Emirates Telecommunications Group Company (EAND) Q1 2026 earnings summary

Executive summary

• Achieved robust Q1 2026 financial and operational results amid regional geopolitical volatility, leveraging diversified operations and operational excellence, with limited impact on network and service continuity.

• Consolidated revenue rose 15.1% year-over-year to AED 19.4bn, driven by growth across all markets and supported by network upgrades and 5G spectrum acquisition in Pakistan.

• Aggregate subscriber base reached 248.0 million, up 30.8% year over year, driven by organic growth and acquisitions.

• Profit attributable to owners fell 46.2% year-over-year to AED 2.9bn, mainly due to a high base in the prior year and increased federal royalty and tax expenses.

• Upward revision for 2026 dividend per share (DPS) reflects value creation and updated dividend policy.

Financial highlights

• Revenue reached AED 19.4bn, up 15.1% year-over-year (+11.3% in constant currency), with international operations contributing 46.4%.

• EBITDA rose to AED 8.6bn (+16.5% y/y), with a consolidated margin of 44.1% and telco margin of 48.2%.

• Net profit after federal royalty and tax was AED 2.9bn, up 3.9% y/y (normalized, excluding prior year gain on Khazna sale).

• EPS at 0.33 AED, down from 0.62 AED in Q1 2025.

• Capex was AED 2.8bn (14.6% intensity ratio; 10.5% excluding spectrum and licenses), up from AED 2.4bn in Q1 2025.

• Operating free cash flow (OFCF) reached AED 6.5bn, up 15.1% year over year.

Outlook and guidance

• FY 2026 guidance: revenue growth of 8–10%, EBITDA growth of 4–5% in constant currency, EPS expected at ~1.35 AED, and capex/revenue ratio projected at 16–17% (excluding spectrum & licenses).

• Management expects continued resilience in core businesses despite regional geopolitical tensions, with no material impairment or going concern uncertainty identified.

• Financial guidance unchanged; disciplined capital allocation and commitment to dividend policy.