Emirates Telecom (e&) Achieves Drop in Q4 2023 Capex Spending

Emirates Telecommunications Group (e&) disclosed a notable decrease in its capital expenditure (Capex) for the fourth quarter of 2023, amounting to AED 2.5 billion, marking a 17 percent decline compared to the same period the previous year.
Capex of Emirates Telecom in 2023Throughout 2023, e& witnessed a 9 percent increase in Capex, reaching AED 7.3 billion.

In Q4 2023, e&’s achievement in the 16.8 percent reduction in capital expenditure, has resulted into a capital intensity ratio of 18 percent. This ratio denotes a 4.6 percentage point decrease compared to the corresponding quarter of the preceding year. The company emphasized its commitment to enhancing customer experience through network modernization and the deployment of cutting-edge technologies.

In the United Arab Emirates (UAE), capital expenditure for Q4 2023 totaled AED 1.1 billion, reflecting a 23.2 percent decrease compared to the same period in 2022. The capital intensity ratio in the UAE stood at 13 percent, showcasing a 4.9 percentage point reduction from the previous year’s fourth quarter.

Throughout FY 2023, Capex in the UAE reached AED 2.7 billion, down by 1.2 percent, with a capital intensity ratio of 8 percent. Investment in the UAE concentrated on 5G deployment to maintain the company’s position as a global leader in fixed and mobile networks.

International operations of e& experienced an 8.9 percent decrease in Capex in Q4 2023, amounting to AED 1.3 billion, representing 53 percent of the Group’s total capital expenditure. For the full year 2023, capital spending for international operations reached AED 4.5 billion, reporting a decline of 13.4 percent year-over-year.

Maroc Telecom, a subsidiary of e&, witnessed a 7.7 percent increase in capital expenditure during Q4 2023, reaching AED 0.8 billion. This resulted in a capital intensity ratio of 24 percent. Full-year 2023 Capex for Maroc Telecom amounted to AED 2.8 billion, with a capital intensity ratio of 22 percent.

The investment strategy across various regions focused on expanding fiber-to-the-home (FTTH) and 4G mobile network coverage, alongside enhancing network capacity to meet rising customer data demands.

In Egypt, capital expenditure for Q4 2023 decreased by 17.0 percent year-on-year to AED 0.2 billion, with a capital intensity ratio of 23 percent. This decline was attributed to focused spending on 4G deployment and network capacity upgrades. Conversely, in Pakistan, Q4 2023 capital expenditure surged by 38.4 percent year-on-year to AED 0.3 billion, emphasizing an expansion in FTTH networks and enhancements in mobile and fixed network capacities.

e& Achieves Record Revenue and Profit Growth in 2023

e& has announced its financial results for the fiscal year 2023, reporting impressive increases in both revenue and net profit. The telecommunications giant revealed a revenue of AED 53.8 billion, marking an 8.3 percent rise, while net profit surged to AED 10.3 billion, reflecting a 3 percent increase compared to the previous year.

The company’s EBITDA also saw a positive trend, climbing by 3.7 percent to AED 26.1 billion. This performance resulted in an EBITDA margin of 49 percent, showcasing the robust profitability of e&’s operations.

In terms of subscriber base, e& UAE recorded over 14 million subscribers, reflecting a 3 percent increase from the previous year. The aggregate subscribers across e& Group reached 169 million, marking a 4 percent increase compared to 2022.

Fourth Quarter Performance

In Q4 2023, e& reported revenue of AED 13.7 billion, indicating a 4.6 percent increase compared to the same period in the previous year. The full-year revenue reached AED 53.8 billion, representing a 2.5 percent increase, marking the highest revenue in the Group’s history.

In the UAE, fourth-quarter revenue grew by 5.5 percent to AED 8.0 billion, attributed to strong business activity and a positive macroeconomic environment. The mobile segment contributed to revenue growth with a 4.2 percent increase, while the fixed segment saw a slight increase of 0.1 percent. Revenue from other segments surged by 16.1 percent, driven by wholesale, visitor roaming, and handset revenues.

Revenue from e& international operations for the fourth quarter increased by 3.4 percent to AED 5.0 billion.

Maroc Telecom’s revenue in the fourth quarter amounted to AED 3.1 billion, reflecting a 9.0 percent increase attributed to better performance. In Egypt, revenue declined by 9.5 percent. In Pakistan, reported revenue decreased by 1.3 percent, driven by strong performances in fixed broadband, mobile data, and business solutions.

Baburajan Kizhakedath