Analyst Report News

E& reports 7.4% growth in consolidated net profit in FY 2022

Board proposes a dividend of AED 0.40 per share for H2 2022, representing a total dividend of AED 0.80 per share for FY 2022.

UAE telecom group e& reported a 7.4% rise in consolidated net profit, reaching AED 10bn for the fiscal year 2022 from AED 9.3bn recorded in 2021.

Consolidated revenues reached AED 52.4bn, a growth of 4.7% year-over-year, at constant exchange rates, underpinned by the group’s business transformation, expanding to new business verticals and diversifying the revenue streams.

Consolidated EBITDA increased by 3.7% year-over-year at a constant exchange rate, to AED 26.2bn, leading to an EBITDA margin of 50%, highlighting the strong profitability of e&’s operations.

Reporting growth in subscriber base in the UAE, etisalat by e& recorded 13.8m subscribers, an increase of 8.8% compared to last year, and the group’s aggregate subscribers reached 163m, an increase of 2.5% over 2021.

Underlining the group’s commitment to value creation for its shareholders, e&’s Board of Directors proposes a dividend of AED 0.40 per share for the second half (July to December) of 2022, representing a total dividend of AED 0.80 per share for FY 2022.

The strong financial results are backed by e&’s focus in 2022 on unlocking new opportunities for growth and accelerating its innovation journey, by leveraging cutting-edge technologies such as 5G, artificial intelligence, and the Internet of Things. This positioned the group at the forefront of the digital era.

Commenting on the results, Chairman of e&, Jassem Mohamed Bu Ataba Alzaabi, said: “The exceptional financial results achieved by e&, with revenues of AED 52.4bn and a record net profit of AED 10.0bn in 2022 is a strong testament to the success of our business transformation strategy. We are inspired by the UAE’s leadership to push our boundaries and be at the forefront of the digital era by developing next-generation digital connectivity and cutting-edge solutions.

“From diversifying our business and revenue streams to expanding to new verticals and introducing innovative services, we had a laser focus on leveraging the potential offered by digital transformation to create value for our 163m subscribers across 16 markets.

“As one of the top global telecom companies by market capitalisation today, our foremost priorities in 2022 was to be the digital transformation champion and create unique solutions that meet the aspirations of our subscribers, while delivering added value to the economies we serve. We take pride in being the trusted digital and tech partner, and in bringing the latest innovations to the fingertips of our customers.

“We remain committed to serving our customers and creating long-term value for our shareholders. As a global technology and investment group, we will continue to work towards making a positive impact in the communities we serve. Our outstanding results in 2022 are the result of the dedication and hard work of our management team, who are relentless in their pursuit to establish e& as one of the world’s most admired, trusted and valuable brands, and help communities shape their digital future.”

Hatem Dowidar, Group Chief Executive Officer of e&, added: “2022 has been a defining year for e& as we strengthened our transformation into a global technology and investment group committed to digitally empowering societies. Despite various global challenges, our domestic and international operations achieved impressive results, reinforcing our leadership position in highly competitive and evolving markets.

“Our strong fundamentals, knowledgeable and passionate team, and focus on developing innovative solutions, products, and services positioned us as one of the top providers across the communities we serve, as we empower them to unlock the true potential of the digital era. Our growth mindset enables us to achieve our goals while creating additional and long-term value for our customers and shareholders.

“e&’s strategy and progressive vision allow us to explore future opportunities while fostering strong strategic partnerships with global technology players. Prudent mergers and acquisitions further accelerated our growth and diversification creating new streams of revenue and positioned us as a leading global technology group. We are grateful to our customers and shareholders for their continued support as we continue to pioneer broad-spectrum technologies, build impactful partnerships, and contribute to shaping the digital era of the future.

“The group’s recognition as the most valuable portfolio of telecom brands in the MEA region, and etisalat by e&’s retention of its position as the strongest telecom brand across all categories in the region and one of the top three telecom brands in the world, underlines the success of our strategic evolution and our commitment to building one of the fastest networks in the world.: