The UAE’s leading telecommunications provider, e&, reported a strong financial performance for the year, with revenues climbing to AED28 billion ($7.7 billion), a 6% increase year-on-year. The net profit also saw significant growth, rising by 17% to AED5.5 billion, bolstered by expansion in both local and international markets.
In the second quarter alone, net earnings increased to AED3.2 billion from AED2.5 billion in the same period last year. Revenue for the quarter grew by 4%, reaching AED14 billion. The total subscriber base for e& reached 175 million, a 6% annual increase, with the number of UAE subscribers alone standing at 15 million, up 5% year-on-year.
The company’s board has approved an interim dividend of 41.5 fils per share for the first half of 2024, in line with a policy of incremental annual increases of AED0.03 per share for the years 2024, 2025, and 2026.
Other Gulf Telcos See Growth
The strong performance of e& was mirrored across the Gulf’s telecommunications sector. Emirates Integrated Telecommunications Company, operating under the Du and Virgin Mobile brands in the UAE, reported a 46% increase in net profit to AED581 million ($158 million). Their mobile customer base grew by 3% year-on-year to 8.2 million subscribers, with a notable 11.3% increase in post-paid customers, reaching 1.7 million.
Qatari telecom giant Ooredoo Group also posted positive results, with net earnings attributable to shareholders rising by 4% to QR1.9 billion ($512 million) in the first half of 2024. However, the total customer base declined by 4% to 150 million.
In Saudi Arabia, Stc (Saudi Telecom Company) reported a 10% rise in net profit for the second quarter, amounting to SAR3.3 billion ($880 million), driven by higher revenues and reduced operating expenses, including tax and Zakat charges.
The Gulf’s telecommunications industry continues to thrive, demonstrating resilience and growth despite global economic challenges.
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