Earnings Release – Third Quarter 2023 1 I Page
Emirates Telecommunications Group
Company PJSC
Earnings Release – Third Quarter 2023
31 October 2023
ee&& I nInvveesstotor rR ReelalatitoionnssEarnings Release – Third Quarter 2023 2 I Page
The Group Reported Outstanding Q3 Financial Performance in Both
Reported and Constant Currency. Guidance Revised Upward to Reflect
the Strength and Resilience of our Operations
Key Highlights
Q3 2023 9M 2023
167 AED 13.4 167 AED 40.0
million billion million billion
Aggregate Revenue Aggregate Revenue
Subscriber Base ↑ 3% y-o-y Subscriber Base ↑ 2% y-o-y
↑ 3% y-o-y ↑ 8% y-o-y in Constant Currency ↑ 3% y-o-y ↑ 9% y-o-y in Constant Currency
AED 6.9 AED 3.0 AED 19.6 AED 7.7
billion billion billion billion
EBITDA Net Profit After EBITDA Net Profit After
51% Margin Federal Royalty 49% Margin Federal Royalty
↑ 7% y-o-y in Constant Currency ↑ 3% y-o-y in Constant Currency
↑ 20% y-o-y ↑ 5% y-o-y
AED 1.8 AED 5.1 AED 4.8 AED 14.8
billion billion billion billion
Capital Operating Free Capital Operating Free
Expenditure Cash flow Expenditure Cash flow
↑ 11% y-o-y 38% Margin ↓ 5% y-o-y 37% Margin
Abu Dhabi, United Arab Emirates – 31st October 2023: In the third quarter of 2023, e& displayed resilience by
recording strong top-line growth and delivering bottom line growth of 20% year over year. Our confidence in the
Group’s performance is reflected in raising our FY 2023 guidance.
Aggregate subscriber base reached 167 million, Revenue increased year over year by 3% with a
representing a year over year increase of 3% in constant currency growth of 8% fuelled by growth
Q3 2023 across domestic and international operations
EBITDA increased year over year by 3% and Net profit after federal royalty reached a record
increased 7% in constant currency, translating to AED 3.0 billion, increasing year over year by an
an EBITDA Margin of 51% outstanding 20% with a net profit margin of 22%
CAPEX reported an increase of 11% with an Operating free cashflow reached AED 5.1 bn
intensity ratio of 13% with a margin of 38%
Consolidated cash balance amounted to AED
24.2 billion, leading to a net debt position of AED
22.7 billion
e& Investor RelationsEarnings Release – Third Quarter 2023 3 I Page
Key Developments for Q3 2023
e& Investment in PPF Telecom
e& acquires a controlling stake (50% + 1 economic share) in PPF Telecom’s assets
in Bulgaria, Hungary, Serbia, and Slovakia “PPF Telecom” in exchange for €2,150
million. The transaction bodes well with e&’s strategic ambition to expand its
international vertical by diversifying into new geographies and enter the Central East
Europe region.
e& enterprise Acquisition of Beehive
e& enterprise successfully completed the majority acquisition of 63.3% of Beehive, a
peer-to-peer lending platform, for an amount of USD 23.6 million.
e& Partners with COP28 as Principal Technology Partner
The partnership reinforces e&'s COP27 pledge to attain net zero Scope 1 and 2
emissions for its group operations in the United Arab Emirates by 2030, aligning with
the Group's strategy to approach net zero and champion global climate action for a
sustainable future.
e& Joins the World Economic Forum's EDISON Alliance
e& announced it has joined the World Economic Forum's EDISON Alliance,
reinforcing its commitment to making a positive impact on the world by prioritising
digital inclusion in achieving the United Nations (U.N.) Sustainable Development
Goals.
e& Partners with Indosat
Indosat and e& will maximise the utilisation of each other's network infrastructure,
technology, and customer base to offer broader services, improved connectivity, and
a superior experience to customers.
e& at the Carrier Community Global Awards 2023
e& won the 'Middle East Operator of the Year' and the 'Best Regional SMS Service
Provider’ at the 7th Carrier Community Global Awards ceremony in Berlin,
reaffirming its steadfast commitment to driving transformation and delivering
exceptional performance in the industry.
etisalat by e& Launches uTap
etisalat by e& announced the launch of uTap, a powerful payment solution that
revolutionises the way businesses manage their payments and streamlines
operations, in collaboration with Network International LLC and Mswipe
Technologies.
e& Investor RelationsEarnings Release – Third Quarter 2023 4 I Page
Statement from Hatem Dowidar,
Group Chief Executive Officer of e&
“e&’s strong performance this quarter is a testament to our resilience, and commitment to
deliver value and growth to our customers and shareholders. We will continue our focus
on championing innovation to enrich the lives of our customers and make a positive
impact across the societies we serve. We remain committed to lead the change by taking
our first steps in sustainable mobility and transforming our business with AI powered
solutions while realising our vision of digitally empowering societies.
Looking ahead, we will continue to push the boundaries of technology and innovation,
while our strong performance serves as a stepping stone toward a future where we
continue to pioneer advancements and create even more value for all our stakeholders.
Thanks to our talented teams, loyal customers and shareholders for their continued trust
and support to our vision. Together, we are poised for even greater achievements to come
in the near future.”
e& Investor RelationsEarnings Release – Third Quarter 2023 5 I Page
Subscribers
(Number in Thousands) Q3 2023 Q3 2022 y-o-y
etisalat by e& UAE 13,963 13,335 4.7%
e& international 153,085 148,305 3.2%
Total Aggregate Subscribers 167,049 161,641 3.3%
etisalat by e& UAE % of Total 8.4% 8.2% 0.1 pp
e& international % of Total 91.6% 91.8% -0.1 pp
Aggregate subscribers as of 30 September 2023 reached 167 million, once again recording the highest number of
subscribers in the Group’s history. This translated to net additions of 5.4 million during the last 12-month period,
mainly due to strong subscriber acquisition in Egypt, Pakistan, UAE, Chad, Burkina Faso, Afghanistan, Togo, Niger,
and Benin. Quarter over quarter subscriber base increased by 2.0 million subscribers.
In the UAE, etisalat by e& reaps the benefits of the UAE’s expanding economy while continuously enhancing its
customer experience through continued digitisation and data driven analytics to improve the customer journey and
end user experience. As a result, the active subscriber base increased by a solid 4.7% year over year to mark 14.0
million subscribers in the third quarter of 2023. The mobile subscriber base increased by 5.6% year on year to reach
12.3 million subscribers attributed to solid year on year growth in both the prepaid and postpaid segments, up year
over year 3.8% and 11.5% respectively, driven by launch of attractive and unique offerings such as Emirati freedom
and freedom live and the prepaid promotional activities. eLife subscriptions continues to propel in its growth trajectory
as a result of its superior network quality and rich content, growing 5.2% year on year to report 1.2 million subscribers.
Total broadband segment remained steady year on year at 1.3 million subscribers.
For Maroc Telecom, the subscriber base reached 75.1 million subscribers as of 30 September 2023, representing
a year over year decline of 0.7%. This was primarily attributable to the decline in subscriber base in Ivory Coast, Mali
and Morocco which was impacted by market competitiveness.
Etisalat by e& Egypt continues to witness robust expansion as a result of the innovative offerings and improved
market positioning. This allowed the subscriber base to expand by 10.3% increase year over year to 32.7 million
subscribers.
In Pakistan, despite the challenging economic and business environment, the subscriber base showcased resilience
growing 6.4% year over year to 27.6 million, attributed to strong mobile subscriber acquisition.
e& Investor RelationsEarnings Release – Third Quarter 2023 6 I Page
Revenue
(AED Million) Q3 2023 Q3 2022 y-o-y 9M 2023 9M 2022 y-o-y
etisalat by e& UAE 8,130 7,683 5.8% 24,243 23,189 4.5%
e& international 4,950 5,125 -3.4% 14,466 15,634 -7.5%
Maroc Telecom Group 3,228 3,077 4.9% 9,529 9,403 1.3%
etisalat by e& Egypt 956 1,279 -25.3% 2,669 3,802 -29.8%
PTCL Group 611 632 -3.3% 1,835 2,056 -10.8%
Etisalat Afghanistan 154 136 13.4% 433 372 16.4%
Other 317 165 92.0% 1,304 477 173.6%
Consolidated Revenue 13,397 12,973 3.3% 40,014 39,300 1.8%
etisalat by e& UAE % of Total 60.7% 59.2% 1.5 pp 60.6% 59.0% 1.6 pp
e& international % of Total 36.9% 39.5% -2.6 pp 36.2% 39.8% -3.6 pp
Consolidated reported revenue for the third quarter of 2023 amounted to AED 13.4 billion, representing a 3.3%
increase in comparison to the same period last year. It’s worth highlighting that in the third quarter, exchange rates
were lower in the Egyptian Pound and Pakistani Rupee as compared to the third quarter of the previous year. At
constant exchange rates, revenue was robust and increased year over year by 8% reflecting growth in domestic and
international markets.
In the UAE, revenue grew in the third quarter by 5.8% year on year to AED 8.1 billion. This increase is attributed to
continued strong business activity in the country supported by robust overall economic growth in addition to the
company’s continuous focus on simplifying customer offerings and diversifying into new digital products. Mobile
segment continued its year over year revenue growth at 2.6% to AED 2.9 billion due to the increase in subscribers
as a result of successful offers and growth in outbound roaming. Fixed segment revenue also increased by 2.6%
year over year reaching AED 2.9 billion, supported by new propositions such as Business Pro and Home Wireless
services resulting in higher internet and data services offsetting legacy voice and the impact of termination of beIN
contract on TV revenue. Other segment revenue increased year over year by a solid 14.7% to AED 2.3 billion due
to increase in wholesale and handset revenues. Quarter over quarter revenue growth was relatively stable due to
summer seasonality impact.
Reported revenues of e& international for the third quarter of 2023 decreased year over year by 3.4% but increased
by 1.3% quarter on quarter to AED 5.0 billion. The decline is primarily attributable to the unfavourable exchange rate
movements in the Egyptian Pound and Pakistani Rupee. At constant exchange rates, revenue of e& international
remained resilient increasing year over year by 8.6%.
Maroc Telecom consolidated revenue for the third quarter of 2023 amounted to AED 3.2 billion, representing a year
over year increase of 4.9% in reported currency. In local currency, revenue increased year over year by 0.4%. In
Morocco, revenue declined year over year by 3.4% in local currency. The mobile segment revenue decreased by
3.5% year over year driven by service revenue being under pressure as a result of persistently unfavorable regulatory
and competitive environment. The fixed segment decreased by 3.2% year on year due to lower legacy voice and
decline in ADSL. Revenue from international operations “Moov Africa” increased by 5.6% year over year in Moroccan
Dirham mainly due to strong growth of mobile data and mobile money.
In Egypt, reported revenue for the third quarter of 2023 was AED 1.0 billion, witnessing a 25.3% decline year over
year. In local currency however, revenue increased by a robust 20.9% despite heightened inflationary pressures and
the end of the national roaming agreement with Telecom Egypt in December 2022. The growth in the third quarter
is attributed to the expansion of customer base contributing to growth in mobile data and voice revenue.
In Pakistan, reported revenue for the third quarter was AED 0.6 billion, representing a year over year decrease of
3.3%, primarily due to unfavourable exchange rate movements of the Pakistani Rupee against AED. In local
currency, revenue increased by a strong 25.3% despite the challenging economic environment. This impressive
e& Investor RelationsEarnings Release – Third Quarter 2023 7 I Page
growth is attributed to the outstanding performance of fixed broadband, mobile data, business solutions as well as
mobile banking services.
Direct Cost
(AED Million) Q3 2023 Q3 2022 y-o-y 9M 2023 9M 2022 y-o-y
Direct Cost of Sales 3,454 3,218 7.3% 11,008 9,661 13.9%
Direct Cost of Sales 3,454 3,218 7.3% 11,008 9,661 13.9%
Consolidated direct cost for the third quarter of 2023 was 3.5 billion, an increase of 7.3% year over year to AED
3.5 billion. This increase is mainly attributed to higher handset cost to support growth in handset sales. As a
percentage of revenue, it slightly grew by 1 percentage point in the third quarter to reach 26%.
Operating Expenses
(AED Million) Q3 2023 Q3 2022 y-o-y 9M 2023 9M 2022 y-o-y
Staff Costs 1,046 1,023 2.3% 3,242 3,270 -0.9%
Depreciation & Amortisation 1,751 1,830 -4.3% 5,246 5,670 -7.5%
Network & Related Costs 704 696 1.3% 2,106 2,083 1.1%
Marketing Expenses 226 192 17.9% 638 631 1.1%
Other OpEx1 792 1,064 -25.6% 2,945 3,102 -5.1%
Total OpEx 4,519 4,804 -5.9% 14,177 14,756 -3.9%
Consolidated operating expenses for the third quarter of 2023 was AED 4.5 billion, a decrease of 5.9% compared
to the same quarter of the previous year and a decrease of 2.8% from the second quarter of 2023 reflecting the
Group’s focus on cost discipline. The year on year reduction in operating expenses was mainly driven by lower
depreciation and amortization costs and other operating expenses. This comes despite global inflationary pressures,
especially with double digit inflation growth in both Egypt and Pakistan in addition to investment in new revenue
streams.
Key components of operating expenses are:
• Staff expenses increased year over year by 2.3% to AED 1.0 billion for the third quarter of 2023. As a
percentage of revenue, staff costs remained stable year over year at 8%. This increase is mainly attributed
to an increment increase linked to inflation.
• Depreciation and amortisation decreased year over year by 4.3% to AED 1.8 billion in the third quarter of
2023. As a percentage of revenue, depreciation and amortisation expenses decreased by 1 percentage point
year over year to 13%.
• Network costs increased by 1.3% year over year to AED 0.7 billion in the third quarter of 2023 as a result of
higher energy prices. As a percentage of revenue, network costs remained relatively unchanged at 5%.
• Marketing expenses increased year over year by 17.9% to AED 0.2 billion in the third quarter of 2023
attributed to higher promotional activities supporting revenue growth. As a percentage of revenue, marketing
expenses remained steady compared to the comparable period at 2%.
e& Investor RelationsEarnings Release – Third Quarter 2023 8 I Page
• Other operating expenses decreased by 25.6% year over year to AED 0.8 billion in the third quarter, mostly
attributed to incurring forex gain in comparison to forex losses and lower general and administrative costs.
As a percentage of revenue, other operating expenses decreased 2 percentage points to reach 6%.
EBITDA
(AED Million) Q3 2023 Q3 2022 y-o-y 9M 2023 9M 2022 y-o-y
etisalat by e& UAE 4,334 4,104 5.6% 12,607 12,222 3.1%
e& international 2,545 2,532 0.5% 7,000 7,653 -8.5%
Maroc Telecom Group 1,812 1,717 5.6% 5,262 5,188 1.4%
etisalat by e& Egypt 513 610 -15.8% 1,139 1,802 -36.8%
PTCL Group 173 166 4.3% 474 568 -16.5%
Etisalat Afghanistan 47 40 16.7% 125 96 30.3%
Other 17 78 -77.8% 41 284 -85.6%
Consolidated EBITDA 6,896 6,714 2.7% 19,648 20,160 -2.5%
etisalat by e& UAE % of Total 62.8% 61.1% 1.7 pp 64.2% 60.6% 3.5 pp
e& international % of Total 36.9% 37.7% -0.8 pp 35.6% 38.0% -2.3 pp
EBITDA Margin (%) Q3 2023 Q3 2022 y-o-y 9M 2023 9M 2022 y-o-y
etisalat by e& UAE 53% 53% -0.1 pp 52% 53% -0.7 pp
e& international 51% 49% 2.0 pp 48% 49% -0.6 pp
Maroc Telecom Group 56% 56% 0.3 pp 55% 55% 0.0 pp
etisalat by e& Egypt 54% 48% 6.0 pp 43% 47% -4.7 pp
PTCL Group 28% 26% 2.0 pp 26% 28% -1.8 pp
Etisalat Afghanistan 31% 30% 0.9 pp 29% 26% 3.1 pp
EBITDA Margin 51% 52% -0.3 pp 49% 51% -2.2 pp
Group reported consolidated EBITDA for the third quarter of 2023 witnessed a 2.7% increase year on year and a
5.0% increase quarter on quarter to AED 6.9 billion, resulting in an EBITDA margin of 51%. Growth was attributable
to strong revenue growth coupled with a profound cost discipline, all amid inflationary pressures and a challenging
macro environment that continues to impact our international operations and resulting in currency devaluation. At
constant exchange rates, Group consolidated EBITDA increased by 6.9% year over year.
In the UAE, EBITDA in the third quarter of 2023 was AED 4.3 billion, representing a 5.6% increase year over year
and leading to an EBITDA margin of 53%, consistent with the third quarter of the previous year. The increase in
EBITDA is primarily attributed to strong focus on profitable revenue growth and continued cost efficiency.
Reported EBITDA of e& international increased by 0.5% year over year to AED 2.5 billion in the third quarter,
resulting in a 36.9% contribution to the Group’s consolidated EBITDA. In constant currency, EBITDA increased by
11.6% year on year despite inflationary pressures and challenging macro environment impacting our operations.
Maroc Telecom’s reported consolidated EBITDA for the third quarter of 2023 increased by 5.6% to AED 1.8 billion
and resulted in an EBITDA margin of 56%, stable versus the same period in the prior year. In Moroccan Dirhams,
EBITDA in absolute terms increased by 1.0% year over year attributed to an increase in Moov Africa by 3.2% that
offset the slight decline of 0.4% in the EBITDA of the Moroccan operations which was as a result of the topline
pressure.
In Egypt, reported EBITDA in the third quarter decreased year on year by 15.8% to AED 0.5 billion representing
EBITDA margin of 54% which increased 6 percentage points year on year. In local currency however EBITDA
1) Other operating expenses include regulator expenses, consultancy costs, operating lease rentals, IT Costs, and others e& Investor RelationsEarnings Release – Third Quarter 2023 9 I Page
increased by 35.8% year over year. The increase in EBITDA was mainly due to higher revenue as well as one-off
benefit related to tax settlement.
In Pakistan, reported EBITDA in the third quarter of 2023 increased year on year by 4.3% to AED 0.2 billion with
EBITDA margin increasing year over year by 2 percentage points to 28%. In local currency, EBITDA grew 35.5%
year over year, benefiting from one-off item. Underlying operating expenses continue to be affected by the
unfavorable macroeconomic challenges such as increasing energy and fuel costs.
Net Profit After Federal Royalty
(AED Million) Q3 2023 Q3 2022 y-o-y 9M 2023 9M 2022 y-o-y
Consolidated Net Profit 2,979 2,484 20.0% 7,689 7,349 4.6%
Earnings Per Share 0.34 0.29 20.0% 0.88 0.84 4.6%
Net Profit Margin 22% 19% 3.1 pp 19% 19% 0.5 pp
Consolidated net profit after federal royalty attributed to the owners of the company increased year over year
by an impressive 20.0% to reach a record AED 3.0 billion in the third quarter of 2023 and net profit margin increased
by 3 percentage points to 22%. The increase was mainly due to higher EBITDA, higher dividends received from
Vodafone Group, higher income from associates and lower depreciation and amortization charges.
Earnings per share (EPS) amounted to AED 0.34 in the third quarter, an increase of 20.0% as compared to EPS
of the comparable period the previous year.
CAPEX
(AED Million) Q3 2023 Q3 2022 y-o-y 9M 2023 9M 2022 y-o-y
etisalat by e& UAE 406 554 -26.8% 1,598 1,314 21.6%
e& international 1,441 1,049 37.5% 3,153 3,715 -15.1%
Maroc Telecom Group 1,020 621 64.3% 2,085 2,018 3.3%
etisalat by e& Egypt 142 220 -35.4% 465 1,102 -57.8%
PTCL Group 258 173 48.7% 533 548 -2.8%
Etisalat Afghanistan 22 35 -37.5% 70 47 49.0%
Other -53 10 -618.4% 83 59 40.0%
Group CAPEX 1,794 1,613 11.2% 4,833 5,087 -5.0%
etisalat by e& UAE % of Total 22.6% 34.4% -11.7 pp 33.1% 25.8% 7.2 pp
e& international % of Total 80.3% 65.0% 15.3 pp 65.2% 73.0% -7.8 pp
Intensity Ratio (%) Q3 2023 Q3 2022 y-o-y 9M 2023 9M 2022 y-o-y
etisalat by e& UAE 5% 7% -2.2 pp 7% 6% 0.9 pp
e& international 29% 20% 8.7 pp 22% 24% -2.0 pp
Maroc Telecom Group 32% 20% 11.4 pp 22% 21% 0.4 pp
etisalat by e& Egypt 15% 17% -2.3 pp 17% 29% -11.5 pp
PTCL Group 42% 27% 14.7 pp 29% 27% 2.4 pp
Etisalat Afghanistan 14% 26% -11.5 pp 16% 13% 3.5 pp
Group Intensity Ratio 13% 12% 1.0 pp 12% 13% -0.9 pp
Consolidated capital expenditure increased 11.2% year over year to AED 1.8 billion in the third quarter of 2023
resulting in a capital intensity ratio of 13%, 1 percentage point the same period of the prior year. Capital investment
e& Investor RelationsEarnings Release – Third Quarter 2023 10 I Page
continued to focus on providing the best experience to our customers by modernising our networks and deploying
the latest technologies.
In the UAE, capital expenditure during the quarter amounted to AED 0.4 billion, a 27% decrease in comparison to
the same period last year. Capital intensity ratio was 5%, 2 percentage points lower when compared to the same
quarter of the prior year. Capital spending in the UAE allowed the company to continue to deliver global leading
fixed and mobile networks to its customers. etisalat by e& has achieved 10Gbps throughput on the 6GHz band, a
significant milestone that positions the UAE at the forefront of 5G-Advanced network capabilities.
Capital expenditures in e& international in the third quarter of 2023 increased by 37% compared to the same
period last year to AED 1.4 billion. International operations represented 80% of the Group’s total consolidated
capital expenditure.
In Maroc Telecom, capital expenditure for the third quarter increased in AED by 64% year over year to AED 1.0
billion, resulting in a capital intensity ratio of 32%. Capital spending increased year over year in local currency in
Morocco by 54% and in Moov Africa’s operations by 58%. Capital spending focused on expanding fibre-to-the-
home (FTTH) and 4G mobile networks coverage and increasing network capacity to cater for the higher data
customer demand.
In Egypt, capital expenditure for the third quarter decreased by 35% year over year to AED 0.1 billion resulting in a
capital intensity ratio of 15%, which was 2 percentage points lower than the same period of the prior year. Capital
spending focused on 4G deployment and upgrading of network capacity.
In Pakistan, capital expenditure for the third quarter increased by 49% year over year to AED 0.3 billion resulting
in a capital intensity ratio of 42%, 15 percentage points higher than the comparable period in the prior year. Capital
spending focused on expansion of FTTH network and enhancement of the mobile and fixed network’s capacity.
Debt
Total consolidated gross debt amounted AED 46.9 billion as of 30 September 2023, as compared to AED 48.0
billion as of 31 December 2022; a decrease of AED 1.1 billion as a result of repayment of bank borrowings.
Consolidated debt breakdown by operations as of September 2023 is as following:
• Group (AED 36.8 billion)
• Maroc Telecom Group (AED 6.0 billion)
• PTCL Group (AED 2.8 billion)
• etisalat by e& Egypt (AED 1.2 billion)
Around 76% of the debt balance is of long-term maturity that is due after 1 year. Currency mix of borrowings is
51% in AED, 18% in Euros, 12% in USD and 19% in other currencies.
Consolidated cash balance amounted to AED 24.2 billion as of 30 September 2023 leading to a net debt position
of AED 22.7 billion and a Net Debt /EBITDA ratio of only 0.88x.
e& Investor RelationsEarnings Release – Third Quarter 2023 11 I Page
Performance Against Guidance FY 2023
9M 2023 performance is ahead of management’s full year guidance in revenue growth at constant currency and
capital spending. Management revised upward full year guidance for 2023.
Guidance Revised Actual
Financial KPI
FY 2023 Guidance FY 2023 9M 2023
High
Low-to-mid
Revenue Growth%
single-digit single-digit +8.9%
(Constant Currency)
growth growth
EBITDA Margin% ~ 49.0% ~49.0% 49.1%
EPS (AED) 1.13 - 1.15(1) ~1.15 0.88
CAPEX/ Revenue % 15% - 17% ~15% 12.1%
1) EPS Guidance includes dividend from Vodafone Group, expected to materialize in H2 2023.
e& Investor RelationsEarnings Release – Third Quarter 2023 12 I Page
Key Financial Highlights
P&L Statement:
(AED m)
Q3'23 Q2'23 Q3'22 QoQ YoY
Revenue
13,397 13,614 12,973 -1.6% 3.3%
EBITDA
6,896 6,568 6,714 5.0% 2.7%
EBITDA Margin (%)
51.5% 48.2% 51.8% 3.2 pp -0.3 pp
Federal Royalty
(1,777) (1,411) (1,565) 25.9% 13.6%
Net Profit
2,979 2,522 2,484 18.1% 20.0%
Net Profit Margin (%)
22.2% 18.5% 19.1% 3.7 pp 3.1 pp
Balance Sheet:
September December
(AED m)
2023 2022
Cash & Bank Balances
24,189 32,839
Total Assets
139,510 145,085
Total Debt
46,887 47,954
Net Cash / (Debt)
(22,698) (15,115)
Total Equity
48,173 49,999
Cashflow Statement:
(AED m) 9M'23 9M'22
Operating 8,736 10,944
Investing (6,424) (20,406)
Financing (10,613) 7,450
Net change in cash (8,301) (2,013)
Effect of FX rate changes (349) (298)
Reclassified as held for sales 0 (240)
Ending cash balance 24,189 26,024
e& Investor RelationsEarnings Release – Third Quarter 2023 13 I Page
Foreign Exchange Rate
Average Rates Closing Rates
Q3'22 Q3'23 YOY Q3'22 Q3'23 YOY
EGP - Egyptian Pound
0.1922 0.1189 -38.17% 0.1880 0.1189 -36.80%
SAR - Saudi Riyal
0.9772 0.9791 0.20% 0.9750 0.9792 0.43%
CFA - Central African Franc
0.0056 0.0060 7.47% 0.0054 0.0059 10.08%
PKR - Pakistani Rupee
0.0163 0.0125 -23.12% 0.0159 0.0127 -19.81%
AFA - Afghanistan Afghani
0.0409 0.0441 7.71% 0.0413 0.0464 12.39%
MAD - Moroccan Dirham
0.3497 0.3636 3.97% 0.3316 0.3572 7.71%
Reconciliation of non-IFRS Financial Measurements
We believe that EBITDA is a measurement commonly used by companies, analysts and investors in the
telecommunications industry, which enhances the understanding of our cash generation ability and liquidity position,
and assists in the evaluation of our capacity to meet our financial obligations. We also use EBITDA as an internal
measurement tool and, accordingly, we believe that the presentation of EBITDA provides useful and relevant
information to analysts and investors.
Our EBITDA definition includes revenue, staff costs, direct cost of sales, regulatory expenses, operating lease
rentals, repairs and maintenance, general financial expenses, and other operating expenses.
EBITDA is not a measure of financial performance under IFRS, and should not be construed as a substitute for net
earnings (loss) as a measure of performance or cash flow from operations as a measure of liquidity. The following
table provides a reconciliation of EBITDA, which is a non-IFRS financial measurement, to Operating Profit before
Federal Royalty, which we believe is the most directly comparable financial measurement calculated and presented
in accordance with IFRS.
(AED m)
Q3'23 Q2'23 Q3'22
EBITDA 6,896 6,568 6,714
Depreciation & Amortization (1,751) (1,733) (1,830)
Exchange Gain/ (Loss) (84) (4) 127
Share of Associates and JV’s results 177 167 127
Impairment and other losses - (5) -
Operating Profit before Royalty 5,407 5,001 4,885
e& Investor RelationsEarnings Release – Third Quarter 2023 14 I Page
Disclaimer
Emirates Telecommunications Group Company PJSC and its subsidiaries (“e&” or the “Company”) have prepared
this presentation (“ Presentation”) in good faith, however, no warranty or representation, express or implied is made
as to the adequacy, correctness, completeness or accuracy of any numbers, statements, opinions or estimates, or
other information contained in this Presentation.
The information contained in this Presentation is an overview, and should not be considered as the giving of
investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers.
Each party to whom this Presentation is made available must make its own independent assessment of the Company
after making such investigations and taking such advice as may be deemed necessary.
Where this Presentation contains summaries of documents, those summaries should not be relied upon and the
actual documentation must be referred to for its full effect.
This Presentation includes certain “forward-looking statements”. Such forward looking statements are not guarantees
of future performance and involve risks of uncertainties. Actual results may differ materially from these forward
looking statements.
About e&
e& is an international, blue-chip organisation with operations in 16 countries across the Middle East, Africa and Asia.
It is one of the leading technology group with one of the largest market capitalisations among global telcos. It is a
highly rated organisation with ratings from Standard & Poor’s and Moody’s (AA-/Aa3).
The Group’s shareholding structure consists of 60% held by the Emirates Investment Authority and 40% free float.
e& (Ticker: EAND) is quoted on the Abu Dhabi Securities Exchange (ADX).
Investors
Investor Relations
Email: ir@eand.com
Website: www.eand.com
e& Investor Relations

Sentiment: positive