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Financial Results

Etisalat Group Reports a 6% increase in consolidated Net Profit for Q3 2020 to AED 2.4 billion

21 Oct 2020

Abu Dhabi, 21st October 2020: – Etisalat Group today announced its consolidated financial statement for the Q3 2020 ending 30th September 2020.

Q3 Financial Highlights and Key Developments

  • Aggregate subscriber base reached 149 million; representing Year over Year increase of 1%.
  • In Q3 2020, consolidated revenues reached AED 13.0 billion, while consolidated net profit after Federal Royalty amounted to AED 2.4 billion, an increase of 6% compared to same period last year.
  • In the third quarter, Consolidated EBITDA amounted to AED 6.9 billion, representing an increase of 2% year over year and resulting in EBITDA margin of 53%
  • Etisalat subscribers can now access 5G fixed networks for the first time from their homes in UAE
  • Etisalat partnered with Ericsson to connect to its charging system and 5G Business Support Systems (BSS) supporting new use cases including IoT, network slicing, AR and VR
  • Etisalat partnered with Smartworld to exclusively bring ‘Shahada’, a tamper proof digital certificate platform for all educational institutions in the region
  • Dubai International Financial Centre (DIFC) collaborated with Etisalat to deploy innovative technologies for an advanced telecom infrastructure, high speed internet and superior mobile connectivity
  • Etisalat partnered with Synamedia to launch Switch TV, a new direct-to-consumer (D2C) multi-screen service with both free and premium live TV channels, catch-up and on-demand
  • Digital Financial Services, a joint venture between Etisalat and Noor Bank announced eWallet’s utility bill payment services
  • Etisalat launched e-store, a free website builder part of the Business Edge portfolio for SMB customers to transform their businesses online

Hatem Dowidar, Acting CEO, Etisalat Group & CEO, Etisalat International

Etisalat performance in the third quarter exemplifies resilience in these uncertain times and is a testament to the vital role the network played in our customers’ lives, enabling businesses and the society to easily transition to the new normal.

Thanks to the advanced capabilities of our infrastructure, Etisalat will continue to capture new growth opportunities while remaining focused on addressing the increasing customers’ needs during the pandemic. We have sustained our efforts in realising our vision of ‘Driving the digital future to empower societies’ through these challenging times. The availability and access to the super-fast speeds on 5G fixed networks from homes is a testament to our efforts taken towards this direction.

“Etisalat will move ahead in its journey of transformation on an accelerated path showing agility by future-proofing its business against challenges and capitalising on opportunities. We will remain focused on our long-term goals while creating incremental business value. As a company, we will continue to digitally transform our business, focusing on innovation in our existing assets by building new capabilities that are digitally enabled and sustainable.

“I would like to thank the UAE leadership for their vision and support during this period, inspiring us to pursue our digital ambitions and face the new reality to meet the distinctive needs and expectations of the communities we serve. Etisalat also extends its appreciation to its loyal customers, partners and shareholders for their continued confidence during this period.”

Q3 – Subscribers

In the UAE, the subscriber base reached to 12.1 million, while Etisalat Group aggregate subscribers reached 149 million representing a year on year increase of 1%.

Q3 – Revenue & Net profit

Etisalat Group’s consolidated revenue for the third quarter of 2020 amounted to AED 13.0 billion, while Consolidated net profit after Federal Royalty amounted to AED 2.4 billion, representing an increase of 6% and resulting in a net profit margin of 18%.

Q3 - EBITDA

Consolidated EBITDA amounted to AED 6.9 billion, representing an increase of 2% year over year and resulting in EBITDA margin of 53%.