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Earnings Report

Emirates Telecom Group Company (Etisalat Group)

Q1 26 BULLISH HIGH Impact

1. Company Overview & Earnings Context

Emirates Telecommunications Group (e&) reported its Q1 2026 results, showing strong revenue growth but a weaker profit performance, primarily impacted by non-recurring factors in the prior year.

2. Financial Performance Snapshot

  • Revenue: AED 19.4B (+15.1% YoY)

  • Operating profit: AED 5.83B (+15% YoY approx.)

  • Profit attributable to shareholders: AED 2.88B (−46.2% YoY)

  • Total profit for the period: AED 3.37B (vs AED 5.55B last year)

  • EPS: AED 0.33 (vs AED 0.62 YoY)

  • Operating margin: ~30% (stable given operating profit growth)

  • Effective tax + royalty rate: 40.1% (down from 42.8%)

  • Capex: AED 2.83B (increased YoY)

3. Operational Highlights & Key Metrics

  • e& UAE revenue: AED 8.78B

  • e& International revenue: AED 8.93B (largest segment)

  • Enterprise segment revenue: AED 0.77B

  • Total assets: AED 207.7B

  • Net assets / equity: AED 59.9B

  • Operating cash flow: AED 7.6B (strong generation)

  • Dividend approved: AED 0.47 per share

4. Key Performance Drivers

Revenue growth in Q1 2026 was driven by broad-based expansion across UAE and international operations, supported by strong telecom demand and growing digital segments. However, the sharp decline in net profit was largely due to high base effects from one-off gains in Q1 2025 (notably investment-related income), alongside higher royalty and tax charges and increased operating costs. Despite this, core operating profitability remained stable, as reflected in solid operating profit growth and strong cash flow generation.

5. Outlook & Forward Guidance

Management indicates a resilient outlook, with core operations continuing to perform steadily despite regional volatility. The group remains focused on geographic diversification, digital transformation, and non-telco revenue growth, while maintaining strong liquidity and capital position.

6. 🧾 Investor Takeaway

e& delivered strong underlying growth, but headline profit declined due to prior-year one-offs, masking stable core operating performance.