Emirates Telecommunications Group Company (EAND) Q3 2024 earnings summary

Executive summary

• Completed acquisition of a controlling stake (50%+1 share) in PPF Telecom, now operating as e & PPF Telecom, and 100% of GlassHouse, expanding operational reach to 38 markets.

• Aggregate subscriber base reached 177 million, a 6% year-over-year increase, with strong growth in both domestic and international markets.

• Net profit attributable to owners for 9M 2024 was AED 8.46 billion, a 10% year-over-year increase.

• Earnings per share rose to AED 0.97 for 9M 2024, with full-year EPS guidance upgraded to AED 1.22–1.23.

• Acquisition of Telenor Pakistan is progressing, pending regulatory approvals.

Financial highlights

• Group revenue for 9M 2024 reached AED 42.7 billion, up 9% year-over-year in constant currency.

• Net profit for 9M 2024 was AED 8.5 billion, a 10% year-over-year increase.

• EBITDA for Q3 2024 was AED 6.5 billion (45% margin), with telecom verticals maintaining a 49% margin.

• Operating free cash flow for 9M 2024 was AED 14.2 billion, with a 33% margin.

• CapEx for 9M 2024 totaled AED 5.3 billion, up 9% year-over-year, with a stable intensity ratio of 12%.

Outlook and guidance

• Full-year 2024 revenue and EPS guidance revised upward; EPS now expected at AED 1.22–1.23.

• Telecom revenue growth guidance raised to high single digits in constant currency.

• Group EBITDA margin expected to remain around 49%.

• New federal royalty and corporate tax regime effective 2024, with a 38% royalty on UAE net profit and 9% corporate tax, minimum combined payment of AED 5.7 billion annually.

• e & life revenue expected to double year-over-year, with negative EBITDA margin.