Emirates Telecommunications Group
Company PJSC
Earnings Release - Second Quarter 2022
1 August 2022
iISC'EarningsRelease - Second Quarter2022 2|Page
Our position as a leading
telecom operator coupled
Financial Highlights for Q2 2022 with our financial flexibility
and cost optimization
initiatives puts our business
Aggregate Subscriber Consolidated
in a position of strength
Base Revenues
against emerging economic
,
headwinds
160 AED 13.0
million billion
Representing a year over
Representing a year over year decline of 1.7% with a
year increase of 2.5% constant currency growth of
4.2%
Consolidated Consolidated Net
EBITDA Profit After Royalty
AED 6.6 AED 2.4
billion billion
Growth remained stable year
over year with a constant Representing a year over
currency growth of 5.5%and year increase of 1.5% with a
an EBITDA Margin of 51% net profit margin of 19%
Consolidated Capital Operating Free
Spending Cashflow
AED 1.8 AED 4.8
,,
billion billion
,
Representing a year over Representing a year over
year increase of 13% with an year decrease of 4.1%
intensity ratio of 14%EEaarrnniinnggss RReelleeaassee -- SSeeccoonndd QQuuaarrtteerr 22002222 33IIPP aa gg ee
TThhee GGrroouupp ddeemmoonnssttrraatteedd
FFiinnaanncciiaall HHiigghhlliigghhttss ffoorr HH11 22002222 ssttrreennggtthh aanndd rreessiilliieennccee
tthhrroouugghh cchhaalllleennggiinngg
aa
ooppeerraattiinngg llaannddssccaappee
AAggggrreeggaattee SSuubbssccrriibbeerr CCoonnssoolliiddaatteedd
ddeelliivveerriinngg ssoolliidd rreessuullttss
BBaassee RReevveennuueess
dduurriinngg HH11 22002222
116600 AAEEDD 2266..33
mmiilllliioonn bbiilllliioonn
RReepprreesseennttiinngg aa yyeeaarr oovveerr GGrroowwtthh rreemmaaiinneedd ssttaabbllee yyeeaarr tlf
yyeeaarr iinnccrreeaassee ooff 22..55%% oovveerr yyeeaarr wwiitthh aa ccoonnssttaanntt
ccuurrrreennccyy ggrroowwtthh ooff 33..88%%
CCoonnssoolliiddaatteedd CCoonnssoolliiddaatteedd NNeett
EEBBIITTDDAA PPrrooffiitt AAfftteerr RRooyyaallttyy
AAEEDD 1133..44 AAEEDD 44..99
bbiilllliioonn bbiilllliioonn
GGrroowwtthh rreemmaaiinneedd ssttaabbllee yyeeaarr
oovveerr yyeeaarr wwiitthh aa ccoonnssttaanntt RReepprreesseennttiinngg aa yyeeaarr oovveerr
ccuurrrreennccyy ggrroowwtthh ooff 44..11%% aanndd yyeeaarr iinnccrreeaassee ooff 22..55%% wwiitthh aa
aann EEBBIITTDDAA NN. AA.. a a rrggiinn ooff 5511%% nneett pprrooffiitt mmaarrggiinn ooff 1188%%
CCoonnssoolliiddaatteedd CCaappiittaall OOppeerraattiinngg FFrreeee
SSppeennddiinngg ** CCaasshhffllooww *
AAEEDD 33..22 AAEEDD 1100..33
bbiilllliioonn bbiilllliioonn .
11. I
11
RReepprreesseennttiinngg yyeeaarr oovveerr RReepprreesseennttiinngg yyeeaarr oovveerr
aa aa
yyeeaarr iinnccrreeaassee ooff 1188%% wwiitthh aann yyeeaarr ddeeccrreeaassee ooff 44..11%%
iinntteennssiittyy rraattiioo ooff 11229%/0
DDiivviiddeenndd PPeerr SShhaarree
ee&&''ss BBooaarrdd ooff DDiirreeccttoorrss aapppprroovveedd
AAEEDD 00..44
iinntteerriimm ddiivviiddeennddss ooff 4400 ffiitlss ppeerr sshhaarree
ffoorr tthhee ffiirrsstt hh a
a
lIff ooff 22002222
Kr
** EExxcclluuddeess ssppeeccttrruumm ccoossttssEarningsRelease - Second Quarter2022 4|Page
wwee
area
are,t
Key Developments in Q2 2022
Vodafone
etisalatby e&
e& acquired 9.8% equity stake in Vodafone
“etisalatby e&” launched as the new brand
Group plc (“Vodafone”), in line with e&’s
identity for Etisalat in the UAE and Egypt
ambition to enhance and develop its
international exposure
IntelligentRAN
e&, du, STC, Zain, and Huawei jointly
KhaznaData Centers released IntelligentRAN in the Middle East,
e& and G42 completed the transaction to which aims to inject intelligence to wireless
combine their data centers in the UAE in a networks and achieve autonomous driving
new JV under Khazna Data Centers network in the wireless domain in the future
Tech NFT Collection Telecom Egypt Partnership
e& launched the region’s first Telco NFT Etisalat Egypt and Telecom Egypt signed
collection, highlighting its commitment to strategic agreements covering infrastructure,
advancing tech capabilities access, and voice services, enhancing
Etisalat Egypt abilities to provide premium
services through TE’s network
Enterprise AI as a Service
e& entered into a strategic three-year GoChat
alliance with DataRobotto launch an e& launched GoChatin the UAE, an all-in-
Enterprise AI as a Service (AlaaS) offering one free voice and video calling app, giving
to support government and private customers the flexibility of accessing unique
companies in their digital transformation features within one application
Amazon Collaboration
Regulatory Fine in Morocco
etisalatby e& collaborated with Amazon to
ANRT imposed a penalty on Maroc Telecom
offer eerodevices for the first time in the
for non-compliance with certain instructions
UAE as well as Echo Devises
relating to local loop unbundling
AirPON
Currency Headwinds
PTCL successfully deployed AirPON,
Second quarter witnessed unfavourable
Huawei Technologies’ innovative Fibre-to-
currency depreciation of the EURO, PKR ,
the-Home solution, in its Fiber Access
and EGP against AED
NetworkEEaarrnniinnggss RReelleeaassee -- SSeeccoonndd QQuuaarrtteerr 22002222 55 IPP a a cj e
1
SSttaatteemmeenntt ffrroomm HH..EE.. JJaasssseemm MMoohhaammeedd AAllzzaaaabbii,, CChhaaiirrmmaann ooff ee&&
""ee& &''ss ppeerrffoorrmmaannccee dduurriinngg tthhee ffiirrsstt hhaallff ooff tthhee yyeeaarr
_
eadrap71117r7 7177Tim ddeemmoonnssttrraatteess ''', oouurr uunnwwaavveerriinngg ccoommmmiittmmeenntt,,
4o "(Nig
0tta
4a
ai
6t l6fe i6le i0ft Wfi ef_
e effrrrPrt fr r Fr l ccoonnttiinnuueedd eeffffoorrttss aanndd rreelleennttlleessss ffooccuuss oonn rreeaalliissiinngg
uurr vviissiioonn ooff ddrriivviinngg tthhee ddiiggiittaall ffuuttuurree ttoo eemmppoowweerr
ss occiieettiieess.. OOuurr ssuucccceessss iiss uunnddeerrppiinnnneedd bbyy oouurr ddrriivvee
ttoo make aa ppoossiittiivvee cchhaannggee iinn tthhee ssoocciieettiieess wwee sseerrvvee
wwhhiillee ddddiinngg vvaalluuee ttoo oouurr sshhaarreehhoollddeerrss..
r,
7 4 OOuurr ffiinnaanncciiaall ppeerrffoorrmmaannccee rreeiinnffoorrcceess ee&& ss ssuucccceessss
115' 44.
ssttoorryy aanndd iittss ssttrroonngg ssttaannddiinngg,, ttaacckklliinngg tthhee cchhaalllleennggeess
aanndd rriissiinngg ttoo eevveerryy ooppppoorrttuunniittyy ttoo eexxeeccuuttee oouurr
'
aammbbiittiioouuss ppllaannss wwee eemmbbaarrkkeedd oonn eeaarrlliieerr tthhiiss yyeeaarr
r
aanndd sett tthhee mmoommeennttuumm ffoorr tthhee rreemmaaiinnddeerr ooff 22002222..
WWee hhaavvee eemmbbrraacceedd ddiiggiittiissaattiioonn,, wwiitthh ccoonnttiinnuuoouuss
aa
iinnnnoovvaattiioonn eetthhooss ttoo cchhaarrtteerr oouurr ccoouurrssee iinnttoo mmoorree
aa
hhoolliissttiicc ddiiggiittaall ttrraannssffoorrmmaattiioonn ffoorr oouurr ccoommmmuunniittiieess
aanndd ssoocciieettiieess..
wwoouulldd lliikkee ttoo tthhaannkk tthhee UUAAEE''ss wwiissee lleeaaddeerrsshhiipp ffoorr
II
tthheeiirr iinnssppiirriinngg vviissiioonn aanndd ccoonnttiinnuuoouuss ssuuppppoorrtt ttoo tthhee
IICCII sseeccttoorr.. aamm aallssoo ggrraatteeffuull ttoo oouurr ee&& mmaannaaggeemmeenntt
II
tteeaamm ffoorr ccoonnssttaannttllyy ccaappiittaalliissiinngg oonn oouurr ddeeeepp ddiiggiittaall
eexxppeerrttiissee ttoo aacctt aass eennaabblleerrss ooff ddiiggiittaall ttrraannssffoorrmmaattiioonn
ffoorr ggoovveerrnnmmeennttss,, ccoorrppoorraatteess,, aanndd ccoonnssuummeerrss,,
pprroovviiddiinngg ccoommpplleettee eenndd --ttoo --eenndd ssoolluuttiioonnss.. WWee rreemmaaiinn
tthhaannkkffuull ttoo oouurr llooyyaall ccoonnssuummeerrss aanndd sshhaarreehhoollddeerrss ffoorr
jjooiinniinngg uuss iinn oouurr jjoouurrnneeyy ooff ttrraannssffoorrmmaattiioonn aanndd
11
44 ccoollllaabboorraattiinngg wwiitthh uuss ttoo sseett nneeww iinndduussttrryy
bbeenncchhmmaarrkkss aanndd rreeaacchh nneeww hheeiigghhttss.. 11
11
ICEEEaarrnniinnggss RReelleeaassee SSeeccoonndd QQuuaarrtteerr 22002222 6611PPaaggee
--
SSttaatteemmeenntt ffrroomm HHaatteemm DDoowwiiddaarr,,
GGrroouupp CChhiieeff EExxeeccuuttiivvee OOffffiicceerr ooff ee&&
e&'ss ffiinnaanncciiaall rree ualltts s ffoorr tthhee ffiirrsstt hhaallff ooff tthhiiss yyeeaarr aarree aann oouuttccoommee
ooff oouurr eeaarrnneesstt eerni ddeeaa vyoouurrss ttoo ddrriivvee ggrroowwtthh aanndd eennhhaannccee
t
eeffffiicciieenncciieess,, wWiitthh d s ttrroonngg ccoommmmiittmmeenntt ttoo kkeeyy ssttrraatteeggiicc pprriioorriittiieess ttoo
eennaabbllee bbeetttteerr ddiiggiittsa l ffuuttuurree aanndd ddrriivvee iinnnnoovvaattiioonn,.
aa 11
ee&& aacchhiieevveedd g c o0o0d d ppeerrffoorrmmaannccee ddeessppiittee gglloobbaall eeccoonnoommiicc
cchhaalllleennggeess cchhaarraac, t te on isceedd bbyy ssooaarriinngg iinnffllaattiioonn,, hhiikkee iinn iinntteerreesstt rraatteess
aanndd ffoorreeiiggnn ccuurrrree -Icc y ddeevvaalluuaattiioonn.. WWee wwiillll rreemmaaiinn rreessiilliieenntt aanndd sseeee
tthheessee ttiimmeess aass oo f p
p
orrttuunniittiieess ttoo ddeeeeppeenn oouurr ffooccuuss aanndd iinnvveesstt iinn tthhee
lloonngg tteerrmm.. AAss viee nnaavviiggaattee tthhrroouugghh tthhee nneeww gglloobbaall eeccoonnoommiicc
llaannddssccaappee,, wwee 'krill ffooccuuss oonn oouurr ggooaall ttoo ccrreeaattee aanndd ddeeppllooyy
it
4 iinnnnoovvaattiivvee ssoolluuttiioo ;Iss t t oo ppoossiittiivveellyy iimmppaacctt ppeeooppllee''ss lliivveess..
WWee hhaavvee mmaaxxiimmiisseed( oouurr eeffffoorrttss iinn ggrroowwiinngg oouurr ccoorree aanndd ddiiggiittaall
sseerrvviicceess,, bbyy eennvri' , hi .ngg ccoonnssuummeerrss'' vvaalluuee pprrooppoossiittiioonnss wwiitthh ddiiggiittaall
sseerrvviicceess tthhaatt ccaattE rr tto o tthheeiirr nneeww lliiffeessttyylleess aanndd eemmeerrggiinngg ddeemmaannddss
-
bbeeyyoonndd bbaassiicc ttaellce ccoo mm sseerrvviicceess.. OOuurr tteelleeccoommss bbuussiinneessss hhaass bbeeeenn
tthhee ggrroowwtthh eennggiinnE.; bb eehhiinndd oouurr ccoommppaannyy aanndd iittss ttrraannssffoorrmmaattiioonn iinnttoo
aa tteecchhccoo.. TThhiiss aass hheellppeedd ssoolliiddiiffyy oouurr lleeaaddeerrsshhiipp aaccrroossss oouurr
ggeeooggrraapphhiicc ffoooottpprriinntt,, aass wweellll aass ggrrooww aaddjjaacceenncciieess oorrggaanniiccaallllyy aanndd
tthhrroouugghh aaccqquuiissiittiioonnss..
TThhee ee&& ddiiggiittaall ttrr an
n
sffoorrmmaattiioonn ppaatthh hhaass aacccceelleerraatteedd,, eemmppoowweerriinngg
oouurr ccuussttoommeerrss aa c rroo ssss tthhee ddiiggiittaall mmaarrkkeettppllaaccee rreeaallmm,, ggrroowwiinngg iinn
ffiinntteecchh,, pprroovviiddiinn,t hhoolliissttiicc ddiiggiittaall ssoolluuttiioonnss aanndd eelleevvaattiinngg tthhee
ssttrreeaammiinngg eexx ppeerriiee nncc ee ttoo nneeww hheeiigghhttss.. OOuurr iinnvveessttmmeenntt iinn VVooddaaffoonnee,,
at
ffoorr eexxaammppllee,, hhaa s
s
gg reat ppootteennttiiaall ttoo ddrriivvee vvaalluuee ffoorr bbootthh ccoommppaanniieess
aass wwee eexxpplloorree pp ote e nnttiiaall ccoollllaabboorraattiioonn ooppppoorrttuunniittiieess iinn tthhee rraappiiddllyy
ddeevveellooppiinngg gglloobbaa l tt eelleeccoomm mmaarrkkeett aanndd ssuuppppoorrtt tthhee aaddooppttiioonn ooff
I
nneexxtt --ggeenneerraattiioonn tt ec c hn n ooll oo g g ieess . WWee aarree ccoonnffiiddeenntt tthhaatt tthhee eeffffoorrttss
.
dduurriinngg tthhee ffiirrsstt hhaall ff oo ff 22002222 wwiillll hheellpp uuss bbee eevveenn bbeetttteerr ppoossiittiioonneedd ttoo
!)
bbrriinngg tthhee ffuullll ppaottee nnttii aall ooff tthhee ddiiggiittaall wwoorrlldd ttoo oouurr ccuussttoommeerrss aaccrroossss
aallll sseeggmmeennttss bbyy .ttrr atteeggiiccaallllyy bbuuiillddiinngg bblloocckkss tthhaatt eennaabbllee aa ffuuttuurree --
rreeaaddyy bbuussiinneessss mm oodd eell..
WWee
rreemmaaiinn tthhE_. nnkk ffuull ttoo tthhee UUAAEE lleeaaddeerrsshhiipp,, oouuttssttaannddiinngg
eemmppllooyyeeeess,, ccuussttoomm eerrss aanndd sshhaarreehhoollddeerrss ffoorr tthheeiirr ccoonnttiinnuueedd
ssuuppppoorrtt., OOuurr ssttry ee nngg tthh aanndd ddeetteerrmmiinnaattiioonn rreellyy oonn aa ccoollllaabboorraattiivvee
eeccoossyysstteemm tthhaatt n 0o veedd uuss ttoowwaarrddss tthhee ddeecciissiioonn ooff eexxpplloorriinngg nneeww
i
ppaatthhss aanndd rreeaacchhiinngg nn eeww hhoorriizzoonnss,, 1"1
ICSEarningsRelease - Second Quarter2022 7|Page
Subscribers
Consolidated Subscribers
Aggregate subscribers as at 30 June 2022 was 160 million, 181 15%
reflecting a net addition of 3.9 million during the last 12 month period 171 156 159 160 13%
due to strong subscriber acquisition in Egypt, UAE, Burkina Faso, 161 11%
151
Chad, Benin, Ivory Coast, and Pakistan. Quarter over quarter 7% 9%
141
7%
subscriberbaseincreasedby1.0million. 131
5%
121 2% 2%
111 3%
IntheUAE, we continued solidifying our presencethroughmaintaining
101 1%
high quality services and expanding our subscriber base by
91 -1%
Q2'21 Q1'22 Q2'22
diversifying our product offering. As a result, the active subscriber
base increased by 10% year over year and 1% quarter over quarter to No. of Subscribers (# m) Y-o-Y
13.3 million subscribers in the second quarter of 2022. The mobile
subscriber base increased by 13% year on year to 11.6 million
subscribers attributed to both the postpaid and prepaid segments that
increased by 7% and 14% respectively, supported by population
Q2'22 Breakdown by OpCo
growth and improved macro and business activities. Quarter over
quarter, mobile subscriber base increased by 130 thousand
subscribers predominantly driven by an increase in prepaid 11% 8%
subscribers attributed to a solid uptick in commercial activities. eLife
16%
subscription continues to stay-course it’s growth trajectory driven by
our strong value proposition coupled with our superior network quality.
47%
This combination is helping to drive consistent growth of 3% year on
18%
year increase to 1.1 million subscribers due to double and triple play.
For the broadband segment, subscribers grew 6% year on year to
record1.3millionsubscribers.
UAE Maroc Telecom Egypt Pakistan Others
For Maroc Telecom, the subscriber base reached 74.9 million
subscribers as at 30 June 2022, representing a year over year
increase of 2%. This growth is mainly attributable to the operations in
BurkinaFaso,Chad,BeninandIvoryCoast. UAE Subscribers
14.0
29%
In Egypt, subscriber base increased by a solid 9% year over year and 13.3
13.5 13.1
24%
4%quarteroverquartertoreport29.1millionsubscribers.
13.0 19%
12.5 12.1 10% 14%
In Pakistan subscriber base stood at 25.7 million, representing a year 6%
12.0 9%
over year increase of 1%, attributed to higher subscriber acquisition in 3%
11.5 4%
themobilesegment.Quarteroverquarteralsoincreasedby1%.
11.0 -1%
10.5 -6%
Q2'21 Q1'22 Q2'22
No. of Subscribers (# m) Y-o-YEarningsRelease - Second Quarter2022 8|Page
Consolidated Revenue
Revenue
14.5 17%
Consolidated revenue for the second quarter of 2022 amounted to
15%
14.0 4.2%
AED 13.0 billion, representing a decline of 1.7% in comparison to the 13.2 13.3 13%
13.5 13.0
same period last year and a decrease of 2.5% quarter over quarter. 11%
13.0
9%
Second quarter revenues witnessed significant exchange rate 6%
12.5 7%
volatility in the Egyptian Pound, Pakistani Rupee and Moroccan
5%
12.0
Dirham as a result of global macro-economic turbulence. This was 1% 3%
11.5
mostly offset by strong performance in the UAE and in local currency -1.7% 1%
11.0
performance in Etisalat Egypt and PTCL Group operations. At -1%
10.5 -3%
constant exchange rates, revenue was robust and increased year Q2'21 Q1'22 Q2'22
over year by 4.2% driven by increased connectivity and improved
(AED bn) Y-o-Y
commercialactivities.
Constant Currency Growth Rate
In the UAE, , strong revenue growth in the second quarter of 3% year
on year to AED 7.7 billion. The year over year increase is attributed to
UAE Revenue
momentum in core activities and robust economic growth. Quarter
over quarter, revenue declined by 1% mainly due to lower number of 10.0
visitors post EXPO 2020 and seasonality due to holy month of 7.5 7.8 7.7 17%
8.0
Ramadan. Mobile segment revenue grew year over year by 7% to
12%
AED 2.8 billion as a result of the increase in business activities, 6.0
expansion of subscriber base and outbound roaming positively
4% 7%
4.0 3%
impacting both prepaid and postpaid revenues. Fixed segment
1%
revenue remained relatively stable year over year at AED 2.8 billion 2%
2.0
supported by higher internet and TV services offsetting legacy voice.
Other segment revenue increased year over year by 3% to AED 2.1 0.0 -3%
Q2'21 Q1'22 Q2'22
billion attributedtodigitaland wholesale services.
(AED bn) Y-o-Y
Revenues of International consolidated operations for the second
International Revenue
quarter of 2022 decreased year over year by 9% to AED 5.1 billion
and decreased quarter over quarter by 4%. The decline is primarily 4.7%
5.7 25%
attributable to the unfavourable exchange rate movements in the 6.0 5.4 5.1
E.gyptian Pound, Pakistani Rupee and Moroccan Dirham. At constant 20%
5.0 13%
exchange rates, revenue of international operations increased year 15%
4.0
over year by 4.7%. 10%
3.0
5%
Maroc Telecom consolidated revenue for the second quarter of 2022 2.0 -3% 0%
amounted to AED 3.1 billion, representing a year over year decrease 1.0 -9% -5%
of 11% attributed mainly to the unfavourable exchange movement of
0.0 -10%
MAD against AED and persisting regulatory and competitive pressure Q2'21 Q1'22 Q2'22
in Morocco. In Morocco, revenue decreased year over year in local (AED bn) Y-o-Y
currencyby 1.6%.Themobilesegmentrevenue decreasedby 5%, Constant Currency Growth RateEarnings Release SSeeccoonndd QQuuaarrtteerr 22002222
-- 99
II
PP aa gg
RReevveennuuee (( CC (-o o nnttii n n u uee dd......))
ssttiillll ssttrroonnggllyy iimmppaaacccttte(e dd bbyy aann uunnffaavvoorraabbllle,e rreegguullaattoorryy aanndd ccoommppeettiittiivvee
c---
eennvviirroonnmmeenntt.. TThhiissis hhoowweevveerr wwaass ppaarrttiiaallllyy ooffffsseett bbyy rreevveennuuee ooff tthhee
ffiixxeedd sseeggmmeenntt wwt,h hiicchh iinnccrreeaasseecd d. bbyy 2/-2-.%/ %13/ dduuee ttoo tt thhii ee, ggrroowwtthh ooff ffiixxeedd
bbrrooaaddbbaanndd bbyy 669% O. . RReevveennuueess fffirr ooummiii iinntteerrnnaattiioonnaall oopppe-e.rr aa-titioi onnss ""MIVoIooovv
AAffrriiccaa"" iinnccrreeaasseedd bbyy 11%% ) yyeeaarr oovveerr yyeeaarr iinn llooccaall ccuurrrreennccyy dduuee ttoo ssttrroonngg
ppeerrffoorrmmaannccee ooff mmiiuooubbniillece ddaattaa,, rreessuullttiinngg iinn 4 44 99/A 0%/n 0/ c^co^o -nnttt-rrli i-b bo uttioionn ttLoo., MMM,aa rroocc
TTeellleeecc-oo-mm.- GGrroouupp''ss ccoonnssoolliiddaatteedd rreevveennuuee..
IInn FEE ggyypptt,, rreevveennuuee ffoorr tthhee sseeccoonndd qquuaarrtteerr ooofff 22002222 -ww-aa-ss, A ,A EEDD 11..22 b.b,i,illIllil iioonn,,
rreemmaaiinniinngg ssttaabbllee yyeeaarr oonn yyeeaarr.. IInn llooccaall ccuurrrreennccyy hhoowweevveerr,, rreevveennuuee
iinnccrreeaasseedd bbyy 1188%% mmaaiinnllyy dduuee ttoo ssttrroonngg ccoonnnttrr'ii'bb, uuttiioo^nn^ frfrrroo^mm^ ddaattaa,, aanndd
(
vvooiiccee aanndd wwhhoolleessaallee rreevveennuuee..
IInn PPaakkiissttaann oopppeeerrraaattti<iioo nnss,, rreevvee e nnnuuueee fffooorrr ttthhheee ssee - cc - oo - nndd qquuaarrtteerr wwaass A /A A EEI- DD 0n 0 ..777
bbiilllliioonn,, rreepprreesseennttiinngg aa yyeeaarr oovveerr yyeeaarr aanndd qquuaarrtteerr oovveerr qquuaarrtteerr
nnz
ddeeccrreeaassee ooofff 1133%% aanndd .335%%%O -rr eessppeeccttiivveellyy,, (dd uuee ttoo uuu nnnfffaaa vvoouurraabbllee eexxcchhaannggee
rraattee mmoovveemmeennttss ooff tttuhhfeet, P ,P aakkiissttaannii RR, uuppeeee aaggaaiinnsssttt AAA \EE I- DD.. III nn llooccaall r
-,-
ccuurrrreennccyy,, rreevveennuuee iinnccrreeaasseeds d bbyy 88%% yyeeaarr oovveerr yyeeaarr ddrriivveenn bbyy mmoobbiillee
aanndd ffiixxeedd ddaattaa,, ccoorrppoorraattee sseeggmmeenntt aanndd
I
Lgg rroowwtthh iinn U tU
.
BBaa nnkk..
I/CCEEEarningsRelease - Second Quarter2022 10|Page
Consolidated Operating
Operating Expenses
Expenses
Consolidated operating expenses for the second quarter of 2022
10.0
was AED 8.1 billion, a decrease of 3% compared to the same quarter 8.4 8.3 8.1 35%
of the previous year and a decrease of 2% from the first quarter of 8.0 25%
2022. The decrease highlights the Company’s continuous efforts to 12%
6.0 15%
control and optimize costs to offset inflationary pressure exemplifying
sound cost discipline. As a result, we experienced lower marketing, 4.0 -1% -3% 5%
staff,depreciation andnetwork costs,amongothers.
2.0 -5%
Key components ofQ22022operatingexpenses are: 0.0 -15%
Q2'21 Q1'22 Q2'22
 Direct cost of Sales decreased year over year by 1% to AED 3.2
(AED bn) Y-o-Y
billion in the second quarter of 2022, while also decreased by 1%
quarter over quarter. As a percentage of revenue, it remained
steadyyear over year at25% inthesecondquarter.
 Staff expenses decreased year over year by 4% to AED 1.1 Q2'22 OPEX Breakdown by
billion forthe secondquarter of 2022 anddecreased by3%quarter OpCo
over quarter. As a percentage of revenue, staff costs remained
stable year over year at9% inthesecondquarter.
13%
2%
 Depreciation and Amortisation decreased year over year by 7% 8% 39%
to AED 1.9 billion in the second quarter of 2022 and decreased by
5% quarter over quarter. As a percentage of revenue, depreciation 23%
and amortisation expenses decreased by 1 percentage point year 14%
over year to 14% for the second quarter and remained steady as
comparedtotheprevious quarter.
Direct cost of Sales Staff expenses
 Network Costsdecreased by8% year over year toAED 0.7billion Depreciation and Amortisation Network costs
in the second quarter of 2022 and decreased by 12% quarter over Marketing expenses Other
quarter. As a percentage of revenue, network costs remained
stable year over year and decreased by 1 percentage point quarter
over quarterto5%.
Consolidated OPEX as % of
 Marketing expenses decreased year over year by 19% to AED Revenue
. 0.2 billion in the second quarter of 2022, while decreased by 15%
100%
quarter over quarter. As a percentage of revenue, marketing
90%
expenses remained steady on both a year over year and quarterly
80%
basis at2%in thesecondquarter. 70% 63% 62% 63%
60%
 Other operating expenses increased by 10% year over year to
50%
AED 1.1 billion in the second quarter and increased by 16%
40%
quarter over quarter mostly attributed to forex losses. As a
30%
percentage of revenue, other operating expenses was 8%,
20%
increasing by 1 percentage point year over year and quarter over
10%
quarter. 0%
Q2'21 Q1'22 Q2'22EarningsRelease - Second Quarter2022 11|Page
EBITDA Consolidated EBITDA
7.0
Group consolidated EBITDA for the second quarter of 2022
6.9 6.8 5.5% 65%
remained stable versus its comparable period the previous year and
6.8
6.6 6.6
declined by 2.3% quarter on quarter to AED 6.6 billion, resulting in 6.7
60%
EBITDA margin of 51%, an uptick of 1 percentage point compared to 6.6
6.5
the prior year and stable quarter on quarter. The year over year slight 55%
6.4 51% 51%
increase is mainly attributed to the UAE and Egypt operations that 50%
6.3
reported strong growth in AED compensated for the decline in other 6.2 50%
international operations that were impacted by unfavourable foreign 6.1
6.0 45%
exchange rate movements. At constant exchange rates, Group Q2'21 Q1'22 Q2'22
consolidated EBITDAincreasedyear over year by5.5%.
(AED bn) EBITDA Margin
Constant Currency Growth Rate
In the UAE, EBITDA in the second quarter of 2022 was AED 4.1
billion, representing a 6% increase year over year and leading to an
UAE EBITDA
EBITDA margin of 53%, 1 percentage point higher than the second
quarter of the previous year. Quarter over quarter, EBITDA increased 5.0 90%
by 1% and EBITDA margin by 1 percentage point. The year over 4.5 3.9 4.0 4.1
80%
4.0
year increase in EBITDA is attributed to higher revenue and
3.5
70%
continuedcostcontrol.
3.0
2.5 52% 52% 53% 60%
2.0
EBITDA of International consolidated operations decreased by 6%
50%
1.5
year over year and by 2% quarter over quarter to AED 2.5 billion in
1.0
40%
the second quarter, resulting in a 38% contribution to the group’s 0.5
consolidated EBITDA. This drop is attributed mainly to foreign 0.0 30%
Q2'21 Q1'22 Q2'22
currency devaluation against AED. At constant exchange rates,
(AED bn) EBITDA Margin
EBITDAofinternationaloperationsincreasedyear over year by 7%.
Maroc Telecom’s consolidated EBITDA for the second quarter of
International EBITDA
2022 decreased by 9% to AED 1.7 billion and resulted in an EBITDA
margin of 56%, 1 percentage point higher than the same period in the
3.5 90%
7%
prior year. In MoroccanDirhams, EBITDA in absolute terms increased
. 3.0 2.7 2.6 2.5 80%
by 1% year over year attributed to both Moroccan and international
2.5
operationswhose EBITDAeachgrewby1%. 70%
2.0
60%
1.5 48% 48% 49%
In Egypt, EBITDA in the second quarter increased year on year by
50%
12% to AED 0.6 billion and EBITDA margin increased by 5 1.0
percentage points to 48%. In local currency, EBITDA increased by 0.5 40%
33% despite inflationary pressure, due to higher revenue and cost
0.0 30%
Q2'21 Q1'22 Q2'22
controlmeasures.
(AED bn) EBITDA Margin
Constant Currency Growth RateEarningsRelease - Second Quarter2022 12|Page
Net Profit & EPS
EBITDA(Continued…)
3.0 0.60
In Pakistan, EBITDA in the second quarter of 2022 decreased year 2.4 2.4 2.4
on year by 20% and quarter over quarter by 6% to AED 0.2 billion 2.5 0.50
with EBITDA margin decreasing year over year by 2 percentage
2.0 0.40
points to 28% and decreasing 1 percentage point quarter over 0.28 0.28 0.28
1.5 0.30
quarter. In local currency, EBITDA remained steady, impacted by
higher energy and utility costs, advances income tax and inflationary 1.0 0.20
pressure.
0.5 0.10
0.0 0.00
Net ProfitAfter Federal Royalty Q2'21 Q1'22 Q2'22
Net Profit (AED bn) EPS (AED)
Consolidatednet profitafterfederalroyaltyattributedtothe owners
of thecompany increased year over year by1.5% to AED 2.4 billion in
the second quarter of 2022 and net profit margin increased by 0.6
Dividend Per Share (AED)
percentage point to 19%. This increase is attributed to higher income
from associates, lower depreciation, and amortization expenses and
0.6
lower minority interest that compensated for the impact of forex
losses,higherinterestexpensesandtheregulatoryfineinMorocco. 0.5
0.4 0.4 0.4
0.4
Earnings per share (EPS) amounted to AED 0.28 in the second
quarter, an increase of 1.5% as compared to EPS of the same period
0.3
lastyear.
0.2
Interim Dividends
0.1
On 1 August 2022, the Board of Directors approved an interim
0
H1'20 H1'21 H1'22
dividend distributionfor the six months period ended 30 June 2022 at
therateof 40fils per share. Shareholders registered intheCompany’s
Shareholders Register at the end of 11 August 2022, will be eligible
forthedividenddistribution. Interim Dividend Payout (%)
100.00%
. 90.00%
80.00% 70.18% 73.31% 71.50%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
H1'20 H1'21 H1'22EarningsRelease - Second Quarter2022 13|Page
Consolidated CAPEX
CAPEX
Consolidated capital expenditure increased by 13% year over year 3.0 46%
to AED 1.8 billion in the second quarter of 2022 resulting in a capital 41%
2.5
intensity ratio of 14%, 2 percentage points higher than the same 36%
1.8
period of the prior year. Capital spending was driven by our ongoing 2.0 1.6 1.6 31%
26%
network enhancements in several markets to support increased 1.5
14% 21%
demand for connectivity and ongoing network modernization. This 12% 12%
1.0 16%
includes the expansion of fibre network in the countries in Maroc 11%
0.5
Telecom Group and Pakistan as well as the expansion of mobile 6%
networkscoverageinEgypt,PakistanandMoovAfrica. 0.0 1%
Q2'21 Q1'22 Q2'22
(AED bn) Capex/Revenue (%)
In the UAE, capital expenditure during the quarter amounted to AED
0.4 billion, a 22% decrease in comparison to the same period last
year. Capital intensity ratio was 5%, representing 2 percentage points
lower than the same quarter of the prior year and 1 percentage point
higher than the first quarter of 2022. Capital spending focused on Q2'22 CAPEX Breakdown by
OpCo
network modernization and capacity enhancement in addition to 5G
rollout.
1%
8%
22%
Capital expenditures in consolidated international operations in the
17%
second quarter of 2022 increased by 29% to AED 1.4 billion
compared to the same period last year and increased by 15%
compared to the previous quarter. International operations
represented78%ofthegroup’stotalcapitalexpenditure.
52%
In Maroc Telecom, capital expenditure for the second quarter
increased by 36% year over year and by117% quarter over quarter to UAE Maroc Telecom Egypt Pakistan Others
AED 1.0 billion, resulting in a capital intensity ratio of 31%. Capex
spend in Morocco decreased year over year by 5% and was focused
20%
on the fibre-to-the-home (FTTH) network, enhancing capacity and 4G
UAE CAPEX
1000
coverage expansion. However, on the international front, capex spend 18%
increased year over year by 159% with spend focusing on networks 16%
800
expansion and upgrades to support the growth in traffic and customer
. 14%
baseandFTTH networksrollouttonewcountries.
600 509 12%
400 10%
In Egypt, capitalexpenditureforthe secondquarter increased by70% 360
400 7%
year over year to AED 0.3 billion resulting in a capital intensity ratio of 8%
5%
26%, 11 percentage points higher than the same period of the prior 5% 6%
200
year. Capital spending focused on 4G deployment post spectrum
4%
acquisitionandupgradingofnetworkcapacity.
0 2%
Q2'21 Q1'22 Q2'22
(AED m) Capex/Revenue (%)EarningsRelease - Second Quarter2022 14|Page
CAPEX (Continued…) Total Debt (AED bn)
39.7
In Pakistan, capital expenditure for the second quarter decreased by
40.5
31% year over year to AED 0.1 billion resulting in a capital intensity
35.5
ratio of 20%, 5 percentage points lower than the prior year. Capital
spending focused on expansion of the mobile network’s coverage and 30.5
enhancementofthefixednetwork’scapacity. 24.5 24.2
25.5
20.5
15.5
Debt
10.5
Q2'21 Q1'22 Q2'22
Total consolidated debt amounted AED 39.7 billion as of 30 June
2022, as compared to AED 25.7 billion as at 31 December 2021; an
increase of AED 14.0 billion. This increase is mainly attributed to bank
borrowingstofinancetheinvestmentinVodafoneGroup.
Q2’22 Borrowings by
Currency (%)
Consolidated debt breakdown by operations as of 30 June 2022
isasfollowing:
6%
 Group (AED31.5billion) 18%
 MarocTelecomGroup(AED4.7billion)
55%
 PTCLGroup(AED1.9billion)
21%
 EtisalatMisr(AED1.5billion)
Around 87% of the debt balance is of long-term maturity that is due
beyondthesecondquarterof2023.
USD EURO Others MAD
Currency mix for external borrowings is 55% in USD, 21% in Euros,
6%inMAD,5%inAEDand13%in othercurrencies.
Repayment Schedule
Consolidated cash balance amounted to AED 25.2 billion as of 30
(AED bn)
June 2022 leading to a net debt position of AED 14.5 billion and a Net
Debt/EBITDAratioofonly0.54x 25.0 21.9
.
20.0
15.0
8.7
10.0
5.2
3.9
5.0
0.0
Within 1 1-2 Yrs 2-5 Yrs Beyond
Yr 5 YrsEarningsRelease - Second Quarter2022 15|Page
PerformanceAgainst Guidance FY2022
First half 2022 performance exceeded full year management’s guidance in constant currency
across all key financial metrics
Key Financial Guidance Actual 6M 2022 Actual 6M 2022
Metrics FY 2022 (Reported) (Constant Currency)
Revenue Growth Low single digit
-0.4% +3.8%
(%) growth
EBITDA Margin
~ 49% 51.1% 50.9%
(%)
EPS
~ 1.08 0.56 0.56
(AED)
Capex/ Revenue
16.5% - 17.5% 13.2% 13.2%
(%)
.EarningsRelease - Second Quarter2022 16|Page
Key Financial Highlights
P&LStatement:
(AED m) Q2'21 Q1'22 Q2'22 QoQ YoY
Revenue 13,216 13,331 12,996 -2.5% -1.7%
EBITDA 6,641 6,801 6,644 -2.3% +0.1%
EBITDA Margin 50.3% 51.0% 51.1% +0.1 pp +0.9 pp
Federal Royalty (1,416) (1,427) (1,450) +1.6% +2.4%
Net Profit 2,395 2,434 2,431 -0.1% +1.5%
Net Profit Margin 18.1% 18.3% 18.7% +0.5 pp +0.6 pp
BalanceSheet:
December June
(AED m)
2021 2022
Cash & Bank Balances 28,575 25,197
Total Assets 128,197 138,481
Total Debt 25,732 39,679
Net Cash / (Debt) 2,843 (14,482)
Total Equity 57,564 55,005
CashflowStatement:
(AED m) 6M’ 2021 6M’ 2022
. Operating 3,999 2,898
Investing (1,480) (16,922)
Financing (9,982) 10,500
Net change in cash (7,463) (3,524)
Effect of FX rate changes 392 280
Reclassified as held for sales 6 (134)
Ending cash balance 24,280 25,197EarningsRelease - Second Quarter2022 17|Page
Foreign Exchange Rates
Average Rates Closing Rates
Q2’21 Q2’22 YOY Q2’21 Q2’22 YOY
EGP - Egyptian Pound 0.2343 0.1977 -15.63% 0.2344 0.1953 -16.65%
SAR - Saudi Riyal 0.9793 0.9791 -0.02% 0.9793 0.9788 -0.05%
CFA - Central African Franc 0.0067 0.0060 -11.56% 0.0067 0.0058 -12.96%
PKR - Pakistani Rupee 0.0239 0.0191 -20.02% 0.0233 0.0179 -22.88%
AFA - Afghanistan Afghani 0.0466 0.0414 -11.19% 0.0459 0.0411 -10.46%
MAD - Moroccan Dirham 0.4120 0.3700 -10.18% 0.4132 0.3630 -12.15%
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, andassists inthe evaluation of our capacity tomeet ourfinancial obligations.We also use EBITDA
as an internal measurement tool and, accordingly, we believe that the presentation of EBITDA provides
usefuland relevant informationtoanalysts andinvestors.
Our EBITDA definition includes revenue, staff costs, direct cost of sales, regulatory expenses, operating
lease rentals,repairsandmaintenance,generalfinancial expenses, andotheroperatingexpenses.
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) Q2'21 Q1'22 Q2'22
EBITDA 6,641 6,801 6,644
Depreciation & Amortization (2,001) (1,974) (1,866)
Exchange Gain/ (Loss) (24) 5 (155)
Share of Associates and JV’s results 68 11 89
Impairment and other losses 0 0 0
Operating Profit before Royalty 4,685 4,843 4,712EarningsRelease - Second Quarter2022 18|Page
Disclaimer
Emirates Telecommunications Group Company PJSC and its subsidiaries (“e&” or the “Company”) have
prepared thispresentation (“ Presentation”) ingoodfaith, however, no warrantyor representation, express or
implied is made as to the adequacy, correctness, completeness or accuracy of any numbers, statements,
opinionsorestimates,orotherinformationcontainedinthisPresentation.
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
theactualdocumentationmustbereferredtoforitsfulleffect.
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
theseforwardlookingstatements.
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 telecom and technology conglomerates 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).
TheGroup’s shareholding structure consists of 60% heldbytheEmirates InvestmentAuthorityand40%free
float.e&(Ticker:Etisalat)isquotedontheAbuDhabiSecuritiesExchange(ADX).
Investors
InvestorRelations
Email:ir@eand.com
Website:www.eand.com

Sentiment: neutral