e& has announced its fiscal year 2022 financial results, demonstrating an exceptional boost in compact net profit by a record 7.4 percent to AED 10.0 billion. Consolidated revenues also saw a growth of 4.7 percent year-over-year, at stable exchange rates, amounting to AED 52.4 billion. This growth is attributed to the Group’s triumphant business conversion, which includes expansion into new business verticals and diversification of income streams.
Furthermore, the Board has proposed a dividend of AED 0.40 per share for H2 2022, meaning a total compensation of AED 0.80 per share for FY 2022. The strong profitability of e&’s operations is highlighted by the 3.7 percent increase in consolidated EBITDA, at a constant exchange rate, amounting to AED 26.2 billion, leading to an EBITDA margin of 50 percent.
e& reported a significant increase in its subscriber base in the UAE, with Etisalat recording 13.8 million subscribers, a rise of 8.8 percent as compared to the previous year. The Group’s overall subscriber count also increased by 2.5 percent over 2021, reaching 163 million.
In line with its commitment to creating value for its shareholders, e&’s Board of Directors has proposed a dividend of AED 0.40 per share for the second half of 2022 (July to December), amounting to a total dividend of AED 0.80 per share for FY 2022.
e&’s Pathbreaking Evolution as a Tech Group
The remarkable development that e& completed in 2022 highlights the success of its transformation into a global technology and acquisition group. The strategic shift was driven by the Group’s leadership, who recognized the need to adapt to changing market conditions and provide innovative digital solutions to its customers.
Leveraging its 47-year legacy of excellence, e& made significant strides in its transformational expedition by venturing into new business verticals, expanding its earnings creeks, and optimizing its operations. These efforts solidified e&’s position as a prominent global technology group, achieving growth and building resilience despite the challenges posed by the global macroeconomic environment.
In 2022, the Group solidified its partnerships regionally and globally to provide high-value solutions that cater to the changing needs of markets and communities, while also fostering digitally connected communities.
The robust financial results achieved by e& can be attributed to its focus on opening new growth prospects and revving its innovation journey, utilizing advanced technologies like 5G, artificial intelligence, and the Internet of Things. This strategic approach has placed the Group at the forefront of the digital age.
Operational Highlights of 2022 e&
In 2022, e& accomplished several operational highlights, including the acquisition of an 11% stake in Vodafone Group Plc (‘Vodafone’), which has now increased to 14% as of February 2023. Furthermore, e& was recognized as the most valuable portfolio of telecom brands in the MEA region by the Brand Finance Global 500 report.
e& also entered into several key partnerships, including signing a three-year Memorandum of Understanding (MoU) with Ericsson to build sustainable future networks and embarking on a new phase of collaboration with Microsoft to drive digital transformation and innovation. Additionally, the Group explored the potential of emerging technologies by partnering with Meta to enhance Augmented Reality (AR) and Virtual Reality (VR) experiences and drive informal trade in its digital communication assignments.
In addition, e& partnered with Abu Dhabi Digital Authority (ADDA) and Trend Micro to launch Cyber Eye, an initiative aimed at enhancing the cybersecurity capabilities of Abu Dhabi Government entities. e& continues to attract top talent and was ranked by Forbes as one of the best places to work in the MENA region. The Group concluded its fourth cohort of the AI Graduate Programme, welcoming the next generation of leaders.
To reinforce its commitment to sustainability, e& pledged to achieve net zero status for Scope 1 and 2 emissions in its operations within the UAE by 2030, aligning with the country’s Net Zero by 2050 Strategy. e& also became the first UAE-based private sector entity to join the UAE Independent Climate Change Accelerators and launched the FutureNow Sustainability Challenge, calling for scale-ups worldwide to collaborate in developing innovative sustainable solutions.
e& International: State-of-the-Art Innovations and Achievements
e& international achieved robust implementation across its markets, with double-digit year-over-year revenue growth in Egypt and Pakistan in local currency, resulting in increased market and value share. The company also improved its customer experience and attained the number-one NPS position in most of its markets.
To foster sustainable growth, e& launched the ‘e& Partner Networks’, which allows regional and local telecom operators to benefit from best-in-class services and customer experience. As part of the program, e& signed its first MOU with Tunisie Telecom to offer a full range of services across various functions.
In line with its transformational journey, e& international formed strategic partnerships with AIG, a leading insurer, to create a unique digital insurance offering in selected international markets, and with MoneyGram International, a global leader in digital peer-to-peer (P2P) payments, in the fintech space.
In 2022, e& international demonstrated strong performance across its global footprint, achieving double-digit year-over-year revenue growth in local currency in Egypt and Pakistan. The company also focused on improving its customer experience, resulting in achieving the top Net Promoter Score (NPS) position in most of its markets.
To support sustainable growth and best-in-class customer service, e& international launched the ‘e& Partner Networks’ program, which aims to collaborate with local and regional telecom operators. The first partnership under the program was established with Tunisie Telecom, providing a range of services across various functions.
e& international expanded its transformation journey by establishing a Center of Excellence for Advanced Analytics, which uses advanced Machine Learning and AI solutions to facilitate data-driven decision-making across multiple verticals.
Etisalat by E&: Pioneering new services for digital-savvy customers
In 2022, Etisalat by e& established itself as a leading innovator and fierce competitor by achieving several strategic milestones. Notably, it acquired elGrocer, which bolstered its Smiles online marketplace, and was recognized as the strongest telecom brand across all categories in the MEA region by the Brand Finance Global 500 report, as well as ranking in the top three globally.
The company launched Easy Insurance, a unique insurance platform providing digital services for auto, health, and travel insurance, and unveiled the all-in-one free voice and video calling app, GoChat Messenger.
In addition, Etisalat by e& partnered with Amazon to offer eero and Echo devices for the first time in the UAE and expanded its collaboration with Amazon Web Services (AWS) to meet the growing demand for digitalization and serve key industries.
Etisalat by e& achieved notable milestones in 2022 by launching innovative products and services to meet the evolving needs of its customers. The company partnered with industry-leading vendors to launch the first global live multi-vendors VoNR ecosystem and unveiled the ‘Business Pro’ proposition to cater to the digital requirements of businesses. Furthermore, it introduced upgraded and dedicated internet connectivity services, such as ‘Digital Internet’ and ‘Digital Premium Internet,’ to support the business community.
Etisalat by e& also accomplished several significant achievements in the connectivity space, including the first-ever private 5G network agreement in the region, enabling the delivery of the first-ever connected surveillance over 5G. Its connected car technology gained traction in the automotive industry, with the company signing new contracts with major players. These accomplishments reflect the company’s commitment to delivering top-of-the-line connectivity solutions and expanding its influence on new markets.
e& life: Strategic acquisitions to fuel growth
The entertainment arm of e& life, evision, successfully closed the acquisition of a 57% majority stake in STARZPLAY Arabia, a prominent subscription video on demand (SVOD) and streaming service provider in the Middle East and North Africa. The acquisition was made through a consortium led by evision in collaboration with ADQ, an investment and holding company headquartered in Abu Dhabi.
evision expanded its content offerings to cater to the diverse preferences of its customers, securing exclusive broadcasting rights for a range of popular events such as The Italian Serie A, Asian Cup, ICC T20 Cricket, DP World Asia Cup, and T20 World Cup, all of which will be broadcast on the CricLife MAX channel in the MENA region.
Furthermore, evision enhanced its content library by adding binge-worthy boxsets of various genres, including Anime, Korean, French, and Spanish content. Additionally, it launched a new trilingual South Indian movie channel, ‘Emasala Simply South,’ in partnership with Simply South, the largest online streaming platform.
e&Enterprise: Maximum Digital Potential
e& enterprise made significant strides in 2022, forging key partnerships and acquisitions that enhance its offerings and increase its influence in the region. The company partnered with G42 to establish Khazna Data Centers, the largest data center provider in the UAE and formed a joint venture with Bespin Global to create the largest cloud-managed and professional services provider in the METAP region. Additionally, e& enterprise acquired Smartworld, which will serve as its IoT and AI-focused arm.
The company also made major strides in AI, launching an Enterprise AI as a Service (AIaas) in collaboration with DataRobot to support government digital transformation initiatives. In partnership with Hub71, e& enterprise also launched the first AI Centre of Excellence (AI CoE) in the region, aimed at fostering partnerships and collaborations between businesses, governments, investors, and startups. These initiatives reflect e& enterprise’s commitment to delivering cutting-edge solutions to meet the evolving needs of its customers.
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