Emirates Telecommunications Group
Company PJSC
Earnings Release - Third Quarter 2022
1 November 2022EarningsRelease - Third Quarter2022 2|Page
Despite the increasing macroeconomic challenges, e& exhibited
resiliency of its operations by achieving significant top-line growth in
constant currency across all key operations and improved profitability
Financial Highlights for Q3 2022
Aggregate Subscriber Consolidated Reported
Base Revenues
162 AED 13.0
million billion
Representing a year over
Representing a year over year decline of 2% ; at
year increase of 4% constant currency
growth of 6%
Consolidated Reported Consolidated Net
EBITDA Profit After Royalty
AED 6.7 AED 2.5
billion billion
Growth remained stable year
over year ; at constant Representing a year over
year increase of 2% with a
currency growth of 7%
and an EBITDA Margin of net profit margin of 19%
52%
Consolidated Capital Operating Free
Spending Cashflow
AED 1.6 AED 5.1
billion billion
Representing a Y-o-Y decrease
of 41% with an intensity ratio Representing a year over
of 12%; excluding spectrum year increase of 27%
and licenses acquisition costs,
CAPEX declined by 2%EarningsRelease - Third Quarter2022 3|Page
Delivering an outstanding y-o-y performance in constant
currency leading to long-term shareholder value creation
Financial Highlights for 9M 2022
Aggregate Subscriber Consolidated Reported
Base Revenues
162 AED 39.3
million billion
Representing a year over Representing a slight 1%
year increase of 4% decrease year over year; at
constant currency
growth of 4%
Consolidated Reported Consolidated Net
EBITDA Profit After Royalty
AED 20.2 AED 7.3
billion billion
Growth remained stable year
Representing a year over
over year ; at constant
year increase of 2% with a
currency growth of 5%
net profit margin of 19%
and an EBITDA Margin of
51%
Consolidated Capital Operating Free
Spending Cashflow
AED 5.1 AED 15.1
billion billion
Representing a year over Representing a year over
year decrease of 6% with an year increase of 2%
intensity ratio of 13%
FY 2022 Guidance
Improved guidanceEarningsRelease - Third Quarter2022 4|Page
Key Developments in Q3 2022
StarzplayArabia
e& money
E-Vision, a subsidiary of e&, and ADQ, an
eWalletwas rebranded into e& money
Abu Dhabi-based investment and holding
aiming to revolutionise the customer
company, successfully completed the
experience through its innovative financial
acquisition of 57 percent of Starzplay
super app marketplace.
Arabia, a subscription video on demand
(SVSOD) and streaming service provider in e& universe
the Middle East and North Africa.
e& enters the metaverse with the launch of
its virtual world e& universe, leveraging its
5G technology.
FORMULA 1
e& entered into a multi-year strategic
engageX
partnership with Abu Dhabi Motorsports
e& enterprise announced the launch of
Management as a founding partner of
engageX, a growing Communications
Formula 1 Etihad Airways Abu Dhabi Grand
Platform as a Service (CPaaS) ecosystem
Prix, the Middle East’s largest sporting
that customisesany end-user customer
event.
experience journey with seamless, multi-
channel communications.
First 6GHz Test in MENA Region
Digital Insurance with AIG
etisalat by e& in the UAE announced the
e& international partnered with AIG, to build
successful completion of its first trial of the
a unique digital insurance offering across
6GHz spectrum, opening up a world of
select markets, where the product is
possibilities for next-generation technologies
accessed through various digital channels,
and economies of the future.
including mobile apps.
e& capital VC Fund MoneyGram Partnership
e& capital disclosed its USD 250 million e& and MoneyGram International
Venture Capital fund announcing its first two announced an expansion of their strategic
deals. e& capital will further drive the tech partnership enabling e&'s large and fast-
ecosystem through larger investments at the growing customer base to send and receive
growth stage beyond its VC fund. money through mobile wallets across its
footprint in near real-time.
Smartworld Currency Headwinds
e& enterprise completed its acquisition of Third quarter witnessed continuation of
Smartworld which has been rebranded to unfavourablecurrency depreciation of the
“e& enterprise IoT and AI”. Euro,MAD, PKR, and EGP against AED.Earnings R ease - T hird Quarter 2022 5 | P a g e
State ment from Hatem Dowid ar,
G Chief Executive Offi cer of e&
roup
e&’s performa nce Q3 2022
for
the benefit of our the
W
dopting flexible
Gi & was built on strong foundations, we
ent in leading change for growth by
ur commitment to enhancing the
r innovative solutions to meet and
customer expectations through the
accelerated igitalisation seen in the business
W will continue our efforts to seize new
ortunities and pursue strong
that will ultimately maximise the
holistic digital transformation for our
d the societies we serve.
W like to extend UAE
ntinue to
W th
stomers w avering
for their
to Make
P O g digital
b da s we
fro regio nal
results for the
benefit of aEarningsRelease - Third Quarter2022 6|Page
Subscribers
Aggregate Subscribers
Aggregate subscribers as at 30 September 2022 stood at a solid 181 15%
162 million, recording the highest number of subscribers in the 171 160 162 13%
155
Group’s history. This translated to a net addition of 6.2 million during 161 11%
151
thelast12-monthperiod,mainlyduetostrong subscriber acquisitionin 9%
141
7%
Egypt, UAE, Mali, Burkina Faso, Ivory Coast, Chad, Benin and 131 4% 4%
Pakistan. Quarter over quarter subscriber base increased by 1.6 121 2% 5%
111 3%
million.
101 1%
91 -1%
Q3'21 Q2'22 Q3'22
IntheUAE, we continued solidifying our presence through maintaining
high quality services and expanding our subscriber base by No. of Subscribers (# m) Y-o-Y
diversifying our product offering. As a result, the active subscriber
base increased by 11% year over year and 1% quarter over quarter to
report 13.3 million subscribers in the third quarter of 2022. The mobile
subscriber base increased by 12% year on year to reach 11.6 million
Q3'22 Breakdown by OpCo
subscribers attributed to solid year on year growth in both the prepaid
and postpaid segments, up year over year 15% and 5% respectively,
supported by population growth and improved business and 11% 8%
commercial activities. eLife subscription continues to stay-course its
16%
growth trajectory driven by our strong value proposition coupled with
our superior network quality. This combination is helping to drive
47%
consistent growth of 4% year on year to 1.1 million subscribers due to
18%
increase in both double and triple play subscriptions. This funnels
down to growth in the broadband segment where subscribers
witnessed an uptick of 7% year on year to record 1.3 million
UAE Maroc Telecom Egypt Pakistan Others
subscribers.
For Maroc Telecom, the subscriber base reached 75.6 million
subscribers as at 30 September 2022, representing a year over year
increase of 4%. This growth is mainly attributable to the operations in UAE Subscribers
Mali,BurkinaFaso,IvoryCoastChadandBenin.
14.0
29%
13.3 13.3
13.5
24%
In Egypt, subscriber base witnessed double-digit growth, increasing
13.0 19%
byarobust10%yearoveryeartoreport29.7millionsubscribers. 11%
12.5 12.0 10% 14%
12.0 9%
In Pakistan subscriber base stood at 25.9 million, representing a year
11.5 -1% 4%
over year increase of 3%, attributed to higher subscriber acquisition in
11.0 -1%
themobileandFTTHsegments.
10.5 -6%
Q3'21 Q2'22 Q3'22
No. of Subscribers (# m) Y-o-YEarningsRelease - Third Quarter2022 7|Page
Consolidated Revenue
Revenue
14.5 17%
Consolidated reported revenue for the third quarter of 2022
15%
14.0 5.5%
amounted to AED 13.0 billion, representing a decline of 2% in 13.3 13%
13.5 13.0 13.0
comparison to the same period last year and remained relatively 11%
13.0
9%
stable quarter over quarter. Third quarter revenue also witnessed
12.5 7%
significant exchange rate volatility in the Egyptian Pound, Pakistani
5%
12.0 2%
Rupee and Moroccan Dirham as a result of global macro-economic 3%
11.5
turbulence. This was mostly offset by strong performance in the UAE -2% 1%
-2%
11.0
and strong local currency growth in Etisalat Egypt, Maroc Telecom, -1%
10.5 -3%
and PTCL Group operations. At constant exchange rates, revenue Q3'21 Q2'22 Q3'22
was robust and increased year over year by 6% driven by growth
(AED bn) Y-o-Y
acrossallofourkeymarkets.
Constant Currency Growth Rate
In the UAE, strong revenue growth in the third quarter of 3% year on
year to AED 7.7 billion. The year over year increase is attributed to
UAE Revenue
ongoing recovery in the business activities from the pandemic and
robust economic growth. Quarter over quarter, revenue remained 10.0
17.0%
relatively stable despite summer seasonality. Mobile segment 7.4 7.7 7.7
8.0
continued its strong year over year revenue growth at 6% to AED 2.9
12.0%
billion as a result of the increase in business activities and expansion 6.0
of its subscriber base. This resulted in strong growth in mobile data
7.0%
4.0 3% 3%
and outbound roaming positively impacting both prepaid and postpaid
revenues. Fixed segment revenue increased by a slight 0.5% year -0.2% 2.0%
2.0
over year reaching AED 2.8 billion, supported by higher internet and
TV services offsetting legacy voice. Other segment revenue increased 0.0 -3.0%
Q3'21 Q2'22 Q3'22
year over year by 4% to AED 2.0 billion attributed to higher wholesale
(AED bn) Y-o-Y
andhandsetsales.
International Revenue
Reported revenues of e& international for the third quarter of 2022
decreased year over year by 11% to AED 5.1 billion and remained 7.8%
5.7 30%
stable quarter on quarter. The decline is primarily attributable to the
6.0 5.1 5.1 20%
u.nfavourable exchange rate movements in the Egyptian Pound, 7%
5.0 10%
Pakistani Rupee and Moroccan Dirham. At constant exchange
4.0 -9% -11% 0%
rates, revenue of e& international remained resilient increasing
-10%
yearoveryear by8%. 3.0
-20%
2.0
-30%
Maroc Telecom consolidated revenue for the third quarter of 2022
1.0
-40%
amounted to AED 3.1 billion, representing a year over year decrease
0.0 -50%
of 13% attributed mainly to the unfavourable exchange movement of Q3'21 Q2'22 Q3'22
MAD against AED. In local currency, revenue increased year over (AED bn) Y-o-Y
yearby3%. Constant Currency Growth RateE Rel rter2022 8 | P a g e
R (C
perati enue growth year over
of 3%, in the
of the bile by 1% benefiting from
n al ity , while re the fixed
d by 5% due to the growth of fixed broadband by
8% R from perati M Afri c
by 2% MAD strong performan
bile 46% ntributi Tel G
In E enue for the third q rter of 2022 AED 1.3
billi witnessing light 2%
lid 19%
perati reported the third
AED 0.6 bill of 18%,
R
reducti
Ad T
12%
w th in UBank.EarningsRelease - Third Quarter2022 9|Page
Consolidated Operating
Operating Expenses
Expenses
Consolidated operating expenses for the third quarter of 2022 was
10.0
AED 8.0 billion, a decrease of 4% compared to the same quarter of 8.4 8.1 8.0 35%
the previous year and a decrease of 1% from the second quarter of 8.0 25%
2022. The decrease highlights the Group’s continuous efforts to
6.0 8% 15%
control and optimize costs to offset inflationary pressure exemplifying
sound cost discipline. As a result, we experienced lower marketing, 4.0 -3% -4% 5%
staff,depreciationandconsultancycosts,amongothers.
2.0 -5%
Key componentsofQ32022operatingexpenses are:
0.0 -15%
Q3'21 Q2'22 Q3'22
▪ Direct cost of Sales witnessed a slight increase year over year by
(AED bn) Y-o-Y
3% to AED 3.2 billion in the third quarter of 2022, while also
remaining relatively the same quarter over quarter. As a
percentage of revenue, it grew by 1 percentage point year over
year toreach25% in thethirdquarter.
Q3'22 OPEX Breakdown by
▪ Staff expenses decreased year over year by 12% to AED 1.0 OpCo
billion for the third quarter of 2022 and decreased by 8% quarter
over quarter. As a percentage of revenue, staff costs declined 1 13%
2%
percentagepoint year over year toreach8%in thethirdquarter.
9% 40%
▪ Depreciation and Amortisation decreased year over year by 8%
toAED 1.8billion in thethird quarter of 2022 anddecreasedby2%
23%
quarter over quarter. As a percentage of revenue, depreciation and
13%
amortisation expenses decreased by 1 percentage point year over
year to 14% for the third quarter and remained steady as
comparedtotheprevious quarter. Direct cost of Sales Staff expenses
Depreciation and Amortisation Network costs
▪ Network Costsdecreased by1% year over year toAED 0.7billion Marketing expenses Other
in the third quarter of 2022 and increased by 7% quarter over
quarter. As a percentage of revenue, network costs remained
stable on both a year over year and quarter over quarter basis at
5%. Consolidated OPEX as % of
Revenue
▪ Marketing expenses decreased year over year by 24% to AED
0.2 billion in the third quarter of 2022, while decreased by 5% 100%
90%
quarter over quarter. As a percentage of revenue, marketing
80%
expenses remained steady on both a year over year and quarter
70% 63% 63% 62%
over quarterbasis standingat1% inthethirdquarterof2022.
60%
50%
▪ Other operating expenses decreased by 4% year over year to
40%
AED 1.1 billion in the third quarter and decreased by 3% quarter
30%
over quarter mostly attributed to lower regulatory and consultancy
20%
costs. As a percentage of revenue, other operating expenses was
10%
8%,remainingstableyear over year andquarterover quarter.
0%
Q3'21 Q2'22 Q3'22EarningsRelease - Third Quarter2022 10|Page
EBITDA Consolidated EBITDA
7.0 6.9%
Group reported consolidated EBITDA for the third quarter of 2022
6.9
remained stable versus its comparable period in the previous year 6.8 6.7 6.7 65%
6.6
and grew by 1% quarter on quarter to AED 6.7 billion, resulting in 6.7
60%
EBITDA margin of 52%, an uptick of 1 percentage point compared to 6.6
6.5
the prior year and prior quarter. Year over year, the UAE and Egypt 6.4 51% 51% 52% 55%
operations reported strong growth in AED however international
6.3
operations were impacted by unfavourable foreign exchange rate 6.2 50%
movements. At constant exchange rates, Group consolidated 6.1
6.0 45%
EBITDA increasedyear over year by7%. Q3'21 Q2'22 Q3'22
(AED bn) EBITDA Margin
In the UAE, EBITDA in the third quarter of 2022 was AED 4.1 billion,
Constant Currency Growth Rate
representing a solid 7% increase year over year and leading to an
EBITDA margin of 53%, 2 percentage points higher than the third
UAE EBITDA
quarter of the previous year. Quarter over quarter, EBITDA increased
by 1% and EBITDA margin remained stable. The year over year 5.0 90%
increase in EBITDA is attributed to higher revenue and continued cost 4.5 3.8 4.1 4.1
80%
4.0
control.
3.5
70%
3.0
Reported EBITDA of e& international decreased by 9% year over 2.5 52% 53% 53% 60%
2.0
year and remained stable quarter over quarter to report AED 2.5
50%
1.5
billion in the third quarter, resulting in a 38% contribution to the
1.0
40%
Group’s consolidated EBITDA. This drop is attributed mainly to 0.5
foreign currency devaluation against AED. At constant exchange 0.0 30%
Q3'21 Q2'22 Q3'22
rates, EBITDA of e& international increased year over year by
(AED bn) EBITDA Margin
9%.
Maroc Telecom’s reported consolidated EBITDA for the third quarter
International EBITDA
of 2022 decreased by 11% to AED 1.7 billion and resulted in an
EBITDA margin of 56%, 1 percentage point higher than the same
3.5 90%
9.0%
period in the prior year. In Moroccan Dirhams, EBITDA in absolute 2.8
. 3.0 2.5 2.5 80%
terms increased by 5% year over year attributed to both Moroccan
2.5
and Moov Africa operations whose EBITDA grew by 6% and 3% 70%
2.0
respectively.
60%
1.5 48% 49% 49%
50%
In Egypt, reported EBITDA in the thirdquarter increased year on year 1.0
by 2% to AED 0.6 billion and EBITDA margin increased by 2 0.5 40%
percentage points to 48%. In local currency, EBITDA increased by
0.0 30%
Q3'21 Q2'22 Q3'22
24% despite inflationary pressure, due to higher revenue and cost
controlmeasures. (AED bn) EBITDA Margin
Constant Currency Growth RateEarningsRelease - Third Quarter2022 11|Page
Net Profit & EPS
EBITDA(Continued…)
3.0 0.60
In Pakistan, reported EBITDA in the third quarter of 2022 decreased 2.4 2.4 2.5
year on year by 27% and quarter over quarter by 15% to AED 0.2 2.5 0.50
billion with EBITDA margin decreasing year over year by 3
2.0 0.40
percentage points to 26% and decreasing 2 percentage points quarter 0.28 0.28 0.29
1.5 0.30
over quarter. In local currency, EBITDA grew 1% year over year,
despite higher staff and network costs due to higher energy and utility 1.0 0.20
costs.
0.5 0.10
0.0 0.00
Net ProfitAfter Federal Royalty Q3'21 Q2'22 Q3'22
Net Profit (AED bn) EPS (AED)
Consolidated net profit after federal royalty attributed to the
owners of the company increased year over year by 2% to AED 2.5
billion in thethirdquarter of 2022 and net profit margin increased by1
percentage point to 19%. This increase is attributed to higher income
from associates, lower depreciation, and amortization expenses that
compensated for the impact of higher forex losses, higher net finance
andothercostsandfederalroyaltycharges.
Earnings per share (EPS) amounted to AED 0.29 in the third
quarter, an increase of 2% as compared to EPS of the same period
last year.
.EarningsRelease - Third Quarter2022 12|Page
Consolidated CAPEX
CAPEX
Consolidated capital expenditure decreased by41% year over year 3.0 2.7 46%
to AED 1.6 billion in the third quarter of 2022 resulting in a capital 41%
2.5
intensity ratio of 12%, 8 percentage points lower than the same 36%
1.8
period of the prior year. On a like-for-like basis, excluding spectrum 2.0 1.6 31%
21% 26%
and licenses acquisition costs, capital expenditure decreased year 1.5
14% 21%
over year by 2%. Capital spending was driven by our ongoing 12%
1.0 16%
commitment to expand our superior quality network, reinforcing our 11%
0.5
leadership position. This includes the deployment of 5G network in 6%
the UAE, expansion of fibre network within the countries of Maroc 0.0 1%
Q3'21 Q2'22 Q3'22
Telecom Group and Pakistan as well as the expansion of mobile
(AED bn) Capex/Revenue (%)
networkscoveragein Egypt,PakistanandMoov Africa’smarkets.
In the UAE, capital expenditure during the quarter amounted to AED
0.6 billion, a 6% increase in comparison to the same period last year.
Capital intensity ratio was 7%, remaining stable versus the same Q3'22 CAPEX Breakdown by
OpCo
quarter of the prior year and 2 percentage point higher than the
second quarter of 2022. Capital spending focused on network
modernization andcapacity enhancementin addition to5Grollout. 3%
11%
Capital expenditures in e& international in the third quarter of 2022
34%
decreased by 52% to AED 1.0 billion compared to the same period 14%
last year and decreased by 26% compared to the previous quarter.
International operations represented 65% of the Group’s total capital
expenditure.
38%
In Maroc Telecom, capital expenditure for the third quarter
decreased in AED by 3% year over year and by 35% quarter over UAE Maroc Telecom Egypt Pakistan Others
quarter to AED 0.6 billion, resulting in a capital intensity ratio of 20%.
Capex spend in Morocco increased in local currency by 8% year over
20%
year and was focused on the fibre-to-the-home (FTTH) network,
UAE CAPEX
1000.0
enhancing capacity and 4G coverage expansion. In Moov Africa’s 18%
operations, capexspendincreasedyear over year by 15% with spend 16%
800.0
focusing on networks expansion and upgrades to support the growth
. 14%
in traffic and customer base and FTTH networks rollout to new 554.3
600.0 523.0 12%
countries.
399.6 10%
400.0 7% 7%
In Egypt, capital expenditure for the third quarter decreased by 31% 8%
5%
year over year to AED 0.2 billion resulting in a capital intensity ratio of 6%
200.0
17%, 7 percentage points lower than the same period of the prior
4%
year. Capital spending focused on 4G deployment post spectrum
0.0 2%
acquisition andupgradingofnetwork capacity. Q3'21 Q2'22 Q3'22
(AED m) Capex/Revenue (%)EarningsRelease - Third Quarter2022 13|Page
CAPEX (Continued…) Total Debt (AED bn)
39.7 40.1
In Pakistan, capital expenditure for the third quarter decreased by
40.5
86% year over year to AED 0.2 billion resulting in a capital intensity
35.5
ratio of 27%, 131 percentage points lower than the prior year due to
spectrum acquisition in Q3 2021. On a like-for-like basis, excluding 30.5
spectrum acquisition costs from prior year, capital expenditure 24.5
25.5
declined year over year by 11%. Capital spending focused on
expansion of the mobile network’s coverage, FTTH deployment and 20.5
enhancementofthefixednetwork’s capacity. 15.5
10.5
Q3'21 Q2'22 Q3'22
Debt
Total consolidated debt amounted AED 40.1 billion as of 30
Q3’22 Borrowings by
September 2022, as compared to AED 25.7 billion as at 31 December
Currency (%)
2021; an increase of AED 14.4 billion. This increase is mainly
attributed to bank borrowings to finance the investment in Vodafone
Group. 5%
8%
13%
Consolidated debt breakdown by operations as of 30 September
55%
2022isasfollowing:
19%
▪ Group (AED30.9billion)
▪ MarocTelecomGroup(AED5.9billion)
▪ PTCLGroup(AED2.0billion)
USD EURO Others MAD AED
▪ EtisalatEgypt(AED1.4billion)
Around 84% of the debt balance is of long-term maturity that is due
beyondthethirdquarterof2023.
Repayment Schedule
(AED bn)
Currency mix for external borrowings is 55% in USD, 19% in Euros,
8%inMAD,5%inAEDand13%inothercurrencies. 25.0 21.8
.
20.0
Consolidated cash balance amountedto AED 26.0 billion as of 30
September 2022 leading to a net debt position of AED 14.1 billion 15.0
andaNetDebt/EBITDAratioofonly0.53x
8.1
10.0 6.5
3.7
5.0
0.0
Within 1 1-2 Yrs 2-5 Yrs Beyond
Yr 5 YrsEarningsRelease - Third Quarter2022 14|Page
PerformanceAgainst Guidance FY2022
First 9-months 2022 performance exceeded full year management’s guidance in constant
currency across all key financial metrics. Guidance for the full year has been Improved.
e& revised FY 2022 guidance:
Revised
Original Guidance in Actual 9M 2022
Key Financial Actual 9M 2022
Guidance Constant (Constant
Metrics (Reported)
FY 2022 Currency FY Currency)
2022
Revenue
Low-to-mid
Low single digit
Growth
single-digit -1.1% +4.4%
growth
growth
(%)
EBITDA Margin
~ 49% 50%-51% 51.3% 51.3%
(%)
EPS
~ 1.08 ~1.12 0.84 0.84
(AED)
Capex/ Revenue
16.5% - 17.5% 14.5%-15.5% 12.9% 12.9%
(%)
.EarningsRelease - Third Quarter2022 15|Page
Key Financial Highlights
P&LStatement:
(AED m) Q3'21 Q2'22 Q3'22 QoQ YoY
Revenue 13,294 12,996 12,973 -0.2% -2.42%
EBITDA 6,741 6,644 6,714 +1.1% -0.40%
EBITDA Margin 50.7% 51.1% 51.8% +0.6 pp +1.0 pp
Federal Royalty (1,435) (1,450) (1,565) +7.9% +9.0%
Net Profit 2,436 2,431 2,484 +2.2% +1.9%
Net Profit Margin 18.3% 18.7% 19.1% +0.4 pp +0.8 pp
BalanceSheet:
December September
(AED m)
2021 2022
Cash & Bank Balances 28,575 26,024
Total Assets 128,197 130,604
Total Debt 25,732 40,140
Net Cash / (Debt) 2,843 (14,116)
Total Equity 57,564 48,373
CashflowStatement:
(AED m) 9M’ 2021 9M’ 2022
. Operating 10,795 8,711
Investing (4,034) (20,406)
Financing (13,930) 8,281
Net change in cash (7,168) (3,415)
Effect of FX rate changes 781 1,104
Others (41) (240)
Ending cash balance 24,917 26,024EarningsRelease - Third Quarter2022 16|Page
Foreign Exchange Rates
Average Rates Closing Rates
Q3’21 Q3’22 YOY Q3’21 Q3’22 YOY
EGP - Egyptian Pound 0.2338 0.1922 -17.78% 0.2336 0.1880 -19.51%
SAR - Saudi Riyal 0.9792 0.9772 -0.20% 0.9792 0.9750 -0.42%
CFA - Central African Franc 0.0066 0.0056 -15.01% 0.0065 0.0054 -17.01%
PKR - Pakistani Rupee 0.0223 0.0163 -27.02% 0.0215 0.0159 -26.15%
AFA - Afghanistan Afghani 0.0447 0.0409 -8.46% 0.0434 0.0413 -4.90%
MAD - Moroccan Dirham 0.4108 0.3497 -14.87% 0.4047 0.3316 -18.06%
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.Wealso use EBITDA
as an internal measurement tool and, accordingly, we believe that the presentation of EBITDA provides
usefulandrelevant 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 ameasure of financial performance underIFRS, 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
measurementcalculated and presentedin accordancewith IFRS.
(AED m) Q3'21 Q2'22 Q3'22
EBITDA 6,741 6,644 6,714
Depreciation & Amortization (1,999) (1,866) (1,830)
Exchange Gain/ (Loss) (112) (155) (127)
Share of Associates and JV’s results 78 89 127
Impairment and other losses (0) 0 (0)
Operating Profit before Royalty 4,708 4,712 4,885EarningsRelease - Third Quarter2022 17|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’sshareholding structure consists of 60% heldbytheEmirates InvestmentAuthorityand40%free
float.e&(Ticker:EAND)isquotedontheAbuDhabiSecuritiesExchange(ADX).
Investors
InvestorRelations
Email:ir@eand.com
Website:www.eand.com

Sentiment: positive