Financial Results

Etisalat Reports AED 2.3 billion consolidated Net profit

28 Apr 2021

Representing a 7.9% increase YOY

Abu Dhabi: 28 April 2021: Etisalat Group today announced its consolidated financial statements for the three months ending 31st March 2021.

Financial Highlights and Key Developments of Q1:

• Aggregate subscriber base reached 156 million, representing a year over year increase of 4%.
• Consolidated revenues amounted to AED 13.2 billion while consolidated net profit after Federal Royalty amounted to AED 2.3 billion representing a year over year increase of 7.9% and resulting in a net profit margin of 18%.
• Consolidated EBITDA totaled AED 6.8 billion, representing an increase of 0.7% year over year and resulting in EBITDA margin of 51%.
• Etisalat crowned strongest brand in the MEA region across all categories.
• Etisalat Misr and Huawei completed the first VoLTE call using Huawei’s Virtual IMS.
• Etisalat launched the region’s first online Mobile Service Centre, offering real-time visibility and control over business customers’ mobile usage.
• Etisalat partnered with Aruba to offer managed Wi-Fi and networking solutions.
• Etisalat partnered with Cisco to simplify Emirates Internet Exchange (EMIX) operations by building the region’s first open and autonomous and secured network.
• Etisalat collaborated with Smart Dubai to provide cyber security services to Dubai government entities.
• Etisalat is now Etihad Airways’ official telecom partner, providing the best-in-class mobile and digital solutions for the evolving business requirements of the SMB and startup community.
• Digital Financial Services partnered with Al-Futtaim to enable secure and contactless payment options for eWallet customers.
• As part of its commitment to support and empower People of Determination Etisalat partnered with Ministry of Community Development to launch a web extension to make accessing the web autistic friendly.
• Etisalat launched the Smiles’ food order and delivery service in the UAE.

CEO Message:

Eng. Hatem Dowidar, CEO, Etisalat Group

“Etisalat Group’s first quarter results are a continuation of the strong performance the company has achieved over the past year due to the resilience and agility shown across our business operations. The company generated record results in the new hybrid scenario helping consumers adapt to a new work-and-learn-from-anywhere reality while continuing to deliver innovative services subscribers require and demand.

“Our teams rallied to support our customers with technology playing a central role in keeping our society, economy and lives connected. Digital evolution is the future where telecom operators are the key players to enable the transition and be the exemplary adopters of digital transformation. Stemming from this conviction, Etisalat will continue its efforts to align its business with the digital mandate it has undertaken, by shifting the operating model, investing in future technologies, generating new revenue streams and by acquiring and disseminating digital capabilities across its markets.

Etisalat is also thankful to the vision of our wise leadership in the UAE in positioning the country among the most digitally advanced globally, inspiring us to deliver world-class networks and innovative services. We will continue to focus on capitalising opportunities and enhancing overall customer experience while delivering long-term value for all our shareholders.”

Subscribers:

In the UAE the subscriber base reached 12.4 million subscribers in Q1 of 2021, while aggregate subscriber base reached 156 million, representing a year over year increase of 4%.

Revenue & Net Profit:

Consolidated revenues amounted to AED 13.2 billion while consolidated net profit after Federal Royalty amounted to AED 2.3 billion representing a year over year increase of 7.9% and resulting in a net profit margin of 18%.

EBITDA:

Group Consolidated EBITDA for the first quarter of 2021 increased by 0.7% to AED 6.8 billion while EBITDA margin remained stable year on year at 51%.