e& reports record consolidated net profit of AED 10.3 billion growing 3% year-over-year

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  • Consolidated revenues reached AED 53.8 billion, a growth of 8.3 per cent year-over-year, at constant exchange rates
  • Board proposes a total dividend of AED 0.80 per share for FY 2023
  • Recommends a new progressive dividend policy to bring the DPS to 89 fils by FY2026

Abu Dhabi: e& today announced its consolidated financial results for fiscal year 2023 reporting a record consolidated net profit of AED 10.3 billion, a growth of 3 per cent year-over-year.

Underlining the Group’s commitment to value creation for its shareholders, e&’s Board of Directors proposes a dividend of AED 0.40 per share for the second half of 2023 representing a total dividend of AED 0.80 per share for FY2023. In addition, the board recommended a new progressive dividend policy with an increment of 3 fils every year starting from year 2024, bringing the DPS to 89 fils by FY2026. This proposal is subject to shareholders’ approval at the Annual General Meeting.

Financial highlights for FY 2023

 20232022Per cent change
RevenueAED 53.8 billionAED 52.4 billion8.3%*
Net ProfitAED 10.3 billionAED 10.0 billion3%
Earnings per ShareAED 1.18AED 1.153%
Aggregate Group Subscribers169m163m4%

(*) At constant exchange rates, revenue increased by 8.3 per cent and EBITDA increased by 3.7 per cent year-over-year.

Consolidated revenues reached AED 53.8 billion, a growth of 8.3 per cent year-over-year, at constant exchange rates, underpinned by the Group’s successful business transformation, expanding the business verticals and diversifying the revenue streams.

Moreover, consolidated EBITDA increased by 3.7 per cent year-over-year at constant exchange rates, to AED 26.1 billion, leading to an EBITDA margin of 49 per cent, highlighting the strong profitability of e&’s operations.

Reporting strong growth in subscriber base, e& UAE recorded more than 14 million subscribers an increase of 3 per cent compared to the previous year, and the Group’s aggregate subscribers reached 169 million, an increase of 4 per cent over 2022.

Underlining the Group’s commitment to value creation for its shareholders, e&’s Board of Directors proposes a dividend of AED 0.40 per share for the second half (July to December) of 2023 representing a total dividend of AED 0.80 per share for FY 2023.

Chairman of e&, H.E. Jassem Mohamed Bu Ataba Alzaabi, said: “In 2023, e& grew from strength to strength. We led technology-driven innovations, navigated challenging global market conditions, and emerged stronger, further solidifying our position as a leading global technology player. Our robust financial performance with a record net profit of AED 10.3 billion, and strong top-line growth of 3 per cent is a testament to our resilience and setting e& on the right path for future growth.”

“We continue to be inspired by UAE leadership; their determination to push boundaries sets a remarkable example of what is possible when a clear vision aligns with excellence in execution. Similarly, our commitment to making e& an embodiment of innovation, progress, and growth remains unwavering. Our vision is grounded in the dual objectives of delivering sustainable business growth and pioneering digital transformation technologies. From cementing our diversified business pillars to introducing new, impactful products and services, we are committed to empowering our 169 million subscribers across our operations,” H.E. Alzaabi added.

Hatem Dowidar, Group Chief Executive Officer of e&, said: “The strong financial performance achieved by e& in 2023, with consolidated revenues reaching AED 53.8 billion, a growth of 8.3 per cent year-over-year, at constant exchange rates, is a strong testament to the success of our business transformation strategy.

“e& continued to thrive as a leader in MEA, remaining one of the world’s most valuable and strongest brands and becoming the fastest-growing technology brand in the region. This highlighted our evolution into a global technology group supported by the strong performance of our brand portfolio. We will continue to push our boundaries to be at the forefront of the digital era by developing next-generation digital connectivity and cutting-edge solutions.”

Dowidar added: “I want to express my appreciation to our talented teams for their efforts and innovative spirit, which remain the driving force behind our success. We also extend our gratitude to our loyal customers and shareholders for their continued trust in our vision. Moving forward, I am confident that our commitment to connecting people, businesses, and communities through technology will continue to drive sustained future growth.”

Key Operational Highlights

In 2023, e& capitalised on every opportunity to address the customers current and future needs, delivering next-generation solutions that enable the successful digital transformation of industries and bring ease and simplicity to people’s lives.

e& has flourished as the crown jewel of Middle Eastern and African (MEA) brands. The 2024 Brand Finance Global 500 Report, confirms e&’s transformation as MEA’s Fastest Growing Technology Brand. The annual report on the world’s most valuable and strongest brands highlighted e&’s evolution into a global technology powerhouse that saw its TMT brand portfolio skyrocket to US$17 billion in 2024 cementing it as the most valuable TMT brand portfolio in MEA, marking the Group’s stunning transition from telco to tech-co.

e&’s diverse portfolio and expanding reach, driven by its core telecoms business, e& UAE, and e& international and the specialised business pillars of e& life, e& enterprise, and e& capital, underscore its commitment to innovation and sustainability. e&’s dedication to next-generation technologies, including AI-driven innovation, cloud services, cybersecurity, and IoT, positions it at the forefront of the digital era.

e&

e& subsidiary, PTCL, acquired a 100 per cent stake in Telenor Pakistan, creating innovation and market expansion synergies. (Completion of the transaction remains subject to regulatory approvals and certain closing conditions.) e& also signed a binding agreement to acquire PPF Telecom assets in Europe. In addition to becoming the largest shareholder in Vodafone, e&’s strategic agreements included acquiring a majority stake in Careem’s Super App and completing the ServiceMarket acquisition. e& is also the Most Valuable Brand Portfolio in the MEA region, worth over $17 billion, according to the 2024 Brand Finance Global 500 Report released earlier this year.

In line with its sustainability goals, e& committed to net zero Scope 1 and 2 carbon emissions across its operations by 2040. e& launched Project Life, its sustainable procurements programme, with the goal of reducing Scope 3 emissions by 25 per cent by 2030. In addition, e&’s green initiatives include the Innovation Hub for Power Solutions and eco-friendly Green SIM Cards.

e& achieved a new 5G milestone at GITEX Global 2023 with a download speed exceeding 13Gbps, introduced the world’s first AI-empowered autonomous telecom store ‘EASE,’ and launched the Electric Vehicle (EV) charging service ‘Charge&Go.’ Collaborations with Ericsson, Earthlink, Intel, and global alliances in AI for telecoms showcase e&’s commitment to technological advancements.

On the global front, e& joined forces with SK Telecom, Deutsche Telekom, and Singtel to launch a global alliance in AI for telecoms. This alliance will pave the way for innovations and co-development of the Telco AI platform. A partnership with Indosat promises to improve voice communication between Indonesia and the UAE by providing high-quality IDD services.

The Group continued reaffirming its commitment to gender diversity through collaborations with Nokia and UN Women with the ‘Women in Leadership’ programme to increase the number of women in decision-making roles within the tech sector.

e&’s achievements were celebrated at the Carrier Community Global Awards 2023 by being named ‘Middle East Operator of the Year’ for the third consecutive year. Its network technology prowess was also recognised with the World Teleports Association’s Tier 4 certification for its Tawi al Saman and Jebel Ali teleports.

For its excellence in governance and best practice, the Group’s legal and compliance team won ‘Middle East In-House Legal Team of the Year’ and ‘Technology, Media and Telecommunications In-House Legal Team of the Year’ at the Thomson Reuters ALB Middle East Law Awards 2023.

e&’s Investor Relations (IR) team won first place for ‘Best IR Reporting Digital Category Large-Cap Middle East’ at the 2023 Middle East Investor Relations Association (MEIRA) Awards. This prestigious accolade recognises e&’s outstanding dedication to enhancing transparency, accessibility, and innovation in its investor communication.

e& UAE

e&’s telecom brand in the UAE emerged as the strongest telecoms brand in the world, with a AAA rating.

Technological milestones include completing the world’s first 1.6Tbps per wavelength trial on Optical Transport Network, the commercial deployment of 5G Standalone (SA) for mobile users, and the successful 5G SA service launch for Fixed Wireless Users (FWA), enabling seamless voice and data services across UAE.

At COP28, e& UAE was the first to deploy the first net-zero 5G Massive MIMO site in the MENA region, integrated a zero-footprint RAN site within its network, and contributed to UAE’s Net Zero by 2050 initiative. Cybersecurity efforts included an alliance with the UAE Cyber Security Council and the graduation of the first cohort from the Cyber Sniper Programme.

As an innovator, e& UAE also opened a Mobile Security Operation Centre, deployed Microsoft Azure Multi-Access Edge Compute solution and received TM Forum Silver certification for Open API compliance, the first in the MENA region. Noteworthy achievements include successful trials of high-capacity transmission networks, 5G milestones, and implementing the first 5G SatComs in the region.

The company was recognised as ‘Employer of the Year’ at the GCC HR Awards 2023 and continuously exceeded its Emiratisation target, with over 53 per cent Emiratisation rate. Digital product and service diversification led to the growth of the ‘Smiles’ online marketplace, reaching more than 3.5 million, and ‘GoChat’ super app, achieving more than 7.5 million downloads.

e& UAE also introduced ‘uTap’, a payment solution for SMBs and launched tailored solutions for start-ups and enterprises including Wi-Fi as a service to improve business connectivity and continued with its innovative platform, ‘Hello Business Pitch’, to support the growing entrepreneurial ecosystem in the UAE. In alignment with the UAE leadership’s vision of tolerance and coexistence, the company participated in ‘Together in Emirates of Zayed’. It introduced the ‘Five’ app exclusively for blue-collar workers using the ‘Five’ SIM.

Keeping up its network leadership, e& UAE was ranked no. 1 globally in 5G mobile download speeds (December 2023) by Ookla.

e& international

e& international, in collaboration with Circles, launched the digital brand ‘Onic’ in Pakistan, enhancing digital experiences for Mobile Network Operators’ (MNOs) digital-native customers. e& international launched the ‘e& Partner Networks’ programme to support global telecom operators like Tunisie Telecom, Sudatel, Perfectum Mobile, and Azercell Telecom across five countries (Tunisia, Azerbaijan, Uzbekistan, Sudan, Senegal).

Strategic partnerships, including Vodafone Business, resulted in the acquisition of a major customer and plans to collaborate on software-driven networks for multinational enterprises. etisalat by e& Egypt partnered with the Sovereign Fund of Egypt to launch ‘Erada Microfinance,’ expanding financial services for micro and small enterprises. It also deployed a Smart Connected Site to reduce fuel costs and CO2 emissions by up to 40 per cent, as well as decrease reliance on fossil fuels.

PTCL and Vodafone initiated a strategic collaboration to develop end-to-end IoT services, accelerating enterprise digital enablement in Pakistan. e& international, through its joint venture with Circles, launched digital sub-brands, elevating the digital experiences of MNOs’ customers.

e& international also established the AI Centre of Excellence (AICoE) for advanced analytics, leveraging machine learning and AI solutions to offer personalised use cases to global clients in telecoms and other industries. The company maintained its leadership in customer experience, securing the number one net promoter score (NPS) position in key markets.

e& life

e& life reached new heights in 2023, redefining media, entertainment, and digital financial services. evision with STARZPLAY continued pioneering MENA entertainment, acquiring exclusive sports rights for major cricketing broadcasts, launching the 24/7 GolfLife channel, and securing exclusive MENA broadcasting rights for popular documentaries. evision also unveiled its own OTT free-to-watch streaming platform, STARZ ON, to bring regional, Hollywood, Bollywood, English, Arabic, and French content in addition to sports all for free. OTT platforms were introduced in Pakistan, and a strategic agreement with WATCH IT expanded STARZPLAY in e& operating countries.

e& life, a fintech leader, pledged sustainability with the MENA Fintech Association, joining META, Mastercard, and Visa. The alliance commits to sustainability integration, audits, awareness, collaboration on initiatives, and promoting sustainable fintech products. e& money partnered with Mastercard to launch this digital-first prepaid card, marking it as the first telco-backed issuance in the UAE. The card offers the most rewarding prepaid card loyalty programme in the UAE, providing customers with a one percent cash reward on all card spends. Additionally, there has been a significant growth in remittance transactions compared to last year.

e& enterprise

In 2023, e& enterprise confirmed its role to drive the digital transformation landscape in the region with milestones like the revamp of the e& enterprise Innovation Centre, the launch of the AI as a service proposition, collaborations with the Abu Dhabi Department of Economic Development and partnerships with Maxbyte, Al Masraf, Tap Payments, Snowflake and Informatica strengthening its position in Industry 4.0, manufacturing, data and digital payments.

e& enterprise also played a pivotal role in in advancing sustainability initiatives by launching its ‘sustainability as service’ proposition in partnership with Microsoft and strengthen further by a partnership with World Wide Generation (WWG) to launch a global sustainability exchange platform integrating sustainability data, solutions, and finances. e& enterprise also launched the Sustainability Consultancy Programme offering qualifying organisations a free consultancy and GHG assessment to promote and foster sustainable business practice in the region.

e& enterprise was also recognised as a major player in the IDC Worldwide CPaaS Marketscape Vendor Assessment for its customer experience proposition engageX which has also expanded its footprint to serve clients in Saudi Arabia.

A JV with Be spin Global was also completed solidifying e& enterprise’s leadership position in the regional cloud migration domain Bespin Global was also recognised as a Visionary in the Public Cloud IT Transformation Services.

Acquiring a majority stake in Beehive, e& enterprise entered the SME lending market while UAE Trade Connect (UTC) consortium continues to grow with the addition of non-banking members such as DP World reaching a total of 15 members.

Through Help AG, the cybersecurity arm of e& enterprise, which was recognised as an MSS leader in IDC GCC Marketscape assessment, the company launched UNIFY SaaS platform, expanded to Egypt, and established the biggest cyber defence centre in the region.

e& capital

e& capital continued to drive innovation and investments in promising startups, enabling cutting-edge technologies. At the forefront of technology innovation, it participated in the $25 million Series A funding round for Ikigai Labs, a startup committed to bringing generative AI to tabular data.

e& capital also led a Series A funding round for Maxbyte, driving the industry 4.0 revolution in the MENA region. Additionally, e& capital led a Series B funding round for Airalo, the global eSIM marketplace enabling travellers with seamless connectivity.

In 2023, e& achieved significant milestones, marking its successful evolution into a global technology company and maintaining its status as one of the world’s most valuable and strongest brands. The Group’s commitment to excellence, innovation, sustainability and robust financial performance exemplifies its leadership in the fast-changing digital landscape and reflects its mission to shape a promising future.