Emirates Telecommunications Group (e&) has revealed the company’s Capex, digital focus, revenue growth and 5G network roll outs during July-September 2022.
Emirates Telecom’s revenue declined 2 percent to AED 13 billion. Net profit of Emirates Telecom rose 2 percent to AED 2.5 billion in Q3 2022.
Emirates Telecom said operating expenses for the third quarter of 2022 was AED 8.0 billion, a decrease of 4 percent compared to the same quarter of the previous year and a decrease of 1 percent from the second quarter of 2022.
Network costs of Emirates Telecom decreased by 1 percent year over year to AED 0.7 billion in the third quarter of 2022 and increased by 7 percent quarter over quarter. As a percentage of revenue, network costs remained stable on both a year over year and quarter over quarter basis at 5 percent.
Emirates Telecom said subscribers stood at 162 million, recording the highest number of subscribers in the Group’s history, as at 30 September 2022. Emirates Telecom added 1.6 million customers during July-September 2022.
Emirates Telecom has added 6.2 million customers during the last 12-months, thanks to its strategy for acquiring subscribers. Emirates Telecom has added customers in Egypt, UAE, Mali, Burkina Faso, Ivory Coast, Chad, Benin and Pakistan.
“Our resilience to spearheading digital transformation journeys will be enhanced as we drive value from our core, build a stronger regional footprint leadership, grow our adjacencies organically and achieve exemplary results,” Hatem Dowidar, Group Chief Executive Officer of e&, said in its earnings report.
Emirates Telecom said it incurred AED 5.087 billion capital expenditure (Capex) during the nine month period ended 30 September 2022 against AED 5.425 billion in the nine month period ended 30 September 2021.
Capex in Q3
Emirates Telecom’s capital expenditure decreased by 41 percent to AED 1.6 billion in the third quarter of 2022 resulting in a capital intensity ratio of 12 percent.
Capital spending was driven by commitment to expand quality network. This includes the deployment of 5G network in the UAE, expansion of fiber network within the countries of Maroc Telecom Group and Pakistan as well as the expansion of mobile networks coverage in Egypt, Pakistan and Moov Africa’s markets.
In the UAE, capital expenditure touched AED 0.6 billion, a 6 percent increase. Capital intensity ratio was 7 percent. Capital spending focused on network modernization and capacity enhancement in addition to 5G rollout.
Capital expenditures in e& international dropped 52 percent to AED 1 billion against the same period last year and dipped 26 percent compared to the previous quarter. International operations represented 65 percent of the Group’s total capital expenditure.
In Maroc Telecom, capital expenditure decreased in AED by 3 percent year over year and by 35 percent quarter over quarter to AED 0.6 billion, resulting in a capital intensity ratio of 20 percent. Capex spend in Morocco increased by 8 percent and was focused on the fibre-to-the-home (FTTH) network, enhancing capacity and 4G coverage expansion. In Moov Africa’s operations, Capex spend increased by 15 percent with spend focusing on networks expansion and upgrades to support the growth in traffic and customer base and FTTH networks rollout to new countries.
In Egypt, capital expenditure decreased by 31 percent to AED 0.2 billion resulting in a capital intensity ratio of 17 percent, 7 percentage points lower than the same period of the prior year. Capital spending focused on 4G deployment post spectrum acquisition and upgrading of network capacity.
In Pakistan, capital expenditure decreased by 86 percent to AED 0.2 billion resulting in a capital intensity ratio of 27 percent. Capital spending focused on expansion of the mobile network’s coverage, FTTH deployment and enhancement of the fixed network’s capacity.