The UAE-based telecoms operator e&, formerly Etisalat Group, has reported a 17.5% year-on-year growth in its net profit to $891.4 million (AED 3.3 billion) for the third quarter, driven by solid revenue growth and a record rise in subscriber base.
e&'s net profit surged 20% year-on-year to $816.8 million (AED 3 billion) in the third quarter of 2023, the company said in a statement Wednesday.
The telecom operator's consolidated revenues jumped in the quarter by 3.3% year-on-year to $3.6 billion (AED 13.4 billion).
Earnings before interest, tax, depreciation, and amortization (EBITDA) soared 51% year-on-year to $1.9 billion (AED 6.9 billion) in the third quarter.
The company's subscriber base rose 4.7% year-on-year at the end of the quarter, reaching 14 million, while aggregate group subscribers were up 3.3% year-on-year to a record high of 167 million.
For the first nine months of the year, consolidated revenue rose 2% year-on-year to $10.9 billion (AED 40 billion), while net profit increased 5% year-on-year to $2.1 billion (AED 7.7 billion).
The mobile subscriber base increased by 4.6% year-on-year to 12.3 million, as prepaid and postpaid segments grew by 3.8% and 11.5%, respectively. The total broadband customer base remained unchanged at 1.3 million subscribers, according to the company.
In August, e& announced that it had agreed to acquire a controlling stake in Czech firm PPF Group’s telecom assets in Bulgaria, Hungary, Serbia, and Slovakia for $2.4 billion (€2.2 billion) to expand its global footprint.
According to e&, the deal with PPF Group is consistent with its strategic ambition to accelerate international growth and diversify into new geographies. It is also an opportunity to establish a strong presence and foster developments within the Central and East European region.
The deal is expected to close in or before the first quarter of 2024, subject to regulatory approvals, PPF said, adding that the transaction will likely be subject to the EU Foreign Subsidies Regulation review.
