Etihad Etisalat (7020) Q2 2024 earnings summary

Executive summary

• Achieved revenue growth of 8.1% in H1-24, reaching SAR 9,011 mn, and net income growth of 35.0% to SAR 1,299 mn year-over-year.

• Q2-24 revenue rose 4.6% YoY to SAR 4,465 mn, with mobile subscribers at 12.2 mn and FTTH subscribers at 0.298 mn.

• EBITDA increased by 3.4% YoY to SAR 1,650 mn in Q2-24, with an EBITDA margin of 37.0%.

• Net income for Q2-24 rose 33.0% YoY to SAR 661 mn, reflecting strong operational performance.

• Free cash flow in Q2-24 increased by 1.4% YoY to SAR 1,264 mn.

Financial highlights

• Gross debt decreased by 19.8% YoY to SAR 9,891 mn; net debt dropped by 30.4% YoY to SAR 6,830 mn.

• Net debt/EBITDA improved to 1.01x from 1.54x YoY.

• CAPEX for Q2-24 was SAR 386 mn, with a CAPEX/revenue ratio of 8.6%.

• H1-24 CAPEX totaled SAR 609 mn, focused on network, 5G, IoT, and data center expansion.

Outlook and guidance

• FY 2024 guidance: mid- to high-single digit revenue growth, EBITDA margin of 37-38%, net debt/EBITDA at 1.1x, and CAPEX/revenue of 14-16%.