The UAE’s biggest telecoms operator e& — formerly known as Etisalat — reported a nearly 25 per cent rise in fourth-quarter net profit, driven by a surge in the number of subscribers.
Consolidated net profit after royalty attributed to the owners of the company in the October-December period jumped to Dh2.7 billion ($730 million), e& said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
The company attributed the increase to higher income from associates, and lower depreciation and amortisation expenses.
Revenue for the fourth quarter of last year reached Dh13.1 billion, a yearly decline of 4 per cent. Fourth-quarter sales continued to witness “significant exchange rate volatility in the Egyptian pound, Pakistani rupee and Moroccan dirham as a result of global macroeconomic turbulence”.
However, this was mostly offset by a strong performance in the UAE and strong local currency growth in operations in Egypt and Pakistan, the company said.
For the full financial year, the profit attributable to the owners of the company in the January-December period jumped 7.4 per cent to Dh10 billion while revenue dropped 1.7 per cent to Dh52.4 billion.
“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,” e&’s chairman Jassem Alzaabi said.
“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.”
Abu Dhabi-based e& was founded in 1976 and is the UAE's oldest telecoms company. It has operations in about 16 countries across the Middle East, Asia and Africa.
Last February, e& rebranded as it sought to transform into a global technology investment conglomerate.
The company provides innovative digital solutions, smart connectivity and next-generation technology to a variety of customer segments through its business pillars — etisalat by e&, e& international, e& life, e& enterprise and e& capital.
Etisalat by e& recorded 13.8 million subscribers in the UAE last year, an increase of 8.8 per cent compared to 2021. The group’s aggregate subscribers reached 163 million, an increase of 2.5 per cent over 2021, in nearly 16 markets.
The company’s board of directors also proposed a dividend of Dh0.40 per share for the second half (July-December) of last year, representing a total dividend of Dh0.80 per share for the full financial year.
“Despite various global challenges, our domestic and international operations achieved impressive results, reinforcing our leadership position in highly competitive and evolving markets,” said Hatem Dowidar, group chief executive of e&.
“Our growth mindset enables us to achieve our goals while creating additional and long-term value for our customers and shareholders … prudent mergers and acquisitions further accelerated our growth and diversification creating new streams of revenue and positioned us as a leading global technology group.”
In October, e& launched a $250 million venture capital fund as part of its new investment unit, e& capital, to support the tech start-up ecosystem. The e& capital VC fund will seek to attract, engage and support start-ups and provide them with access to investor and expert networks.
In the same month, it also completed the 100 per cent acquisition of Smartworld, one of the UAE’s leading technology solutions providers and systems integrators.
