Emirates Telecommunications Group Company (EAND) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered robust financial and operational performance, with consolidated revenue of AED 16.9 billion, up 18.7% year-over-year, and profit attributable to owners at AED 5.4 billion, a 129.9% increase.

• Customer base expanded 13% year-over-year to 194.8 million, driven by organic growth and acquisitions.

• Net assets increased by AED 5,489 million to AED 59,385 million compared to 31 December 2024.

• A final dividend of AED 0.415 per share for 2024 was approved, to be paid on 9 May 2025.

• Significant portfolio optimization included a net gain of AED 2.6 billion from the Khazna sale and the €825 million SBB acquisition in Serbia.

Financial highlights

• Revenue reached AED 16.9 billion, up 19% year-over-year and 22% in constant currency.

• EBITDA rose to AED 7.4 billion, with a consolidated margin of 44% and telco margin of 48%.

• Net profit surged 130% year-over-year to AED 5.4 billion, including gains from the Khazna transaction.

• EPS stood at 62 fils, up from AED 0.27 year-over-year.

• Operating free cash flow was AED 5.7 billion, with a 34% margin.

Outlook and guidance

• Q1 results exceeded full-year guidance, with revenue growth of 22.2% versus FY 2025 guidance of 17–20%.

• EBITDA margin at 43.6% is in line with the ~43% full-year target.

• FY 2025 CAPEX/revenue expected at ~16%, with Q1 at 10%.

• The company is transitioning from UAE telco-centric to a more balanced geographic and vertical profile, aiming for higher international and non-telco revenue contributions.

• The acquisition of SBB in Serbia is expected to strengthen the company's converged operator position in the region.