e& Group’s Q2 profit jumps 3.8% to $681m on subscriber growth

UAE telecoms giant e& Group has reported a 3.8 per cent year-on-year (YoY) increase in Q2 2023 net profit to $681m (Dhs2.5bn) from Dhs2.4bn a year earlier, driven by growth in revenue and an increase in subscriber base.

e& Group’s revenues in the three months to June 30 reached Dhs13.6bn, a 4.8 per cent increase compared to the same period last year while the company’s operating net profit for the quarter jumped more than 10 per cent to Dhs3.6bn from Dhs3.3bn a year ago.

The telecoms company said revenues from its UAE operations surged by 5.8 per cent YoY to Dhs8.2bn, thanks to ongoing business activity in the country supported by population growth and robust overall economic growth.

“This growth was also fueled by harnessing the power of our technological prowess, leveraging our expertise to forge new paths, disrupt industries, and transform the way we do business on a global scale,” said Hatem Dowidar, Group CEO of e& Group.

“Our success has been driven by the combination of our innovative, customer-centric strategies and the unwavering dedication of our teams, along with our investment in world-leading infrastructure and cutting-edge technologies that consistently serve as the foundation of our achievements.”

e&’s mobile division posted a 3.1 per cent increase in revenue to Dhs2.9bn, driven by the increase in subscribers and bundled propositions to consumer and enterprise segments. As a result, we witnessed strong growth in outbound roaming and mobile data.

The group has a record subscriber base of 165 million users as of June 30, the highest in the company’s history. “This translated to net additions of 5 million during the last 12-month period, mainly due to strong subscriber acquisition in Egypt, Pakistan, the UAE, Chad, Burkina Faso, Afghanistan, Togo, and Benin.

Locally, etisalat by e&’s active subscriber base increased by 5.1 per cent YoY to 13.9 million subscribers in the second quarter of the year, as the telecoms firm continues to expand and enhance its product base while creating multiple synergistic offerings.

e& Group’s growth strategy

Meanwhile, e& has agreed to acquire a controlling stake in PPF Telecom Group’s assets in Bulgaria, Hungary, Serbia and Slovakia for $2.4bn (EUR2.15bn), following through on its plan to boost its global presence by diversifying into new geographies.

The deal includes as much as EUR350m in milestone payments if PPF exceeds certain targets, and has a clawback provision of as much as EUR75m if it does not. “This acquisition is an unparalleled opportunity to establish a strong presence and foster developments within the CEE region,” e& Group said in a bourse filing.

The Abu Dhabi-listed telecoms behemoth said it will consolidate the acquired assets under e& international vertical upon the closure of the deal, which is subject to regulatory approvals.

In May, e& and Vodafone Group agreed to a strategic relationship that will bring the two operators closer together in certain aspects of their businesses across Europe, the Middle East and Africa.  e& Group’s CEO joined the board of Vodafone in May and he will stay on the board for as long as e& maintains its current 14.6 per cent stake in the British company.

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