Emirates Telecommunications Group Company (EAND) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered robust financial and operational performance, with consolidated revenue up 18.7% year-over-year to AED 16.9 billion and net profit attributable to owners surging 130% to AED 5.4 billion, driven by strong growth across all business verticals and geographies.

• Customer base expanded 12.9% year-over-year to 194.8 million, supported by organic growth and acquisitions.

• Monetized a 40% stake in Khazna for AED 8.0 billion ($2.2 billion), generating a significant capital gain and boosting net profit.

• Major acquisitions included the €825 million SBB deal in Serbia, enhancing regional market presence.

• Recognized as the world's fastest growing brand in the Global 500 Brand Report, with brand value reaching $15.3 billion.

Financial highlights

• Revenue reached AED 16.9 billion, up 18.7% year-over-year and 22% in constant currency.

• EBITDA rose to AED 7.4 billion, with a consolidated margin of 43.6%.

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

• EPS stood at AED 0.62, up from AED 0.27 year-over-year.

• Operating free cash flow (excluding spectrum/licenses) was AED 5.7 billion, up 20% year-over-year.

Outlook and guidance

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

• EBITDA margin at 43.6% aligns with the ~43% full-year target.

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

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

• The SBB acquisition is expected to strengthen the converged operator position in the region.