e&, the UAE-based telecoms and technology company, formerly known as the Etisalat Group, has reported a net profit of AED 2.19 billion ($599 million) for Q1 2023, which was primarily driven by an increase in its subscriber base. The company’s UAE subscriber base increased by 6% annually to 13.9 million, while aggregate subscribers rose 3% annually to 164 million.
However, the net profit for the quarter saw a 10% annual drop from AED 2.43 billion last year, mainly due to “strong fluctuations” in currency exchanges, according to e& group CEO Hatem Dowidar. The fluctuating exchange rates of the Egyptian pound and the Pakistani rupee, coupled with the “unprecedentedly” high inflation rates in these two markets, have negatively affected revenue and profits reported in dirhams.
Despite the fluctuating currency, the company’s revenue for the quarter remained flat at AED 13 billion ($3.53 billion) compared to the same period last year. The company’s earnings before interest, taxes, depreciation, and amortization (Ebitda) stood at AED 6.2 billion for the quarter, resulting in a margin of 48%.
e& has been expanding its presence and enhancing its business portfolio through strategic investments and acquisitions. Last month, the company signed a $400 million deal to acquire a majority stake in Careem’s Super App spin-off from Uber, as part of its efforts to expand its consumer digital offerings. The company signed a binding agreement with Uber for a 50.03% stake in Careem’s Super App business.
e& has also been consolidating its shareholding in the British company Vodafone Group, increasing its stake to 14% this year as part of its international expansion plans. Last year, the company signed a deal with Abu Dhabi holding company ADQ to acquire a majority stake in the video-streaming service Starzplay Arabia.
e& CEO Hatem Dowidar said the company would continue to explore future technologies and develop new verticals to accelerate digital transformation, positively impacting businesses and people’s lives while maximizing value creation for its shareholders.
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