Emirates Telecom Group Company (Etisalat Group)

1. Company Overview & Earnings Context

e& (Emirates Telecommunications Group) is one of the world's leading technology and telecommunications groups, serving customers across the Middle East, Asia, Africa and Europe through its telecom, digital and enterprise businesses. The Group continues to diversify its operations through strategic acquisitions, AI initiatives and digital transformation while maintaining a strong presence in its home market.

For H1 2026, e& delivered solid revenue and EBITDA growth despite regional challenges, supported by strong telecom operations and contributions from recently acquired businesses. While reported net profit declined due to the absence of significant one-off gains recorded last year, the Group highlighted that normalized earnings continued to grow and approved a higher interim dividend for shareholders.

2. Financial Performance Snapshot

• Revenue: AED 38.14 Billion

• Operating Profit: AED 12.28 Billion

• Profit Before Federal Royalty & Corporate Tax: AED 12.16 Billion

• Federal Royalty: AED 2.99 Billion

• Corporate Tax Expense: AED 1.71 Billion

• Profit from Continuing Operations: AED 7.46 Billion

• Net Profit Attributable to Shareholders: AED 6.00 Billion

• Earnings Per Share (EPS): AED 0.69

Compared with H1 2025:

• Revenue increased 11.6% to AED 38.14 billion.

• Operating profit increased 4.4% to AED 12.28 billion.

• Profit before federal royalty and corporate tax declined 27.0%.

• Profit attributable to shareholders declined 32.0% to AED 6.00 billion.

• Earnings per share declined from AED 1.01 to AED 0.69.

3. Operational Highlights & Key Metrics

• Total Assets: AED 200.87 Billion

• Total Equity: AED 63.56 Billion

• Net Assets: AED 63.56 Billion

• EBITDA: AED 17.7 Billion

• EBITDA Margin: 46.5%

• Telecom EBITDA Margin: 48.3%

• Aggregate Subscriber Base: 251.5 Million

• Operating Free Cash Flow (excluding licence & spectrum): AED 12.8 Billion

• CAPEX: AED 6.4 Billion

• CAPEX Intensity: 16.9%

• Interim Dividend: 47.5 fils per share (+10.5% YoY)

4. Key Performance Drivers

Revenue growth was driven by resilient telecom operations and the consolidation of recently acquired businesses, including SBB in Serbia, UPC Slovakia and Telenor Pakistan. EBITDA outpaced revenue growth due to an improved revenue mix and continued operational efficiencies. Reported net profit declined primarily because H1 2025 included significant one-off gains from the Khazna transaction and the Maroc Telecom settlement. Excluding these items, management noted that normalized net profit increased year over year. During the quarter, e& also strengthened its portfolio through AI initiatives, completed the sale of a stake in Careem Technologies, and finalized the divestment of its Vodafone holding.

5. Outlook & Forward Guidance

Management remains focused on delivering sustainable long-term growth through continued investment in digital infrastructure, artificial intelligence and international expansion. The Group expects its diversified operating model, disciplined capital allocation and portfolio optimisation strategy to support future growth, while the extension of the Federal Royalty regime through 2029 provides greater regulatory visibility for the telecommunications business.

6. Investor Takeaway

e& delivered another resilient half-year performance with double-digit revenue and EBITDA growth, expanding its global subscriber base to over 251 million while increasing its interim dividend. Although reported earnings were lower due to the absence of last year's exceptional gains, the Group continues to demonstrate strong operational momentum, healthy cash generation and a clear focus on long-term digital growth and shareholder value.