Emirates Telecommunications Group Company (EAND) Q2 2024 earnings summary

Executive summary

• Solid Q2 and H1 2024 performance across all verticals, with consolidated revenue up 6.3% year-over-year and profit attributable to owners rising 16.7% to AED 5,495 million.

• EPS increased by AED 0.09 year-over-year to AED 0.63.

• Progress on PPF and Telenor transactions, aiming for closure by year-end.

• Regulatory turbulence in Morocco impacted Maroc Telecom and investment outlook, with a provision of AED 2.3 billion for damages.

• Commitment to progressive dividend policy, with interim 2024 dividend of AED 0.415 per share declared.

Financial highlights

• Group revenue for H1 2024 reached AED 28,305.8 million, up 6.3% year-over-year in constant currency.

• Profit attributable to owners was AED 5,494.6 million, up 16.7% year-over-year.

• EBITDA of AED 6.6 billion for Q2, up 2% year-over-year in constant currency, with a 47% margin.

• Net profit rose 25% year-over-year to AED 3.2 billion in Q2.

• Net cash generated from operating activities was AED 11,588.1 million, with cash and cash equivalents at AED 9,801.8 million at period end.

Outlook and guidance

• H1 performance aligns with full-year guidance.

• Telecom revenue growth expected at mid-single digits in constant currency for FY 2024.

• Telecom EBITDA margin guidance at ~49% for FY 2024.

• New federal royalty regime applies a 38% rate on UAE net profit, with a minimum combined royalty and corporate tax of AED 5.7 billion annually.

• Corporate tax at 9% is now effective from 1 January 2024.