UAE telecoms and technology company e&, formerly known as the Etisalat Group, has reported that its profit rose 3.7 per cent in the second quarter as its revenue and subscriber base grew.
Net profit attributable to the owners of the company in the three-month period ended in June climbed to Dh2.52 billion ($686.2 million), from Dh2.43 billion a year ago, the company said on Tuesday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue in the quarter stood at Dh13.6 billion, up 4.6 per cent year on year from Dh13 billion. Operating profit rose more than 10 per cent to Dh3.59 billion, from Dh3.26 a year ago.
The Abu Dhabi company's telecoms arm, etisalat by e&, saw its subscriber base across both mobile and fixed services grow 5.1 per cent in the second quarter, with revenue across all categories rising 5.8 per cent.
For the first half of 2023, e&'s revenue was up 1.1 per cent at Dh26.62 billion, from Dh26.33 billion a year earlier, while net profit was down 3.2 per cent to Dh4.71 billion, from Dh4.86 billion in the same period in 2022.
Operating profit in the six months ended in June was down about 2.2 per cent to Dh6.53 billion, from Dh6.68 billion a year ago.
Shares of e& were flat at the close of trading on the ADX on Tuesday.
Also on Tuesday, e& said that it has signed a binding agreement with Czech company PPF group to acquire a controlling stake in its Bulgaria, Hungary, Serbia and Slovakia operations, as it aims to expand into the Central and Eastern Europe markets.
The upfront consideration for the acquisition, plans of which were first reported on last month, is €2.15 billion ($2.36 billion), the statement said.
The transaction, which will be carried out by the e& international unit, will allow e& to tap into a combined subscriber base of more than 10 million, the statement said.
The transaction is also subject to up to €350 million in earn-out payments to PPF if the PPF Telecom assets exceed certain financial targets within the three-year period after closing and is subject to a claw back if such financial targets are not achieved, e& said.
The partnership will retain PPF Telecom chief executive Balesh Sharma to “ensure continuity of operations while drawing on the broad expertise of PPF Telecom’s teams in their markets”.
"The acquisition aligns with e&’s strategic ambition to accelerate international growth and diversify geographically. This represents an unparalleled opportunity to establish a strong presence and foster development within the dynamic CEE region," Jassem Alzaabi, chairman of e&, said in a filing.
Telecoms operators with strong balance sheets are increasingly seeking mergers and acquisitions to gain access to new markets and exchange expertise that could open up new markets.
We have demonstrated a strong sense of resilience and adaptability. Our relentless focus on excellence and innovation has allowed us to thrive in the dynamic landscape of the telecommunications and technology sectors, maintaining our growth momentum
Hatem Dowidar,
group chief executive of e&
E& is expanding its presence and has been on acquisition spree, part of a wider transformation in the telecoms industry that is integrating new technologies into their operations to expand their consumer bases and add new revenue lines amid intensifying competition.
This year, e& increased its stake in Vodafone Group to 14 per cent as it continues to consolidate its shareholding in the British company as part of its international expansion plans.
In July, e& said it was considering acquiring a stake in Ethiopia's Ethio Telecom, which would potentially boost its international portfolio. That would potentially give e& access to 25 other countries across Europe, North America, Asia and Africa.
In May, it invested $60 million for a 10 per cent stake in South Korea’s cloud management company Bespin Global, and also formed a joint venture that will provide public cloud services in the region.
In April, it signed a $400 million deal to acquire a majority stake in Careem’s Super App, a spin-off from Uber, as part of efforts to expand its consumer digital offerings.
The company in 2022 signed a deal with Abu Dhabi holding company ADQ to acquire a majority stake in video-streaming service Starzplay Arabia.
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
The five pillars of Islam
TOURNAMENT INFO
Women’s World Twenty20 Qualifier
Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November
UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
More on Quran memorisation:
Read more about the coronavirus
Honeymoonish
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Elie%20El%20Samaan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ENour%20Al%20Ghandour%2C%20Mahmoud%20Boushahri%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
More from Neighbourhood Watch
The years Ramadan fell in May
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
EMERGENCY PHONE NUMBERS
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
The years Ramadan fell in May
UAE currency: the story behind the money in your pockets
The team
Photographer: Mateusz Stefanowski at Art Factory
Videographer: Jear Valasquez
Fashion director: Sarah Maisey
Make-up: Gulum Erzincan at Art Factory
Model: Randa at Art Factory Videographer’s assistant: Zanong Magat
Photographer’s assistant: Sophia Shlykova
With thanks to Jubail Mangrove Park, Jubail Island, Abu Dhabi
More from Neighbourhood Watch:
More from Neighbourhood Watch
Sholto Byrnes on Myanmar politics
Mohammed bin Zayed Majlis
Killing of Qassem Suleimani
More on animal trafficking
More on animal trafficking
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Killing of Qassem Suleimani
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
HIV on the rise in the region
A 2019 United Nations special analysis on Aids reveals 37 per cent of new HIV infections in the Mena region are from people injecting drugs.
New HIV infections have also risen by 29 per cent in western Europe and Asia, and by 7 per cent in Latin America, but declined elsewhere.
Egypt has shown the highest increase in recorded cases of HIV since 2010, up by 196 per cent.
Access to HIV testing, treatment and care in the region is well below the global average.
Few statistics have been published on the number of cases in the UAE, although a UNAIDS report said 1.5 per cent of the prison population has the virus.
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EQureos%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EUAE%0D%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%20%3C%2Fstrong%3E2021%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E33%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3ESoftware%20and%20technology%0D%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3E%243%20million%0D%3Cbr%3E%3C%2Fp%3E%0A
