e&, formerly known as Etisalat Group, has reported a consolidated net profit of AED 10.8 billion for the fiscal year 2024, marking a 4.3% increase compared to the previous year. This financial milestone underscores the company’s strategic transformation over the past three years, solidifying its position as a global technology conglomerate.
The group’s consolidated revenues reached AED 59.2 billion, reflecting a 10.1% year-over-year growth. When adjusted for constant exchange rates, this growth stands at 12.6%, driven by robust performance across all business verticals. The consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization also saw an uptick, rising by 2.7% year-over-year at constant exchange rates to AED 26.5 billion.
In the United Arab Emirates, e&’s subscriber base expanded to over 15 million, a 5.4% increase from the previous year. Globally, the group’s total subscriber count grew by 11.7%, reaching 189.3 million. This expansion is attributed to the company’s strategic initiatives and its commitment to enhancing customer experiences.
In line with its progressive dividend policy, e& has announced a full-year dividend of 83 fils per share. This policy includes an incremental increase of 3 fils annually for the fiscal years 2024, 2025, and 2026, reflecting the company’s dedication to delivering consistent value to its shareholders.
A significant highlight of the year was e&’s acquisition of a controlling stake in PPF Telecom’s assets across Bulgaria, Hungary, Serbia, and Slovakia. This strategic investment marks a pivotal expansion into Central and Eastern Europe’s telecom markets, aligning with e&’s international growth strategy.
To support its growth and ensure financial flexibility, e&’s Annual General Meeting approved a temporary increase in the borrowing cap from 1.5x to 2x the consolidated net debt to EBITDA ratio. This adjustment is intended to accommodate short-term obligations, with a commitment to revert to the original cap within 18 months.
The company’s capital expenditures for the year amounted to AED 9.5 billion, representing a 30.5% increase from the previous year and resulting in an intensity ratio of 16.1%. Excluding license renewals, CAPEX saw a 6.6% year-over-year rise to AED 7.8 billion, with an intensity ratio of 13.5%. Operating free cash flow stood at AED 16.9 billion, maintaining a margin of 29%.
e&’s strategic transformation over the past three years has been instrumental in achieving these financial milestones. The company’s focus on diversifying its portfolio, expanding its global footprint, and investing in cutting-edge technologies has reinforced its position as a leading global technology group.
The acquisition of PPF Telecom’s assets not only broadens e&’s geographical reach but also enhances its operational resilience by tapping into the dynamic Central and Eastern European markets. This move is expected to open new avenues for growth and collaboration in the region.
e&’s commitment to its shareholders is evident in its progressive dividend policy and prudent financial management. The temporary adjustment of the borrowing cap demonstrates a balanced approach to growth and financial stability, ensuring the company can meet its immediate obligations while planning for sustainable long-term expansion.
