UAE telecoms giant e& Group has announced a 3.8 per cent year-on-year rise in Q2 2023 net profit to $681M (AED 2.5B), compared to AED 2.4B in the previous year. Increased revenue and a larger subscriber base primarily fueled this growth.
During the three months ending June 30, e& Group’s revenues reached AED 13.6B, showing a notable 4.8 per cent surge compared to the same period in the previous year. Additionally, the company’s operating net profit for the quarter rose by over 10 per cent, reaching AED 3.6B from AED 3.3B a year ago.
The telecommunications company reported a substantial 5.8 per cent year-on-year increase in revenues from its UAE operations, reaching AED 8.2B.
“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 recorded a 3.1 per cent rise in revenue to AED 2.9B, driven by the increase in subscribers and bundled offerings for consumers and enterprises. This resulted in significant growth in outbound roaming and mobile data.
The group achieved a record subscriber base of 165 million users as of June 30, the highest in the company’s history. This led to a net addition of 5 million subscribers during the last 12 months, primarily due to strong subscriber acquisition in Egypt, Pakistan, the UAE, Chad, Burkina Faso, Afghanistan, Togo, and Benin.
Strategic Expansion of e& Group
Locally, Etisalat, part of e&’s active subscriber base, grew 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 improve its product offerings while introducing multiple synergistic services.
e& Group’s growth strategy includes the acquisition of a controlling stake in PPF Telecom Group’s assets in Bulgaria, Hungary, Serbia, and Slovakia for $2.4B (EUR 2.15B). The company aims to expand its global presence by diversifying into new regions.
The deal entails up to EUR350 million in milestone payments if PPF exceeds certain targets, and a clawback provision of up to EUR75 million if it doesn’t. e& Group expressed that this acquisition presents a remarkable opportunity to establish a strong presence and drive developments within the CEE region.
