UAE telco e& rings up some solid numbers for ’21 and has plans to go wider
Watch out for e& Capital that will aggressively seek M&A chances
e&, formerly known as Etisalat Group, in its 2021 results show net revenues of Dh53.3 billion, which is a 3.2 per cent increase year-on-year.
The consolidated net profit rose to Dh9.3 billion, also representing a 3.2 per cent rise, while the consolidated EBITDA amounted to Dh26.7 billion. The latter represents a year-on-year increase of 1 per cent and an EBITDA margin of 50 per cent.
Strategic hike
e&’s operational highlights include the hike in foreign ownership limit from 20 per cent to 49. Additionally, e& was recognized by Brand Finance as the world’s strongest telecom brand - and the first from the Middle East and Africa region to achieve this recognition.
The rise in revenues and profits resulted from an increased subscriber base. The Etisalat UAE subscriber base reached 12.7 million subscribers, while aggregated subscriber base moved to 159 million, representing a year-on-year increase of 3 per cent.
The 12-month dividend yield of the company stands at 3.61 per cent. e& has thus delivered strong financial performance across its primary metrics, driven by the international operations and steady improvements in the domestic markets. With a market valuation of Dh291.34 billion, it is one of the largest telecom operators in the Middle East.
Overseas focus
The new corporate identity is a part of the company’s growth strategy. e& aims to enhance customers’ experiences across all segments by designing and providing a range of breakthrough technologies. This approach aims to accelerate growth by creating a resilient business model built on the Group’s main business sectors.
e& has established a worldwide benchmark in 5G, from network launch to services, with infrastructure ready to handle all 5G devices and future solutions. This is backed by continuous investments in technology and innovation on the network, providing improved 5G connections.
Another arm, e& capital. will focus the group’s efforts on driving new mergers and acquisitions while maximizing shareholder value. The Board proposed a dividend of Dh0.4 per share for H2-2021, representing a total dividend for 2021 of Dh0.8 per share.
The telecom giant remains committed to delivering critical strategic objectives that will allow a better digital future while providing new ways to interact for businesses and individuals.