Analyst Report News

E& reports 20% growth in Q3 net profit

In the UAE market, the number of subscribers reached 14m in Q3, up 4.7% on a yearly basis.

UAE telecoms and technology company e& has reported that its net profit jumped 20% in Q3 as its subscriber base grew.

Consolidated net profit in the three-month period ended on September 30 increased to AED 3bn ($816m), the company said in a statement. Revenue in Q3 reached AED 13.4bn, up 3.3% year on year.

At constant exchange rates, consolidated revenue increased by 8.0% and consolidated EBITDA increased by 6.9%, resulting in a resilient EBITDA margin of 51%.

The number of etisalat by e& subscribers in the UAE reached 14m in Q3 2023, representing an increase of 4.7% over the same period last year, while aggregate group subscribers reached 167m, a 3.3% increase.

Hatem Dowidar, Group CEO, e&, said: “e&’s strong performance this quarter is a testament to our resilience, and commitment to deliver value and growth to our customers and shareholders. We will continue our focus on championing innovation to enrich the lives of our customers and make a positive impact across the societies we serve. We remain committed to leading the change by taking our first steps in sustainable mobility and transforming our business with AI-powered solutions while realising our vision of digitally empowering societies.

“Looking ahead, we will continue to push the boundaries of technology and innovation, while our strong performance serve as a stepping stone toward a future where we continue to pioneer advancements and create even more value for all our stakeholders. Thanks to our talented teams, loyal customers and shareholders for their continued trust and support to our vision. Together, we are poised for even greater achievements to come in the near future.”

The world’s first AI-empowered autonomous telecom store ‘EASE’ was introduced as part of the trajectory of innovation using ground-breaking technology to allow customers to seamlessly purchase products and services. E& also took a major step to support electric mobility in UAE with the soft launch of ‘Charge&Go’, an end-to-end holistic EV charging solution.

In line with e&’s commitment to climate action and sustainable community growth, the group became the ‘Principal Technology Partner’ for COP 28. It has also joined the World Economic Forum’s EDISON Alliance to promote global digital inclusion for more than 30m people in markets the e& serves.

In addition, a collaboration with the UAE Ministry of Education aims to nurture a digital-first mindset among students using next-generation digital tools. Etisalat Academy partnered with Earthlink to launch a telecoms training academy in Iraq focusing on GPON FTTH network systems.

On the global front, e& has joined forces with international giants such as SK Telecom, Deutsche Telekom, Singtel and Indosat to launch a global alliance in AI for telecoms. This alliance will pave the way for new innovations and co-development of the Telco AI platform. A partnership with Indosat promises to improve voice communication between Indonesia and the UAE by providing high-quality IDD services.

E&’s achievements were celebrated at the Carrier Community Global Awards 2023 by being named: ‘Middle East Operator of the Year’ for the third consecutive year. Its network technology prowess was also recognised with the World Teleports Association’s Tier 4 certification for its Tawi al Saman and Jebel Ali teleports.

Etisalat by e& strengthened its market position through technological advances and strategic alliances by continuing to expand its 5G services, introducing 5G Stand-Alone for mobile users, following the launch of the 5G SA service for Fixed Wireless Area (FWA) users. Collaborations have extended to Microsoft, resulting in a new AI-powered virtual assistant. Its commitment to cyber security has resulted in an alliance with the UAE Cyber Security Council. The first batch from Etisalat Academy’s Cyber Sniper Programme graduated, a programme designed to fortify UAE government employees’ cybersecurity skills.

Etisalat by e& has launched tailored solutions packages for start-ups and micro-enterprises this quarter, as well as Wi-Fi as a service to improve business connectivity.

Underlining its leadership during Q3, etisalat by e& achieved TM Forum Silver certification for Open API compliance, a first in the MENA region.

Launched the digital brand ‘Onic’ in Pakistan as part of its partnership with Circles to elevate digital experiences for digital-native customers of Mobile Network Operators (MNOs). Sudatel and Pakistan-based Perfectum Mobile joined the partner network programme that supports the growth of global telecom operators, offering access to market best practices, cutting-edge services, and the benefits of e&’s scale to telecom operators around the world.

Strategic partnerships during the quarter also included but not limited to a collaboration with Vodafone Business that resulted in the acquisition of a major customer, to develop a software-driven network. The two companies plan to work with existing multi-national enterprise customers that would benefit from their combined offerings, operational scale, and complementary geographic footprint.

E& enterprise continued its success in Q3, pioneering digital transformation across various sectors. The company’s strategic initiatives and partnerships have positioned it as a leader in driving innovation and sustainable practices.

The company moved forward with milestones such as the launch of the e& enterprise Innovation Centre. In line with the objectives of the Abu Dhabi Industrial Strategy (ADIS), e& enterprise collaborated with the Abu Dhabi Department of Economic Development (ADDED) to enhance and share experiences in the areas of Industry 4.0 and sustainability manufacturing. e& enterprise’s fintech blockchain platform, UTC had Al Masraf join as a new member of its banking consortium.

The digital payments horizon has been expanded through the collaboration with Tap Payments, and the commitment to providing cutting-edge digital infrastructure has been strengthened through the partnership with Informatica to accelerate data modernisation and governance in the UAE.

E& capital demonstrated strategic foresight in Q3 via driving innovation and investments in promising startups enabling cutting-edge technologies. At the forefront of technology innovation, the firm participated in the $25m Series A funding round for Ikigai Labs, a startup committed to bringing generative AI to tabular data. E& capital also led a $5m Series A funding round for Maxbyte, driving the industry 4.0 revolution in the MENA region. Additionally, e& Capital led the $60m Series B funding round for Airalo, the global eSIM marketplace enabling travellers with seamless connectivity