UAE's e& posts 20% rise in Q3 profit as subscriber base grows

Total group subscribers reached 167 million in the September quarter

E& has joined forces with international companies such as SK Telecom, Deutsche Telekom, Singtel and Indosat to launch a global alliance in AI for telecoms. Photo: E-Vision

UAE telecoms and technology company e&, formerly known as the Etisalat Group, reported that its net profit jumped 20 per cent in the third quarter as its subscriber base grew.

Consolidated net profit in the three-month period ended on September 30 increased to Dh3 billion ($816 million), the company said in a statement on Tuesday.

Revenue in the quarter reached Dh13.4 billion, up 3.3 per cent year on year.

“We remain committed to lead the change by taking our first steps in sustainable mobility and transforming our business with AI [artificial intelligence]-powered solutions while realising our vision of digitally empowering societies,” said Hatem Dowidar, e&’s group chief executive.

Total group subscribers reached 167 million in the last quarter, about five million more than the same period last year.

In the UAE market, the number of subscribers reached 14 million in the third quarter, up 4.7 per cent on a yearly basis.

In the September quarter, e&'s earnings before interest, taxes, depreciation and amortisation increased nearly 2.7 per cent annually to Dh6.9 billion.

The company is currently in the process of expanding its footprint and has been on an acquisition spree.

This is part of a broader shift in the telecoms industry, where companies are incorporating new technology into their operations to grow their customer bases and introduce additional sources of revenue.

The Abu Dhabi-headquartered company has increased its stake in Vodafone Group to 14 per cent as it continues to consolidate its shareholding in the British company as part of its international expansion plans.

Hatem Dowidar, e&’s group chief executive. Leslie Pableo / The National

In August, e& capital – the investment unit of the global technology conglomerate e& – led a $5 million series A funding for Maxbyte, an Abu Dhabi-based technology firm.

In July, e& said it was considering acquiring a stake in Ethiopia's Ethio Telecom, which would potentially boost its international portfolio. That would potentially give e& access to 25 other countries across Europe, North America, Asia and Africa.

In May, it invested $60 million for a 10 per cent stake in South Korea’s cloud management company Bespin Global, and also formed a joint venture that will provide public cloud services in the region.

In April, it signed a $400 million deal to acquire a majority stake in Careem’s Super App.

It has also joined forces with international companies such as SK Telecom, Deutsche Telekom, Singtel and Indosat to launch a global alliance in AI for telecoms.

“This alliance will pave the way for new innovations and co-development of the telco AI platform,” e& said.