Emirates Telecommunications Group Company (EAND) Q3 2024 earnings summary

Executive summary

• Completed acquisition of 50%+1 share in PPF Telecom, now operating as e & PPF Telecom; announced acquisition of controlling stake in PPF Telecom's assets in four European countries for €2.15 billion plus adjustments and potential earn-outs.

• Acquisition of Telenor Pakistan progressing, pending regulatory approvals.

• Upward revision of full-year guidance for revenue and EPS.

• Consolidated revenue for the nine months ended 30 September 2024 reached AED 42,730 million, up 6.8% year-over-year, with profit attributable to owners at AED 8,457 million, a 10% increase.

• Net assets decreased by AED 1,035 million to AED 50,039 million compared to 31 December 2023.

Financial highlights

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

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

• EBITDA stood at AED 19.4 billion, flat year-over-year in constant currency, with a 45% margin.

• Operating profit for the nine months was AED 15,455 million, up from AED 12,372 million in the prior year period.

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

Outlook and guidance

• Full-year 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.

• The group continues to pursue international expansion, as evidenced by recent acquisitions.