Etisalat by e& Records Strong Growth in Capex and Subscriber Base for Q3 2023

Etisalat by e&, one of the leading telecommunications providers in the Middle East and beyond, has released its results for the third quarter of 2023, showcasing robust growth in capital expenditures and its subscriber base.
e&During the third quarter of 2023, Etisalat by e& reported a significant increase in its capital expenditure (Capex), reaching AED 1.8 billion, representing an 11 percent growth, with a capital intensity ratio of 13 percent. Notably, international operations played a crucial role in the group’s financial performance, accounting for 80 percent of the total consolidated capital expenditure.

Maroc Telecom, a key subsidiary of Etisalat by e&, witnessed remarkable growth in its capital expenditure during the third quarter, increasing by 64 percent year over year to AED 1.0 billion. This resulted in a capital intensity ratio of 32 percent.

The capital spending in Morocco saw a year-over-year increase of 54 percent, while Moov Africa’s operations saw a growth of 58 percent. These investments were primarily directed toward expanding fiber-to-the-home (FTTH) and 4G mobile network coverage, as well as increasing network capacity to meet the rising demand for data services.

In Egypt, capital expenditure during the third quarter decreased by 35 percent year over year to AED 0.1 billion, resulting in a capital intensity ratio of 15 percent. This was primarily attributed to the focused investment in 4G deployment and network capacity upgrades.

On the other hand, capital expenditure in Pakistan saw a substantial increase of 49 percent year over year, amounting to AED 0.3 billion, with a capital intensity ratio of 42 percent. The increased capital spending in Pakistan aimed at expanding the FTTH network and enhancing both mobile and fixed network capacity.

The subscriber base for Etisalat by e& reached a historic high, totaling 167 million as of September 30, 2023. This translated to a net addition of 5.4 million subscribers over the past 12 months, mainly due to strong subscriber acquisition in key markets, including Egypt, Pakistan, UAE, Chad, Burkina Faso, Afghanistan, Togo, Niger, and Benin. In the third quarter alone, the subscriber base increased by 2.0 million subscribers.

Etisalat by e& reported an increase of 3 percent to AED 13.4 billion during the third quarter of 2023. This growth was fueled by both domestic and international operations. Etisalat by e& achieved a net profit after federal royalty of AED 3.0 billion, marking an impressive increase of 20 percent and achieving a net profit margin of 22 percent.

In a significant strategic move, e& announced the acquisition of a controlling stake of 51 percent in PPF Telecom’s assets in Bulgaria, Hungary, Serbia, and Slovakia, for €2,150 million, underlining e&’s commitment to expanding its presence in key markets.