UAE telecoms and technology company e&, formerly known as the Etisalat Group, is making waves in the industry with a 7 per cent jump in its first quarter net profit. The company reported a net profit of Dh2.3 billion ($630 million) for the three months ending in March, up from Dh2.1 billion in the same period last year.
This increase in profit can be attributed to the company’s growing number of subscribers, which reached 173 million, a 5 per cent increase from the previous year. In the UAE alone, the subscriber base grew by 4.5 per cent to 14.5 million. The mobile subscriber base also saw a significant increase of 5.3 per cent to 12.8 million subscribers, thanks to growth in both the prepaid and postpaid segments. Additionally, eLife subscriptions on the fixed platform increased by 5.1 per cent to 1.2 million subscribers.
Chairman Jassem Al Zaabi credited the company’s success to its efforts in forming new partnerships and deploying emerging technologies to drive next-generation digital connectivity. The company’s collaboration with partners in the Global Telco AI Alliance led to the development of telecom-specific Large Language Models to enhance customer service through advanced AI solutions.
Furthermore, e& committed to investing $6 billion between 2024 and 2026 in technological advancement, infrastructure development, and digital solutions to extend connectivity to communities across its markets. The company also became the first outside North America to deploy Microsoft’s Azure Operator Nexus and Azure Operator 5G Core solutions in the UAE.
CEO Hatem Dowidar expressed pride in the company’s evolution as a tech company that embraces the future, as reflected in its Q1 financial results. He emphasized the strategic choices made in diversifying the portfolio, fortifying the brand, and cementing partnerships to digitally empower the people and communities served by e&.
Looking ahead, e& is open to acquisitions or partnerships that will allow it to diversify its portfolio, expand locally and overseas, and increase its consumer base. Moody’s Investors Service projects that the company will lead revenue growth in the GCC telecoms sector this year, as companies focus on shoring up their assets in new international markets.
Overall, e&’s strong performance in the first quarter of 2024 is a testament to its commitment to innovation, strategic partnerships, and customer-centric approach. With a focus on leveraging emerging technologies and expanding its reach, the company is poised for continued success in the ever-evolving telecom and technology landscape.