UAE's e& posts 25% rise in profit as subscriber base surges

UAE telecoms and technology company e&, formerly known as the Etisalat Group, reported a 25.4 per cent jump in second-quarter net profit as its number of subscribers grew.

Net profit attributable to the owners of the company for the three months to the end of June jumped to almost Dh3.2 billion ($861.8 million), from Dh2.5 billion in the same period last year.

The company made the announcement in a statement on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue for the telecoms operator reached nearly Dh14.1 billion in the second quarter, up 3.5 per cent compared with the Dh13.6 billion recorded in the same period last year.

The company's UAE subscriber base grew 5 per cent annually to almost 15 million, while total subscribers rose 6 per cent on an annual basis to more than 175 million.

In the UAE market, the mobile subscriber base increased by 5.4 per cent year on year to 12.9 million, which was attributed to “solid growth in both the prepaid and postpaid segments”, which were up annually 4.8 per cent and 7.5 per cent, respectively, the company said.

On the fixed platform, eLife subscriptions increased annually by 4.2 per cent to 1.2 million subscribers.

The company’s board of directors have also approved an interim dividend of 41.5 fils a share for the first half of 2024.

“Our success is driven by our relentless pursuit of technological innovation, delivering tangible value to our customers and shareholders,” said Hatem Dowidar, group chief executive of e&.

“Despite the challenges in some markets, we will focus on seizing the opportunities ahead.

"We can accelerate our progress, take bold actions to enhance our value proposition and expand access to connectivity."

The company, based in Abu Dhabi, was founded in 1976 and is the UAE's oldest telecoms business.

Its total operating expenses increased by 7.2 per cent annually to more than Dh4.9 billion in the last quarter.

It was mainly driven by the consolidation of newly acquired entities and the effects of inflationary pressure leading to higher staff costs, marketing expenses and network costs, e& said.

Capital expenditure, meanwhile, decreased 8 per cent to nearly Dh1.8 billion in the June quarter.