) | 55.3% | 55.8% | 55.5% | 45.8% | |
| Megafon OJSC ($MFON) | 42.4% | 44.2% | 43.5% | 41.9% | |
| Monitise ($MONI) | -36.7% | -5.1% | -21.1% | 40.0% | -58.6% |
| Sk Telecom ($SKMD) | 26.9% | 29.2% | 27.5% | 27.4% | 26.9% |
| Sistema Jsfc ($SSAA) | 20.1% | 33.3% | 23.9% | 22.5% | |
| |
|---|
| Median (7 companies) | 20.1% | 29.2% | 23.9% | 27.4% | -6.2% |
|---|
| Global Telecom Hldg Sae ($GLTD) | 50.8% | 12.1% | 42.8% | 43.9% | 40.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Megafon OJSC ($MFON) | 17.1% | 14.5% | 18.5% | 20.1% | |
| Sistema Jsfc ($SSAA) | 11.3% | 13.3% | 14.2% | 15.0% | |
| Sk Telecom ($SKMD) | 21.0% | 17.3% | 17.5% | 14.5% | 14.6% |
| Kcell JSC ($KCEL) | 12.8% | 9.2% | 9.6% | 9.5% | 29.8% |
| Monitise ($MONI) | 8.7% | 7.0% | 5.1% | 4.6% | 1.3% |
| |
|---|
| Median (7 companies) | 11.3% | 9.2% | 9.6% | 9.5% | 7.9% |
|---|
| Global Telecom Hldg Sae ($GLTD) | 8.6% | 15.7% | 36.5% | 26.2% | 18.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kcell JSC ($KCEL) | 63.7% | 66.0% | 62.9% | 40.2% | 23.9% |
| Mobile Streams ($MOS) | | 216.7% | 11.3% | 24.0% | -35.3% |
| Zamano ($ZMNO) | 31.4% | 30.9% | 25.5% | 23.3% | |
| Megafon OJSC ($MFON) | 21.0% | 27.7% | 23.7% | 19.6% | |
| Sistema Jsfc ($SSAA) | 11.7% | 12.1% | 8.3% | 7.4% | |
| |
|---|
| Median (7 companies) | 16.3% | 27.7% | 11.3% | 19.6% | -14.5% |
|---|
| Global Telecom Hldg Sae ($GLTD) | 17.8% | -6.9% | 17.4% | 14.7% | 18.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sistema Jsfc ($SSAA) | 2.0x | 1.5x | 2.7x | 3.5x | |
| Megafon OJSC ($MFON) | 1.2x | 1.1x | 1.4x | 1.5x | |
| Sk Telecom ($SKMD) | 1.4x | 1.1x | 1.3x | 1.5x | 1.3x |
| Kcell JSC ($KCEL) | 0.5x | 0.1x | 0.1x | 0.2x | |
| Zamano ($ZMNO) | -0.1x | -0.8x | -1.7x | -2.1x | |
| |
|---|
| Median (7 companies) | 0.9x | 0.6x | 0.7x | 0.2x | 1.3x |
|---|
| Global Telecom Hldg Sae ($GLTD) | 1.5x | 5.6x | 2.0x | 1.6x | 1.7x |
